NY State Senate Bill 2013-S7941

Senate Bill S7941

2013-2014 Legislative Session

Imposes an additional tax surcharge on certain non-primary residence class one and class two properties in a city with a population of one million or more

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Archive: Last Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Sep 29, 2014	referred to rules

co-Sponsors

2013-S7941 (ACTIVE) - Details

See Assembly Version of this Bill:: A10192
Current Committee:: Senate Rules
Law Section:: Real Property Tax Law
Laws Affected:: Add §307-b, RPT L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S1053, A1641
2017-2018: S69, A3837
2019-2020: S44, A4540
2021-2022: S4199, A5736
2023-2024: A1814

2013-S7941 (ACTIVE) - Summary

Imposes an additional tax surcharge on certain non-primary residence class one and class two properties in a city with a population of one million or more.

2013-S7941 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S7941

TITLE OF BILL:  An act to amend the real property tax law, in relation
to imposing an additional tax on certain non-primary residence class
one and class two properties in a city with a population of one
million or more

PURPOSE OF BILL:

The purpose of this legislation is to allow New York City to
administer an additional graduated property tax on certain non-primary
residences within the city with a market value of $5 million or more.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends the Real Property Tax Law by adding a new section
307-b, authorizing the City of New York to enact a local law imposing
an additional property tax on certain non-primary residences with a
market value of $5 million or more.

The tax would apply to 1-3 family houses, condos, and co-ops that have
a market value of $5 million or more, and are not the primary
residence of the owner(s) of the property, or the primary residence of
the parent(s) or child(ren) of such owner(s).

For the purposes of this bill, "market value" is defined as a

comparable sales-based valuation method, a method currently used by
the NYC Department of Finance for determining the market value of
class one properties.

The property shall be deemed to be the primary residence of the
owner(s) if the property would otherwise be eligible to receive the
STAR property tax exemption, regardless of whether or not the owner(s)
applied for or are actually receiving the STAR exemption.  The NYC
Department of Finance is charged with promulgating any other rules
relating to the establishment and/or certification of primary
residency.

The tax would be administered as follows:

If the market value of the property is:              The tax is:

Over $5,000,000 but not over $6,000,000     $0 plus .5% of excess over
                                            $5,000,000

Over $6,000,000 but not over $10,000,000    $5,000 plus 1% of excess
                                            over $6,000,000

Over $10,000,000 but not over $15,000,000   $45,000 plus 1.5% of
excess
                                            over $10,000,000

Over $15,000,000 but not over $20,000,000   $120,000 plus 2% of excess
                                            over $15,000,000

Over $20,000,000 but not over $25,000,000   $220,000 plus 3% of excess


                                            over $20,000,000

Over $25,000,000                            $370,000 plus 4% of excess
                                            over $25,000,000

Section 2 states that this act shall take effect immediately.

JUSTIFICATION:

Out-of-state purchasers are increasingly buying up high-end properties
in New York City that they rarely, if ever, occupy. In one 42-square
block quadrant of Manhattan, bordered by 70th Street to the North,
Park Avenue to the East, 49th Street to the South, and Fifth Avenue to
the West, the U.S. Census Bureau estimates that 30% of the apartments
are vacant at least 10 months a year. At the same time, low-income New
Yorkers continue to face a critical shortage of affordable housing.

The vast majority of absentee owners of luxury properties don't live
and work in New York City, and therefore do not pay city incomes.
Meanwhile, they benefit from New York City's outdated property tax
laws, paying very low property taxes relative to the value of their
real estate. High-end real estate development is often the recipient
of lucrative taxpayer-funded subsidies, further reducing the tax
burden on the owners of the most expensive residential properties in
New York City.

By imposing a modest, graduated "pied-a-terre" tax on the most
expensive non-primary residences, New York City can generate over $650
million in tax revenue annually, according to estimates by the Fiscal
Policy Institute, while affecting less than 2% of the non-primary
residences citywide.

PRIOR LEGISLATIVE HISTORY:

None.

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

Immediately.

2013-S7941 (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7941

                            I N  S E N A T E

                           September 29, 2014
                               ___________

Introduced  by  Sen. HOYLMAN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the real property tax law, in relation  to  imposing  an
  additional  tax  on  certain non-primary residence class one and class
  two properties in a city with a population of one million or more

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  real  property  tax  law  is amended by adding a new
section 307-b to read as follows:
  S 307-B. ADDITIONAL TAX ON CERTAIN NON-PRIMARY RESIDENCE PROPERTIES IN
A CITY WITH A POPULATION OF ONE MILLION OR MORE. 1. GENERALLY.  NOTWITH-
STANDING  ANY  PROVISION  OF  ANY  GENERAL, SPECIFIC OR LOCAL LAW TO THE
CONTRARY, ANY CITY WITH A POPULATION OF ONE MILLION OR  MORE  IS  HEREBY
AUTHORIZED  AND  EMPOWERED  TO  ADOPT AND AMEND LOCAL LAWS IN ACCORDANCE
WITH THIS SECTION IMPOSING AN  ADDITIONAL  TAX  ON  CERTAIN  RESIDENTIAL
PROPERTIES.
  2. DEFINITIONS. AS USED IN THIS SECTION: (A) "COMMISSIONER OF FINANCE"
MEANS  THE  COMMISSIONER OF FINANCE OF A CITY HAVING A POPULATION OF ONE
MILLION OR MORE, OR HIS OR HER DESIGNEE.
  (B) "DEPARTMENT OF FINANCE" MEANS THE DEPARTMENT OF FINANCE OF A  CITY
HAVING A POPULATION OF ONE MILLION OR MORE.
  (C)  "MARKET VALUE" SHALL MEAN THE CURRENT MONETARY VALUE OF THE PROP-
ERTY, USING A COMPARABLE SALE-BASED VALUATION METHOD, AS  DETERMINED  BY
THE DEPARTMENT OF FINANCE.
  3.  ADDITIONAL TAX.   A LOCAL LAW ENACTED PURSUANT TO THIS SECTION MAY
PROVIDE FOR A REAL PROPERTY TAX IN ACCORDANCE WITH THE  FOLLOWING  TABLE
FOR FISCAL YEARS BEGINNING ON OR AFTER JULY FIRST, TWO THOUSAND FIFTEEN:

IF THE MARKET VALUE OF THE              THE TAX IS:
PROPERTY IS:
OVER $5,000,000 BUT NOT                 $0 PLUS .5% OF EXCESS
OVER $6,000,000                         OVER $5,000,000
OVER $6,000,000                         $5,000 PLUS 1% OF EXCESS
BUT NOT OVER $10,000,000                OVER $6,000,000

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD15799-02-4

S. 7941                             2

OVER $10,000,000 BUT NOT                $45,000 PLUS 1.5% OF EXCESS
OVER $15,000,000                        OVER $10,000,000
OVER $15,000,000 BUT NOT                $120,000 PLUS 2% OF EXCESS
OVER $20,000,000                        OVER $15,000,000
OVER $20,000,000 BUT NOT                $220,000 PLUS 3% OF EXCESS
OVER $25,000,000                        OVER $20,000,000
OVER $25,000,000                        $370,000 PLUS 4% OF EXCESS
                                        OVER $25,000,000

  4.  PROPERTY  SUBJECT TO ADDITIONAL TAX.  SUCH TAX SHALL BE IMPOSED ON
CLASS ONE PROPERTIES, AS  THAT  TERM  IS  DEFINED  IN  SECTION  EIGHTEEN
HUNDRED  TWO OF THIS CHAPTER, EXCLUDING VACANT LAND, AND ALL OTHER RESI-
DENTIAL REAL PROPERTY HELD IN CONDOMINIUM OR COOPERATIVE FORM OF  OWNER-
SHIP,  THAT  HAS A MARKET VALUE OF FIVE MILLION DOLLARS OR HIGHER AND IS
NOT THE PRIMARY RESIDENCE OF THE OWNER OR OWNERS OF  SUCH  PROPERTY,  OR
THE PRIMARY RESIDENCE OF THE PARENT OR CHILD OF SUCH OWNER OR OWNERS.
  5. PRIMARY RESIDENCE AND/OR RELATIONSHIP TO OWNER OR OWNERS. THE PROP-
ERTY  SHALL BE DEEMED TO BE THE PRIMARY RESIDENCE OF THE OWNER OR OWNERS
THEREOF, IF SUCH PROPERTY WOULD BE ELIGIBLE TO RECEIVE THE REAL PROPERTY
TAX EXEMPTION PURSUANT TO SECTION FOUR HUNDRED TWENTY-FIVE OF THIS CHAP-
TER, REGARDLESS OF WHETHER SUCH OWNER OR OWNERS HAVE FILED  AN  APPLICA-
TION  FOR, OR THE PROPERTY IS CURRENTLY RECEIVING SUCH EXEMPTION.  PROOF
OF PRIMARY RESIDENCE AND THE RESIDENT'S OR  RESIDENTS'  RELATIONSHIP  TO
THE  OWNER OR OWNERS SHALL BE IN THE FORM OF A CERTIFICATION AS REQUIRED
BY LOCAL LAW OR THE RULES OF THE COMMISSIONER.
  6. RULES. THE DEPARTMENT OF FINANCE OF ANY CITY ENACTING A  LOCAL  LAW
PURSUANT TO THIS SECTION SHALL HAVE, IN ADDITION TO ANY OTHER FUNCTIONS,
POWERS  AND DUTIES WHICH HAVE BEEN OR MAY BE CONFERRED ON IT BY LAW, THE
POWER TO MAKE AND PROMULGATE RULES TO CARRY OUT  THE  PURPOSES  OF  THIS
SECTION  INCLUDING,  BUT NOT LIMITED TO, RULES RELATING THE TIMING, FORM
AND MANNER OF ANY CERTIFICATION REQUIRED  TO  BE  SUBMITTED  UNDER  THIS
SECTION.
  7.  PENALTIES.  (A)  NOTWITHSTANDING  ANY  PROVISION  OF  ANY GENERAL,
SPECIAL OR LOCAL LAW TO THE  CONTRARY,  AN  OWNER  OR  OWNERS  SHALL  BE
PERSONALLY  LIABLE  FOR ANY TAXES OWED PURSUANT TO THIS SECTION WHENEVER
SUCH OWNER OR OWNERS FAIL TO COMPLY WITH THIS SECTION OR THE  LOCAL  LAW
OR  RULES  PROMULGATED  THEREUNDER,  OR  MAKES  SUCH FALSE OR MISLEADING
STATEMENT OR OMISSION AND THE COMMISSIONER DETERMINES THAT SUCH ACT  WAS
DUE  TO THE OWNER OR OWNERS' WILLFUL NEGLECT, OR THAT UNDER SUCH CIRCUM-
STANCES SUCH ACT CONSTITUTED A  FRAUD  ON  THE  DEPARTMENT.  THE  REMEDY
PROVIDED  HEREIN  FOR  AN ACTION IN PERSONAM SHALL BE IN ADDITION TO ANY
OTHER REMEDY OR PROCEDURE FOR THE ENFORCEMENT OF  COLLECTION  OF  DELIN-
QUENT TAXES PROVIDED BY ANY GENERAL, SPECIAL OR LOCAL LAW.
  (B)  IF THE COMMISSIONER SHOULD DETERMINE, WITHIN THREE YEARS FROM THE
FILING OF AN APPLICATION OR CERTIFICATION PURSUANT TO THIS SECTION, THAT
THERE WAS A MATERIAL MISSTATEMENT ON SUCH APPLICATION OR  CERTIFICATION,
HE  OR SHE SHALL PROCEED TO IMPOSE A PENALTY TAX AGAINST THE PROPERTY OF
TEN THOUSAND DOLLARS, IN ACCORDANCE WITH THE LOCAL LAW OR RULES  PROMUL-
GATED HEREUNDER.
  8. CESSATION OF USE. IN THE EVENT THAT A PROPERTY GRANTED AN EXEMPTION
FROM  TAXATION PURSUANT TO THIS SECTION CEASES TO BE USED AS THE PRIMARY
RESIDENCE OF SUCH OWNER OR OWNERS OR HIS, HER OR THEIR PARENT OR  CHILD,
SUCH  OWNER  OR  OWNERS SHALL SO NOTIFY THE COMMISSIONER OF FINANCE IN A
TIME, FORM AND MANNER AS SO REQUIRED BY LOCAL LAW OR THE  RULES  OF  THE
COMMISSIONER.
  S 2. This act shall take effect immediately.

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Senate Bill S7941

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Sponsored By

Brad Hoylman-Sigal

Archive: Last Bill Status - In Senate Committee Rules Committee

co-Sponsors

Adriano Espaillat

Timothy M. Kennedy

Liz Krueger

Bill Perkins

2013-S7941 (ACTIVE) - Details

2013-S7941 (ACTIVE) - Summary

2013-S7941 (ACTIVE) - Sponsor Memo

2013-S7941 (ACTIVE) - Bill Text download pdf

Comments