NY State Senate Bill 2017-S69

Senate Bill S69

2017-2018 Legislative Session

Imposes an additional tax surcharge on certain non-primary residence class one and class two properties in N.Y. city

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Archive: Last Bill Status - In Senate Committee Cities 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to cities
Jan 04, 2017	referred to cities

co-Sponsors

2017-S69 (ACTIVE) - Details

See Assembly Version of this Bill:: A3837
Current Committee:: Senate Cities
Law Section:: Real Property Tax Law
Laws Affected:: Add §307-b, RPT L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S7941, A10192
2015-2016: S1053, A1641
2019-2020: S44, A4540
2021-2022: S4199, A5736
2023-2024: A1814

2017-S69 (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.

2017-S69 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S69

 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:ÑThe tax is:

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

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

Over $10,000,000 but not over $15,000,000Ñ$45,000 plus 1.51 of excess
Ñover $10,000,000

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

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

Over $25,000,000Ñ$370,000 plus 4% of excess
Ñover $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 income taxes.
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 :

S.1053-A of 2015-2016 (Hoylman): Died in Local Government
A.1641-A of 2015-2016 (Glick): Died in Real Property Taxation
S.7941 of 2014 (Hoylman): Died in Rules
A.10192 of 2014 (Glick): Died in Rules

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
Immediately.

2017-S69 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    69
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2017
                                ___________
 
 Introduced by Sens. HOYLMAN, KENNEDY, KRUEGER, PERKINS -- read twice and
   ordered  printed, and when printed to be committed to the Committee on
   Cities
 
 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:
   § 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 EIGH-
 TEEN:

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

                                                            LBD03082-01-7

 S. 69                               2
 
 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
 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.

 S. 69                               3
 
   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.
   § 2. This act shall take effect immediately.

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Senate Bill S69

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Sponsored By

Brad Hoylman-Sigal