BILL NUMBER: S9395

SPONSOR: KAVANAGH
 
TITLE OF BILL:

An act to amend the tax law and the administrative code of the city of
New York, in relation to expanding tax fraud acts to include certain
acts of fraud under title two of article four of the real property tax
law

 
PURPOSE:

This bill would make violations of program requirements of private prop-
erties developed under Title 2 of Article 4 of the Real Property Tax Law
eligible for criminal enforcement.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one amends Section 1801 of the NY Tax Law, which defines tax
fraud acts, to include private properties developed pursuant to any
section under Title Two of Article Four of the Real Property Tax Law.

              

Section two amends Section 11-4002 of the Administrative Code of the
City of New York, which defines tax fraud acts, to include private prop-
erties developed pursuant to any section under Title Two of Article Four
of the Real Property Tax Law.

Section three sets forth the effective date.

 
JUSTIFICATION:

This bill is intended to allow law enforcement authorities such as
district attorneys' offices to pursue acts of tax fraud for private
properties receiving property tax benefits under various provisions of
State law, including the longstanding 421-a Affordable Housing New York
program (Real Property Tax Law Article Four, Title 2, Section 421-a) and
the Affordable Neighborhoods for New Yorkers program (Real Property Tax
Law Article Four, Title 2, Section 485-x), enacted in 2024. Currently,
an owner receiving a tax exemption for a building through these programs
who fails to extend affordability on specified units under the program
or to register those units as rent stabilized cannot be held accountable
for committing fraud.  This bill builds on the enforcement that district
attorneys are already able to pursue for acts of tax fraud under the Tax
Law and expands such authority to cover fraud committed in contravention
of the Real Property Tax Law.

 
LEGISLATIVE HISTORY:

This is a new bill.

 
FISCAL IMPLICATIONS FOR THE STATE:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.