What's happening
Writing a plain-English summary… Track this bill to get it by email.
Why it matters
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Sponsors
History
- Referred to rules
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Imposes an additional tax surcharge on certain non-primary residence class one and class two properties in N.Y. city
In Assembly Committee · Real Property Taxation · Sponsor Deborah Glick
Full text
The text isn't available here yet. Check nysenate.gov.
Sponsor's 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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.