What's happening
This bill imposes a "flip tax" on New York City residential property sold within two years of its last sale, with certain exemptions.
Why it matters
Targets real estate speculation and "flipping". by imposing steep taxes (15% if sold within one year, 10% if between one and two years) on residential properties in NYC sold within two years of their last sale, aiming to discourage rapid resale for profit and potentially slow price inflation.
Exempts significant groups and situations. such as sales to family members, cases of financial hardship, transfers following the property owner's death, and instances where the property is being sold as "new housing" (e.g., newly created residential units), addressing concerns about fairness and unintended consequences.
Directs new tax revenue to NYC’s general fund. , potentially increasing city resources for public services, infrastructure, or affordable housing initiatives, but not earmarked for any specific purpose.
Could impact housing market dynamics. , especially for investors and developers, by making quick resales far less attractive, which may stabilize neighborhoods but could also reduce liquidity and complicate some legitimate property transactions.
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Who cares
Headline styles
Tax on Quick Property Flips
Plain English, a few words. Used as the page title.
Sponsors
2 Co-sponsors
History
- Referred to cities
- Referred to cities
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.
Tax Quick Flip Property Sales
In Assembly Committee · Ways And Means · Sponsor Erik Dilan
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6488
2017-2018 Regular Sessions
IN SENATE
May 25, 2017
Introduced by Sen. HAMILTON -- read twice and ordered printed, and when printed to be committed to the Committee on Cities
AN ACT to amend the administrative code of the city of New York, in relation to a tax on the transfer of certain real property within three years of the prior transfer of such property
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 11-2101 of the administrative code of the city of New York is amended by adding four new subdivisions 19, 20, 21 and 22 to read as follows:
19. "Prior conveyance of the property." The most recent conveyance of the real property, whether conveyed on its own or as part of a larger conveyance.
20. "Family member." A person's child, spouse, domestic partner, parent, sibling, grandchild or grandparent, or the child or parent of a person's spouse or domestic partner.
21. "Principal place of residence." A person's permanent or primary home that the person occupies for more than a temporary or transitory purpose.
22. "New housing." A residential unit or units that did not exist at the time of the prior conveyance of the property to the extent that the property had no residential units at the time of the prior conveyance and at least one residential unit was subsequently added.
§ 2. The administrative code of the city of New York is amended by adding a new section 11-2120 to read as follows:
§ 11-2120 Imposition of flip tax. a. In addition to the tax imposed by section 11-2102 of this chapter, there is hereby imposed on each deed, instrument or transaction at the time of the transfer whereby any properties of one to five separate residential units are transferred by a grantor to a grantee, and such transfer is made within two years from
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09992-05-7
S. 6488 2
the prior conveyance of the property. The tax, which shall be paid by the grantor, shall be at the rate of:
(1) fifteen percent when the time since the prior conveyance of the property is less than one year; and
(2) ten percent when the time since the prior conveyance of the property is greater than or equal to one year but less than two years.
b. The tax defined in subdivision a of this section shall expire when the time since the prior conveyance of the property is two years.
c. All revenues resulting from the imposition of the tax under this section shall be paid into the treasury of the city and shall be credited to and deposited in the general fund of the city.
d. (1) The following persons shall be exempt from the payment of the tax imposed by this section:
(i) Property owners conveying property to a family member.
(ii) Property owners who can demonstrate a financial hardship which justifies a conveyance of property in less than or equal to two years.
(2) The following properties shall be exempt from the payment of the tax imposed by this section:
(i) Property which was conveyed within one year of the death of the property owner.
(ii) Property being sold as new housing.
(iii) Property which the consideration or value conveyed, which is otherwise subject to the tax imposed in this section, is less than or equal to the consideration or value of such property conveyed at the time of the prior conveyance of property.
(iv) Property which is otherwise exempt from payment of a real property transfer tax, as defined in this chapter.
§ 3. This act shall take effect on the ninetieth day after it shall have become a law and shall apply to conveyances occurring on or after such date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the administrative code of the city of New York, in relation to a tax on the transfer of certain real property within three years of the prior transfer of such property
Purpose or general idea of bill
Incorporate an additional 15% tax on properties sold within one year and 10% tax on properties sold after one year but less than two years after purchase in an effort deter property speculation and flipping in vulnerable neighborhoods.
Summary of specific provisions
Section 1 would amend the administration code of the city of New York by adding four new subdivisions, which defines the prior conveyance of property. Section 2 has a layout of the tax rate which will be imposed within the two year prior conveyance of the property. This section also lists the properties which will be exempt from the imposed tax. Section 3 enacts the effective date.
Justification
Imposing a "flip-tax" on the transfers of multi-unit residential buildings within two years of their acquisition is intended to discourage short-term real estate speculation.
As such, all residential properties sold within one year of conveyance would incur a 15% tax. If sold after one year, but less than two years from purchase, the penalty would be reduced to 10%.
To avoid undue harm to private homeowners, this bill would exempt transfers to family members and homeowners who can establish a reasonable financial hardship; or properties sold within one year of the death of the owner, sites which had no existing residential units, and properties exempt from payment of property tax.
Prior legislative history
None
Fiscal implications
None
Effective date
This act shall take effect on the ninetieth day after it shall have become a law and shall apply to conveyances occurring on or after such date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.