What's happening
This bill allows New York City to impose an extra tax on high-value, non-primary residence properties, with exemptions for primary homes.
Why it matters
Targets Wealthy Non-Primary Residences. The bill specifically authorizes New York City to levy significant additional taxes on expensive homes that are not used as a primary residence, focusing on properties often held as investments or pieds-à-terre, not family homes.
Tiered Tax Rates for Different Property Types. The legislation allows the city to set different tax rates and thresholds based on property type—single-family homes, condos, and co-ops—with higher rates possible for condos and co-ops valued above $300,000, potentially reaching up to 13.5% on the assessed value above that threshold.
Protects Primary Residences and Certain Rentals. The law mandates broad exemptions for primary residences, homes owned by close family members, certain properties with lower appraised values, and units rented full-time to tenants using them as their main home, aiming to avoid penalizing ordinary homeowners and renters.
Local Flexibility and Enforcement. The city is given substantial discretion to design the tax structure, set exemption rules, establish verification requirements, and enforce compliance, potentially allowing for adaptation to shifting market conditions or policy goals over time.
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Who cares
Headline styles
Tax Luxury Second Homes
Plain English, a few words. Used as the page title.
Sponsors
24 Co-sponsors
- Jamaal Bailey
- Brian Benjamin
- Alessandra Biaggi
- John E. Brooks
- David Carlucci
- Jim Gaughran
- Michael Gianaris
- Andrew Gounardes
- Robert Jackson
- Anna Kaplan
- Brian Kavanagh
- Timothy M. Kennedy
- Liz Krueger
- John Liu
- Rachel May
- Jen Metzger
- Zellnor Myrie
- Jessica Ramos
- Gustavo Rivera
- Julia Salazar
- James Sanders Jr.
- Luis R. Sepúlveda
- José M. Serrano
- Toby Ann Stavisky
History
- Print number 44b
- Amend and recommit to cities
- Print number 44a
- Amend and recommit to cities
- 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 Non-Primary NYC Homes
In Assembly Committee · Real Property Taxation · Sponsor Deborah Glick
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
44--B
2019-2020 Regular Sessions
IN SENATE (Prefiled)
January 9, 2019
Introduced by Sens. HOYLMAN, BAILEY, BENJAMIN, BIAGGI, BROOKS, CARLUCCI, COMRIE, GAUGHRAN, GIANARIS, GOUNARDES, JACKSON, KAPLAN, KAVANAGH, KENNEDY, KRUEGER, LIU, MAY, METZGER, MYRIE, RAMOS, RIVERA, SALAZAR, SANDERS, SEPULVEDA, SERRANO, STAVISKY -- read twice and ordered printed, and when printed to be committed to the Committee on Cities -recommitted to the Committee on Cities in accordance with Senate Rule
6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
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 Assembly, 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. Notwithstanding 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 and dwelling units.
2. Definitions. As used in this section: (a) "Assessed value" means the determination made by the assessors of a city having a population of one million or more of the valuation of real property.
(b) "Assessed value attributable to a tenant-stockholder" means the proportion of the assessed value of real property owned by a cooperative apartment corporation, represented by a tenant-stockholder's share or
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04076-08-0
S. 44--B 2
shares of stock in such corporation as determined by its or their proportional relationship to the total outstanding stock of the corporation, including that owned by the corporation.
(c) "Commissioner of finance" means the commissioner of finance of a city having a population of one million or more, or his or her designee.
(d) "Department of finance" means the department of finance of a city having a population of one million or more.
(e) "Five-year average market value" shall mean the average monetary value of a property for the previous five years, using a comparable sale-based valuation method, as determined by the department of finance.
3. Additional tax. (a) A local law enacted pursuant to this section may provide for a tax as follows for fiscal years beginning on or after July first, two thousand twenty-one:
(i) For one, two or three family residences with a five-year average market value of five million dollars or higher, a tax of at least onehalf percent and no more than four percent on the excess market value above five million dollars.
(ii) For residential real property held in the condominium form of ownership with an assessed value of three hundred thousand dollars or higher, a tax of at least ten percent and no more than thirteen and one-half percent of the excess assessed value above three hundred thousand dollars.
(iii) For dwelling units in a property held in the cooperative form of ownership with an assessed value attributable to a tenant-stockholder of three hundred thousand dollars or higher, a tax of at least ten percent and no more than thirteen and one-half percent of the excess assessed value above three hundred thousand dollars. The additional taxes attributable to each tenant-stockholder shall be added by the cooperative apartment corporation to the amount of such taxes otherwise payable by or chargeable to such tenant-stockholder.
(b) Subject to the limitations established in paragraph (a) of this subdivision, any such local law may establish a graduated rate schedule for imposing such tax, at rates and excess value thresholds as the local legislative body determines appropriate.
(c) Except as otherwise provided in this section, such tax may be imposed, administered, collected and enforced by the commissioner of finance of such city by such means and in such manner as other taxes that are now imposed, administered, collected and enforced by such commissioner in accordance with the charter or administrative code of any such city or as otherwise may be provided by any such local law.
4. Exemptions. (a) A local law enacted pursuant to this section shall include an exemption from the additional tax imposed for residential properties or dwelling units that are: (i) the primary residence of at least one owner of the property or dwelling unit; (ii) the primary residence of a parent or child of at least one owner of the property or dwelling unit; (iii) held in the condominium or cooperative form of ownership with an assessed value or assessed value attributable to a tenant-stockholder of three hundred thousand dollars or higher, where the owner has within the prior three years obtained an appraisal report certified by a state certified real estate appraiser or authenticated by a state licensed real estate appraiser, as those terms are defined in section one hundred sixty-a of the executive law, showing that the residential property or dwelling unit has an appraised value of less than five million dollars; or (iv) rented on a full-time basis to a tenant or tenants for whom the property or dwelling unit is their primary residence.
S. 44--B 3
(b) Proof that a residential property or dwelling unit is eligible for an exemption provided in paragraph (a) of this subdivision shall be in such form as required by local law or the rules of the commissioner of finance.
(c) Any such local law may provide for exemptions from such tax in addition to those specified in this subdivision.
(d) In the event that a property granted an exemption from taxation pursuant to this section or local law ceases to be used in a manner making the property eligible for such exemption, the 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.
5. 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.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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 tax on certain high value non-primary residences' within the city.
Summary of specific provisions
Section 1 of the bill amends the Real Property Tax Law by adding a new section 307-b, authorizing cities with a population of one million or more to enact a local law imposing an additional tax on certain non-pri- mary residences.
Read the full memo (758 words)
*Sec. 307-b(1): authorizes the adoption of a local law by a city with a population of one million or more in accordance with the provisions of the rest of the section of law.
*Sec. 307-b(2): defines terms used throughout the section of law.
*Sec. 307-b(3): provides that a local law enacted pursuant to this section of law may tax:
-1, 2 or 3 family residences with a five-year average market value of $5 million or higher at a rate between 0.5% and 4.0% on the excess market value above $5 million.
-Condos or dwelling units in a co-op with an assessed value or an assessed value attributable to a tenant-stockholder, respectively, of $300,000 or higher at a rate between 10% and 13.5% on the excess assessed value or excess assessed value attributable to a tenant-stock- holder above $300,000.
The local law may establish a graduated rate schedule for imposing such a tax between the minimum and maximum rates established by this section of law. The tax will be imposed, administered, collected and enforced by the Commissioner of Finance by such means and in such manner as other taxes currently imposed, administered, collected and enforced, unless otherwise provided in the local law authorized by this section.
*Sec. 307-b(4): any local law adopted pursuant to this section of law must include exemptions from the additional tax for residential proper- ties or dwelling units that are the primary residence of the owner, the primary residence of a parent or child of the owner, a condo or co-op with an assessed value of $300,000 or more that has received a state- certified appraisal showing a market value of less than $5 million with- in the prior three years, or that is rented on a full-time basis to a tenant or tenants for whom the property or dwelling unit is their prima- ry residence. Proof of eligibility for one or more of the required exemptions shall be in such form as determined by the local law or the
Commissioner of Finance, and the local law may provide for additional exemptions.
*Sec. 307-b(5): authorizes the local Department of Finance of any city that adopts a tax authorized by this section of law to promulgate rules for carrying out the purposes of this section.
Section 2 of the bill is the effective date.
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 30t of the apartments are vacant at least 10 months a year. At the same time, low-income New York- ers 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. Mean- while, 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 hundreds of millions of dollar in tax revenue annually.
Prior legislative history
S.0069 of 2017-2018 (Hoylman): Died in Cities
A.3837 of 2017-2018 (Glick): Died in Real Property Taxation
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
To be determined.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.