What's happening
This bill creates a one percent annual tax on vacant or abandoned commercial storefronts in New York City to discourage prolonged vacancies.
Why it matters
Targets prolonged commercial vacancies. by imposing the tax after six months of unoccupancy, addressing concerns about landlords holding out for higher rents and contributing to empty storefronts in neighborhoods.
Includes exemptions for good-faith efforts. property owners are not taxed if they are actively repairing, seeking permits, or genuinely offering the space for sale or lease, which aims to avoid penalizing owners facing legitimate hurdles.
Revenue use is flexible. , with collected funds deposited according to existing state procedures, potentially supporting various public needs without earmarking for a specific purpose.
Empowers enforcement and oversight. , giving the tax commissioner broad authority to set rules, demand information, and ensure compliance, which could impact how strictly and effectively the law is applied.
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Who cares
Headline styles
Tax Empty Storefronts
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to investigations and government operations
- Referred to investigations and government operations
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 Empty Storefronts
In Assembly Committee · Cities · Sponsor Linda Rosenthal
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5166
2019-2020 Regular Sessions
IN SENATE
April 12, 2019
Introduced by Sen. JACKSON -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the tax law, in relation to the imposition of a commercial vacancy tax
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The tax law is amended by adding a new article 30-C to read as follows:
ARTICLE 30-C
COMMERCIAL VACANCY TAX Section 1350. Definitions.
1351. Imposition of tax.
1352. Returns and payment of tax.
1353. Deposit and disposition of revenue.
1354. General powers of the commissioner.
§ 1350. Definitions. For purposes of this article the following terms shall have the following meanings:
1. "Commercial storefront" means area within a building that may be individually leased or rented for the purpose of carrying on or exercising any trade, business, profession, vocation or commercial activity.
2. (a) "Vacant or abandoned" means a commercial storefront which either (i) is unoccupied and unsecured; or (ii) is unoccupied and secured by boarding or other similar means; or (iii) is unoccupied and unsafe as defined in the building code of the municipality where such commercial storefront is located; or (iv) is unoccupied and has multiple code violations of the building code of the municipality where such commercial storefront is located; or (v) has been unoccupied for over six months.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11162-02-9
S. 5166 2
(b) Notwithstanding paragraph (a) of this subdivision, vacant or abandoned shall not include a commercial storefront where (i) there is a valid building permit for repair, rehabilitation, or construction of such commercial storefront and the owner completes the repair, rehabilitation, or construction within one year from the date the initial permit was issued, unless the owner establishes that additional time is necessary to complete the repair, rehabilitation, or construction of the commercial storefront in a manner promulgated by the commissioner; or
(ii) the owner or leaseholder has filed an application for, and is actively seeking to obtain, authorization, permits or a license required by state or local law permitting the lawful use and occupancy of the commercial storefront; or
(iii) such commercial storefront complies with all provisions of state and local law, is ready for occupancy, and the owner provides evidence satisfactory to the department that the commercial storefront is actively being offered for sale, lease, or rent. Satisfactory evidence shall include, but is not limited to, evidence that the owner has hired a real estate agent or other rental agent who advertises and promotes the commercial storefront for rent, lease or sale, or proof that such commercial storefront is offered for sale on the multiple listing service or any other comparable real estate listing service.
§ 1351. Imposition of tax. Notwithstanding any other provision of this chapter, or of any other law, for taxable years beginning on and after January first, two thousand twenty, an annual tax is hereby imposed on every taxpayer who is the owner of a vacant or abandoned commercial storefront located in a city with a population of one million or more equal to one percent of the assessed value of the property which includes such vacant or abandoned commercial storefront.
§ 1352. Returns and payment of tax. 1. Every taxpayer subject to tax under this section shall, on or before the fifteenth day of the fifth month following the close of each of its taxable years, make and file a return with the commissioner setting forth such information as the commissioner may prescribe. Every taxpayer which ceases to be subject to the tax imposed by this article shall make and file a return with the commissioner on the date of such cessation, or at such other time which the commissioner may require, covering each taxable year or period for which no return was theretofore filed, setting forth such information as the commissioner may require. Every taxpayer shall also file such other returns and furnish such other facts and information as the commissioner may require in the administration of this article.
2. The tax imposed by section thirteen hundred fifty-one of this article shall be payable to the commissioner in full at the time the return is required to be filed. Such tax imposed on any taxpayer which ceases to be subject to the tax imposed by this article shall be payable to the commissioner at the time the return is required to be filed and all other taxes of any such taxpayer, which pursuant to the provisions of this section would otherwise be payable subsequent to the time such return is required to be filed, shall nevertheless be payable at such time.
3. The commissioner may grant a reasonable extension of time for filing a return or for payment of a tax imposed by this article under such conditions as it deems just and proper.
§ 1353. Deposit and disposition of revenue. All taxes, interest and penalties collected or received by the commissioner under this article shall be deposited and disposed of pursuant to the provisions of section one hundred seventy-one-a of this chapter.
S. 5166 3
§ 1354. General powers of the commissioner. The commissioner shall have the power to administer and enforce the tax imposed by this article and the commissioner is authorized to make such rules and regulations, and to require such facts and information to be reported, as the commissioner may deem necessary to enforce the provisions of this article.
§ 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 tax law, in relation to the impo- sition of a commercial vacancy tax
Purpose
This bill will impose a tax on commercial storefronts that remain vacant for a prolonged period of time.
Summary of provisions
Section 1 amends the tax law by adding a new Article 30-C that creates a commercial vacancy tax.
Section 1350, paragraph 1 provides the definition of "commercial store- front."
Section 1350, paragraph 2(a) provides the definition of "vacant or aban- doned."
Section 1350, paragraph 2(b) provides the circumstances under which a commercial storefront is not vacant or abandoned.
Section 1351 provides that the commercial vacancy tax shall begin on January 1, 2020, and apply to vacant commercial storefronts in a city with a population of one million or more. The tax shall be 1% of the assessed value of the property, which includes such vacant or abandoned commercial storefront.
Section 1352, paragraph 1 provides that every taxpayer subject to this tax shall, on or before the 15th day of the 5th month following the close of each of its taxable years, make and file a return with the commissioner setting forth such information as the commissioner may prescribe. Taxpayers that would cease to be subject to the tax would make and file a return with the commissioner on the date of cessation or at some other time the commissioner may require.
Section 1352, paragraph 2 provides that the tax shall be payable to the commissioner in full at the time the return is required to be filed.
Section 1352, paragraph 3 provides that the commissioner may grant a reasonable extension of time to file a return or for payment of the tax under conditions deemed just and proper.
Section 1353 provides for the depositing and disposition of the tax collected or received by the commissioner.
Section 1354 provides that the commissioner shall administer and enforce the tax imposed, is authorized to make rules and regulations, and to require such facts and information to be reported in order to enforce the tax.
Section 2 is the effective date.
Justification
Storefronts are an important aspect of defining the characteristics, culture, and effervescence of a community. As rents continue to rise in New York City, small mom and pop stores, and in some cases larger corpo- rate retailers, find themselves grappling to afford increasing rents. Without a deterrent to prevent empty storefronts, commercial landlords often hold out for a prolonged period of time waiting for a new tenant to sign a long-term lease at an exorbitant monthly rent. Consequently, vacant storefronts are becoming all too common. Vacant storefronts are nuances that deprive residents of goods and services in their communi- ties.
This legislation requires that the landlord of any commercial store- front, in a city with a population of one million or more, pay a tax of 1% of the assessed value of the commercial storefront where the store- front has been vacant for 6 months or more.
Legislative history
New bill.
State and local fiscal implications
To be determined.
Effective date
/his 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.