What's happening
This bill imposes a 1% monthly fee on vacant commercial properties in New York cities with populations over one million.
Why it matters
Creates a financial penalty for property owners who leave commercial spaces empty for six months or more. , increasing the cost of holding vacant property and potentially incentivizing owners to find tenants or repurpose the space more quickly.
Targets only large urban areas (New York cities with over one million residents). , meaning the policy is focused on places like New York City, where high commercial vacancy rates can have outsized impacts on neighborhood vitality and city revenue.
Directs collected fees to the state’s general fund. , so revenue from the penalties could be used for general government operations or services, rather than being earmarked for specific local programs or reinvestment in affected neighborhoods.
Defines “commercial property” and “vacancy” clearly. , reducing ambiguity and making enforcement more straightforward, while also creating a predictable cost structure for property owners and investors in large cities.
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Who cares
Commercial property owners
Owners in cities with at least one million residents would owe the state 1% of assessed value every 30 days that their commercially zoned property remains vacant after six months of continuous vacancy.
City zoning and assessment officials
City commercial zoning designations would determine which properties are covered, and assessed values would determine the fees.
State fiscal officials
All revenue from the vacant commercial property fee would go into the state general fund.
Headline styles
Tax Vacant Storefronts
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
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 Vacant Storefronts
In Assembly Committee · Local Governments · Sponsor Linda Rosenthal
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5952
2019-2020 Regular Sessions
IN SENATE
May 16, 2019
Introduced by Sen. JACKSON -- read twice and ordered printed, and when printed to be committed to the Committee on Cities
AN ACT to amend the general municipal law, in relation to imposing a fee on vacant commercial properties in cities 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 general municipal law is amended by adding a new section 99-x to read as follows:
§ 99-x. Vacant commercial property fee. 1. As used in this section: (a) "Vacant property" means commercial property that has been continuously vacant for a period of six months or more.
(b) "Commercial property" means any property in a city with a population of one million or more that is zoned as commercial property by such city.
2. Notwithstanding any general, special or local law to the contrary, any owner of a vacant commercial property or properties in a city with a population of one million or more shall pay a fee to the state as prescribed in subdivision three of this section.
3. Such fee required by subdivision two of this section shall be at the rate of one percent of the assessed value of the vacant commercial property and shall be paid to the state every thirtieth day such commercial property remains vacant.
4. All fees received by the state pursuant to this section shall be paid into the general fund of the state.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08295-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the general municipal law, in relation to imposing a fee on vacant commercial properties in cities with a popu- lation of one million or more
Purpose or general idea of bill
This bill imposes a fee on vacant commercial property.
Summary of provisions
Section one amends the general municipal law by adding a new section 99-x.
Section two sets forth the effective date.
Justification
Storefronts are huge piece of what defines the ethos, vibrancy and char- acter of a community. All across New York City, both residential and commercial rents are on the rise. Small mom and pop shops, and increas- ingly even larger corporate retail operations, are struggling to afford the ever-increasing rents. As a result, the commercial vacancy rate in Manhattan has hit an all-time high currently estimated at about 20 percent. With no disincentive to keeping a storefront empty, commercial landlords often hold out for months waiting for a new tenant to sign a long term lease at an exorbitant monthly figure. These vacant storefront are a blight on the community, and deprive residents of access to goods and services in their neighborhood. Such action from landlords only further hastens the demise of local business, and harms the vibrancy of the community.
This legislation requires the owner of any commercially zoned property, in municipalities of 1 million or more, to pay a fee to the state of 1% of the assessed value of that lot every thirtieth day that that lot remains vacant, commencing after 6 months of continuous vacancy.
Legislative history
This is a new bill.
Fiscal implications for state and local governments
Undetermined.
Effective date
This act shall take effect immediately after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.