Bill Text: NY A02638 | 2023-2024 | General Assembly | Introduced
Bill Title: Imposes a tax on the transfer of certain real property within two years of the prior transfer of such property and provides for exemptions from such tax.
Spectrum: Partisan Bill (Democrat 10-0)
Status: (Introduced - Dead) 2024-01-03 - referred to ways and means [A02638 Detail]
Download: New_York-2023-A02638-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 2638 2023-2024 Regular Sessions IN ASSEMBLY January 26, 2023 ___________ Introduced by M. of A. DILAN, CRUZ, EPSTEIN, WALKER, REYES, GLICK, WILLIAMS, HYNDMAN -- Multi-Sponsored by -- M. of A. COOK, SIMON -- read once and referred to the Committee on Ways and Means 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 two years of the prior transfer of such property The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Short title. This act shall be known and may be cited as 2 the "New York state small home anti-speculation act". 3 § 2. Section 11-2101 of the administrative code of the city of New 4 York is amended by adding six new subdivisions 19, 20, 21, 22, 23 and 24 5 to read as follows: 6 19. "Prior conveyance of the property." The most recent conveyance of 7 the real property, whether conveyed on its own or as part of a larger 8 conveyance. 9 20. "Family member." A person's child, spouse, domestic partner, 10 parent, sibling, grandchild or grandparent, or the child or parent of a 11 person's spouse or domestic partner. 12 21. "Principal place of residence." A person's permanent or primary 13 home that the person occupies for more than a temporary or transitory 14 purpose. 15 22. "New housing." A residential unit or units that did not exist at 16 the time of the prior conveyance of the property to the extent that the 17 property had no residential units at the time of the prior conveyance 18 and at least one residential unit was subsequently added. 19 23. "Qualified persons." Qualified persons shall not include business 20 trusts, estates, trusts, limited liability companies, limited liability 21 partnerships, limited liability investment companies, associations, 22 joint ventures, business or nonprofit entities, public corporations, EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD03178-01-3A. 2638 2 1 government or governmental subdivisions, agencies, instrumentalities, or 2 other legal or commercial entities. 3 24. "Mortgagee." The holder of a mortgage and/or note secured by resi- 4 dential real property, including, as applicable, the original lender 5 under a mortgage, its successors and assigns, and the holders of credit 6 instruments issued under a trust indenture, mortgage or deed of trust 7 pursuant to which such holders act by and through a trustee therein 8 named. 9 § 3. The administrative code of the city of New York is amended by 10 adding a new section 11-2120 to read as follows: 11 § 11-2120 Imposition of speculation tax. a. In addition to the tax 12 imposed by section 11-2102 of this chapter, there is hereby imposed on 13 each deed, instrument or transaction at the time of the transfer whereby 14 any properties of one to five separate residential units are transferred 15 by a grantor to a grantee, and such transfer is made within two years 16 from the prior conveyance of the property, including but not limited to 17 transfers which are all cash transactions and transfers of property 18 which have been rented out during such two-year period. The tax, which 19 shall be paid by the grantor, shall be at the rate of: 20 (1) twenty percent when the time since the prior conveyance of the 21 property is less than one year; and 22 (2) fifteen percent when the time since the prior conveyance of the 23 property is greater than or equal to one year but less than two years. 24 b. The tax defined in subdivision a of this section shall expire when 25 the time since the prior conveyance of the property is two years. 26 c. All revenues resulting from the imposition of the tax under this 27 section shall be deposited into a special account by the commissioner of 28 finance. Moneys in such account shall be used by New York state homes 29 and community renewal through the affordable housing corporation and the 30 neighborhood preservation program for affordable housing purposes in 31 cities of one million or more. 32 d. (1) The following qualified persons shall be exempt from the 33 payment of the tax imposed by this section: 34 (i) Property owners conveying property to a family member. 35 (ii) Property owners who can demonstrate a financial hardship which 36 justifies a conveyance of property in less than or equal to two years. 37 (2) The following properties shall be exempt from the payment of the 38 tax imposed by this section: 39 (i) Property which was conveyed within one year of the death of the 40 property owner. 41 (ii) Property being sold as new housing. 42 (iii) Property which the consideration or value conveyed, which is 43 otherwise subject to the tax imposed in this section, is less than or 44 equal to the consideration or value of such property conveyed at the 45 time of the prior conveyance of property. 46 (iv) Property which was conveyed to a mortgagee or an affiliate agent 47 thereof by a mortgagor be deed in lieu of foreclosure or in satisfaction 48 of the mortgage debt. 49 (v) Property which was conveyed to a mortgagee or an affiliate agent 50 thereof pursuant to a foreclosure sale that follows a default in the 51 satisfaction of an obligation that is secured by a mortgage. 52 (vi) Property which is otherwise exempt from payment of a real proper- 53 ty transfer tax pursuant to this chapter. 54 § 4. This act shall take effect on the ninetieth day after it shall 55 have become a law and shall apply to conveyances occurring on or after 56 such date.
