Bill Text: NY A05375 | 2019-2020 | General Assembly | Amended


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 9-0)

Status: (Introduced) 2019-05-08 - print number 5375a [A05375 Detail]

Download: New_York-2019-A05375-Amended.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                         5375--A
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 11, 2019
                                       ___________
        Introduced  by M. of A. DILAN -- read once and referred to the Committee
          on Ways and Means  --  committee  discharged,  bill  amended,  ordered
          reprinted as amended and recommitted to said committee
        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.
                                                                   LBD04848-13-9

        A. 5375--A                          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.
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