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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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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 17-0)

Status: (Introduced - Dead) 2020-01-08 - referred to ways and means [A05375 Detail]

Download: New_York-2019-A05375-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          5375
                               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
        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.  Section 11-2101 of the administrative code of the city of
     2  New York is amended by adding four new subdivisions 19, 20, 21 and 22 to
     3  read as follows:
     4    19. "Prior conveyance of the property." The most recent conveyance  of
     5  the  real  property,  whether conveyed on its own or as part of a larger
     6  conveyance.
     7    20. "Family member."  A  person's  child,  spouse,  domestic  partner,
     8  parent,  sibling, grandchild or grandparent, or the child or parent of a
     9  person's spouse or domestic partner.
    10    21. "Principal place of residence." A person's  permanent  or  primary
    11  home  that  the  person occupies for more than a temporary or transitory
    12  purpose.
    13    22. "New housing." A residential unit or units that did not  exist  at
    14  the  time of the prior conveyance of the property to the extent that the
    15  property had no residential units at the time of  the  prior  conveyance
    16  and at least one residential unit was subsequently added.
    17    §  2.  The  administrative  code of the city of New York is amended by
    18  adding a new section 11-2120 to read as follows:
    19    § 11-2120 Imposition of flip tax. a. In addition to the tax imposed by
    20  section 11-2102 of this chapter, there is hereby imposed on  each  deed,
    21  instrument  or transaction at the time of the transfer whereby any prop-
    22  erties of one to five separate residential units are  transferred  by  a
    23  grantor  to  a  grantee, and such transfer is made within two years from
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04848-02-9
        A. 5375                             2
     1  the prior conveyance of the property. The tax, which shall  be  paid  by
     2  the grantor, shall be at the rate of:
     3    (1)  fifteen  percent  when the time since the prior conveyance of the
     4  property is less than one year; and
     5    (2) ten percent when the time since the prior conveyance of the  prop-
     6  erty is greater than or equal to one year but less than two years.
     7    b.  The tax defined in subdivision a of this section shall expire when
     8  the time since the prior conveyance of the property is two years.
     9    c. All revenues resulting from the imposition of the  tax  under  this
    10  section shall be paid into the treasury of the city and shall be credit-
    11  ed to and deposited in the general fund of the city.
    12    d.  (1)  The following persons shall be exempt from the payment of the
    13  tax imposed by this section:
    14    (i) Property owners conveying property to a family member.
    15    (ii) Property owners who can demonstrate a  financial  hardship  which
    16  justifies a conveyance of property in less than or equal to two years.
    17    (2)  The  following properties shall be exempt from the payment of the
    18  tax imposed by this section:
    19    (i) Property which was conveyed within one year of the  death  of  the
    20  property owner.
    21    (ii) Property being sold as new housing.
    22    (iii)  Property  which  the  consideration or value conveyed, which is
    23  otherwise subject to the tax imposed in this section, is  less  than  or
    24  equal  to  the  consideration  or value of such property conveyed at the
    25  time of the prior conveyance of property.
    26    (iv) Property which is otherwise exempt from payment of a real proper-
    27  ty transfer tax, as defined in this chapter.
    28    § 3. This act shall take effect on the ninetieth day  after  it  shall
    29  have  become  a law and shall apply to conveyances occurring on or after
    30  such date.