Bill Text: NY A06574 | 2021-2022 | General Assembly | Introduced
Bill Title: Establishes the COVID-19 community protection act of 2021; imposes a tax on the transfer of certain residential properties which are sold within two years of the prior conveyance of such property; exempts certain purchases of residential properties from mortgage recording taxes; imposes a tax on the transfer of certain properties in the city of New York which are sold for one million dollars or more.
Spectrum: Partisan Bill (Democrat 9-0)
Status: (Introduced - Dead) 2022-01-05 - referred to ways and means [A06574 Detail]
Download: New_York-2021-A06574-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 6574 2021-2022 Regular Sessions IN ASSEMBLY March 19, 2021 ___________ Introduced by M. of A. CRUZ -- read once and referred to the Committee on Ways and Means AN ACT to amend the administrative code of the city of New York and the tax law, in relation to the imposition of tax on the transfer of certain properties in the city of New York The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act shall be known and may be cited as the "COVID-19 2 community protection act of 2021". 3 § 2. The administrative code of the city of New York is amended by 4 adding a new section 11-2120 to read as follows: 5 § 11-2120 Residential real property sold within two years. a. In addi- 6 tion to the tax imposed by section 11-2102 of this chapter, there is 7 hereby imposed on each deed, instrument or transaction at the time of 8 transfer whereby any properties of one to three residential units are 9 transferred by a grantor to a grantee, and such transfer is made within 10 two years from the prior conveyance of the property, including but not 11 limited to transfers which are all cash transactions and transfers of 12 property which have been rented out during such time period. The tax 13 which shall be paid by the grantor shall be at the rate of: 14 (1) sixty-five percent of the difference between the current sales 15 price and the sales price of the prior conveyance when the time since 16 the prior conveyance of the property is less than one year; and 17 (2) fifty percent of the difference between the current sales price 18 and the sales price of the prior conveyance when the time since the 19 prior conveyance of the property is greater than or equal to one year 20 but less than two years. 21 b. The tax defined in subdivision a of this section shall expire when 22 the time since the prior conveyance of the property is two years. 23 c. (1) The following qualified persons shall be exempt from the 24 payment of the tax imposed by this section: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09896-02-1A. 6574 2 1 (i) Property owners conveying property to a family member. 2 (ii) Property owners who can demonstrate a financial hardship which 3 justifies a conveyance of property in less than or equal to two years. 4 (2) The following properties shall be exempt from the payment of the 5 tax imposed by this section: 6 (i) Property which was conveyed following the death of the property 7 owner. 8 (ii) Property being sold as new housing. 9 (iii) Property which the consideration or value conveyed, which is 10 otherwise subject to the tax imposed in this section, is less than or 11 equal to ten percent more than the consideration or value of such prop- 12 erty conveyed at the time of the prior conveyance of property. 13 (iv) Property which was conveyed to a mortgagee or an affiliate agent 14 thereof by a mortgagor be deed in lieu of foreclosure or in satisfaction 15 of the mortgage debt. 16 (v) Property which was conveyed to a mortgagee or an affiliate agent 17 thereof pursuant to a foreclosure sale that follows a default in the 18 satisfaction of an obligation that is secured by a mortgage. 19 (vi) Property which is otherwise exempt from payment of a real proper- 20 ty transfer tax pursuant to this chapter. 21 § 3. Section 252-a of the tax law is amended by adding a new subdivi- 22 sion 3 to read as follows: 23 3. Property acquisitions in the amount of seven hundred fifty thousand 24 dollars or less for one to three residential units, including one to 25 three family homes and condominiums, located within the city of New York 26 shall be exempt from any tax or fee imposed by this article; provided, 27 however, that this exemption shall not apply to legal entities. For the 28 purposes of this subdivision, the term "legal entities" shall mean busi- 29 ness trusts, estates, trusts, limited liability companies, limited 30 liability partnerships, limited liability investment companies, associ- 31 ations, joint ventures, business or nonprofit entities, public corpo- 32 rations, government or governmental subdivisions, agencies, instrumen- 33 talities, or other legal or commercial entities. 34 § 4. The administrative code of the city of New York is amended by 35 adding a new section 11-2121 to read as follows: 36 § 11-2121 Imposition of tax on certain properties. In addition to the 37 tax imposed by section 11-2102 of this chapter, there is hereby imposed 38 on each deed, instrument or transaction at the time of the transfer 39 whereby any properties of one to three residential units, including one 40 to three family homes, condominiums or cooperative units, are trans- 41 ferred by a grantor to a grantee for a sales price of one million 42 dollars or more. The tax, which shall be paid by the grantee, shall be 43 at the rate of one percent of the purchase price. 44 § 5. Severability. If any clause, sentence, paragraph, section or part 45 of this act shall be adjudged by any court of competent jurisdiction to 46 be invalid, such judgment shall not affect, impair or invalidate the 47 remainder thereof, but shall be confined in its operation to the clause, 48 sentence, paragraph, section or part thereof directly involved in the 49 controversy in which such judgment shall have been rendered. 50 § 6. This act shall take effect on the ninetieth day after it shall 51 have become a law.
