Bill Text: NY S01569 | 2023-2024 | General Assembly | Amended

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Bill Title: Establishes the end toxic home flipping act; 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 11-0)

Status: (Introduced) 2024-01-16 - PRINT NUMBER 1569A [S01569 Detail]

Download: New_York-2023-S01569-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         1569--A

                               2023-2024 Regular Sessions

                    IN SENATE

                                    January 12, 2023
                                       ___________

        Introduced by Sens. SALAZAR, BRISPORT, CLEARE, GIANARIS, GONZALEZ, HOYL-
          MAN-SIGAL, JACKSON, MYRIE, RAMOS, SANDERS, SEPULVEDA -- read twice and
          ordered  printed, and when printed to be committed to the Committee on
          Cities 1 -- recommitted to the Committee on  Cities  1  in  accordance
          with  Senate  Rule  6,  sec.  8 -- 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  the imposition of tax on the transfer of certain proper-
          ties 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 "end toxic
     2  home flipping act".
     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.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00494-03-4
        S. 1569--A                          2

     1    b.  The tax defined in subdivision a of this section shall expire when
     2  the time since the prior conveyance of the property is two years.
     3    c.  (1)  The  following  qualified  persons  shall  be exempt from the
     4  payment of the tax imposed by this section:
     5    (i) Property owners conveying property to a family member.
     6    (ii) Property owners who can demonstrate a  financial  hardship  which
     7  justifies a conveyance of property in less than or equal to two years.
     8    (2)  The  following properties shall be exempt from the payment of the
     9  tax imposed by this section:
    10    (i) Property which was conveyed following the death  of  the  property
    11  owner.
    12    (ii) Property being sold as new housing.
    13    (iii)  Property  which  the  consideration or value conveyed, which is
    14  otherwise subject to the tax imposed in this section, is  less  than  or
    15  equal  to ten percent more than the consideration or value of such prop-
    16  erty conveyed at the time of the prior conveyance of property.
    17    (iv) Property which was conveyed to a mortgagee or an affiliate  agent
    18  thereof by a mortgagor be deed in lieu of foreclosure or in satisfaction
    19  of the mortgage debt.
    20    (v)  Property  which was conveyed to a mortgagee or an affiliate agent
    21  thereof pursuant to a foreclosure sale that follows  a  default  in  the
    22  satisfaction of an obligation that is secured by a mortgage.
    23    (vi) Property which is otherwise exempt from payment of a real proper-
    24  ty transfer tax pursuant to this chapter.
    25    § 3. Severability. If any clause, sentence, paragraph, section or part
    26  of  this act shall be adjudged by any court of competent jurisdiction to
    27  be invalid, such judgment shall not affect,  impair  or  invalidate  the
    28  remainder thereof, but shall be confined in its operation to the clause,
    29  sentence,  paragraph,  section  or part thereof directly involved in the
    30  controversy in which such judgment shall have been rendered.
    31    § 4. This act shall take effect on the ninetieth day  after  it  shall
    32  have become a law.