STATE OF NEW YORK
        ________________________________________________________________________
                                         3060--B
                               2019-2020 Regular Sessions
                    IN SENATE
                                    February 1, 2019
                                       ___________
        Introduced  by  Sen. SALAZAR -- read twice and ordered printed, and when
          printed to be committed  to  the  Committee  on  Cities  --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to  said  committee  --  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.  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-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04848-05-9

        S. 3060--B                          2
     1  erties of one to five separate residential units are  transferred  by  a
     2  grantor to a grantee and such transfer is made within two years from the
     3  prior conveyance of the property, including but not limited to transfers
     4  which are all cash transactions and transfers of property which has been
     5  rented  out  during  such two-year time period.  The tax, which shall be
     6  paid by the grantor, shall be at the rate of:
     7    (1) twenty percent when the time since the  prior  conveyance  of  the
     8  property is less than one year; and
     9    (2)  fifteen  percent  when the time since the prior conveyance of the
    10  property is greater than or equal to one year but less than two years.
    11    b. The tax imposed pursuant to subdivision a of this section shall not
    12  be incurred on any transfer which occurs more than two years  after  the
    13  prior conveyance of the property.
    14    c.  All  revenues  resulting from the imposition of the tax under this
    15  section shall be paid to the state comptroller and shall be  distributed
    16  to  the  division of housing and community renewal to be used to support
    17  neighborhood preservation companies in a city with a population  of  one
    18  million or more.
    19    d.  (1)  The following persons shall be exempt from the payment of the
    20  tax imposed by this section:
    21    (i) Property owners conveying property to a family member.
    22    (ii) Property owners who can demonstrate a  financial  hardship  which
    23  justifies a conveyance of property in less than or equal to two years.
    24    (2)  The  following properties shall be exempt from the payment of the
    25  tax imposed by this section:
    26    (i) Property which was conveyed within one year of the  death  of  the
    27  property owner.
    28    (ii) Property being sold as new housing.
    29    (iii)  Property  which  the  consideration or value conveyed, which is
    30  otherwise subject to the tax imposed in this section, is  less  than  or
    31  equal  to  the  consideration  or value of such property conveyed at the
    32  time of the prior conveyance of property.
    33    (iv) Property which is otherwise exempt from payment of a real proper-
    34  ty transfer tax, as defined in this chapter.
    35    § 3. This act shall take effect on the ninetieth day  after  it  shall
    36  have  become  a law and shall apply to conveyances occurring on or after
    37  such date.