Bill Text: NY S03060 | 2019-2020 | General Assembly | Amended

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 6-0)

Status: (Introduced - Dead) 2020-01-08 - REFERRED TO CITIES [S03060 Detail]

Download: New_York-2019-S03060-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                         3060--D
                               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  --  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.   Short title. This act shall be known and may be cited as
     2  the "New York city 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 five new subdivisions 19, 20, 21, 22 and 23 to
     5  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.  "New  housing." A residential unit or units that did not exist at
    13  the time of the prior conveyance of the property to the extent that  the
    14  property  had  no  residential units at the time of the prior conveyance
    15  and at least one residential unit was subsequently added.
    16    22. "Qualified persons." Qualified persons, as used in  this  chapter,
    17  shall  not  include  business trusts, estates, trusts, limited liability
    18  companies, limited liability partnerships, limited liability  investment
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04848-11-9
        S. 3060--D                          2
     1  companies, associations, joint ventures, business or nonprofit entities,
     2  public  corporations, government or governmental subdivisions, agencies,
     3  instrumentalities, or other legal or commercial entities.
     4    23. "Mortgagee." The holder of a mortgage and/or note secured by resi-
     5  dential  real  property,  including,  as applicable, the original lender
     6  under a mortgage, its successors and assigns, and the holders of  credit
     7  instruments  issued  under  a trust indenture, mortgage or deed of trust
     8  pursuant to which such holders act by and through a trustee named in  or
     9  on such credit instrument.
    10    §  3.  The  administrative  code of the city of New York is amended by
    11  adding a new section 11-2120 to read as follows:
    12    § 11-2120 Imposition of flip tax. a. In addition to the tax imposed by
    13  section 11-2102 of this chapter, there is hereby imposed on  each  deed,
    14  instrument  or transaction at the time of the transfer whereby any prop-
    15  erties of one to five separate residential units are  transferred  by  a
    16  grantor  to  a  grantee, and such transfer is made within two years from
    17  the prior conveyance of the  property,  including  but  not  limited  to
    18  transfers  which  are  all  cash  transactions and transfers of property
    19  which has been rented out during such two-year period.   The tax,  which
    20  shall be paid by the grantor, shall be at the rate of:
    21    (1)  twenty  percent  when  the time since the prior conveyance of the
    22  property is less than one year; and
    23    (2) fifteen percent when the time since the prior  conveyance  of  the
    24  property is greater than or equal to one year but less than two years.
    25    b.  The tax defined in subdivision a of this section shall expire when
    26  the time since the prior conveyance of the property is two years.
    27    c. All revenues resulting from the imposition of the  tax  under  this
    28  section shall be deposited into a special account by the commissioner of
    29  finance.  Moneys  in  such account shall be used by New York state homes
    30  and community renewal through the affordable housing corporation and the
    31  neighborhood preservation program for  affordable  housing  purposes  in
    32  cities of one million or more.
    33    d.  (1)  The  following  qualified  persons  shall  be exempt from the
    34  payment of the tax imposed by this section:
    35    (i) Property owners conveying property to a family member.
    36    (ii) Property owners who can demonstrate a  financial  hardship  which
    37  justifies a conveyance of property in less than or equal to two years.
    38    (2)  The  following properties shall be exempt from the payment of the
    39  tax imposed by this section:
    40    (i) Property which was conveyed within one year of the  death  of  the
    41  property owner.
    42    (ii) Property being sold as new housing.
    43    (iii)  Property  which  the  consideration or value conveyed, which is
    44  otherwise subject to the tax imposed in this section, is  less  than  or
    45  equal  to  the  consideration  or value of such property conveyed at the
    46  time of the prior conveyance of property.
    47    (iv) Property which was conveyed to a mortgagee or an affiliate  agent
    48  of  such  mortgagee  by a mortgagor by deed in lieu of foreclosure or in
    49  satisfaction of the mortgage debt.
    50    (v) Property which was conveyed to a mortgagee or an affiliated  agent
    51  of  such mortgagee pursuant to a foreclosure sale that follows a default
    52  in the satisfaction of an obligation that is secured by a mortgage.
    53    (vi) Property which is otherwise exempt from payment of a real proper-
    54  ty transfer tax, as defined in this chapter.
        S. 3060--D                          3
     1    § 4. This act shall take effect on the ninetieth day  after  it  shall
     2  have  become  a law and shall apply to conveyances occurring on or after
     3  such date.