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

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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--E

                               2019-2020 Regular Sessions

                    IN SENATE

                                    February 1, 2019
                                       ___________

        Introduced  by Sens. SALAZAR, BIAGGI, JACKSON, SANDERS -- 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  -- 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 state 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 six new subdivisions 19, 20, 21, 22, 23 and 24
     5  to 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.  "Principal  place  of residence." A person's permanent or primary
    13  home that the person occupies for more than a  temporary  or  transitory
    14  purpose.
    15    22.  "New  housing." A residential unit or units that did not exist at
    16  the time of the prior conveyance of the property to the extent that  the

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04848-14-9
        S. 3060--E                          2

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

     1    (v) Property which was conveyed to a mortgagee or an  affiliate  agent
     2  thereof  pursuant  to  a  foreclosure sale that follows a default in the
     3  satisfaction of an obligation that is secured by a mortgage.
     4    (vi) Property which is otherwise exempt from payment of a real proper-
     5  ty transfer tax pursuant to this chapter.
     6    §  4.  This  act shall take effect on the ninetieth day after it shall
     7  have become a law and shall apply to conveyances occurring on  or  after
     8  such date.