New York Assembly Bill A00669

New York 2025-2026 Regular Session

• Introduced: 1/8/25
• Refer: 1/8/25
• Refer: 1/7/26

Caption

Imposes a commercial vacancy tax on vacant or abandoned commercial storefronts located in a city with a population of one million or more of one percent of the assessed value of the property.

Summary

This bill would create a new article in the New York Tax Law imposing a commercial vacancy tax on vacant or abandoned commercial storefronts located in a city with a population of one million or more, which in practice would apply to New York City. Beginning with taxable years on or after January 1, 2026, the tax would equal 1% of the assessed value of the property that contains the vacant or abandoned storefront. The bill defines when a storefront is considered vacant or abandoned, including being unoccupied and unsecured, boarded up, unsafe, in violation of multiple building code provisions, or unoccupied for more than six months. The bill also creates several exceptions so that a storefront would not be treated as vacant or abandoned if the owner has a valid permit and is completing work within a year, is actively seeking required approvals or licenses, or has the property ready for occupancy and actively marketed for sale or lease. Taxpayers would be required to file annual returns and pay the tax to the Department of Taxation and Finance, which would be authorized to adopt rules, collect information, and enforce the new tax. Revenue would be deposited under existing tax law provisions governing state tax receipts.

Impact

The bill would amend the Tax Law by adding a new Article 30-C, establishing a targeted state tax on owners of qualifying vacant commercial storefronts in the state’s largest city. It would create new compliance, filing, and enforcement obligations for affected property owners and give the commissioner authority to administer the tax, require reporting, and promulgate regulations. The measure would also channel collected revenue into existing state tax disposition accounts under section 171-a.

Sentiment

No committee transcript or vote record is provided, so there is no direct evidence of legislative debate or formal support/opposition in the available materials. Based on the bill’s sponsor list and subject matter, the measure appears to be framed as a policy response to commercial vacancy and storefront blight, suggesting support from members concerned with neighborhood vitality, small business corridors, and property maintenance. At the same time, the absence of recorded votes or hearing discussion means the overall sentiment cannot be measured from the supplied record.

Contention

The main likely points of contention are the tax’s scope, its application only to cities with populations of one million or more, and whether a 1% annual assessment-based tax is an appropriate tool to address vacancies. Property owners and landlord interests may object that the bill could penalize owners facing market conditions, permitting delays, or redevelopment timelines, while supporters are likely to argue that the exemptions are narrow enough to avoid taxing legitimate renovation or active marketing efforts. There may also be debate over whether vacancy taxation is best handled at the state level or through local regulation.