Imposes an additional tax surcharge on certain non-primary residence class one and class two properties in a city with a population of one million or more.
Summary
This bill authorizes any city in New York with a population of one million or more, which in practice means New York City, to adopt local laws imposing an additional tax on certain high-value residential properties that are not used as a primary residence. The surcharge would apply to one-, two-, and three-family homes with a five-year average market value of at least $5 million, as well as condominium and cooperative units with assessed values of at least $300,000, subject to specified minimum and maximum tax rates and the option for a graduated rate schedule.
The bill also requires exemptions for properties that are the primary residence of an owner, an owner’s parent or child, certain condo/co-op units with a recent appraisal showing a value below $5 million, and properties rented full-time to tenants using them as their primary residence. Local laws adopted under the bill could add further exemptions, and the city’s finance department would be authorized to administer, collect, enforce, and promulgate rules for the tax. The measure would take effect immediately, but any tax authorized under it would apply to fiscal years beginning on or after July 1, 2026.
Impact
The bill would amend the Real Property Tax Law by adding a new section authorizing local option taxation of non-primary residence residential property in cities of one million or more residents. It would not itself impose the surcharge statewide, but would give the affected city legal authority to enact and administer the tax through local law, including setting rate tiers within statutory limits and defining proof requirements for exemptions. The practical impact would fall on owners of luxury second homes, high-value condos, and co-ops in New York City, while preserving exemptions for owner-occupied and long-term rental housing.
Sentiment
Based on the bill text and the absence of recorded committee discussion or votes, the measure appears to be framed as a targeted revenue and housing-policy proposal aimed at taxing high-value non-primary residences rather than ordinary homeowners. The sponsor list suggests support from members generally aligned with progressive housing and tax policy, and the bill’s structure indicates an effort to limit the burden to affluent property owners while protecting primary residences and long-term rentals. No contrary sentiment is documented in the provided materials.
Contention
The main points of contention are likely to be the tax burden on owners of second homes, luxury condos, and co-ops, and whether the thresholds and rates are set appropriately. Property owners and real estate interests may object that the surcharge could discourage investment or create valuation disputes, especially because the bill relies on a five-year average market value for some properties and assessed value for others. Supporters are likely to emphasize that the tax is narrowly targeted, excludes primary residences and full-time rentals, and is intended to address housing and revenue needs in New York City.
Imposes an additional tax surcharge on certain non-primary residence class one and class two properties in a city with a population of one million or more.