N.Y. Tax Law § 1354: Administration of surcharge

* § 1354. Administration of surcharge. (a) The department of finance

shall add the surcharge authorized by this article to the statement of

account of a covered property. In the case of a residential cooperative

property, the department of finance shall add to the statement of

account of such residential cooperative property the sum of any

surcharges authorized by this article for each residential cooperative

dwelling unit in such residential cooperative property where such

dwelling unit: (1) has a phase one or phase two market value equal to,

or greater than, the threshold provided in section thirteen hundred

fifty of this article; and (2) does not serve as a primary residence.

Such surcharge shall be due and payable in the same manner as real

property taxes are due and payable pursuant to section fifteen hundred

nineteen-a of the New York city charter. The department of finance shall

administer and enforce this surcharge, to the greatest extent

practicable not inconsistent with this section, in the same manner used

to administer and enforce real property taxes, except that any

abatement, credit or exemption authorized by law shall not apply to such

surcharge.

(b) Notwithstanding subsection (a) of this section, any surcharge

imposed on a covered property in the fiscal year commencing on July

first, two thousand twenty-six, shall be due and payable on the same

date as the second semi-annual installment of real property taxes is

due, as described in section fifteen hundred nineteen-a of the charter

of the city of New York.

(c) Notwithstanding any provision of law to the contrary, where the

department of finance adds the sum of any surcharges authorized by this

article for a residential cooperative dwelling unit pursuant to

subdivision (a) of this section to the statement of account of a

residential cooperative property, each such surcharge shall be collected

by the cooperative corporation from the tenant-stockholder of such

cooperative corporation whose interest in each such residential

cooperative dwelling unit is represented by shares of stock in such

corporation.

(d) Notwithstanding any provision of law to the contrary, the

surcharge imposed on a covered property pursuant to this article shall

be separate and distinct from any other tax levied on real property. Any

revenue collected as a result of the imposition of this surcharge shall

not be included in the calculation of the tax levy for purposes of

determining class shares pursuant to article eighteen of the real

property tax law, shall not be subject to apportionment among classes of

real property, and shall not be considered when establishing tax rates

for any class of property. Such revenue shall be considered receipts

other than taxes on real property for the purposes of section fifteen

hundred fifteen of the New York city charter.

(e) The department of finance may promulgate any rules:

(1) necessary to implement this article, including, but not limited

to, rules:

(A) to address a change in ownership of a covered property or a

residential cooperative dwelling unit, or illness or death of an owner

of a covered property or residential cooperative dwelling unit;

(B) to authorize persons other than a covered owner to submit proof of

primary residency on behalf of a covered owner;

(C) relating to requirements for provision of notice of surcharge; or

(D) to establish when a sale of a residential condominium dwelling

unit, or a transfer of an economic interest in a residential cooperative

dwelling unit, has occurred for purposes of paragraph two of subdivision

(g) of section thirteen hundred fifty-one of this article.

(2) to establish penalties not exceeding fifty percent of the

surcharge imposed on a covered property by this article if, after notice

and a hearing, the department of finance determines that:

(A) any certification or documentation submitted to the department of

finance contains inaccurate or misleading information that: (i) is

material to the determination of the imposition of such surcharge,

including a determination relating to primary residence; and (ii) was

submitted negligently or in bad faith; or

(B) a covered property that is a residential condominium unit has been

divided into more than three units to avoid application of such

surcharge and the owner of such covered property has made such division

in bad faith.

(f) The department of finance may enforce and collect any penalty

imposed pursuant to the authority set forth in subsection (e) of this

section in the same manner as the department of finance enforces and

collects the surcharge authorized by this article.

(g) The commissioner of the department of finance may subpoena and

require the attendance of witnesses and the production of books, papers

and documents to secure information pertinent to the determination of

the surcharge, including a determination relating to primary residence.

* NB Repealed June 30, 2031