N.Y.C. Admin. Code § 11-3205: § 11-3205 Administration of surcharge.

(a) The department shall add the surcharge imposed pursuant to section 11-3202 of this chapter to the statement of account required pursuant to section 11-129 of this title of a covered property. In the case of a residential cooperative property, the department shall add to the statement of account of such property the sum of any surcharges authorized by this chapter 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 11-3202 of this chapter; and (2) does not serve as a primary residence. Any abatement, credit or exemption of the real property taxes owed by such covered property shall not apply to such surcharge.

(b) 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. Such surcharge and any penalties authorized pursuant to paragraph three of subdivision (b) of section 11-3203 of this chapter, and the interest imposed thereon in accordance with section 11-224.1 of this title, shall continue to be a lien on the covered property. Such lien shall be a tax lien within the meaning of sections 11-301, 11-319 and 11-401 of this title and may be sold, enforced or foreclosed in the manner provided in chapters three or four of this title or section 11-3208 of this chapter.

(c) The department shall administer and enforce this surcharge, to the greatest extent practicable not inconsistent with this chapter, in the same manner used to administer and enforce real property taxes. For purposes of section fifteen hundred four of the New York city charter, the term "real property taxes" shall include the surcharge imposed pursuant to section 11-3202 of this chapter. Notwithstanding the preceding sentences of this subdivision, section 11-207 of this title shall not apply to this surcharge and this surcharge shall not constitute a real property tax for the purposes of section fifteen hundred twenty-seven of such charter. For the purposes of the preparation, publication, addition or adjustment of the annual record of assessed valuation or assessment rolls, or any processes required by law to produce such rolls, the department shall only be required to publish information relating to phase two market values of covered properties in relation to this surcharge.

(d) The books of annual records of the phase one or phase two market value, as applicable, of covered property shall be opened to the public on the same dates and in the same manner as the books of the assessed valuation of real estate pursuant to section fifteen hundred ten of the New York city charter. For the fiscal year beginning July first, two thousand twenty-six, the books of annual records of the phase one market value shall be opened to the public not later than the date on which a notice of surcharge is issued to an owner of a covered property, or, in the case of a residential cooperative property, to a cooperative corporation, and remain open during the usual business hours for public inspection and examination until December thirty-first, two thousand twenty-six. The commissioner, previous to and during the time such books are open to public inspection, shall advertise such fact in the city record and in such other newspaper or newspapers published in the several boroughs as may be authorized by the director of the city record with the approval of the mayor and the comptroller. The provisions of this subdivision shall not affect any time frame in which the books of annual record are open for the purposes of inspection of annual valuation for the purposes of the assessment of real property taxes.

(e) Notwithstanding subdivision (b) 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.

(f) Notwithstanding any provision of law to the contrary, where the department adds the sum of any surcharges imposed pursuant to section 11-3202 of this chapter 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.

(g) Notwithstanding any provision of law to the contrary, the surcharge imposed on a covered property pursuant to section 11-3202 of this chapter shall be separate and distinct from any other tax levied on real property. Any revenue collected as a result of the imposition of such 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.

(h) Upon receipt of a notice of surcharge by a residential cooperative property, the cooperative corporation that holds such residential cooperative property shall provide such notice to the owners of the residential cooperative dwelling unit that is the subject of such notice as soon as practicable.

(i) The department may promulgate any rules:

(1) necessary to implement this chapter, including, but not limited to, rules: (i) 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; (ii) to authorize persons other than a covered owner to submit proof of primary residency on behalf of a covered owner; (iii) relating to requirements for provision of notice of surcharge, including rules designating such notice as the statement of account required pursuant to section 11-129 of this title, the assessment roll required pursuant to chapter fifty-eight of the New York city charter, or a combination including such statement and such roll; or (iv) 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 whether such residential condominium dwelling unit or residential cooperative dwelling constitutes excluded property.

(2) to establish penalties not exceeding fifty percent of the surcharge imposed on a covered property by this chapter if, after notice and a hearing, the department determines that:

(i) any certification or documentation submitted to the department contains inaccurate or misleading information that: (A) is material to the determination of the imposition of such surcharge, including a determination relating to primary residence; and (B) was submitted negligently or in bad faith; or

(ii) 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.

(j) The commissioner of the department 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.

(2026 N.Y. Laws Ch. 59, 5/28/2026, eff. 5/28/2026)