BILL NUMBER: S6804
SPONSOR: JACKSON
 
TITLE OF BILL:
An act to amend the tax law, in relation to the imposition of a commer-
cial vacancy tax
 
PURPOSE:
This bill will impose a tax on commercial storefronts that remain vacant
for a prolonged period of time.
 
SUMMARY OF PROVISIONS:
Section 1 amends the Tax Law by adding a new Article 30-C that creates a
commercial vacancy tax.
Section 1350, paragraph 1 provides the definition of "commercial store-
front."
Section 1350, paragraph 2(a) provides the definition of "vacant or aban-
doned."
Section 1350, paragraph 2(b) provides the circumstances under which a
commercial storefront is not vacant or abandoned.
Section 1351 provides that the commercial vacancy tax shall begin on
January 1, 2020, and apply to vacant commercial storefronts in a city
with a population of one million or more. The tax shall be 1% of the
assessed value of the property, which includes such vacant or abandoned
commercial storefront.
Section 1352, paragraph 1 provides that every taxpayer subject to this
tax shall, on or before the 15Th day of the 5th month following the
close of each of its taxable years, make and file a return with the
commissioner setting forth such information as the commissioner may
prescribe. Taxpayers that would cease to be subject to the tax would
make and file a return with the commissioner on the date of cessation or
at some other time the commissioner may require.
Section 1352, paragraph 2 provides that the tax shall be payable to the
commissioner in full at the time the return is required to be filed.
Section 1352, paragraph 3 provides that the commissioner may grant a
reasonable extension of time to file a return or for payment of the tax
under conditions deemed just and proper.
Section 1353 provides for the depositing and disposition of the tax
collected or received by the commissioner.
Section 1354 provides that the commissioner shall administer and enforce
the tax imposed, is authorized to make rules and regulations, and to
require such facts and information to be reported in order to enforce
the tax.
Section 2 is the effective date.
 
JUSTIFICATION:
Storefronts are an important aspect of defining the characteristics,
culture, and effervescence of a community. As rents continue to rise in
New York City, small mom and pop stores, and in some cases larger corpo-
rate retailers, find themselves grappling to afford increasing rents.
Without a deterrent to prevent empty storefronts, commercial landlords
often hold out for a prolonged period of time waiting for a new tenant
to sign a long-term lease at an exorbitant monthly rent. Consequently,
vacant storefronts are becoming all too common. Vacant storefronts are
nuances that deprive residents of goods and services in their communi-
ties.
This legislation requires that the landlord of any commercial store-
front, in a city with a population of one million or more, pay a tax of
196 of the assessed value of the commercial storefront where the store-
front has been vacant for 6 months or more.
 
LEGISLATIVE HISTORY:
2023-2024: S.339 - Referred to Investigations and Government
Operations/A .198 - Referred to Cities
2021-2022: S .2005 - Referred to Investigations and Government
Operations/A .670 - Referred to Cities
2019-2020: S .5166 - Referred to Investigations and Government
Operations/A .8231 - Referred to Cities
 
STATE AND LOCAL FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect immediately.