Authorizes certain municipalities to impose a tax on certain high-value non-primary residences

◆ The sponsor's argument

Why Patricia Fahy says this is needed

Across New York, properties used intermittently or held for investment purposes are reducing the supply of housing available to full-time resi- dents and contributing to rising housing costs. At the same time, muni- cipalities face significant fiscal constraints and limited tools to respond to local housing challenges. This legislation provides a target- ed, flexible mechanism to address both concerns. By authorizing a local option tax on high-value non-primary residences, this bill can be tailored to local market conditions while avoiding impacts on typical homeowners and tenants. The inclusion of a flexible threshold range between $2.5 million and $5 million ensures that the tax can be calibrated to reflect regional housing markets, while maintaining a focus on higher-value properties. This bill addresses a narrow but significant distortion in certain hous- ing markets, where high-value homes are removed from productive residen- tial use. It gives local governments a targeted tool to respond, while generating revenue to support broader community needs. The revenue- sharing provision ensures that benefits are felt both locally and state- wide, supporting municipal services while contributing to broader state aid for local governments.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.