"The next bill before me is Introductory Number 391, sponsored at the request of the Administration by Council Members Weprin and White.  Introductory Number 391 reduces the absentee landlord surcharge on certain class one properties to 0%.

"In 2003, the State Legislature authorized the City to enact by local law an 'absentee landlord surcharge.'  As the law is written, the surcharge would apply to class one properties that provide rental income, but are not the primary residences of owners, their parents or their children.  The law authorized an additional tax surcharge on such properties of up to 25% of real property taxes in the first year, rising up to 50% percent in the second and subsequent years.  In 2003, the City imposed the surcharge, but in 2004 delayed imposition of the surcharge until July 1, 2006.

"Introductory Number 391 decreases the absentee landlord surcharge from 25% to 0%, effective July 1, 2006.  With this legislation the Department of Finance will not be required to bill for the absentee landlord surcharge this year; however, if the will or fiscal need arises, the surcharge can be imposed at some point in the future.

"I would like to thank Department of Finance Commissioner Martha Stark and OMB Director Mark Page and their respective staffs for their work on this bill.  I would also like to thank the Council for their work on this bill."