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FOR IMMEDIATE RELEASE
PR- 189-03
July 14, 2003

MAYOR MICHAEL R. BLOOMBERG SIGNS ABSENTEE LANDLORD LAW

Remarks by Mayor Bloomberg at a Public Hearing on Local Law

“The next bill before me is Introductory Number 474, sponsored at my request by Council Members Weprin, Fidler and Martinez.  This bill, which is authorized by a recent change in state law, creates a real property tax surcharge on class-one properties that generate rental income and are not the primary residence of the owner or of the parent or child of the owner.  The tax imposed is equal to 25% of the net real property taxes for fiscal years beginning on or after July 1, 2003.  ‘Net real property tax’ is defined as the real property tax assessed on class-one property after deduction for any exemption or abatement received pursuant to state or local law.  In effect, this surcharge is imposed on investment properties.  This legislation is necessary to close budget gaps in fiscal year 2004, and in subsequent fiscal years.

“Many landlords in New York City own small residential properties and offer them as rental properties in order to earn income.  Some of these properties are one-, two- and three-family homes that are classified as class-one residential properties.  These landlords do not reside at these properties and are, therefore, absentee landlords who benefit from the class one lower assessment rate, while other income-generating properties, such as rental apartments, are classified as class-two properties and are assessed at a higher rate.  Since these absentee landlords use these homes as investment properties and not as their primary residence, they do not contribute their fair share in real estate taxes.  Out of approximately 652,400 class-one homes an estimated 75,000 may not be owner occupied.  A surcharge levied on the taxes paid by these class-one owners is expected to yield an additional $44 million in revenue in 2004.”





CONTACT:

Edward Skyler / Jonathan Werbell   (212) 788-2958


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