Resolution calling on the New York State Legislature to pass, and the Governor to sign, A.342/S.574, known as the end toxic home flipping act, to impose a tax on recently resold residential properties

Summary

This resolution urges the New York State Legislature to pass and the Governor to sign A.342/S.574, also known as the "End Toxic Home Flipping Act." This proposed state legislation aims to curb speculative home flipping by imposing a significant tax on residential properties (one-to-three units) resold within two years.

Key Provisions of A.342/S.574:

• Tax on Resales: A tax of 65% on financial gain for properties resold within one year, and 50% for properties resold between one and two years.
• Exemptions: The tax would not apply to conveyances between family members, sales by deceased owners, demonstrated hardships, or sales where the financial gain is 10% or less.

The resolution highlights that home flipping inflates home values, frustrates first-time homebuyers, contributes to the displacement of New Yorkers of color, and can lead to increased rents for tenants. It also notes that aggressive solicitation tactics by flippers can harm homeowners, particularly those facing foreclosure.

Citizen Impact

If passed by the state, this act could make it harder for investors to quickly resell homes for profit, potentially stabilizing housing prices and increasing opportunities for first-time homebuyers. It may also offer some protection to homeowners against predatory sales practices.

Confidence

high