§ 62-06 Primary Residency.
(a) Initial determination.
1. The department shall make, on an annual basis, an initial determination that a covered property, or, in the case of a covered property that is a residential cooperative property, a residential cooperative dwelling unit, that has a market value amount equal to or greater than the applicable phase one or phase two market value thresholds established in § 11-3202 of the Administrative Code, is not a primary residence.
2. Unless credible information in the possession of the department, including but not limited to information collected by the department in administering the abatement authorized pursuant to section 467-a of the real property tax law, indicates otherwise, the department will make a determination that a covered property, or, in the case of a covered property that is a residential cooperative property, a residential cooperative dwelling unit, is used as primary residence if:
(i) an individual that the department has identified as a covered owner indicated in their state or federal personal income tax return for the most recent income tax year for which data is sufficiently available to the department that such covered property, or, in the case of a covered property that is a residential cooperative property, such residential cooperative dwelling unit: (A) was such covered owner’s permanent home address; or (B) received a tax credit pursuant to subsection (eee) of section 606 of the tax law; or
(ii) an individual that the department has identified as a covered owner received a tax exemption pursuant to sections 425, 458, 458-a, 458-b, 459-c, 462 or 467 of the real property tax law for such covered property for the fiscal year beginning immediately prior to the date of transmission of a notice of determination pursuant to paragraph (4) of this subdivision.
3. For purposes of a surcharge imposed in a fiscal year beginning on or after July 1, 2027, if the department does not make an initial determination that a property is a primary residence pursuant to paragraph (2) of this subdivision, the department may make a determination whether a property is a primary residence using other information available to such department, and based on factors including whether:
(i) a covered owner occupied such covered property or residential cooperative dwelling unit for a majority of days during the immediately prior calendar year; and
(ii) a covered owner indicated that such covered property or residential cooperative dwelling unit is such covered owner’s permanent residence in other documents previously submitted to the city.
4. The department shall transmit notice of such determination of primary residence to each owner of a covered property, or, in the case of a covered property that is a residential cooperative property, a residential cooperative dwelling unit, in writing no later than February 15 of each year, provided that for the fiscal year beginning on July 1, 2026, such notice shall be transmitted no later than August 30, 2026. Such notice shall include information regarding the manner in which an owner may appeal such initial determination pursuant to subdivision (b) of this section. Such notice will include the surcharge amount based on the phase one or phase two market value of the covered property, as applicable. The department may provide such notice electronically if the department has an email address for an owner of a covered property in records of the department and determines that communicating such notice by email would be practical and feasible, provided that for the fiscal year beginning on July 1, 2026, the department will provide such notice via mail. Failure by the department to provide this notice shall not affect the validity of the imposition of the surcharge authorized by Chapter 32 of Title 11 of the Administrative Code.
(b) Appeal.
1. An owner of a covered property, or, in the case of a covered property that is a residential cooperative property, a residential cooperative dwelling unit, or a duly authorized person may file an appeal of any initial determination made pursuant to subdivision (a) of this section no later than 30 days after the date that notice of such initial determination is transmitted pursuant to paragraph (4) of such subdivision, or if no such notice is transmitted by DOF, no later than 30 days after such surcharge appears on the assessment roll, provided, however, that in the fiscal year beginning on July 1, 2026, such owner or duly authorized person may file an appeal of such initial determination no later than: (i) September 18, 2026; or (ii) a date selected by the commissioner of finance, where good cause is shown, whichever is later. Such owner must file such appeal in writing through an electronic portal designated by the department, or may file such appeal in person at a location designated by commissioner. Such appeal must include a certification that such property or dwelling unit is used as a primary residence and one or more of the following:
(i) proof that such covered property or dwelling unit is the primary residence of a covered owner pursuant to subparagraph (i) of paragraph (2) of this subdivision, provided that with respect to a beneficiary of a trust who is a covered owner pursuant to paragraph (iv), or a partner, shareholder or member who is a covered owner pursuant to paragraph (v), of the definition of covered owner in § 11-3201 of the Administrative Code, such appeal must also include proof set forth in subparagraph (iv) or (v) of paragraph (2) of this subdivision, as applicable;
(ii) proof that such covered property or dwelling unit is the primary residence of an individual pursuant to subparagraph (i) of paragraph (2) this subdivision and proof that such individual is the immediate family member of a covered owner pursuant to subparagraph (ii) of such paragraph, provided that with respect to a beneficiary of a trust who is a covered owner pursuant to paragraph (iv) or a partner, shareholder or member who is a covered owner pursuant to paragraph (v) of the definition of covered owner in § 11-3201 of the Administrative Code, such appeal must also include proof set forth in subparagraph (iv) or (v) of paragraph (2) of this subdivision, as applicable; or
(iii) proof that such covered property or dwelling unit is the primary residence of an individual pursuant to subparagraph (i) of paragraph (2) of this subdivision and proof that such individual is a lessee or sub-lessee of such property or dwelling unit pursuant to subparagraph (iii) of such paragraph.
2. (i) Unless credible information in the possession of the department indicates otherwise, proof of the primary residence of a person who is a covered owner, an immediate family member of a covered owner, a lessee or a sub-lessee includes documents establishing the location of such person’s home, including:
(A) proof that a covered property or residential cooperative dwelling unit was listed as the permanent home address of such person on such person’s most recently filed state or federal personal income tax return as of the date the appeal is filed; or
(B) two or more of the following documents, provided that any such documents indicate residency at a covered property on or prior to the taxable status date:
(I) a photo-copy of the front and back of an unexpired New York state department of motor vehicles driver’s license, learner’s permit or non-driver identification card or other record or United States department of state issued driver’s license or non-driver identification card indicating that the covered property or residential cooperative dwelling unit is such person’s residence;
(II) a voter identification card issued by the New York city board of elections; or
(III) other proof of primary residency, including proof of occupancy for the 12-month period prior to the applicable taxable status date, that is determined to be acceptable by the department.
(ii) Unless credible information in the possession of the department indicates otherwise, proof that an individual is an immediate family member of a covered owner includes one or more of the following:
(A) one or more birth certificates indicating that such individual is an immediate family member of such covered owner;
(B) affidavits from both such covered owner and such individual indicating that such persons are immediate family members; or
(C) a marriage certificate.
(iii) Unless credible information in the possession of the department indicates otherwise, proof that that an individual is a lessee or sub-lessee of a covered property or residential cooperative dwelling unit includes:
(A) an unexpired lease or sub-lease for one or more units within such covered property or dwelling unit that is entered into through an arm’s length transaction and at least one additional rental document; or
(B) for a month-to-month lessee or sublessee, an affidavit from both the property owner and the lessee or sublessee confirming such lease or sublessee arrangement has been entered into through an arm’s length transaction and two or more additional rental documents.
(iv) Unless credible information in the possession of the department indicates otherwise, proof that that an individual is a partner, member, or shareholder of a partnership, limited liability company, or corporation with a majority interest in such partnership, limited liability company or corporation must include:
(A) the operating agreement for such limited liability company, the partnership agreement for such partnership, or the articles of incorporation of such corporation; and
(B) an affidavit from an officer of such partnership, limited liability company or corporation indicating that such individual has a majority interest in such partnership, limited liability company or corporation.
(v) Unless credible information in the possession of the department indicates otherwise, proof that that an individual is a sole beneficiary or individuals are sole beneficiaries of a trust includes:
(A) a copy of the trust agreement indicating that such individual is the sole beneficiary or individuals are sole beneficiaries of such trust; and
(B) an affidavit indicating the same from a trustee of such trust.
3. Notwithstanding any provision of this section to the contrary, a covered owner, immediate family member of a covered owner, lessee or sub-lessee of a covered property or, in the case of a residential cooperative property, a residential cooperative dwelling unit, will be deemed to continue to be a primary resident of such covered property or dwelling unit for a period of one year immediately following their death or during a continuous period of hospitalization or a temporary stay in a nursing home or rehabilitation facility if the owner of such covered property or dwelling unit, or the estate of such owner, as applicable, provides:
(i) proof sufficient to the department of such death, hospitalization or temporary stay in a nursing home or rehabilitation facility; and
(ii) proof of primary residency set forth in subparagraph (i) of paragraph 2 of this subdivision for the period immediately preceding such death, hospitalization or temporary stay in a nursing home or rehabilitation facility.
(c) Review of appeals.
1. The commissioner shall review the merits of any appeal submitted within the time period set forth in subdivision (b) and shall transmit to such owner a notice of determination to the email address associated with such appeal. Notwithstanding any provision of this chapter to the contrary, the commissioner shall not designate any individual to make such determination who made the initial determination pursuant to subdivision (a) of this section. Any denial of such appeal shall be a final determination and may be challenged in accordance with the procedures set forth in § 11-3206 of the Administrative Code.
2. Where an owner fails to file an appeal or fails to provide proof of primary residence pursuant to subdivision (b) of this section, the initial determination made by the department pursuant to subdivision (a) of this section shall constitute a final determination of such department and shall not be subject to challenge pursuant to § 11-3206 of the Administrative Code, unless such owner has challenged such initial determination of primary residence pursuant to paragraph two of subdivision (b) of § 11-3206 of the Administrative Code.
(d) Effect of an exclusion. Satisfactory proof of primary residency of one or more dwelling units in a covered property for a fiscal year is sufficient to exclude such property from the surcharge for such fiscal year, except that, in the case of a residential cooperative property, satisfactory proof of primary residency of a residential cooperative dwelling unit in such residential cooperative property for a fiscal year is sufficient to exclude only such residential cooperative dwelling unit from the surcharge for such fiscal year.
(e) Effect of filing multiple challenges. If an owner files a challenge with the tax commission pursuant to § 11-3206(b)(2) of the Administrative Code, the department shall not consider any appeal filed pursuant to this section and any determination of the commissioner transmitted to such owner shall have no effect.
(f) Self-disclosure. An owner may disclose in writing to the department that a covered property, or in the case of a residential cooperative property, a residential cooperative dwelling unit, does not serve as a primary residence.
(Added City Record 7/14/2026, eff. 7/14/2026; amended City Record 8/5/2026, eff. 8/5/2026)
