* § 1351. Definitions. As used in this article, the following terms shall have the following meanings:

1. (a) "Administrative code" means the administrative code of the city of New York.
2. (b) "Class one property" means class one, as such class of property is defined in section eighteen hundred two of the real property tax law, other than such property described in subparagraph (c) of such definition.
3. (c) "Class two property" means class two, as such class of property is defined in section eighteen hundred two of the real property tax law.

4. (d) "Covered owner" means:

   1. (1) an owner or owners of real property classified as class one property;
   2. (2) a tenant-stockholder of a cooperative corporation whose interest in a portion of real property held by such corporation is represented by shares of stock in such corporation;
   3. (3) an owner or owners of a residential condominium dwelling unit;
   4. (4) where real property classified as class one or a residential condominium dwelling unit is held, or shares of stock in a cooperative corporation are held, in trust, a beneficial owner or owners of such trust, provided that such beneficial owner or owners are the sole beneficiaries of such trust; or
   5. (5) where real property classified as class one or a residential condominium dwelling unit is held, or shares of stock in a cooperative corporation are held, by a partnership, corporation or limited liability company, a partner or partners, shareholder or shareholders or member or members of such partnership, corporation, or limited liability company, respectively, provided that such partner or partners, shareholder or shareholders, or member or members hold a majority interest in such partnership, corporation or limited liability company respectively.

5. (e) "Covered property" means real property, other than excluded property, classified as:

   1. (1) class one property, other than vacant land;
   2. (2) class two property that is a residential cooperative property in which at least one residential cooperative dwelling unit: (A) has a phase one market value equal to or greater than one million dollars or phase two market value equal to or greater than five million dollars; and (B) is not a primary residence; and
   3. (3) class two property that is a residential condominium dwelling unit.
6. (f) "Department of finance" means the department of finance in a city having a population of one million or more.

7. (g) "Excluded property" means a class one or class two property:

   1. (1) for which a temporary or permanent certificate of occupancy is required and has not yet been issued; or
   2. (2) a residential condominium dwelling unit or residential cooperative dwelling unit that is subject to an offering plan required by section three hundred fifty-two-e of the general business law and such unit has not been sold, or an economic interest in such unit has not been transferred, by the person, partnership, corporation, company, trust or association who has filed such plan.

8. (h) "Imputed cooperative phase one market value" means the market value of a residential cooperative dwelling unit in a residential cooperative property, calculated as the product of:

   1. (1) the market value of such residential cooperative property as determined by the department of finance pursuant to chapter fifty-eight of the New York city charter for the fiscal year in which the surcharge described in this article is imposed; and
   2. (2) the quotient of (A) the shares in a cooperative corporation representing an interest in such residential cooperative dwelling unit; divided by (B) the total shares of stock in such cooperative corporation.
9. (i) "Notice of surcharge" means a notice issued by the department of finance to an owner indicating that a covered property, or, in the case of a residential cooperative property, a residential cooperative dwelling unit, is, or may be, subject to the surcharge authorized by this article, including the phase one market value or phase two market value, as applicable, of such covered property or residential cooperative dwelling unit and a determination by the department of finance that such covered property or residential cooperative dwelling unit is not a primary residence.

10. (j) "Owner" means:

    1. (1) an owner or owners of real property classified as class one property;
    2. (2) a tenant-stockholder of a cooperative corporation whose interest in a portion of real property held by such corporation is represented by shares of stock in such corporation, or such corporation; or
    3. (3) an owner or owners of a residential condominium dwelling unit.

11. (k) "Phase one market value" means:

    1. (1) for a class one property, the market value of a covered property as determined by the department of finance pursuant to chapter fifty-eight of the New York city charter for the fiscal year in which the surcharge described in this article is imposed;
    2. (2) for a class two property that is a residential condominium dwelling unit, the market value of such residential condominium dwelling unit as determined by the department of finance pursuant to chapter fifty-eight of the New York city charter for the fiscal year in which the surcharge described in this article is imposed; and
    3. (3) for a class two property that is a residential cooperative property, the imputed cooperative phase one market value for any residential cooperative dwelling unit in such residential cooperative property.

12. (l) "Phase two market value" means:

    1. (1) for a class one property, the market value of a covered property as determined by the department of finance pursuant to chapter fifty-eight of the New York city charter for the fiscal year in which the surcharge described in this article is imposed;
    2. (2) for a class two property that is a residential condominium dwelling unit, the market value of such residential condominium dwelling unit, as determined by the department of finance pursuant to chapter fifty-eight of the New York city charter for the fiscal year in which the surcharge described in this article is imposed, provided that such market value shall be determined using a method that considers sales of comparable residential condominium dwelling units or comparable residential cooperative dwelling units without regard to the restrictions described in section five hundred eighty-one of the real property tax law or section three hundred thirty-nine-y of the real property law; and
    3. (3) for a class two property that is a residential cooperative property, the market value of any residential cooperative dwelling unit in such residential cooperative property, as determined by the department of finance pursuant to chapter fifty-eight of the New York city charter for the fiscal year in which the surcharge described in this article is imposed, provided that such market value shall be determined using a method that considers sales of comparable residential cooperative dwelling units or comparable residential condominium dwelling units without regard to the restrictions found in section five hundred eighty-one of the real property tax law.
13. (m) "Primary residence" means the use of a covered property, or, in the case of a residential cooperative property, a residential cooperative dwelling unit, as of the taxable status date immediately preceding the fiscal year in which the surcharge described by this article is imposed, as a primary residence of (1) one or more of the covered owners, or an immediate family member of one or more of the covered owners, provided such covered owners are natural persons; or (2) one or more lessees, and any sub-lessees to which a lessee has sublet the covered property or residential cooperative dwelling unit pursuant to subdivision two of section two hundred twenty-six-b of the real property law, provided any such lessee or sub-lessee is a natural person occupying such covered property or residential cooperative dwelling unit pursuant to a bona fide lease agreement negotiated in an arms-length transaction with a term of not less than one year. For purposes of this article, the phrase "immediate family member" means a spouse, child, sibling, parent, grandparent, or grandchild.
14. (n) "Residential condominium dwelling unit" means a unit, as defined in section three hundred thirty-nine-e of the real property law, held in a condominium form of ownership and used as residential real property, other than: (1) such a unit that is residential cooperative property; or (2) such a unit that includes more than three dwelling units and all such dwelling units are held by the same owner, except where the department of finance determines that a unit has been divided into more than three units to avoid application of the surcharge.
15. (o) "Residential cooperative dwelling unit" means a dwelling unit in real property held by a cooperative corporation where an owner is a tenant-stockholder of such cooperative corporation and such dwelling unit is used as residential real property.
16. (p) "Residential cooperative property" means real property owned or leased by a cooperative corporation and that contains one or more residential cooperative dwelling units.
17. (q) "Taxable status date" means the January fifth immediately preceding the fiscal year in which the surcharge is imposed pursuant to this article. * NB Repealed June 30, 2031