* § 1354. Administration of surcharge. (a) The department of finance shall add the surcharge authorized by this article to the statement of account of a covered property. In the case of a residential cooperative property, the department of finance shall add to the statement of account of such residential cooperative property the sum of any surcharges authorized by this article for each residential cooperative dwelling unit in such residential cooperative property where such dwelling unit: (1) has a phase one or phase two market value equal to, or greater than, the threshold provided in section thirteen hundred fifty of this article; and (2) does not serve as a primary residence. Such surcharge shall be due and payable in the same manner as real property taxes are due and payable pursuant to section fifteen hundred nineteen-a of the New York city charter. The department of finance shall administer and enforce this surcharge, to the greatest extent practicable not inconsistent with this section, in the same manner used to administer and enforce real property taxes, except that any abatement, credit or exemption authorized by law shall not apply to such surcharge.

1. (b) Notwithstanding subsection (a) of this section, any surcharge imposed on a covered property in the fiscal year commencing on July first, two thousand twenty-six, shall be due and payable on the same date as the second semi-annual installment of real property taxes is due, as described in section fifteen hundred nineteen-a of the charter of the city of New York.
2. (c) Notwithstanding any provision of law to the contrary, where the department of finance adds the sum of any surcharges authorized by this article for a residential cooperative dwelling unit pursuant to subdivision (a) of this section to the statement of account of a residential cooperative property, each such surcharge shall be collected by the cooperative corporation from the tenant-stockholder of such cooperative corporation whose interest in each such residential cooperative dwelling unit is represented by shares of stock in such corporation.
3. (d) Notwithstanding any provision of law to the contrary, the surcharge imposed on a covered property pursuant to this article shall be separate and distinct from any other tax levied on real property. Any revenue collected as a result of the imposition of this surcharge shall not be included in the calculation of the tax levy for purposes of determining class shares pursuant to article eighteen of the real property tax law, shall not be subject to apportionment among classes of real property, and shall not be considered when establishing tax rates for any class of property. Such revenue shall be considered receipts other than taxes on real property for the purposes of section fifteen hundred fifteen of the New York city charter.

4. (e) The department of finance may promulgate any rules:

   1. (1) necessary to implement this article, including, but not limited to, rules:

      1. (A) to address a change in ownership of a covered property or a residential cooperative dwelling unit, or illness or death of an owner of a covered property or residential cooperative dwelling unit;
      2. (B) to authorize persons other than a covered owner to submit proof of primary residency on behalf of a covered owner;
      3. (C) relating to requirements for provision of notice of surcharge; or
      4. (D) to establish when a sale of a residential condominium dwelling unit, or a transfer of an economic interest in a residential cooperative dwelling unit, has occurred for purposes of paragraph two of subdivision (g) of section thirteen hundred fifty-one of this article.

   2. (2) to establish penalties not exceeding fifty percent of the surcharge imposed on a covered property by this article if, after notice and a hearing, the department of finance determines that:

      1. (A) any certification or documentation submitted to the department of finance contains inaccurate or misleading information that: (i) is material to the determination of the imposition of such surcharge, including a determination relating to primary residence; and (ii) was submitted negligently or in bad faith; or
      2. (B) a covered property that is a residential condominium unit has been divided into more than three units to avoid application of such surcharge and the owner of such covered property has made such division in bad faith.
5. (f) The department of finance may enforce and collect any penalty imposed pursuant to the authority set forth in subsection (e) of this section in the same manner as the department of finance enforces and collects the surcharge authorized by this article.
6. (g) The commissioner of the department of finance may subpoena and require the attendance of witnesses and the production of books, papers and documents to secure information pertinent to the determination of the surcharge, including a determination relating to primary residence. * NB Repealed June 30, 2031