N.Y. TAX Law § 1566 — New York Code / Act TAX / Article 33-B / Section 1566
Cooperative housing corporation transfers
Status: in_force

§ 1566. Cooperative housing corporation transfers. 1. Notwithstanding\nthe definition of "controlling interest" contained in subdivision two of\nsection fifteen hundred sixty of this article or anything to the\ncontrary contained in subdivision five of section fifteen hundred sixty\nof this article, the tax imposed pursuant to this article shall apply to\n(a) the original conveyance of shares of stock in a cooperative housing\ncorporation in connection with the grant or transfer of a proprietary\nleasehold by the cooperative corporation or cooperative plan sponsor,\nand (b) the subsequent conveyance of such stock in a cooperative housing\ncorporation in connection with the grant or transfer of a proprietary\nleasehold by the owner thereof. With respect to any such subsequent\nconveyance where the property is an individual residential unit, the\nconsideration for the interest conveyed shall exclude the value of any\nliens on certificates of stock or other evidences of an ownership\ninterest in and a proprietary lease from a corporation or partnership\nformed for the purpose of cooperative ownership of residential interest\nin real estate remaining thereon at the time of conveyance. In\ndetermining the tax on a conveyance described in paragraph (a) of this\nsubdivision, a credit shall be allowed for a proportionate part of the\namount of any tax paid upon the conveyance to the cooperative housing\ncorporation of the real property comprising the cooperative dwelling or\ndwellings to the extent that such conveyance effectuated a mere change\nof identity or form of ownership of such property and not a change in\nthe beneficial ownership of such property. The amount of the credit\nshall be determined by multiplying the amount of tax paid upon the\nconveyance to the cooperative housing corporation by a percentage\nrepresenting the extent to which such conveyance effectuated a mere\nchange of identity or form of ownership and not a change in the\nbeneficial ownership of such property, and then multiplying the\nresulting product by a fraction, the numerator of which shall be the\nnumber of shares of stock conveyed in a transaction described in\nparagraph (a) of this subdivision, and the denominator of which shall be\nthe total number of shares of stock of the cooperative housing\ncorporation (including any stock held by the corporation). In no event,\nhowever, shall such credit reduce the tax, on a conveyance described in\nparagraph (a) of this subdivision, below zero, nor shall any such credit\nbe allowed for a tax paid more than twenty-four months prior to the date\non which occurs the first in a series of conveyances of shares of stock\nin an offering of cooperative housing corporation shares described in\nparagraph (a) of this subdivision.\n  2. Every cooperative housing corporation shall be required to file an\ninformation return with the treasurer by July fifteenth of each year\ncovering the preceding period of January first through June thirtieth\nand by January fifteenth of each year covering the preceding period of\nJuly first through December thirty-first. The return shall contain such\ninformation regarding the conveyance of shares of stock in the\ncooperative housing corporation as the treasurer may deem necessary,\nincluding, but not limited to, the names, addresses and employee\nidentification numbers or social security numbers of the seller and the\nbuyer, the number of shares conveyed, the date of the conveyance and the\nconsideration paid for such conveyance.\n