N.Y. TAX Law § 1438-G — New York Code / Act TAX / Article 31-A-1 / Section 1438-G
Cooperative housing corporation transfers
Status: in_force

* § 1438-g. Cooperative housing corporation transfers. 1.\nNotwithstanding the definition of "controlling interest" contained in\nsubdivision two of section fourteen hundred thirty-eight-a of this\narticle or anything to the contrary contained in subdivision five of\nsection fourteen hundred thirty-eight-a of this article, the tax imposed\npursuant to this article shall apply to (a) the original conveyance of\nshares of stock in a cooperative housing corporation in connection with\nthe grant or transfer of a proprietary leasehold by the cooperative\ncorporation or cooperative plan sponsor, and (b) the subsequent\nconveyance of such stock in a cooperative housing corporation in\nconnection with the grant or transfer of a proprietary leasehold by the\nowner thereof. With respect to any such subsequent conveyance where the\nproperty is an individual residential unit, the consideration for the\ninterest conveyed shall exclude the value of any liens on certificates\nof stock or other evidences of an ownership interest in and a\nproprietary lease from a corporation or partnership formed for the\npurpose of cooperative ownership of residential interest in real estate\nremaining thereon at the time of conveyance. In determining the tax on a\nconveyance described in paragraph (a) of this subdivision, a credit\nshall be allowed for a proportionate part of the amount of any tax paid\nupon the conveyance to the cooperative housing corporation of the real\nproperty comprising the cooperative dwelling or dwellings to the extent\nthat such conveyance effectuated a mere change of identity or form of\nownership of such property and not a change in the beneficial ownership\nof such property. The amount of the credit shall be determined by\nmultiplying the amount of tax paid upon the conveyance to the\ncooperative housing corporation by a percentage representing the extent\nto which such conveyance effectuated a mere change of identity or form\nof ownership and not a change in the beneficial ownership of such\nproperty, and then multiplying the resulting product by a fraction, the\nnumerator of which shall be the number of shares of stock conveyed in a\ntransaction described in paragraph (a) of this subdivision, and the\ndenominator of which shall be the total number of shares of stock of the\ncooperative housing corporation (including any stock held by the\ncorporation). In no event, however, shall such credit reduce the tax, on\na conveyance described in paragraph (a) of this subdivision, below zero,\nnor shall any such credit be allowed for a tax paid more than\ntwenty-four months prior to the date on which occurs the first in a\nseries of conveyances of shares of stock in an offering of cooperative\nhousing corporation shares described in paragraph (a) of this\nsubdivision.\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 grantor and the\ngrantee, the number of shares conveyed, the date of the conveyance and\nthe consideration paid for such conveyance.\n  * NB Repealed December 31, 2026\n