NY Tax L § 1440 (2021)
2021 New York Laws TAX - Tax Article 31-B - Tax on Real Estate Transfers in the Town of Brookhaven 1440 - Definitions.

* §  1440.  Definitions.  When  used in this article, unless otherwise expressly stated, the following words and terms shall have the following meanings:   1.  "Person"  means  an  individual,  partnership,  limited  liability company, society, association, joint stock company, corporation, estate, receiver,  trustee,  assignee,  referee  or any other person acting in a fiduciary or representative capacity, whether appointed by  a  court  or otherwise,  any  combination  of  individuals,  and  any  other  form of unincorporated enterprise owned or conducted by two or more persons.   2. "Controlling interest" means (a) in  the  case  of  a  corporation, either  fifty  percent or more of the total combined voting power of all classes of stock of such corporation, or fifty percent or  more  of  the capital,  profits  or  beneficial  interest in such voting stock of such corporation, and (b) in the case of a partnership, association, trust or other  entity,  fifty  percent  or  more  of  the  capital,  profits  or beneficial  interest  in  such  partnership, association, trust or other entity.   3. "Real property" means every estate or right,  legal  or  equitable, present  or  future,  vested  or  contingent,  in  lands,  tenements  or hereditaments, including buildings, structures  and  other  improvements thereon, which are located in whole or in part within the town. It shall not include rights to sepulture.   4.  "Consideration"  means  the  price actually paid or required to be paid for the real property or interest therein, including payment for an option or contract to purchase real property, whether or  not  expressed in  the deed and whether paid or required to be paid by money, property, or any other thing of  value.  It  shall  include  the  cancellation  or discharge  of  an  indebtedness or obligation. It shall also include the amount  of  any  mortgage,  purchase  money  mortgage,  lien  or   other encumbrance,  whether  or  not the underlying indebtedness is assumed or taken subject to.  (a) In the case of a creation of a leasehold interest or the  granting of  an  option  with  use  and occupancy of real property, consideration shall include, but not be limited to, the value of the rental and  other payments  attributable  to the use and occupancy of the real property or interest therein, the value of any amount paid for an option to purchase or renew and the value of rental or other payments attributable  to  the exercise of any option to renew.  (b)   In   the   case  of  a  creation  of  a  subleasehold  interest, consideration shall include, but not be limited to,  the  value  of  the sublease  rental  payments  attributable to the use and occupancy of the real property, the value of any amount paid for an option to  renew  and the  value  of  rental or other payments attributable to the exercise of any option to renew less the value of the remaining prime  lease  rental payments required to be made.  (c) In the case of a controlling interest in any entity that owns real property,  consideration  shall  mean  the fair market value of the real property or interest therein, apportioned based on the percentage of the ownership interest transferred or acquired in the entity.  (d) In the case of an assignment or surrender of a leasehold  interest or the assignment or surrender of an option or contract to purchase real property,  consideration  shall  not  include the value of the remaining rental payments required to be made pursuant to the terms of such  lease or  the amount to be paid for the real property pursuant to the terms of the option or contract being assigned or surrendered.  (e) In the case of (1) the original conveyance of shares of stock in a cooperative housing corporation in connection with the grant or transfer of a proprietary leasehold by the cooperative corporation or cooperative  plan sponsor, and (2) the subsequent conveyance by the owner thereof  of such  stock  in a cooperative housing corporation in connection with the grant or transfer of a proprietary  leasehold  for  a  cooperative  unit other than an individual residential unit, consideration shall include a proportionate  share of the unpaid principal of any mortgage on the real property  of  the  cooperative  housing   corporation   comprising   the cooperative  dwelling  or  dwellings.  Such share shall be determined by multiplying the total unpaid principal of the mortgage  by  a  fraction, the  numerator  of  which  shall  be the number of shares of stock being conveyed in the cooperative housing corporation in connection  with  the grant  or  transfer  of  a  proprietary leasehold and the denominator of which shall be the total number of shares of stock  in  the  cooperative housing corporation.   5.  "Conveyance"  means  the  transfer or transfers of any interest in real property by  any  method,  including  but  not  limited  to,  sale, exchange,  assignment, surrender, mortgage foreclosure, transfer in lieu of foreclosure, option,  trust  indenture,  taking  by  eminent  domain, conveyance upon liquidation or by a receiver, or transfer or acquisition of  a  controlling  interest  in  any  entity  with  an interest in real property. Transfer of an interest in real  property  shall  include  the creation  of  a leasehold or sublease only where (a) the sum of the term of the lease or sublease and any options for renewal exceeds  forty-nine years, (b) substantial capital improvements are or may be made by or for the benefit of the lessee or sublessee, and (c) the lease or sublease is for  substantially  all  of the premises constituting the real property. Notwithstanding the foregoing, conveyance of  real  property  shall  not include  a  conveyance  made pursuant to devise, bequest or inheritance; the   creation,   modification,   extension,    spreading,    severance, consolidation,  assignment,  transfer,  release  or  satisfaction  of  a mortgage; a  mortgage  subordination  agreement,  a  mortgage  severance agreement,  an  instrument  given  to  perfect  or  correct  a  recorded mortgage; or a release of lien of tax pursuant to this  chapter  or  the internal revenue code.   6.  "Interest in the real property" includes title in fee, a leasehold interest, a beneficial interest, an encumbrance, development rights, air space and air rights, or any other interest with the  right  to  use  or occupancy  of  real  property  or the right to receive rents, profits or other income derived from real property. It shall also include an option or contract to purchase real property. It shall not include a  right  of first refusal to purchase real property.   7.  "Grantor"  means the person making the conveyance of real property or interest therein. Where the conveyance consists of a transfer  or  an acquisition  of  a controlling interest in an entity with an interest in real property, "grantor" means the  entity  with  an  interest  in  real property  or  a shareholder or partner transferring stock or partnership interest, respectively.   8. "Grantee" means the person who obtains real  property  or  interest therein as a result of a conveyance.   9.  "Fund"  means  a  community  preservation fund created pursuant to section sixty-four-f of the town law.   10. "Recording officer" means  the  county  clerk  of  the  county  of Suffolk.   11. "Town" means the town of Brookhaven, in the county of Suffolk.   12. "Treasurer" means the treasurer of the county of Suffolk.   13. "Town supervisor" means the town supervisor of the town.   14.  "Household  income"  means  the  total combined income of all the owners, and of any owners' spouses residing on  the  premises,  for  the  income  tax  year  preceding  the  date  of  making  application for the exemption.   15.  "Income"  means  the adjusted gross income for federal income tax purposes as reported on the  applicant's  latest  available  federal  or state  income  tax  return  subject  to  any  subsequent  amendments  or revisions, reduced by distributions, to the extent included  in  federal adjusted  gross  income,  received from an individual retirement account and an individual retirement annuity; provided that if  no  such  return was  filed  within  the  one  year period preceding taxable status date, income shall mean the adjusted gross income  that  would  have  been  so reported if such a return had been filed.   16.  "Latest  available  return" means the federal or state income tax return  for  the  year  immediately  preceding  the   date   of   making application; provided, however, that if the tax return for such tax year has  not  been  filed,  then  the income tax return for the tax year two years preceding the date of making application shall be  considered  the latest available.   17.  "First-time homebuyer" means a person who has not owned a primary residential property and is not married to a  person  who  has  owned  a residential  property  during  the three-year period prior to his or her purchase of the primary residential property, and who  does  not  own  a vacation or investment home.   18.  "Primary residential property" means any one or two family house, townhouse or condominium located in  the  town  which  is  to  be  owner occupied by such homebuyer.   * NB Repealed December 31, 2025