NY Tax L § 1201 (2021)
2021 New York Laws TAX - Tax Article 29 - Taxes Authorized for Cities, Counties and School Districts Part 1 - Authority to Impose Taxes Sub Part A - Taxes Administered by Cities, Counties and School Districts 1201 - Taxes Administered by Cities of One Million or More.

§  1201.  Taxes  administered  by  cities  of  one  million  or  more. Notwithstanding any other provisions of law to the contrary, but subject to the applicable limitations and exemptions in part II of this article, any city in this state having a  population  of  one  million  or  more, acting  through  its  local  legislative  body, is hereby authorized and empowered to adopt and amend local laws imposing in any such city any or all of the types of taxes set forth in  the  following  subdivisions  of this  section, such taxes to be administered and collected by the fiscal officers of such city in the manner provided for in subpart  A  of  part III of this article:  (a)  Taxes  on  the  privilege  of doing any business, engaging in any trade, calling, occupation or profession; owning, holding  or  occupying any  property;  possessing or exercising any franchise or franchises; or on the gross receipts from sales to persons  within  such  city;  except that no tax may be imposed pursuant to this subdivision on persons as to whom  authority  to  tax is granted by article two-b of the general city law.  The rate of the taxes authorized in this subdivision shall not  be in  excess  of one and seventeen one hundredths times the rate fixed for the corresponding taxes by local law fifty-one of the city of  New  York for  the  year  nineteen hundred forty-one, and not in excess of two and thirty-five one hundredths times the rate fixed  for  the  corresponding tax  by  local  law  forty-nine  of  the  city  of New York for the year nineteen hundred forty-one, except that as to  persons  engaged  in  the business of operating or leasing sleeping and parlor railroad cars or of operating railroads other than street surface, rapid transit, subway and elevated  railroads,  the  rate  shall  not  be  in  excess of three and fifty-two one hundredths percent of gross income and except that  as  to persons  engaged  in the business of operating omnibuses with a carrying capacity of more than seven persons, whether or  not  such  persons  are subject  to  the  supervision of the state department of public service, the rate shall not be in excess of  one  and  seventeen  one  hundredths percent of gross income or gross operating income, as the case may be.   Notwithstanding  the  limitations  as  to rate provided above, for the years nineteen hundred seventy-three and those following, such city  may impose,  by local law, a surtax of forty per centum of the percentage of tax in effect pursuant to this subdivision in such  city  for  the  year nineteen hundred seventy-two.  (b)  (i)  Taxes  on  each deed, other instrument or transaction (other than a deed or instrument given solely as security or a transaction  the sole  purpose  of  which  is to secure an obligation or indebtedness) by which any real property or any economic interest therein is conveyed  or transferred,  measured  by the consideration or value of the interest or property conveyed or transferred, (1) at a rate not to  exceed  one-half of   one  percent  of  such  consideration  or  value  with  respect  to conveyances made before July first,  nineteen  hundred  seventy-one,  or made  in  performance  of a contract therefor executed before such date, (2) at a rate not to exceed one percent of such consideration  or  value with  respect  to  (A)  all  conveyances  made  on  or after July first, nineteen hundred seventy-one and before February first, nineteen hundred eighty-two, or made in  performance  of  a  contract  therefor  executed during  such  period,  (B)  conveyances  or  transfers  made on or after February first, nineteen hundred eighty-two of one, two or  three-family houses,  individual  cooperative  apartments  and individual residential condominium  units,  or  interests  therein,  and  (C)  conveyances   or transfers  made  on or after February first, nineteen hundred eighty-two (other than grants, assignments or surrenders of leasehold interests  in real  property)  where  the  consideration  or  value  is less than five hundred thousand dollars, (3) at a rate not to  exceed  two  percent  of  such  consideration  or  value  with respect to all other conveyances or transfers made on or after February first, nineteen  hundred  eighty-two (other  than grants, assignments or surrenders of leasehold interests in real  property)  other  than those conveyances or transfers specified in subparagraphs four, five and six of this paragraph, (4) at a rate not to exceed one and four hundred twenty-five thousandths of  one  percent  of such  consideration  or  value where such consideration or value is less than five hundred thousand dollars with respect to  all  conveyances  or transfers  other  than for conveyances or transfers of one, two or three family  houses,  individual  cooperative  apartments,   and   individual residential  condominium units, or interests therein (other than grants, assignment or surrenders of leasehold interests in real property),  made on  or  after  August first, nineteen hundred eighty-nine, (5) at a rate not to exceed one  and  four  hundred  twenty-five  thousandths  of  one percent of such consideration or value where such consideration or value is  more  than five hundred thousand dollars with respect to conveyances or transfers of one, two or three family houses, individual  cooperative apartments,  and  individual residential condominium units, or interests therein (other than  grants,  assignments  or  surrenders  of  leasehold interests  in  real  property),  made on or after August first, nineteen hundred eighty-nine, and (6) at a rate not to exceed two and six hundred twenty-five one thousandths of one  percent  of  such  consideration  or value  where  such  consideration  or value is greater than five hundred thousand dollars with respect to all conveyances or transfers other than for conveyances or  transfers  of  one,  two  or  three  family  houses, individual    cooperative   apartments,   and   individual   residential condominium units, or interests therein (other than  grants,  assignment or surrenders of leasehold interests in real property), made on or after August  first, nineteen hundred eighty-nine. Provided, however, that any such city may allow deductions, in determining the portion  of  any  tax authorized hereby the proceeds of which are payable to the New York city transit  authority  as hereinafter provided, for any continuing liens on such interest or property where such interest or property is a one,  two or  three-family  house,  an  individual  cooperative  apartment  or  an individual residential condominium unit or where the  consideration  for or  value  of  the  interest or property conveyed or transferred is less than five hundred thousand dollars, and may also allow an exemption  not in  excess of twenty-five thousand dollars on the consideration or value of the interest or property conveyed and provided,  further,  that  such taxes  shall  not apply if the contract for any such conveyance was made prior to  May  first,  nineteen  hundred  fifty-nine.  Anything  to  the contrary  notwithstanding, where the tax authorized hereby is imposed on the consideration or value without any deduction for  continuing  liens, the portion of the consideration or value ascribable to such liens shall not  be  taxed  at  a rate in excess of one percent prior to July first, nineteen hundred eighty-two, in excess of two percent on and after  July first,  nineteen  hundred  eighty-two  and before August first, nineteen hundred eighty-nine, or in excess of two  and  six  hundred  twenty-five thousandths  of  one percent on and after August first, nineteen hundred eighty-nine, except that where the interest or property is a one, two or three-family house, an individual cooperative apartment or an individual residential condominium unit or where the consideration for a  value  of the  interest  or  property  conveyed  or  transferred is less than five hundred thousand dollars the rate on  and  after  July  first,  nineteen hundred  eighty-two shall not be in excess of one percent. The amount of any pre-existing liens on  such  property  or  interest  which  continue thereon  after  the conveyance or transfer shall be deemed to be part of the consideration or value for purposes of  measuring  the  tax  without  regard  to whether or not payment of the liens or of the underlying debt is assumed by the grantee or transferee. The tax authorized  hereby  may also be imposed (A) prior to July first, nineteen hundred eighty-two, at a  rate  not  to  exceed  one  percent,  on  the granting, assignment or surrender of a  leasehold  interest  in  real  property,  other  than  a leasehold  interest in a one, two or three-family house or an individual dwelling unit in a dwelling which is to be occupied or  is  occupied  as the  residence  or home of four or more families living independently of each other,  where  the  consideration  for  or  value  of  such  grant, assignment or surrender is five hundred thousand dollars or more, (B) on and  after  July  first,  nineteen  hundred eighty-two and before August first, nineteen hundred  eighty-nine,  at  a  rate  not  to  exceed  two percent,  on  the  granting,  assignment  or  surrender  of  a leasehold interest in real property, except  that  in  the  case  of  a  leasehold interest  in  a one, two or three-family house or an individual dwelling unit in a dwelling which is  to  be  occupied  or  is  occupied  as  the residence  or home of four or more families living independently of each other, or where the consideration for or value of such grant, assignment or surrender is less than five hundred thousand dollars, the rate  shall not  exceed  one  percent  and  (C)  on and after August first, nineteen hundred eighty-nine, at a  rate  not  to  exceed  two  and  six  hundred twenty-five  thousandths  of one percent, on the granting, assignment or surrender of a leasehold interest in real property, except that  in  the case  of  a leasehold interest in a one, two or three-family house or an individual dwelling unit in a dwelling which is to  be  occupied  or  is occupied  as  the  residence  or  home  of  four or more families living independently of each other where the consideration for or value of such grant, assignment or  surrender  is  less  than  five  hundred  thousand dollars,  the  rate  shall  not  exceed one percent, or in the case of a leasehold interest in a one, two or three family house or an  individual dwelling  unit  in  a dwelling which is to be occupied or is occupied as the residence or home of four or more families living  independently  of each  other  where  the  consideration  for  or  value  of  such  grant, assignment or surrender is greater than five hundred  thousand  dollars, the  rate  shall not exceed one and four hundred twenty-five thousandths of one percent, or where the consideration for or  value  of  any  other grant,  assignment  or  surrender  is  less  than  five hundred thousand dollars, the rate shall not exceed  one  and  four  hundred  twenty-five thousandths  of  one  percent; provided, however, that for purposes of a tax on the granting of a leasehold interest in real property, the amount subject to tax shall be only such amount as is not considered  rent  for purposes  of  the  tax  authorized  to  be  imposed  on the occupancy of commercial premises by chapter two hundred fifty-seven of  the  laws  of nineteen hundred sixty-three, as amended, and imposed by a city having a population  of  one million or more pursuant thereto. In the case of any conveyance or transfer of real property or any economic interest therein in complete  or  partial  liquidation  of  a  corporation,  partnership, association,  trust  or  other  entity, the tax shall be measured by the consideration for such conveyance or transfer or the value of  the  real property  or  interest  therein, whichever is greater. Such taxes may be imposed on any conveyance or  transfer  of  real  property  or  interest therein  where  the  real property is located in such city regardless of where transactions, negotiations, transfers of deeds  or  other  actions with  regard  to  the transfer or conveyance take place, subject only to the restrictions contained in section twelve hundred thirty. The payment of, and the filing of a return  relating  to,  any  such  taxes  may  be required  as  a  condition precedent (1) to the recording or filing of a deed, lease, assignment or surrender of lease or other  instrument,  (2)  to  the  commencement  of  any action or proceeding in any court of this state in which any conveyance, transfer or lease described herein is  in issue, directly or indirectly, or (3) to the receipt in evidence of such deed, lease, assignment or surrender of lease or other instrument in any such court. In each instance where the tax rate imposed pursuant to this subdivision  is  two  percent, fifty percent of the total amount of such tax, including fifty percent of any interest or penalties thereon, shall be set aside in a special account by the commissioner of finance of such city, provided, however, that where the consideration for  or  value  of property  or interest conveyed or transferred includes the amount of any nondeductible mortgage, lien or other encumbrance which  existed  before the  conveyance or transfer and remains thereon after such conveyance or transfer, (A) prior to  July  first,  nineteen  hundred  eighty-two  the entire  amount  of tax imposed at a rate not in excess of one percent on the  portion  of  the  consideration  or  value   ascribable   to   such nondeductible   mortgage,  lien  or  other  encumbrance,  including  any interest or penalties thereon, and fifty  percent  of  the  tax  on  the balance  of  the  consideration or value, including fifty percent of any interest or penalties thereon,  shall  be  set  aside  in  such  special account,  and  (B)  on and after July first, nineteen hundred eighty-two and before August first, nineteen hundred eighty-nine, fifty percent  of the  amount of tax imposed at a rate in excess of one percent but not in excess of two percent on the  portion  of  the  consideration  or  value ascribable  to  such  nondeductible mortgage, lien or other encumbrance, including fifty percent of any interest or penalties thereon, and  fifty percent  of  the  tax  on  the  balance  of  the consideration or value, including fifty percent of any interest or penalties thereon,  shall  be set  aside  in such special account. On and after August first, nineteen hundred eighty-nine,  in  each  instance  where  the  tax  rate  imposed pursuant to this subdivision is in excess of two percent, the portion of the  tax,  and  any interest or penalty thereon, to be set aside in such special account shall be an amount equal to one  percent  of  the  total consideration  for  or  value  of the real property or economic interest therein  conveyed  or  transferred,  plus  any   interest   or   penalty attributable  to  such portion of the tax. There shall also be set aside in such special account prior to July first, nineteen hundred eighty-two the total amount of taxes imposed on grants, assignments  or  surrenders of  leasehold  interests  in  real  property,  including any interest or penalties thereon; on and after July first, nineteen hundred  eighty-two and  before  August  first, nineteen hundred eighty-nine, there shall be set aside in such special account fifty percent of the amount  of  taxes imposed  on  grants, assignments or surrenders of leasehold interests in real property, other  than  a  leasehold  interest  in  a  one,  two  or three-family house or an individual dwelling unit in a dwelling which is to  be  occupied or is occupied as the residence or home of four or more families living independently of each other, or where the  consideration for  or  value  of such grant, assignment or surrender is less than five hundred thousand dollars, including fifty percent  of  any  interest  or penalties   thereon.   On  and  after  August  first,  nineteen  hundred eighty-nine, there shall be set aside in such special account,  in  each instance  where  the rate of tax on grants, assignments or surrenders of leasehold interests in real property is two percent or more,  an  amount equal  to one percent of the consideration for or value of the leasehold interest granted, assigned or surrendered, plus any interest or  penalty attributable  to  such  portion  of the tax. Notwithstanding anything in this paragraph (i) to the contrary, in each instance where the tax  rate imposed  pursuant  to paragraph (xi) of this subdivision is in excess of one percent, the portion of tax, and any interest or penalty thereon, to  be set aside in such  special  account  shall  be  an  amount  equal  to one-half  of  one percent of the total consideration for or value of the real property or economic interest therein conveyed or transferred, plus any  interest  or  penalty  attributable to such portion of the tax, and there shall be set aside in such special account, in each instance where the rate of tax imposed under paragraph  (xi)  of  this  subdivision  on grants,  assignments  or  surrenders  of  leasehold  interests  in  real property is in excess of one percent, an amount equal to one-half of one percent of the consideration for or  value  of  the  leasehold  interest granted,   assigned   or  surrendered,  plus  any  interest  or  penalty attributable to such portion of the tax. Moneys in such account shall be used for payment by such  commissioner  to  the  state  comptroller  for deposit  in  the  urban mass transit operating assistance account of the mass  transportation  operating  assistance  fund  of  any   amount   of insufficiency  certified  by  the  state  comptroller  pursuant  to  the provisions of subdivision six of section  eighty-eight-a  of  the  state finance  law,  and, on the fifteenth day of each month such commissioner shall transmit all funds  in  such  account  on  the  last  day  of  the preceding  month,  except  the  amount  required  for the payment of any amount of insufficiency certified by  the  state  comptroller  and  such amount  as  he  deems  necessary  for  refunds  and  such  other amounts necessary to finance the New York city transportation disabled committee and the New York city  paratransit  system  as  established  by  section fifteen-b  of  the  transportation  law,  provided,  however,  that such amounts shall not exceed six percent of the total funds in  the  account but  in  no event be less than one hundred seventy-five thousand dollars beginning April first, nineteen hundred  eighty-six,  and  further  that beginning  November  fifteenth,  nineteen hundred eighty-four and during the entire period prior to operation of such system, the total  of  such amounts shall not exceed three hundred seventy-five thousand dollars for the administrative expenses of such committee and fifty thousand dollars for  the  expenses  of  the agency designated pursuant to paragraph b of subdivision five of such section, and other amounts necessary to finance the operating needs of the private bus companies franchised by the  city of  New  York  and  eligible to receive state operating assistance under section eighteen-b of the transportation law,  provided,  however,  that such  amounts  shall  not  exceed four percent of the total funds in the account, to the New York city transit authority for mass transit  within the city.  (ii)  For purposes of this subdivision, an "economic interest" in real property  shall  mean  (1)  the  ownership  of  shares  of  stock  in  a corporation  which  owns real property, (2) the ownership of an interest or interests in a partnership, association or other  entity  which  owns real  property,  and  (3)  the  ownership  of  a  beneficial interest or interests in a trust which owns real property.  (iii) For purposes of this subdivision,  the  terms  "transferred"  or "transfer,"  when  used  in  relation  to  an  economic interest in real property, shall include the transfer or transfers of shares of stock  in a  corporation,  interest  or interests in a partnership, association or other entity, or beneficial interest or interests in  a  trust,  whether made   by  one  or  several  persons,  or  in  one  or  several  related transactions, which shares of stock or interest or interests  constitute a  controlling  interest  in such corporation, partnership, association, trust or other entity.  (iv) "Controlling interest" for purposes  of  this  subdivision  shall mean:  (1)  in the case of a corporation, 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 fair market  value  of  all  classes  of  stock  of  such  corporation;  and  (2)  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.  (v) Notwithstanding the definition of "controlling interest" contained in  paragraph  (iv)  or  any  provision  to  the  contrary  contained in paragraph (iii) of this subdivision, in the  case  of  any  transfer  of shares  of stock in a cooperative housing corporation in connection with the grant or transfer of a proprietary leasehold, the tax authorized  by this subdivision shall apply to (1) the original transfer of such shares of stock by the cooperative corporation or cooperative plan sponsor, and (2)  any  subsequent  transfer  of  such  shares  of  stock by the owner thereof. Notwithstanding any  provisions  of  this  subdivision  to  the contrary,  in  the  case  of  a transfer described in clause two of this paragraph  which  relates  to  an  individual  residential   unit,   the consideration  for  such  transfer  shall not include any portion of the unpaid principal of any mortgage on the real property of the cooperative housing corporation. In determining the tax on a transfer  described  in clause  (1)  of  this  paragraph,  a  credit  shall  be  allowed  for  a proportionate part of the amount of any  tax  imposed  pursuant  to  the authority  of  this  subdivision  and  paid  upon  the conveyance to the cooperative housing corporation of the land and  building  or  buildings comprising  the  cooperative  dwelling  or dwellings. Such proportionate part shall be the amount determined by multiplying  the  amount  of  tax paid  upon  the  conveyance  to the cooperative housing corporation by a fraction, the numerator of which shall be the number of shares of  stock transferred in a transaction described in clause (1) and the denominator of which shall be the total number of outstanding shares of stock of the cooperative  housing  corporation  (including  any  stock  held  by  the corporation). In no event, however, shall such credit reduce the tax  on a transfer described in clause (1) below zero, nor shall any such credit be  allowed  for  any tax paid more than twenty-four months prior to the date on which occurs the first in a series of  transfers  of  shares  of stock in an offering of cooperative housing corporation shares described in  clause  (1). For purposes of this subdivision, the term "cooperative housing corporation" shall not include a housing company  organized  and operating  pursuant  to  the  provisions  of article two, four, five, or eleven of the private housing finance law.  (vi) In the case of a transfer of an economic interest in  any  entity that  owns  assets in addition to real property or interest therein, the consideration subject to tax shall be deemed equal to  the  fair  market value  of the real property or interest therein apportioned based on the percentage of the ownership interest in the entity transferred.  (vii) Any local law enacted pursuant to this subdivision  may  provide for such credits as are required to avoid multiple taxation.  (viii)  Any  city  which  has  imposed  the  tax  authorized  by  this subdivision prior to its amendment by a chapter of the laws of  nineteen hundred eighty-one may continue to impose such tax without regard to the amendments  made  by  such  chapter, or may amend the local law imposing such tax to  incorporate  therein  the  provisions  authorized  by  this subdivision  as  amended by such chapter of the laws of nineteen hundred eighty-one. If such city amends such local law to  include  therein  the additional provisions authorized by such chapter of the laws of nineteen hundred  eighty-one,  the  provisions  so  added  shall not apply to any transfer made pursuant to a written contract entered into prior  to  the effective  date  of  such  chapter  of  the  laws  of  nineteen  hundred eighty-one.  (ix)  Notwithstanding  the  definition   of   "controlling   interest" contained  in  paragraph  (iv)  or anything to the contrary contained in paragraph (iii) of this subdivision, in the case of a corporation (other than a cooperative housing corporation), partnership, association, trust or  other entity formed for the purpose of cooperative ownership of real property, the tax authorized by this subdivision  shall  apply  to  each transfer  of:  shares  of  stock  in  such corporation, interest in such partnership, association or other entity or beneficial interest in  such trust,  in  connection  with  the  grant  or  transfer  of a proprietary leasehold. Notwithstanding any provisions of  this  subdivision  to  the contrary,  in  the  case of a transfer described in this paragraph which relates to an individual  residential  unit  (other  than  the  original transfer  of  such  a unit by the cooperative entity or cooperative plan sponsor), the consideration for such  transfer  shall  not  include  any portion  of the unpaid principal of any mortgage on the real property of such corporation, partnership, association, trust or other entity.  (x) Notwithstanding any other provision of law to  the  contrary,  all revenues  resulting  from  the  imposition  of  the  tax  authorized  by paragraph (ix) of this subdivision shall be credited to and deposited in the general fund of the city imposing such tax,  but  no  part  of  such revenues  may  be  expended  unless appropriated in the annual budget of such city.  (xi) Notwithstanding anything contained in this subdivision,  the  tax imposed  under  paragraphs  (i), (v) and (ix) of this subdivision on any deed or other instrument or transaction conveying or  transferring  real property  or  an  economic  interest  therein,  that qualifies as a real estate investment trust transfer, as defined below, shall be imposed  at a  rate  equal  to  fifty  percent of the otherwise applicable rate. For purposes of this paragraph (xi), a real estate investment trust transfer shall mean (1) any deed or other instrument or transaction conveying  or transferring  real  property  or  an economic interest therein to a real estate investment trust as  defined  in  section  856  of  the  internal revenue  code  (a  "REIT") or to a partnership or corporation in which a REIT owns a controlling interest immediately following the  transaction; and  (2)  any  issuance  or  transfer  of  an  interest  in a REIT, or in a partnership or corporation in which a REIT owns a  controlling  interest immediately  following  the  issuance  or transfer, in connection with a transaction  described  in   subparagraph   one   of   this   paragraph. Notwithstanding  the foregoing, a transaction described in the preceding sentence shall not constitute a real estate  investment  trust  transfer unless  (A)  it  occurs  in connection with the initial formation of the REIT and the conditions described in subparagraphs  three  and  four  of this  paragraph  are  satisfied,  or  (B) in the case of any real estate investment  trust  transfer  occurring  on  or  after  July  thirteenth, nineteen  hundred  ninety-six  and  before September first, two thousand twenty-three, the transaction is described in subparagraph five of  this paragraph in which case the provisions of such subparagraph shall apply.  (3)  The  value  of  the  ownership  interests  in  the  REIT, or in a partnership  or  corporation  in  which  the  REIT  owns  a  controlling interest,  received  by the grantor as consideration for such conveyance or transfer must be equal to an amount not less than  forty  percent  of the  value  of  the  equity  interest  in  the real property or economic interest therein conveyed or transferred by the grantor to  the  grantee and  such  ownership interests must be retained by the grantor or owners of the grantor for a period of not less than  two  years  following  the date of such conveyance or transfer; provided, however, that in the case of  the  death of the grantor or an owner of the grantor within such two  year period, this two year retention requirement shall be deemed  to  be satisfied  notwithstanding  any conveyance or transfer of such ownership interests held by such individual as a result of such death.  The  value of  the  equity  interest  in  such  real  property or economic interest therein shall be computed by subtracting from the consideration for  the conveyance or transfer of the real property or economic interest therein the   unpaid  balance  of  any  loans  secured  by  mortgages  or  other encumbrances which are liens on the real property or  economic  interest therein  immediately  before the conveyance or transfer. For purposes of this computation, in the case  of  a  conveyance  or  transfer  of  real property  other than a conveyance or transfer of an economic interest in real property, the amount of the unpaid balance of any loans secured  by mortgages  or  other encumbrances to be subtracted from consideration is determined by multiplying the total unpaid balance of any loans  secured by  mortgages  or  other  encumbrances  on  the  real  property  by  the percentage of the ownership interest in the real property being conveyed or transferred to the grantee. In the case of a transfer of an  economic interest  in real property, such amount to be subtracted is equal to the sum of the following amounts: (I)  a  reasonable  apportionment  to  the interests  in  real  property  owned  by the entity of the amount of any loans secured by encumbrances on the ownership interests in  the  entity which are being conveyed or transferred and (II) the amount of any loans secured  by  mortgages or other encumbrances on the real property of the entity multiplied by the percentage interest  in  the  entity  which  is being  conveyed  or transferred. Provided, however that, for purposes of the computation made pursuant to this subparagraph three, any  mortgages or  other encumbrances on the real property or economic interest therein which are created in contemplation of the initial formation of the  REIT or  in contemplation of the conveyance or transfer of such real property or economic interest  therein  to  the  REIT  or  to  a  partnership  or corporation  in  which  the REIT owns a controlling interest immediately following the conveyance or transfer shall not be considered.  (4) Seventy-five percent or more of the cash proceeds received by such REIT from the sale of ownership interests in such REIT upon its  initial formation  must  be  used:  (I) to make payments on loans secured by any interest in real property (including an ownership interest in an  entity owning  real  property)  which  is  owned directly or indirectly by such REIT; (II) to pay for capital  improvements  to  real  property  or  any interest therein owned directly or indirectly by such REIT; (III) to pay brokerage  fees and commissions, professional fees and payments to or on behalf of a tenant as an inducement to enter into a  lease  or  sublease incurred  in  connection  with  the  creation of a leasehold or sublease pertaining to real property or any interest therein  owned  directly  or indirectly  by  such REIT; (IV) to acquire any interest in real property (including an ownership interest in any entity  owning  real  property), apart  from any acquisition to which a reduced rate of tax is applicable pursuant to this paragraph (without regard to this subparagraph); or (V) for reserves established for any of the purposes described in clause  I, II  or  III of this subparagraph. For purposes of this subparagraph, the term real property shall include real property wherever located.  (5) If a transaction otherwise described in subparagraph two  of  this paragraph  occurs other than in connection with the initial formation of a REIT, the condition set forth in subparagraph four of  this  paragraph shall  be  disregarded  and  such  transaction  shall constitute a "real estate  investment  trust  transfer"  if  the  condition  set  forth  in subparagraph  three  of  this  paragraph  would  be  satisfied if "fifty percent" is substituted for "forty percent" therein.    For purposes of  determining  the  consideration  for  a  real  estate investment  trust  transfer taxable under this paragraph (xi), the value of the real property or interest therein shall be equal to the estimated market value as determined by the commissioner of finance of the city of New  York for real property tax purposes as reflected on the most recent notice of assessment issued by such commissioner, or such other value as the taxpayer may establish to the  satisfaction  of  such  commissioner. This  paragraph  (xi)  shall  only apply to real estate investment trust transfers occurring on or after the effective date of this paragraph.  (xii) Notwithstanding any other  provision  of  this  subdivision,  in determining  the  tax  authorized  by this subdivision with respect to a deed, instrument or transaction conveying or transferring a one, two  or three-family  house,  an  individual  residential  condominium  unit, an individual residential cooperative apartment, or  an  interest  therein, the  consideration for such conveyance or transfer shall exclude, to the extent otherwise included therein, the amount of any mortgage  or  other lien  or  encumbrance  on  the  real  property  or interest therein that existed before the delivery of the deed  or  the  transfer  and  remains thereon  after  the  date of delivery of the deed or the transfer, other than any mortgage,  lien  or  encumbrance  placed  on  the  property  or interest  in  connection  with, or in anticipation of, the conveyance or transfer, or by reason  of  deferred  payments  of  the  purchase  price whether  represented by notes or otherwise. Provided, however, that this paragraph shall  not  apply  to  a  conveyance  or  transfer  (1)  to  a mortgagee,  lienor or encumbrancer, regardless of whether the grantor or transferor is or was personally liable for the indebtedness  secured  by the  mortgage,  lien  or  encumbrance  or  whether the mortgage, lien or encumbrance is canceled of record, or (2) which  qualifies  as  a  "real estate  investment  trust transfer" as defined in paragraph (xi) of this subdivision.  (c) Privilege taxes on amusement devices operated by coins, tokens  or currency  (either  generally  or  upon selected types or classes of such devices), including, but not limited to, juke box,  music,  skill  game, digger, pool or billiard tables, booths providing live entertainment and moving  picture  and  video devices, at a rate not to exceed twenty-five dollars per annum for each such device.  (d) Taxes on the privilege of selling liquor, wine or beer  at  retail for  on or off premises consumption, at a rate or in an amount per annum not in excess of twenty-five percent  of  the  amount  of  license  fees prescribed  therefor from time to time in the alcoholic beverage control law.  (e) Taxes on the use of passenger motor vehicles of  a  type  commonly used  for  non-commercial  purposes  owned by residents of the city at a rate per annum for each such vehicle of not in excess of five dollars if such vehicle weighs thirty-five hundred pounds or less and not in excess of ten dollars per annum if such vehicle weighs  more  than  thirty-five hundred  pounds;  and  taxes  on the use of trucks, buses and other such commercial motor vehicles used principally in connection with a business carried on within the city, except when owned  and  used  in  connection with  the  operation of a farm by the owner or tenant thereof, at a rate per annum for each such vehicle of not in excess of ten dollars.  (f) (1) Taxes on the sale of containers made in whole or  in  part  of rigid  or  semi-rigid  paperboard,  fibre,  glass, metal, plastic or any combination of such materials, including, but not limited  to,  barrels, baskets,  bottles,  boxes,  cans, cartons, carrying cases, crates, cups, cylinders,  drums,  glasses,  jars,  jugs,  pails,  pots,   rigid   foil containers,  trays, tubs, tubes, tumblers, and vessels, intended for use in packing or packaging any product intended for sale. Such taxes  shall  be  levied  upon  the  seller  or supplier of the container who or which makes sales thereof to the person who purchases them (whether filled  or unfilled)  for  the purpose of using them in connection with and as part of  sales  at  retail  or  who  receives  them as containers of products intended for sale at retail. Where no tax has been paid by  such  seller or  supplier,  the buyer or person who purchases the container to use it or its contents in making a sale at  retail  shall  be  liable  for  tax thereon  upon  purchasing such container. Notwithstanding the provisions of section twelve hundred twenty of this article, sellers and  suppliers having  no  business  situs  in the city imposing the tax, who sell such containers to retailers within the city may pay the tax so as to prevent its levy upon such retailers. Such taxes shall be imposed at  rates  not to  exceed  (i)  three cents for each plastic bottle, (ii) two cents for each other plastic container, (iii) two cents for each glass  container, (iv)  two  cents  for  each  metal  container  except one cent for metal containers shown to be made of one metal only. Where a container is made of a combination of two  or  more  of  the  materials  with  which  this subdivision  deals,  it shall be classified and be taxable as if it were made of that of its component materials for which  the  following  table provides the highest rate:       fibre and paperboard      metal      glass        plastic                1¢                 2¢         2¢           3¢  (2)  Any  local  law  enacted pursuant to this subdivision may provide that:  (i) metal containers and paperboard  or  fibre  containers  which have  been  impregnated, lined or coated with plastic or other materials shall be considered to be classified and taxable as metal containers and paperboard containers, respectively; (ii) paperboard or fibre containers with fastenings, tops and/or bottoms made of other materials dealt  with by this subdivision shall be classified and taxed as paperboard or fibre containers;  (iii)  paperboard,  metal, or plastic caps that are easily, readily, usually, and customarily separated from  the  container  before disposal  shall  not  be  considered  part  of  the  container; and (iv) notwithstanding any exception made pursuant to subparagraphs  (i),  (ii) and  (iii)  of this paragraph, where a preponderantly glass container is made of a combination of taxable materials, the complete  separation  of which materials is not easily, readily, usually and customarily effected after use and before disposal, such container shall be taxed one cent in addition to the tax otherwise imposed upon it, but in no event shall the aggregate tax on such container exceed three cents.  (3)  Any  local  law  enacted pursuant to this subdivision may provide that containers sold or furnished containing products intended  for  use in manufacturing processes and not for final retail sale shall be exempt from such taxes.  (4)  Local  laws  imposing  taxes authorized by this subdivision shall provide for the allowance of credits against such taxes as follows:  (i) one cent for each  taxable  container  if  manufactured  with  the following minimum percentages of recycled material:    (A)  Paperboard  and  fibre  containers: eighty per cent, if made of   boxboard;  thirty  per  cent  if   made   of   foodboard,   fibre   or   containerboard.    (B)  Metal  containers:  thirty  per cent if taxed during the period   beginning July first, nineteen hundred  seventy-one  and  ending  June   thirtieth,  nineteen hundred seventy-two; and forty per cent, if taxed   thereafter.    (C) Glass containers: twenty per cent if  taxed  during  the  period   beginning  July  first,  nineteen  hundred seventy-one and ending June   thirtieth, nineteen hundred seventy-two; and thirty per cent, if taxed   thereafter.    (D) Plastic containers: thirty per cent.  (ii)  one  cent  for each container of a clearly distinct type, class, pattern or form taxed during any taxable period provided that sixty  per cent or more of all the containers of such distinct type, class, pattern or form subject to tax during such period were reused containers.  (iii)  Provided that the credits for each container during any taxable period shall not exceed the amount of taxes due on  such  container  for such period.  (5)   The   fiscal   officer  of  any  such  city  in  charge  of  the administration of any tax imposed pursuant to this subdivision,  may  be authorized  by  any  local  law enacted pursuant to this subdivision, to prescribe by regulation, upon the  joint  recommendation  of  the  chief officer  in charge of the department or agency of such city dealing with the interests of consumers and  the  chief  officer  in  charge  of  the department  or  agency  of  such  city  charged  with  the duty of waste collection and disposal:  (i) additional exemptions from and credits against the tax imposed  by such local law; and  (ii)  an  additional surtax of no more than one cent per container, to be imposed upon containers made of any of the taxable  components  dealt with by this subdivision or any combination thereof.   In  granting such exemption or credit or providing for such additional surtax, the above mentioned officers shall take into  consideration  the following qualities and characteristics of the container in question:  (A)  the  difficulty  the container's material poses to the process of making recycled material.  (B) the difficulty of its manufacture from recycled materials.  (C) the difficulty and relative cost of its disposal.  (D) any obstacle it poses to consumer protection.  (E) the degree to which the container can or cannot be reused.  (F) the  slowness,  difficulty,  and  incompleteness  with  which  the container  degrades  in  the  natural  environment, either chemically or biologically. Any such exemption, credit or surtax may be revoked by joint  action  of such officers, or by local law.  (6)  There  shall  be  exempted  from  any tax imposed pursuant to the authority of this subdivision, containers used as receptacles for  food, food products, beverages, dietary foods and health supplements, sold for human  consumption  but  not including (i) candy and confectionery, (ii) fruit drinks with contain less than seventy per cent  of  natural  fruit juice,  (iii)  soft  drinks,  sodas and beverages such as are ordinarily dispensed at soda fountains  or  in  connection  therewith  (other  than coffee, tea and cocoa) and (iv) beer, wine or other alcoholic beverages.  (7)  When  used  in this subdivision the words (i) "recycled material" mean component materials which have been derived  from  previously  used material  or from new or old scrap material, (ii) "retail sale" or "sale at retail" means a sale to any person for any  purpose  other  than  for resale  as  such  or  as  a physical component part of tangible personal property, (iii) "taxable period" means each calendar month or such other periods as the official administering any tax enacted pursuant  to  this subdivision  may  provide for by regulation, (iv) "one metal only" means metal with such minimum amounts of alloys as the  officer  charged  with the administration of any local law enacted pursuant to this subdivision shall  provide by regulation, but shall not include metal which has been plated or lined with another metal. In formulating such regulations such officer shall consult with the chief officer in charge of the department or agency of such city dealing with the interests of consumers  and  the chief officer in charge of the department or agency of such city charged  with  the  duty  of waste collection and disposal and shall consider the difficulty of using the metal in the making of recycled material and the availability of or technical feasibility of manufacturing  other  metals for  the  same purpose and use as the metal in question but with a lower alloy content.  (g) A tax not to exceed fifteen dollars per annum per  vehicle  to  be paid  by  the  owner  thereof: (1) for every motor vehicle registered or required to be registered pursuant to subdivision six  of  section  four hundred one of the vehicle and traffic law if such vehicle is owned by  (i)  one  or  more natural persons, other than a firm, co-partnership, limited liability company, trustee or trustees conducting a business  or association,  who,  or  one  of  whom:  (A)  at  the  time when he makes application for the registration, re-registration or renewal thereof  of such  motor  vehicle  is  domiciled  in the city, unless he maintains no permanent place of abode in the city, maintains  a  permanent  place  of abode  elsewhere,  and  during the period of one year next preceding the date upon which such application is made, spent  in  the  aggregate  not more than thirty days in the city, or (B) at the time when he makes such application,  is  not  domiciled  in the city, but maintains a permanent place of abode in the city and, during  the  period  of  one  year  next preceding  the  date  upon  which such application is made, spent in the aggregate more than one hundred  and  eighty-three  days  in  the  city, unless such individual is in the armed forces of the United States; or  (ii)  a  person,  firm,  co-partnership,  limited  liability  company, trustee  or  trustees  conducting  a  business  or  association,  or   a corporation  who  or which at the time when such owner makes application for registration, re-registration  or  renewal  thereof  of  such  motor vehicle,  regularly  keeps,  stores,  garages  or  maintains  such motor vehicle in the city; and  (2) for every motor vehicle owned  by  a  person,  firm,  partnership, limited  liability  company,  association  or corporation engaged in the business of renting or leasing motor vehicles to be  operated  upon  the public  highways  for  carrying  passengers registered or required to be registered pursuant to any provision of section four hundred one of  the vehicle and traffic law, which vehicle at the time when such owner makes application  for  registration,  re-registration  or  renewal thereof is regularly kept, stored, garaged or maintained in the city including such vehicles which have been rented or  leased  by  the  owner  and  are  in possession   of   lessees   when   such  application  for  registration, re-registration or renewal is made.  (3) The payment of such tax shall be a  condition  precendent  to  the registration,  re-registration  or  renewal therof of such motor vehicle and to the issuance of any certificate of  registration  and  plates  or removable  date  tag  specified  in  subdivision  three  of section four hundred one and in sections four hundred three and four hundred four  of the  vehicle  and  traffic law, and no such certificate of registration, plates or tag shall be  issued  unless  such  tax  has  been  paid.  The commissioner   of   motor   vehicles  shall  not  issue  a  registration certificate for any motor vehicle for which the registrant's address  is within  any  such  city,  except  upon  proof, in a form approved by the commissioner of motor vehicles, that such tax, if imposed by such  city, has been paid, or is not due, with respect to such motor vehicle.  (h)  Notwithstanding  the  provisions  of this article or of any other law, any local law adopted by a city of one million or more, imposing  a tax  authorized by subdivision (g) of this section may provide that such tax shall be administered and collected by  the  commissioner  of  motor vehicles  or  his  agents.  In  the  event  that  such local law does so provide, such tax shall not be  imposed  upon  an  application  for  the  re-registration  of  a  motor  vehicle, and further, the commissioner of motor  vehicles  shall  enter  into  an  agreement  with   the   finance administrator  or  other  appropriate fiscal officer of such city, which agreement shall govern the administration and collection of any such tax and  which  agreement  shall  have  the  force  and  effect of a rule or regulation of the commissioner and  shall  be  filed  and  published  in accordance   with   any   statutory   requirements   relating   thereto. Notwithstanding any other provision of law, such agreement shall provide for the exclusive method of collection,  custody  and  remittal  of  the proceeds of any such tax; for the payment by such city of the reasonable expenses incurred by the department of motor vehicles in connection with the  collection  and  administration  of  any  such tax; for the finance administrator or other appropriate fiscal officer, or a duly  designated representative,  upon his request, not more frequently than once in each calendar year at a time agreed upon by the state comptroller,  to  audit the  accuracy  of  the  payments,  distributions and remittances to such finance administrator or other appropriate fiscal officer made  pursuant to  this subdivision; and for such other matters as may be necessary and proper to effectuate the purposes of such agreement.  (i) A tax  on  admission  charges  for  admission  to  motion  picture exhibitions  or  live  dramatic,  choreographic or musical performances, whether at a theatre, opera house, concert hall or  other  place,  at  a rate not to exceed three percent. However, such a tax shall not apply to any  admission  charge to a motion picture exhibition for admission of a person twelve years of age or under.  (j) (1) A tax on the  transfer  of  a  taxicab  license,  or  interest therein,  at  a  rate  not  to exceed eight percent of the consideration given for such transfer.  (2) The tax shall be imposed on the  transferee,  but  any  local  law imposing  the  tax  authorized  by this subdivision may provide that the transferor shall also be liable for the payment of such tax in the event that the amount of tax due is not paid by the transferee.  (3) Notwithstanding any other law to the contrary, no  transfer  of  a taxicab license shall be effective until any tax imposed pursuant to the authority of this subdivision has been paid.  (4)  Where  there  is a transfer of the economic interest in a taxicab license effected by the sale of shares of stock of a  corporation  which holds  the  taxicab  license,  or  by  the  transfer  of  an interest or interests in a  partnership  or  association  which  holds  the  taxicab license,  any  local  law  enacted  pursuant  to  the  authority of this subdivision may provide that such a  transfer  shall  be  treated  as  a transfer  of the taxicab license or interest therein, subject to the tax authorized by this subdivision.  (5) Where there is a transfer  of  a  taxicab  or  other  property  in conjunction  with the transfer of a taxicab license or interest therein, such local law may provide that the tax shall be computed on  the  total consideration  for the transfer of the license, or interest therein, the taxicab and any other property so transferred less the market  value  of such taxicab and such other property.  (6) When used in this subdivision, the following terms shall mean:  (i)  "Transfer." Any transfer of interest whether or not such interest constitutes title, or possession, or both, exchange or  barter,  rental, lease,  or license to use, conditional or otherwise, in any manner or by any means whatsoever for a consideration, or any agreement therefor.  (ii) "Taxicab." A motor vehicle carrying passengers for hire in a city imposing the tax authorized by this  subdivision,  duly  licensed  as  a taxicab  by  such city, and permitted to accept hails from passengers in the street.  (iii) "Taxicab license." A license issued by the  taxi  and  limousine commission in such city, or its successor agency, to operate a taxicab.  (k)  Any  local  law  imposing  a  tax on the gross receipts (or gross income or gross operating income) from  sales  of  electricity,  gas  or steam,  or  sales  of  delivery  services  for  any of the foregoing, to persons within such city enacted pursuant to  subdivision  (a)  of  this section may provide for a deduction from gross receipts (or gross income or  gross  operating  income)  of  all receipts derived from the sale of electricity, gas or steam, or sale of delivery services for any  of  the foregoing,  to  non-residential energy users of such electricity, gas or steam, or from the sale of delivery services to a public utility service operated by such city in accordance with a local law adopted pursuant to article fourteen-A of the general muncipal  law  or  from  the  sale  of delivery  services  to  the power authority of the state of New York, in connection with the sale of electricity, gas or steam to non-residential energy users of such electricity, gas or steam, except that no deduction shall be allowed for receipts derived  from  sales  of  electricity,  or sales  of  delivery  services  for  electricity, to or by an electricity redistributor, or sales of delivery services for electricity to a public utility service operated by such city in accordance  with  a  local  law adopted  pursuant  to article fourteen-A of the general municipal law or sales of such delivery services to the power authority of the  state  of New  York,  in  connection  with  the sale of electricity by such public utility service or  such  authority  to  an  electricity  redistributor, unless  such  electricity  redistributor has obtained a certification of eligibility pursuant to a local  law  enacted  in  accordance  with  the authorization  contained  in  article  two-G of the general city law. No such deduction authorized herein shall affect the computation  specified in  subdivision  four  of  section  three  contained  in  section one or subdivision (a) of section one hundred three contained in section two of chapter seven hundred  seventy-two  of  the  laws  of  nineteen  hundred sixty-six,  as  amended, with regard to vendors of utility services. For purposes of this subdivision, the terms  "non-residential  energy  user" and  "electricity redistributor" shall have the same meaning as ascribed by article two-G of the general city law.  (l) In addition to any privilege taxes on amusement devices authorized by subdivision (c)  of  this  section,  there  shall  be  authorized  an additional  privilege tax on amusement devices operated by coins, tokens or currency (either generally or upon selected types or classes of  such devices)  including,  but  not  limited to, juke box, music, skill game, digger, pool or billiard tables, booths  providing  live  entertainment, and  moving  picture  and  video  devices,  at  a rate not to exceed one hundred fifty dollars per annum for each such device.  (m) Any city in this state having a population of one million or more, acting through its local legislative body, is hereby authorized to adopt and amend local laws which conform the local law of  such  city  to  the provisions  of  law set forth in part U3 of a chapter of the laws of two thousand three amending the general business law and other laws relating to implementing the state fiscal plan for  the  2003-2004  state  fiscal year,  as  proposed in legislative bill numbers S. 1406-B and A. 2106-B, as amended, with such modifications as may be necessary  to  adapt  such provisions  to  such  local  law so that such local law is substantially similar to the law of the state.