NY Tax L § 1428-B (2021)
2021 New York Laws TAX - Tax Article 31-A - Tax on Real Property Transfers for Transportation Assistance 1428-B - Cooperative Housing Corporation Transfers.

§    1428-b.    Cooperative    housing   corporation   transfers.   1.   Notwithstanding the definition of "controlling  interest"  contained  in   subdivision  two of section fourteen hundred twenty-four of this article   or anything to the contrary contained in  subdivision  five  of  section   fourteen  hundred  twenty-four of this article, the tax imposed pursuant   to this article shall apply to (a) 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 (b)  the  subsequent  conveyance  of  such   stock  in a cooperative housing corporation in connection with the grant   or transfer of a  proprietary  leasehold  by  the  owner  thereof.  With   respect  to  any  such  subsequent  conveyance  where the property is an   individual residential unit, the consideration for the interest conveyed   shall exclude the value of any liens on certificates of stock  or  other   evidences  of  an  ownership  interest in and a proprietary lease from a   corporation  or  partnership  formed  for  the  purpose  of  cooperative   ownership  of  residential  interest in real estate remaining thereon at   the time of conveyance. In determining the tax on a conveyance described   in paragraph (a) of this subdivision, a credit shall be  allowed  for  a   proportionate  part of the amount of any tax paid upon the conveyance to   the cooperative housing corporation of the real property comprising  the   cooperative  dwelling  or  dwellings  to the extent that such conveyance   effectuated a mere change of identity  or  form  of  ownership  of  such   property  and not a change in the beneficial ownership of such property.   The amount of the credit shall be determined by multiplying  the  amount   of  tax  paid upon the conveyance to the cooperative housing corporation   by a  percentage  representing  the  extent  to  which  such  conveyance   effectuated  a  mere  change  of identity or form of ownership and not a   change  in  the  beneficial  ownership  of  such  property,   and   then   multiplying  the resulting product by a fraction, the numerator of which   shall be the number  of  shares  of  stock  conveyed  in  a  transaction   described  in  paragraph  (a) of this subdivision and the denominator of   which shall be the total number of 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  conveyance   described  in  paragraph  (a) of this subdivision, below zero, nor shall   any such credit be allowed for a tax paid more than  twenty-four  months   prior  to  the date on which occurs the first in a series of conveyances   of shares of stock in an offering  of  cooperative  housing  corporation   shares described in paragraph (a) of this subdivision.2.  Every cooperative housing corporation shall be required to file an   information return with the treasurer by July  fifteenth  of  each  year   covering the preceding period of January first through June thirty-first   and  by  January fifteenth of each year covering the preceding period of   July first through December thirty-first. The return shall contain  such   information   regarding  the  conveyance  of  shares  of  stock  in  the   cooperative housing corporation as the  treasurer  may  deem  necessary,   including  but  not  limited  to,  the  names,  addresses  and  employee   identification numbers or social security numbers of the grantor and the   grantee, the number of shares conveyed, the date of the  conveyance  and   the consideration paid for such conveyance.