NY Tax L § 1401 (2021)
2021 New York Laws TAX - Tax Article 31 - Real Estate Transfer Tax 1401 - Definitions.

§  1401.  Definitions.  When  used  in  this article, unless otherwise expressly stated:  (a) (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) "Person" shall include any individual, corporation, partnership or limited liability company or an officer or employee of  any  corporation (including  a  dissolved  corporation),  or  a member or employee of any partnership, or a member, manager or employee  of  a  limited  liability company,  who  as  such  officer, employee, manager or member is under a duty to act for such corporation, partnership, limited liability company or individual proprietorship in complying with any requirement  of  this article, or has so acted.  (b)  "Controlling  interest"  means  (i) 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  (ii) 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.  (c) "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 state of New York. It shall not include rights to sepulture.  (d) "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.  (i)  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.  (ii)  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.  (iii) 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.  (iv) 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.  (v) In the case of (i) 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 (ii) 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.  (e) "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 (i) the sum of  the  term of  the lease or sublease and any options for renewal exceeds forty-nine years, (ii) substantial capital improvements are or may be  made  by  or for  the  benefit  of  the  lessee  or sublessee, and (iii) 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  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.  (f) "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.  (g)  "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.  (h) "Grantee" means the person who obtains real property  or  interest therein as a result of a conveyance.  (i)  "Recording  officer" means the county clerk of the county, except in a county having a register,  where  it  means  the  register  of  the county, or in the city of New York where it means the city register.