NY Tax L § 1405-B (2021)
2021 New York Laws TAX - Tax Article 31 - Real Estate Transfer Tax 1405-B - Cooperative Housing Corporation Transfers.

§    1405-B.    Cooperative   housing   corporation   transfers.   (a) Notwithstanding the definition of "controlling  interest"  contained  in subdivision  (b)  of  section  fourteen  hundred  one of this article or anything to  the  contrary  contained  in  subdivision  (e)  of  section fourteen  hundred  one  of this article, the tax imposed by this article shall apply to (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 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  one  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 one 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  one 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 one of this subdivision.  (b) Every cooperative housing corporation shall be required to file an information return with the commissioner of taxation and finance 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 commissioner 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.  The commissioner of taxation and finance may enter into  an  agreement  with the  chief  fiscal  officer  of  the  city of New York to provide that a single information return may be filed for purposes of the  tax  imposed by this article and the real property transfer tax imposed by such city.  (c)  The  information contained within information returns filed under subdivision (b) of this section may be provided by the  commissioner  to local  assessors  for  use in real property tax administration, and such  information shall not be subject to the secrecy provisions set forth  in section  fourteen  hundred  eighteen of this chapter, provided, however, that the commissioner shall not  disclose  social  security  numbers  or employer identification numbers.