2023 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-six, 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.