STATE OF NEW YORK ________________________________________________________________________ 331 2025-2026 Regular Sessions IN ASSEMBLY (Prefiled) January 8, 2025 ___________ Introduced by M. of A. BARRETT, WOERNER, OTIS, LEVENBERG, LUNSFORD, LUCAS -- read once and referred to the Committee on Local Governments AN ACT to amend the general municipal law, in relation to authorizing cities and towns, except a city with a population of one million or more, to establish community housing funds; to amend the tax law, in relation to authorizing cities and towns, except a city with a popu- lation of one million or more, to impose a real estate transfer tax with revenues therefrom to be deposited in such funds; and providing for the repeal of certain provisions of the tax law relating thereto The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The general municipal law is amended by adding a new 2 section 6-w to read as follows: 3 § 6-w. Community housing fund. 1. Definitions. As used in this 4 section, the following words and terms shall have the following mean- 5 ings: 6 (a) "City or town" means a city, except a city with a population of 7 one million or more, or a town. 8 (b) "Community housing" means a primary residential property for an 9 eligible individual. The governing body shall establish, by local law, 10 purchase price limit for community housing, provided that limit shall 11 not exceed one hundred fifty percent of the purchase price limits estab- 12 lished by the state of New York mortgage agency low interest rate loan 13 program in non-target categories for the county in effect on the 14 contract date for the sale of such property. Community housing shall 15 include apartments that are accessory to a legally established residen- 16 tial or commercial use. 17 (c) "Board" means the advisory board created pursuant to subdivision 18 six of this section. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00173-01-5
A. 331 2 1 (d) "Fund" means the community housing fund authorized pursuant to 2 subdivision two of this section. 3 (e) "First-time homebuyer" means an eligible individual who has not 4 owned a primary residential property and is not married to a person who 5 has owned a residential property during the three-year period prior to 6 such person's purchase of the primary residential property, and who does 7 not own a vacation or investment home. 8 (f) "Primary residential property" means any one or two family house, 9 townhouse, or condominium, including accessory apartments. 10 (g) "Eligible individual" shall be defined by the governing body, by 11 local law, provided that the definition of household income in such 12 local law shall not exceed one hundred percent of the income limits as 13 established by the state of New York mortgage agency low interest rate 14 loan program in non-target categories for the county in effect on the 15 contract date for the sale of such property. 16 (h) "Governing body" means a city council or town board. 17 2. Fund authorized. Cities and towns are authorized to establish, by 18 local law, a community housing fund, pursuant to the provisions of this 19 section. Deposits into the fund may include revenues of the local 20 government from whatever source, including but not limited to: (a) all 21 revenues from the supplemental real estate transfer tax authorized by 22 section fifteen hundred seventy-six of the tax law; (b) all proceeds 23 from any indebtedness or obligations issued pursuant to the local 24 finance law for community housing opportunity purposes as authorized in 25 subdivision three of this section; (c) general fund balances or surplus- 26 es; (d) any proceeds received by the local government from the sale or 27 rental of community housing produced from revenues of the fund; (e) the 28 repayment of any loans issued from proceeds of the fund; (f) any gifts 29 of interests in land or funds; and (g) any state or federal grants 30 received by the city or town for providing affordable homes. 31 3. Purposes of the fund. The proceeds of the fund established pursuant 32 to subdivision two of this section shall be utilized for the following 33 purposes: 34 (a) the provision of financial assistance to first-time homebuyers who 35 are residents of the city or town for the purchase of a first home. Such 36 financial assistance may be in the form of a grant or a loan and such 37 program shall meet the following criteria: 38 (1) A city or town may provide financial assistance for the purchase 39 of a first home to a first-time homebuyer who is a resident of the city 40 or town or who is employed in the city or town. A resident of the city 41 or town shall include a person who is currently a resident of the city 42 or town or a non-resident who has been a resident within the past five 43 years. 44 (2) Such financial assistance shall not exceed fifty percent of the 45 purchase price of the home. 46 (3) If such financial assistance is in the form of a loan, such loan 47 shall be repayable to the city or town pursuant to the terms agreed to 48 between the recipient and the city or town, provided that any loan shall 49 be fully repaid by the recipient upon the resale of the home. 50 (4) For the purposes of calculating city or town real property tax 51 liability for such property, only, the dollar amount of any financial 52 assistance for the purchase of a first home made by the city or town 53 pursuant to this section shall be subtracted from the full equalized 54 assessed value of such property. 55 (5) All revenues received by the city or town from the repayment of a 56 loan shall be deposited in the fund.
A. 331 3 1 (6) A city or town may provide financial assistance for community 2 housing in conjunction with a public/private partnership for employer 3 assisted housing. 4 (b) the actual production of community housing for sale to eligible 5 individuals by the city or town; 6 (c) the actual production of community housing for sale to eligible 7 individuals in conjunction with a public/private partnership, where the 8 private partner agrees to comply with the profit guidelines of the New 9 York state affordable housing corporation and the provisions of this 10 section; 11 (d) the actual production and maintenance of community housing, 12 including accessory apartments for rental to eligible individuals either 13 by the city or town or its housing authority; or in conjunction with a 14 public/private partnership, where the private partner agrees to comply 15 with the profit guidelines of the New York state affordable housing 16 corporation and the provisions of this section; 17 (e) the rehabilitation of existing buildings and structures in the 18 city or town for the purpose of conversion to community housing for sale 19 or rental to eligible individuals; 20 (f) the acquisition of interests in real property in existing housing 21 stock, which will result in the production of community housing for sale 22 or rental to eligible individuals; and 23 (g) the provision of housing counseling services by not-for-profit 24 corporations who are authorized by the United States department of hous- 25 ing and urban development to provide such services. 26 4. Fund management. Interest accrued by monies deposited into the fund 27 shall be credited to the fund. In no event shall monies deposited into 28 the fund be transferred to any other account. Nothing contained in this 29 section shall be construed to prevent the financing in whole or in part, 30 pursuant to the local finance law, of any purpose authorized pursuant to 31 this section. Monies from the fund may be utilized to repay indebtedness 32 or obligations incurred pursuant to the local finance law consistent 33 with effectuating the purposes of this section. 34 5. Eligible expenses. For the purposes of this section, eligible 35 expenses relating to the production of community housing and the reha- 36 bilitation of existing buildings and structures under the fund shall 37 include but not be limited to land acquisition, planning, engineering, 38 construction costs, and other hard and soft costs directly related to 39 the construction, rehabilitation, purchase or rental of housing pursuant 40 to this section. All revenues received by the city or town from the sale 41 or rental of community housing, or the repayment of loans shall be 42 deposited in the fund. 43 6. Advisory board established. The governing body of any city or town 44 which has established a community housing fund pursuant to this section 45 shall create an advisory board to review and make recommendations 46 regarding the city or town's community housing plan required by subdivi- 47 sion seven of this section. Such board shall consist of not less than 48 seven nor more than fifteen legal residents of the municipality who 49 shall serve without compensation. No member of the local legislative 50 body shall serve on the board. The board shall include a representative 51 of: (a) the construction industry; (b) the real estate industry; (c) the 52 banking industry; and three representatives of local housing advocacy or 53 human services organizations. Where a village or villages, located with- 54 in a town, elect to participate in the fund, as provided in subdivision 55 eight of this section, the board shall include at least one resident of 56 a participating village or villages. Where an Indian nation is located
A. 331 4 1 within the boundaries of a city or town, the board shall include at 2 least one member from such nation. The board shall act in an advisory 3 capacity to the governing body. 4 7. Adoption of housing plan. (a) Before a city or town may expend any 5 funds pursuant to this section, the governing body shall first adopt a 6 housing plan which establishes an implementation plan for the provision 7 of community housing opportunities by the fund. Said plan shall be 8 adopted by local law. Such plan shall adhere to the following princi- 9 ples: 10 (1) Public investment. To account for and minimize social, economic, 11 and environmental costs of new development, including infrastructure 12 costs such as transportation, sewers, and wastewater treatment, water, 13 schools, recreation, and loss of open space and agricultural land; 14 (2) Development. To encourage development in areas where transporta- 15 tion, water, and sewage infrastructure are available or practical; 16 (3) Conservation. To protect, preserve, and enhance the state's 17 resources, including agricultural land, forests, surface waters, ground- 18 water, recreation and open space, scenic areas, and significant historic 19 and archeological sites; 20 (4) Coordination. To promote coordination of state and local govern- 21 ment decisions and cooperation among communities to work toward the most 22 efficient, planned and cost-effective delivery of government services 23 by, among other means, facilitating cooperative agreements among adja- 24 cent communities, and to coordinate planning to ensure compatibility of 25 one's community development with development of neighboring communities; 26 (5) Community design. To strengthen communities through development 27 and redevelopment strategies that include integration of all income and 28 age groups, mixed land uses, and compact development, traditional neigh- 29 borhood development, planned unit development, open space districts, 30 downtown revitalization, brownfield redevelopment, enhanced beauty in 31 public spaces, and diverse and community housing in close proximity to 32 places of employment, recreation, and commercial development; 33 (6) Transportation. To provide transportation choices, including 34 increasing public transit and alternative modes of transportation, in 35 order to reduce automobile dependency, traffic congestion, and automo- 36 bile pollution; 37 (7) Consistency. To ensure predictability in building and land use 38 codes; and 39 (8) Community collaboration. To provide for and encourage local 40 governments to develop, through a collaborative community-based effort, 41 plans that include long term land use and permit predictability and 42 coordination, efficient decision making and planning implementation. 43 (b) Such plan may include the establishment of a map or maps that 44 delineate the housing implementation recommendations proposed by the 45 city or town. 46 (c) Such plan shall be updated at least once every five years. 47 (d) The housing plan shall be an element of the city or town compre- 48 hensive plan. 49 (e) Such plan shall ensure that all community housing, created pursu- 50 ant to this section, remains affordable. Subsequent purchasers of such 51 community housing, at the time of purchase, shall be eligible individ- 52 uals as defined herein. 53 (f) Such plan shall provide for the equitable distribution of communi- 54 ty housing opportunities among all the communities of the city or town. 55 The plan shall ensure that no community has an undue concentration of 56 community housing opportunities that would substantially alter the char-
A. 331 5 1 acter of the community. In determining equitable distribution of commu- 2 nity housing opportunities, existing community housing opportunities in 3 a community shall be considered. 4 8. Village participation. (a) The participation of any village, where 5 there is a town community housing fund, in the production of community 6 housing authorized by this section, shall be at the option of the 7 village. In order to participate, a village shall pass a resolution 8 opting into the program and shall submit said resolution to the town 9 board. 10 (b) Where a village opts to participate pursuant to this subdivision, 11 an intergovernmental agreement shall be executed pursuant to article 12 five-G of the general municipal law or other applicable legal authority, 13 in order to establish the rights and responsibilities of each government 14 regarding community housing opportunities. 15 (c) Regardless of whether a village participates in the program 16 authorized by this section, properties in the village shall be subject 17 to the supplemental real estate transfer tax authorized by section four- 18 teen hundred forty-nine-bb of the tax law. 19 § 2. The tax law is amended by adding a new article 33-C to read as 20 follows: 21 ARTICLE 33-C 22 TAX ON REAL ESTATE TRANSFERS IN CITIES OR TOWNS 23 Section 1575. Definitions. 24 1576. Imposition of tax. 25 1577. Payment of tax. 26 1578. Liability for tax. 27 1579. Exemptions. 28 1580. Credit. 29 1581. Cooperative housing corporation transfers. 30 1582. Designation of agents. 31 1583. Liability of recording officer. 32 1584. Deposit and disposition of revenue. 33 1585. Judicial review. 34 1586. Apportionment. 35 1587. Miscellaneous. 36 1588. Returns to be secret. 37 1589. Foreclosure proceedings. 38 § 1575. Definitions. When used in this article, unless otherwise 39 expressly stated, the following words and terms shall have the following 40 meanings: 41 1. "Person" means an individual, partnership, limited liability compa- 42 ny, society, association, joint stock company, corporation, estate, 43 receiver, trustee, assignee, referee or any other person acting in a 44 fiduciary or representative capacity, whether appointed by a court or 45 otherwise, any combination of individuals, and any other form of unin- 46 corporated enterprise owned or conducted by two or more persons. 47 2. "Controlling interest" means (a) in the case of a corporation, 48 either fifty percent or more of the total combined voting power of all 49 classes of stock of such corporation, or fifty percent or more of the 50 capital, profits or beneficial interest in such voting stock of such 51 corporation, and (b) in the case of a partnership, association, trust or 52 other entity, fifty percent or more of the capital, profits or benefi- 53 cial interest in such partnership, association, trust or other entity. 54 3. "Real property" means every estate or right, legal or equitable, 55 present or future, vested or contingent, in lands, tenements or heredi- 56 taments, including buildings, structures and other improvements thereon,
A. 331 6 1 which are located in whole or in part within any city or town. It shall 2 not include rights to sepulture. 3 4. "Consideration" means the price actually paid or required to be 4 paid for the real property or interest therein, including payment for an 5 option or contract to purchase real property, whether or not expressed 6 in the deed and whether paid or required to be paid by money, property, 7 or any other thing of value. It shall include the cancellation or 8 discharge of an indebtedness or obligation. It shall also include the 9 amount of any mortgage, purchase money mortgage, lien or other encum- 10 brance, whether or not the underlying indebtedness is assumed or taken 11 subject to. 12 (a) In the case of a creation of a leasehold interest or the granting 13 of an option with use and occupancy of real property, consideration 14 shall include, but not be limited to, the value of the rental and other 15 payments attributable to the use and occupancy of the real property or 16 interest therein, the value of any amount paid for an option to purchase 17 or renew and the value of rental or other payments attributable to the 18 exercise of any option to renew. 19 (b) In the case of a creation of a subleasehold interest, consider- 20 ation shall include, but not be limited to, the value of the sublease 21 rental payments attributable to the use and occupancy of the real prop- 22 erty, the value of any amount paid for an option to renew and the value 23 of rental or other payments attributable to the exercise of any option 24 to renew less the value of the remaining prime lease rental payments 25 required to be made. 26 (c) In the case of a controlling interest in any entity that owns real 27 property, consideration shall mean the fair market value of the real 28 property or interest therein, apportioned based on the percentage of the 29 ownership interest transferred or acquired in the entity. 30 (d) In the case of an assignment or surrender of a leasehold interest 31 or the assignment or surrender of an option or contract to purchase real 32 property, consideration shall not include the value of the remaining 33 rental payments required to be made pursuant to the terms of such lease 34 or the amount to be paid for the real property pursuant to the terms of 35 the option or contract being assigned or surrendered. 36 (e) In the case of (1) the original conveyance of shares of stock in a 37 cooperative housing corporation in connection with the grant or transfer 38 of a proprietary leasehold by the cooperative corporation or cooperative 39 plan sponsor, and (2) the subsequent conveyance by the owner thereof of 40 such stock in a cooperative housing corporation in connection with the 41 grant or transfer of a proprietary leasehold for a cooperative unit 42 other than an individual residential unit, consideration shall include a 43 proportionate share of the unpaid principal of any mortgage on the real 44 property of the cooperative housing corporation comprising the cooper- 45 ative dwelling or dwellings. Such share shall be determined by multiply- 46 ing the total unpaid principal of the mortgage by a fraction, the numer- 47 ator of which shall be the number of shares of stock being conveyed in 48 the cooperative housing corporation in connection with the grant or 49 transfer of a proprietary leasehold and the denominator of which shall 50 be the total number of shares of stock in the cooperative housing corpo- 51 ration. 52 5. "Conveyance" means the transfer or transfers of any interest in 53 real property by any method, including but not limited to, sale, 54 exchange, assignment, surrender, mortgage foreclosure, transfer in lieu 55 of foreclosure, option, trust indenture, taking by eminent domain, 56 conveyance upon liquidation or by a receiver, or transfer or acquisition
A. 331 7 1 of a controlling interest in any entity with an interest in real proper- 2 ty. Transfer of an interest in real property shall include the creation 3 of a leasehold or sublease only where (a) the sum of the term of the 4 lease or sublease and any options for renewal exceeds forty-nine years, 5 (b) substantial capital improvements are or may be made by or for the 6 benefit of the lessee or sublessee, and (c) the lease or sublease is for 7 substantially all of the premises constituting the real property. 8 Notwithstanding the foregoing, conveyance of real property shall not 9 include a conveyance made pursuant to devise, bequest or inheritance; 10 the creation, modification, extension, spreading, severance, consol- 11 idation, assignment, transfer, release or satisfaction of a mortgage; a 12 mortgage subordination agreement, a mortgage severance agreement, an 13 instrument given to perfect or correct a recorded mortgage; or a release 14 of lien of tax pursuant to this chapter or the internal revenue code. 15 6. "Interest in the real property" includes title in fee, a leasehold 16 interest, a beneficial interest, an encumbrance, development rights, air 17 space and air rights, or any other interest with the right to use or 18 occupancy of real property or the right to receive rents, profits or 19 other income derived from real property. It shall also include an option 20 or contract to purchase real property. It shall not include a right of 21 first refusal to purchase real property. 22 7. "Grantor" means the person making the conveyance of real property 23 or interest therein. Where the conveyance consists of a transfer or an 24 acquisition of a controlling interest in an entity with an interest in 25 real property, "grantor" means the entity with an interest in real prop- 26 erty or a shareholder or partner transferring stock or partnership 27 interest, respectively. 28 8. "Grantee" means the person who obtains real property or interest 29 therein as a result of a conveyance. 30 9. "Community housing fund" means a community fund created pursuant to 31 section six-w of the general municipal law. 32 10. "Recording officer" means the county clerk. 33 11. "City or town" means a city or town, except a city of one million 34 or more. 35 12. "Treasurer" means the county treasurer. 36 § 1576. Imposition of tax. Notwithstanding any other provisions of law 37 to the contrary, any city or town, acting through its governing body, is 38 hereby authorized and empowered to adopt a local law imposing in such 39 city or town a supplemental tax on each conveyance of real property or 40 interest therein where the consideration exceeds five hundred dollars, 41 at the rate of up to one half of one percent of the consideration for 42 such conveyance. Provided, however, any such local law imposing, repeal- 43 ing or re-imposing such supplemental tax shall be subject to a mandatory 44 referendum pursuant to section twenty-three of the municipal home rule 45 law. Notwithstanding the foregoing, prior to adoption of such local 46 law, the city or town must establish a community housing fund pursuant 47 to section six-w of the general municipal law. Revenues from such 48 supplemental tax shall be deposited in such community housing fund and 49 may be used solely for the purposes of such community housing fund. Such 50 local law shall apply to any conveyance occurring on or after the first 51 day of a month to be designated by the governing board, which is not 52 less than sixty days after the enactment of such local law, but shall 53 not apply to conveyances made on or after such date pursuant to binding 54 written contracts entered into prior to such date, provided that the 55 date of execution of such contract is confirmed by independent evidence
A. 331 8 1 such as the recording of the contract, payment of a deposit or other 2 facts and circumstances as determined by the treasurer. 3 § 1577. Payment of tax. 1. The real estate transfer tax imposed pursu- 4 ant to this article shall be paid to the treasurer or the recording 5 officer acting as the agent of the treasurer upon designation as such 6 agent by the treasurer. Such tax shall be paid at the same time as the 7 real estate transfer tax imposed by article thirty-one of this chapter 8 is required to be paid. Such treasurer or recording officer shall 9 endorse upon each deed or instrument effecting a conveyance a receipt 10 for the amount of the tax so paid. 11 2. A return shall be required to be filed with such treasurer or 12 recording officer for purposes of the real estate transfer tax imposed 13 pursuant to this article at the same time as a return is required to be 14 filed for purposes of the real estate transfer tax imposed by article 15 thirty-one of this chapter. The treasurer shall prescribe the form of 16 return, the information which it shall contain, and the documentation 17 that shall accompany the return. Said form shall be identical to the 18 real estate transfer tax return required to be filed pursuant to section 19 fourteen hundred nine of this chapter, except that the treasurer shall 20 adapt said form to reflect the provisions in this chapter that are 21 inconsistent, different, or in addition to the provisions of article 22 thirty-one of this chapter. The real estate transfer tax returns 23 required to be filed pursuant to this section shall be preserved for 24 three years and thereafter until such treasurer or recording officer 25 orders them to be destroyed. 26 3. The recording officer shall not record an instrument effecting a 27 conveyance unless the return required by this section has been filed and 28 the tax imposed pursuant to this article shall have been paid as 29 required in this section. 30 § 1578. Liability for tax. 1. The real estate transfer tax shall be 31 paid by the grantee. If the grantee has failed to pay the tax imposed 32 pursuant to this article or if the grantee is exempt from such tax, the 33 grantor shall have the duty to pay the tax. Where the grantor has the 34 duty to pay the tax because the grantee has failed to pay the tax, such 35 tax shall be the joint and several liability of the grantee and the 36 grantor. 37 2. For the purpose of the proper administration of this article and to 38 prevent evasion of the tax hereby imposed, it shall be presumed that all 39 conveyances are taxable. Where the consideration includes property other 40 than money, it shall be presumed that the consideration is the fair 41 market value of the real property or interest therein. These presump- 42 tions shall prevail until the contrary is proven, and the burden of 43 proving the contrary shall be on the person liable for payment of the 44 tax. 45 § 1579. Exemptions. 1. The following shall be exempt from the payment 46 of the real estate transfer tax: (a) the state of New York, or any of 47 its agencies, instrumentalities, political subdivisions, or public 48 corporations, including a public corporation created pursuant to an 49 agreement or compact with another state or Canada; and 50 (b) the United Nations, the United States of America or any of its 51 agencies or instrumentalities. 52 2. The tax shall not apply to any of the following conveyances: (a) 53 conveyances to the United Nations, the United States of America, the 54 state of New York, or any of their instrumentalities, agencies or poli- 55 tical subdivisions, or any public corporation, including a public corpo- 56 ration created pursuant to agreement or compact with another state or
A. 331 9 1 the Dominion of Canada; (b) conveyances which are or were used to secure 2 a debt or other obligation; (c) conveyances which, without additional 3 consideration, confirm, correct, modify or supplement a deed previously 4 recorded; (d) conveyances of real property without consideration and 5 otherwise than in connection with a sale, including deeds conveying 6 realty as bona fide gifts; (e) conveyances given in connection with a 7 tax sale; (f) conveyances to effectuate a mere change of identity or 8 form of ownership or organization where there is no change in beneficial 9 ownership, other than conveyances to a cooperative housing corporation 10 of the real property comprising the cooperative dwelling or dwellings; 11 (g) conveyances which consist of a deed of partition; (h) conveyances 12 given pursuant to the federal bankruptcy act; (i) conveyances of real 13 property which consist of the execution of a contract to sell real prop- 14 erty without the use or occupancy of such property or the granting of an 15 option to purchase real property without the use or occupancy of such 16 property; (j) conveyances of real property, where the entire parcel of 17 real property to be conveyed is the subject of one or more of the 18 following development restrictions: (1) agricultural, conservation, 19 scenic, or an open space easement, (2) covenants or restrictions prohib- 20 iting development, (3) a purchase of development rights agreement, (4) a 21 transfer of development rights agreement, where the property being 22 conveyed has had its development rights removed, (5) said real property 23 is subject to the development restriction of an agricultural district or 24 individual commitment, pursuant to article twenty-five-AA of the agri- 25 culture and markets law, (6) real property subject to any locally 26 adopted land preservation agreement, provided said exemption is included 27 in the local law imposing the tax authorized by this article; (k) 28 conveyances of real property, where the property is viable agricultural 29 land as defined in subdivision seven of section three hundred one of the 30 agriculture and markets law and the entire property to be conveyed is to 31 be made subject to one of the development restrictions provided for in 32 subparagraph two of paragraph (j) of this subdivision provided that said 33 development restriction precludes the conversion of the property to a 34 non-agricultural use for at least three years from the date of transfer, 35 and said development restriction is evidenced by an easement, agreement, 36 or other suitable instrument which is to be conveyed to the city or town 37 simultaneously with the conveyance of the real property; or (l) convey- 38 ances of real property for open space, parks, community housing, or 39 historic preservation purposes to any not-for-profit tax exempt corpo- 40 ration operated for conservation, environmental, community housing or 41 historic preservation purposes. 42 3. The governing body of a city or town, by local law may establish a 43 community housing exemption from the payment of the real estate transfer 44 tax. Such exemption may not exceed an amount equal to the residential 45 median sale price of the county in which the city or town is located, as 46 determined by the office of real property services within the department 47 of taxation and finance. Such exemption shall be allowed on the consid- 48 eration of the conveyance of improved real property or an interest ther- 49 ein. The exemption granted pursuant to the provisions of this subdivi- 50 sion shall only apply to conveyances for residential property where the 51 consideration is two million dollars or less. 52 § 1580. Credit. A grantee shall be allowed a credit against the tax 53 due on a conveyance of real property to the extent tax was paid by such 54 grantee on a prior creation of a leasehold of all or a portion of the 55 same real property or on the granting of an option or contract to 56 purchase all or a portion of the same real property by such grantee.
A. 331 10 1 Such credit shall be computed by multiplying the tax paid on the 2 creation of the leasehold or on the granting of the option or contract 3 by a fraction, the numerator of which is the value of the consideration 4 used to compute such tax paid which is not yet due to such grantor on 5 the date of the subsequent conveyance (and which such grantor will not 6 be entitled to receive after such date), and the denominator of which is 7 the total value of the consideration used to compute such tax paid. 8 § 1581. Cooperative housing corporation transfers. 1. Notwithstanding 9 the definition of "controlling interest" contained in subdivision two of 10 section fifteen hundred seventy-five of this article or anything to the 11 contrary contained in subdivision five of section fifteen hundred seven- 12 ty-five of this article, the tax imposed pursuant to this article shall 13 apply to (a) the original conveyance of shares of stock in a cooperative 14 housing corporation in connection with the grant or transfer of a 15 proprietary leasehold by the cooperative corporation or cooperative plan 16 sponsor, and (b) the subsequent conveyance of such stock in a cooper- 17 ative housing corporation in connection with the grant or transfer of a 18 proprietary leasehold by the owner thereof. With respect to any such 19 subsequent conveyance where the property is an individual residential 20 unit, the consideration for the interest conveyed shall exclude the 21 value of any liens on certificates of stock or other evidences of an 22 ownership interest in and a proprietary lease from a corporation or 23 partnership formed for the purpose of cooperative ownership of residen- 24 tial interest in real estate remaining thereon at the time of convey- 25 ance. In determining the tax on a conveyance described in paragraph (a) 26 of this subdivision, a credit shall be allowed for a proportionate part 27 of the amount of any tax paid upon the conveyance to the cooperative 28 housing corporation of the real property comprising the cooperative 29 dwelling or dwellings to the extent that such conveyance effectuated a 30 mere change of identity or form of ownership of such property and not a 31 change in the beneficial ownership of such property. The amount of the 32 credit shall be determined by multiplying the amount of tax paid upon 33 the conveyance to the cooperative housing corporation by a percentage 34 representing the extent to which such conveyance effectuated a mere 35 change of identity or form of ownership and not a change in the benefi- 36 cial ownership of such property, and then multiplying the resulting 37 product by a fraction, the numerator of which shall be the number of 38 shares of stock conveyed in a transaction described in paragraph (a) of 39 this subdivision, and the denominator of which shall be the total number 40 of shares of stock of the cooperative housing corporation, including any 41 stock held by the corporation. In no event, however, shall such credit 42 reduce the tax, on a conveyance described in paragraph (a) of this 43 subdivision, below zero, nor shall any such credit be allowed for a tax 44 paid more than twenty-four months prior to the date on which occurs the 45 first in a series of conveyances of shares of stock in an offering of 46 cooperative housing corporation shares described in paragraph (a) of 47 this subdivision. 48 2. Every cooperative housing corporation shall be required to file an 49 information return with the treasurer by July fifteenth of each year 50 covering the preceding period of January first through June thirtieth 51 and by January fifteenth of each year covering the preceding period of 52 July first through December thirty-first. The return shall contain such 53 information regarding the conveyance of shares of stock in the cooper- 54 ative housing corporation as the treasurer may deem necessary, includ- 55 ing, but not limited to, the names, addresses and employee identifica- 56 tion numbers or social security numbers of the grantor and the grantee,
A. 331 11 1 the number of shares conveyed, the date of the conveyance and the 2 consideration paid for such conveyance. 3 § 1582. Designation of agents. The treasurer is authorized to desig- 4 nate the recording officer to act as the treasurer's agent for purposes 5 of collecting the tax authorized by this article. The treasurer shall 6 provide for the manner in which such person may be designated as the 7 treasurer's agent subject to such terms and conditions as the treasurer 8 shall prescribe. The real estate transfer tax shall be paid to such 9 agent as provided in section fifteen hundred seventy-seven of this arti- 10 cle. 11 § 1583. Liability of recording officer. A recording officer shall not 12 be liable for any inaccuracy in the amount of tax imposed pursuant to 13 this article that such officer shall collect so long as such officer 14 shall compute and collect such tax on the amount of consideration or the 15 value of the interest conveyed as such amounts are provided to such 16 officer by the person paying the tax. 17 § 1584. Deposit and disposition of revenue. 1. All taxes, penalties 18 and interest imposed by the city or town under the authority of section 19 fifteen hundred seventy-six of this article, which are collected by the 20 treasurer or such treasurer's agents, shall be deposited in a single 21 trust fund for the city or town and shall be kept in trust and separate 22 and apart from all other monies in possession of the treasurer. Moneys 23 in such fund shall be deposited and secured in the manner provided by 24 section ten of the general municipal law. Pending expenditure from such 25 fund, moneys therein may be invested in the manner provided in section 26 eleven of the general municipal law. Any interest earned or capital gain 27 realized on the moneys so deposited or invested shall accrue to and 28 become part of such fund. 29 2. The treasurer shall retain such amount as they may determine to be 30 necessary for refunds with respect to the tax imposed by the city or 31 town, under the authority of section fifteen hundred seventy-six of this 32 article, out of which the treasurer shall pay any refunds of such taxes 33 to those taxpayers entitled to a refund pursuant to the provisions of 34 this article. 35 3. The treasurer, after reserving such refunds, shall on or before the 36 twelfth day of each month pay to the city comptroller or the town super- 37 visor the taxes, penalties and interest imposed by the city or town 38 under the authority of section fifteen hundred seventy-six of this arti- 39 cle, collected by the treasurer, pursuant to this article during the 40 next preceding calendar month. The amount so payable shall be certified 41 to the city comptroller or the town supervisor by the treasurer, who 42 shall not be held liable for any inaccuracy in such certification. 43 Provided, however, any such certification may be based on such informa- 44 tion as may be available to the treasurer at the time such certification 45 must be made under this section. Where the amount so paid over to the 46 city or town in any such distribution is more or less than the amount 47 due to the city or town, the amount of the overpayment or underpayment 48 shall be certified to the city comptroller or the town supervisor by the 49 treasurer, who shall not be held liable for any inaccuracy in such 50 certification. The amount of the overpayment or underpayment shall be so 51 certified to the city comptroller or the town supervisor as soon after 52 the discovery of the overpayment or underpayment as reasonably possible 53 and subsequent payments and distributions by the treasurer to such city 54 or town shall be adjusted by subtracting the amount of any such overpay- 55 ment from or by adding the amount of any such underpayment to such 56 number of subsequent payments and distributions as the treasurer and
A. 331 12 1 city comptroller or town supervisor shall consider reasonable in view of 2 the overpayment or underpayment and all other facts and circumstances. 3 4. All monies received from the treasurer shall be deposited in the 4 appropriate fund of the city or town, pursuant to section six-w of the 5 general municipal law. 6 § 1585. Judicial review. 1. Any final determination of the amount of 7 any tax payable under section fifteen hundred seventy-eight of this 8 article shall be reviewable for error, illegality or unconstitutionality 9 or any other reason whatsoever by a proceeding under article seventy- 10 eight of the civil practice law and rules if application therefor is 11 made to the supreme court within four months after the giving of the 12 notice of such final determination, provided, however, that any such 13 proceeding under article seventy-eight of the civil practice law and 14 rules shall not be instituted unless (a) the amount of any tax sought to 15 be reviewed, with such interest and penalties thereon as may be provided 16 for by local law shall be first deposited and there is filed an under- 17 taking, issued by a surety company authorized to transact business in 18 this state and approved by the state superintendent of insurance as to 19 solvency and responsibility, in such amount as a justice of the supreme 20 court shall approve to the effect that if such proceeding be dismissed 21 or the tax confirmed the petitioner will pay all costs and charges which 22 may accrue in the prosecution of such proceeding or (b) at the option of 23 the petitioner, such undertaking may be in a sum sufficient to cover the 24 taxes, interest and penalties stated in such determination, plus the 25 costs and charges which may accrue against it in the prosecution of the 26 proceeding, in which event the petitioner shall not be required to pay 27 such taxes, interest or penalties as a condition precedent to the appli- 28 cation. 29 2. Where any tax imposed hereunder shall have been erroneously, ille- 30 gally or unconstitutionally assessed or collected and application for 31 the refund or revision thereof duly made to the proper fiscal officer or 32 officers, and such officer or officers shall have made a determination 33 denying such refund or revision, such determination shall be reviewable 34 by a proceeding under article seventy-eight of the civil practice law 35 and rules; provided, however, that (a) such proceeding is instituted 36 within four months after the giving of the notice of such denial, (b) a 37 final determination of tax due was not previously made, and (c) an 38 undertaking is filed with the proper fiscal officer or officers in such 39 amount and with such sureties as a justice of the supreme court shall 40 approve to the effect that if such proceeding be dismissed or the tax 41 confirmed, the petitioner will pay all costs and charges which may 42 accrue in the prosecution of such proceeding. 43 § 1586. Apportionment. A local law adopted by any city or town, pursu- 44 ant to this article, shall provide for a method of apportionment for 45 determining the amount of tax due whenever the real property or interest 46 therein is situated within and without the city or town. 47 § 1587. Miscellaneous. A local law adopted by any city or town, pursu- 48 ant to this article, may contain such other provisions as the city or 49 town deems necessary for the proper administration of the tax imposed 50 pursuant to this article, including provisions concerning the determi- 51 nation of tax, the imposition of interest on underpayments and overpay- 52 ments and the imposition of civil penalties. Such provisions shall be 53 identical to the corresponding provisions of the real estate transfer 54 tax imposed by article thirty-one of this chapter, so far as such 55 provisions can be made applicable to the tax imposed pursuant to this 56 article.
A. 331 13 1 § 1588. Returns to be secret. 1. Except in accordance with proper 2 judicial order or as otherwise provided by law, it shall be unlawful for 3 the treasurer or any officer or employee of the county, city or town, 4 including any person engaged or retained on an independent contract 5 basis, to divulge or make known in any manner the particulars set forth 6 or disclosed in any return required under a local law enacted pursuant 7 to this article. Provided, however, that nothing in this section shall 8 prohibit the recording officer from making a notation on an instrument 9 affecting a conveyance indicating the amount of tax paid. No recorded 10 instrument affecting a conveyance shall be considered a return for 11 purposes of this section. 12 2. The officers charged with the custody of such returns shall not be 13 required to produce any of them or evidence of anything contained in 14 them in any action or proceeding in any court, except on behalf of the 15 county, city, or town in any action or proceeding involving the 16 collection of a tax due under a local law enacted pursuant to this arti- 17 cle to which such county, city, or town is a party, or a claimant, or on 18 behalf of any party to any action or proceeding under the provisions of 19 a local law enacted pursuant to this article when the returns or facts 20 shown thereby are directly involved in such action or proceeding, in any 21 of which events the court may require the production of, and may admit 22 in evidence, so much of said returns or of the facts shown thereby, as 23 are pertinent to the action or proceeding and no more. 24 3. Nothing in this section shall be construed to prohibit the delivery 25 to a grantor or grantee of an instrument effecting a conveyance or the 26 duly authorized representative of a grantor or grantee of a certified 27 copy of any return filed in connection with such instrument or to 28 prohibit the publication of statistics so classified as to prevent the 29 identification of particular returns and the items thereof, or the 30 inspection by the legal representatives of such county, city, or town of 31 the return of any taxpayer who shall bring action to set aside or review 32 the tax based thereon. 33 4. Any officer or employee of such county, city, or town who willfully 34 violates the provisions of this section shall be dismissed from office 35 and be incapable of holding any public office in this state for a period 36 of five years thereafter. 37 § 1589. Foreclosure proceedings. Where the conveyance consists of a 38 transfer of property made as a result of an order of the court in a 39 foreclosure proceeding ordering the sale of such property, the referee 40 or sheriff effectuating such transfer shall not be liable for any inter- 41 est or penalties that are authorized pursuant to this article or article 42 thirty-seven of this chapter. 43 § 3. Severability. If any provision of this act or the application 44 thereof shall for any reason be adjudged by any court of competent 45 jurisdiction to be invalid, such judgment shall not affect, impair, or 46 invalidate the remainder of this act, but shall be confined in its oper- 47 ation to the provision thereof directly involved in the controversy in 48 which such judgment shall have been rendered. 49 § 4. This act shall take effect immediately; provided, however, that 50 section two of this act shall take effect on the ninetieth day after it 51 shall have become a law and shall expire December 31, 2045 when upon 52 such date the provisions of such section shall be deemed repealed.