N.Y. Tax Law § 1405-B — Cooperative housing corporation transfers

§ 1405-B. Cooperative housing corporation transfers. (a)\nNotwithstanding the definition of "controlling interest" contained in\nsubdivision (b) of section fourteen hundred one of this article or\nanything to the contrary contained in subdivision (e) of section\nfourteen hundred one of this article, the tax imposed by this article\nshall apply to (1) the original conveyance of shares of stock in a\ncooperative housing corporation in connection with the grant or transfer\nof a proprietary leasehold by the cooperative corporation or cooperative\nplan sponsor, and (2) the subsequent conveyance of such stock in a\ncooperative housing corporation in connection with the grant or transfer\nof a proprietary leasehold by the owner thereof. With respect to any\nsuch subsequent conveyance where the property is an individual\nresidential unit, the consideration for the interest conveyed shall\nexclude the value of any liens on certificates of stock or other\nevidences of an ownership interest in and a proprietary lease from a\ncorporation or partnership formed for the purpose of cooperative\nownership of residential interest in real estate remaining thereon at\nthe time of conveyance. In determining the tax on a conveyance described\nin paragraph one of this subdivision, a credit shall be allowed for a\nproportionate part of the amount of any tax paid upon the conveyance to\nthe cooperative housing corporation of the real property comprising the\ncooperative dwelling or dwellings to the extent that such conveyance\neffectuated a mere change of identity or form of ownership of such\nproperty and not a change in the beneficial ownership of such property.\nThe amount of the credit shall be determined by multiplying the amount\nof tax paid upon the conveyance to the cooperative housing corporation\nby a percentage representing the extent to which such conveyance\neffectuated a mere change of identity or form of ownership and not a\nchange in the beneficial ownership of such property, and then\nmultiplying the resulting product by a fraction, the numerator of which\nshall be the number of shares of stock conveyed in a transaction\ndescribed in paragraph one of this subdivision and the denominator of\nwhich shall be the total number of shares of stock of the cooperative\nhousing corporation (including any stock held by the corporation). In no\nevent, however, shall such credit reduce the tax, on a conveyance\ndescribed in paragraph one of this subdivision, below zero, nor shall\nany such credit be allowed for a tax paid more than twenty-four months\nprior to the date on which occurs the first in a series of conveyances\nof shares of stock in an offering of cooperative housing corporation\nshares described in paragraph one of this subdivision.\n (b) Every cooperative housing corporation shall be required to file an\ninformation return with the commissioner of taxation and finance by July\nfifteenth of each year covering the preceding period of January first\nthrough June thirty-first and by January fifteenth of each year covering\nthe preceding period of July first through December thirty-first. The\nreturn shall contain such information regarding the conveyance of shares\nof stock in the cooperative housing corporation as the commissioner may\ndeem necessary, including but not limited to, the names, addresses and\nemployee identification numbers or social security numbers of the\ngrantor and the grantee, the number of shares conveyed, the date of the\nconveyance and the consideration paid for such conveyance. The\ncommissioner of taxation and finance may enter into an agreement with\nthe chief fiscal officer of the city of New York to provide that a\nsingle information return may be filed for purposes of the tax imposed\nby this article and the real property transfer tax imposed by such city.\n (c) The information contained within information returns filed under\nsubdivision (b) of this section may be provided by the commissioner to\nlocal assessors for use in real property tax administration, and such\ninformation shall not be subject to the secrecy provisions set forth in\nsection fourteen hundred eighteen of this chapter, provided, however,\nthat the commissioner shall not disclose social security numbers or\nemployer identification numbers.\n