N.Y. Tax Law § 1428-B — Cooperative housing corporation transfers

§ 1428-b. Cooperative housing corporation transfers. 1.\nNotwithstanding the definition of "controlling interest" contained in\nsubdivision two of section fourteen hundred twenty-four of this article\nor anything to the contrary contained in subdivision five of section\nfourteen hundred twenty-four of this article, the tax imposed pursuant\nto this article shall apply to (a) the original conveyance of shares of\nstock in a cooperative housing corporation in connection with the grant\nor transfer of a proprietary leasehold by the cooperative corporation or\ncooperative plan sponsor, and (b) the subsequent conveyance of such\nstock in a cooperative housing corporation in connection with the grant\nor transfer of a proprietary leasehold by the owner thereof. With\nrespect to any such subsequent conveyance where the property is an\nindividual residential unit, the consideration for the interest conveyed\nshall exclude 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 (a) 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 (a) 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\nno event, however, shall such credit reduce the tax, on a conveyance\ndescribed in paragraph (a) 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 (a) of this subdivision.\n 2. Every cooperative housing corporation shall be required to file an\ninformation return with the treasurer by July fifteenth of each year\ncovering the preceding period of January first through June thirty-first\nand by January fifteenth of each year covering the preceding period of\nJuly first through December thirty-first. The return shall contain such\ninformation regarding the conveyance of shares of stock in the\ncooperative housing corporation as the treasurer may deem necessary,\nincluding but not limited to, the names, addresses and employee\nidentification numbers or social security numbers of the grantor and the\ngrantee, the number of shares conveyed, the date of the conveyance and\nthe consideration paid for such conveyance.\n