N.Y. Tax Law § 1449-EE — Exemptions

* § 1449-ee. Exemptions. 1. The following shall be exempt from the\npayment of the real estate transfer tax:\n (a) The state of New York, or any of its agencies, instrumentalities,\npolitical subdivisions, or public corporations (including a public\ncorporation created pursuant to an agreement or compact with another\nstate or Dominion of Canada); and\n (b) The United Nations, the United States of America or any of its\nagencies or instrumentalities.\n 2. The tax shall not apply to any of the following conveyances:\n (a) Conveyances to the United Nations, the United States of America,\nthe state of New York, or any of their instrumentalities, agencies or\npolitical subdivisions (or any public corporation, including a public\ncorporation created pursuant to agreement or compact with another state\nor the Dominion of Canada);\n (b) Conveyances which are or were used to secure a debt or other\nobligation;\n (c) Conveyances which, without additional consideration, confirm,\ncorrect, modify or supplement a deed previously recorded;\n (d) Conveyances of real property without consideration and otherwise\nthan in connection with a sale, including deeds conveying realty as bona\nfide gifts;\n (e) Conveyances given in connection with a tax sale;\n (f) Conveyances to effectuate a mere change of identity or form of\nownership or organization where there is no change in beneficial\nownership, other than conveyances to a cooperative housing corporation\nof the real property comprising the cooperative dwelling or dwellings;\n (g) Conveyances which consist of a deed of partition;\n (h) Conveyances given pursuant to the federal bankruptcy act;\n (i) Conveyances of real property which consist of the execution of a\ncontract to sell real property without the use or occupancy of such\nproperty or the granting of an option to purchase real property without\nthe use or occupancy of such property;\n (j) Conveyances of real property, where the entire parcel of real\nproperty to be conveyed is the subject of one or more of the following\ndevelopment restrictions:\n (1) agricultural, conservation, scenic, or an open space easement,\n (2) covenants or restrictions prohibiting development,\n (3) a purchase of development rights agreement,\n (4) a transfer of development rights agreement, where the property\nbeing conveyed has had its development rights removed,\n (5) said real property is subject to the development restriction of an\nagricultural district or individual commitment, pursuant to article\ntwenty-five-AA of the agriculture and markets law,\n (6) real property subject to any locally adopted land preservation\nagreement, provided said exemption is included in the local law imposing\nthe tax authorized by this article;\n (k) Conveyances of real property, where the property is viable\nagricultural land as defined in subdivision seven of section three\nhundred one of the agricultural and markets law and the entire property\nto be conveyed is to be made subject to one of the development\nrestrictions provided for in subparagraph two of paragraph (j) of this\nsubdivision provided that said development restriction precludes the\nconversion of the property to a non-agricultural use for at least three\nyears from the date of transfer, and said development restriction is\nevidenced by an easement, agreement, or other suitable instrument which\nis to be conveyed to the town simultaneously with the conveyance of the\nreal property; or\n (l) Conveyances of real property for open space, parks, or historic\npreservation purposes to any not-for-profit tax exempt corporation\noperated for conservation, environmental, or historic preservation\npurposes.\n (m) Conveyances of real property to any tax exempt corporation,\nincorporated pursuant to the not-for-profit corporation law or the\nprivate housing finance law, where such conveyance is for the purposes\nof providing affordable housing opportunities within the towns and such\ncorporation is incorporated for the purposes of providing housing\nopportunities. For the purposes of this paragraph, "affordable housing"\nshall mean housing opportunities exclusively for town residents of the\ntowns whose income is at or below the median income for the town.\n 3. (a) In the towns of East Hampton, Shelter Island and Southampton,\nan exemption of four hundred thousand dollars shall be allowed on the\nconsideration of the conveyance of improved real property or an interest\ntherein and an exemption of one hundred thousand dollars shall be\nallowed on the consideration of the conveyance of unimproved real\nproperty.\n (b) In the towns of Riverhead and Southold, an exemption of two\nhundred thousand dollars shall be allowed on the consideration of the\nconveyance of improved real property or an interest therein and an\nexemption of seventy-five thousand dollars shall be allowed on the\nconsideration of the conveyance of unimproved real property.\n (c) The exemption granted pursuant to the provisions of this\nsubdivision shall only apply to conveyances for residential property\nwhere the consideration is two million dollars or less.\n 4. Primary residential property purchased by one or more persons, each\nof whom is a first-time homebuyer shall be exempt from the payment of\nthe real estate transfer tax, in the towns of Southampton, East Hampton,\nShelter Island and Southold, provided that:\n (a) (1) in the towns of Southampton, East Hampton and Shelter Island,\nthe primary residential property is within one hundred fifty percent of\nthe purchase price limits defined by the state of New York mortgage\nagency low interest rate mortgage program in the non-target one family\ncategories for Suffolk county in effect on the contract date for the\nsale of such property;\n (2) in the town of Southold, the primary residential property is\nwithin sixty percent of the purchase price limits defined by the state\nof New York mortgage agency low interest rate mortgage program in the\nnon-target one family categories for Suffolk county in effect on the\ncontract date for the sale of such property; and\n (b) the buyer's household income does not exceed the income limits\ndefined by the state of New York mortgage agency low interest rate\nmortgage program in the non-target, one and two person household\ncategory for Suffolk county in effect on the contract date for the sale\nof such property.\n 5. Such exemption shall be granted only upon application by the owner\nof such building on a form prescribed by the town. The application shall\nbe filed with the town. If satisfied that the applicant is entitled to\nan exemption pursuant to this section, the town shall approve the\napplication and the conveyance of such primary residential property\nshall be exempt from the real estate transfer tax imposed by this\narticle.\n * NB Repealed December 31, 2050\n