S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3603
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 1, 2023
                                ___________
 
 Introduced  by  Sen.  WEBB  --  read twice and ordered printed, and when
   printed to be committed to the Committee on Budget and Revenue
 
 AN ACT to amend the tax law, in relation to authorizing  the  county  of
   Cortland  to  impose a tax on real estate transfers; and providing for
   the repeal of such provisions upon expiration thereof

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The tax law is amended by adding a new article 31-I to read
 as follows:
                               ARTICLE 31-I
                       TAX ON REAL ESTATE TRANSFERS
                         IN THE COUNTY OF CORTLAND
 SECTION 1449-AAAAAAA. DEFINITIONS.
         1449-BBBBBBB. IMPOSITION OF TAX.
         1449-CCCCCCC. PAYMENT OF TAX.
         1449-DDDDDDD. LIABILITY FOR TAX.
         1449-EEEEEEE. EXEMPTIONS.
         1449-FFFFFFF. CREDIT.
         1449-GGGGGGG. COOPERATIVE HOUSING CORPORATION TRANSFERS.
         1449-HHHHHHH. DESIGNATION OF AGENTS.
         1449-IIIIIII. LIABILITY OF RECORDING OFFICER.
         1449-JJJJJJJ. REFUNDS.
         1449-KKKKKKK. DEPOSIT AND DISPOSITION OF REVENUE.
         1449-LLLLLLL. JUDICIAL REVIEW.
         1449-MMMMMMM. APPORTIONMENT.
         1449-NNNNNNN. MISCELLANEOUS.
         1449-OOOOOOO. RETURNS TO BE SECRET.
         1449-PPPPPPP. FORECLOSURE.
   §  1449-AAAAAAA. DEFINITIONS. WHEN USED IN THIS ARTICLE, UNLESS OTHER-
 WISE EXPRESSLY STATED:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03454-01-3
 S. 3603                             2
              

   1. "PERSON" MEANS AN INDIVIDUAL,  PARTNERSHIP,  SOCIETY,  ASSOCIATION,
 JOINT  STOCK  COMPANY, CORPORATION, ESTATE, RECEIVER, TRUSTEE, ASSIGNEE,
 REFEREE OR ANY OTHER PERSON ACTING  IN  A  FIDUCIARY  OR  REPRESENTATIVE
 CAPACITY,  WHETHER APPOINTED BY A COURT OR OTHERWISE, ANY COMBINATION OF
 INDIVIDUALS,  AND  ANY  OTHER FORM OF UNINCORPORATED ENTERPRISE OWNED OR
 CONDUCTED BY TWO OR MORE PERSONS.
   2. "CONTROLLING INTEREST" MEANS (A) IN  THE  CASE  OF  A  CORPORATION,
 EITHER  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
 CAPITAL,  PROFITS  OR  BENEFICIAL  INTEREST IN SUCH VOTING STOCK OF SUCH
 CORPORATION, AND (B) IN THE CASE OF A PARTNERSHIP, ASSOCIATION, TRUST OR
 OTHER ENTITY, FIFTY PERCENT OR MORE OF THE CAPITAL, PROFITS  OR  BENEFI-
 CIAL INTEREST IN SUCH PARTNERSHIP, ASSOCIATION, TRUST OR OTHER ENTITY.
   3.  "REAL  PROPERTY"  MEANS EVERY ESTATE OR RIGHT, LEGAL OR EQUITABLE,
 PRESENT OR FUTURE, VESTED OR CONTINGENT, IN LANDS, TENEMENTS OR  HEREDI-
 TAMENTS, INCLUDING BUILDINGS, STRUCTURES AND OTHER IMPROVEMENTS THEREON,
 WHICH  ARE LOCATED IN WHOLE OR IN PART WITHIN THE COUNTY OF CORTLAND. IT
 SHALL NOT INCLUDE RIGHTS TO SEPULTURE.
   4. "CONSIDERATION" MEANS THE PRICE ACTUALLY PAID  OR  REQUIRED  TO  BE
 PAID FOR THE REAL PROPERTY OR INTEREST THEREIN, INCLUDING PAYMENT FOR AN
 OPTION  OR  CONTRACT TO PURCHASE REAL PROPERTY, WHETHER OR NOT EXPRESSED
 IN THE DEED AND WHETHER PAID OR REQUIRED TO BE PAID BY MONEY,  PROPERTY,
 OR  ANY  OTHER  THING  OF  VALUE.  IT  SHALL INCLUDE THE CANCELLATION OR
 DISCHARGE OF AN INDEBTEDNESS OR OBLIGATION. IT SHALL  ALSO  INCLUDE  THE
 AMOUNT  OF  ANY  MORTGAGE, PURCHASE MONEY MORTGAGE, LIEN OR OTHER ENCUM-
 BRANCE, WHETHER OR NOT THE UNDERLYING INDEBTEDNESS IS ASSUMED  OR  TAKEN
 SUBJECT TO.
   (A)  IN THE CASE OF A CREATION OF A LEASEHOLD INTEREST OR THE GRANTING
 OF AN OPTION WITH USE AND  OCCUPANCY  OF  REAL  PROPERTY,  CONSIDERATION
 SHALL  INCLUDE, BUT NOT BE LIMITED TO, THE VALUE OF THE RENTAL AND OTHER
 PAYMENTS ATTRIBUTABLE TO THE USE AND OCCUPANCY OF THE REAL  PROPERTY  OR
 INTEREST THEREIN, THE VALUE OF ANY AMOUNT PAID FOR AN OPTION TO PURCHASE
 OR  RENEW  AND THE VALUE OF RENTAL OR OTHER PAYMENTS ATTRIBUTABLE TO THE
 EXERCISE OF ANY OPTION TO RENEW.
   (B) IN THE CASE OF A CREATION OF A  SUBLEASEHOLD  INTEREST,  CONSIDER-
 ATION  SHALL  INCLUDE,  BUT NOT BE LIMITED TO, THE VALUE OF THE SUBLEASE
 RENTAL PAYMENTS ATTRIBUTABLE TO THE USE AND OCCUPANCY OF THE REAL  PROP-
 ERTY,  THE VALUE OF ANY AMOUNT PAID FOR AN OPTION TO RENEW AND THE VALUE
 OF RENTAL OR OTHER PAYMENTS ATTRIBUTABLE TO THE EXERCISE OF  ANY  OPTION
 TO  RENEW  LESS  THE  VALUE OF THE REMAINING PRIME LEASE RENTAL PAYMENTS
 REQUIRED TO BE MADE.
   (C) IN THE CASE OF A CONTROLLING INTEREST IN ANY ENTITY THAT OWNS REAL
 PROPERTY, CONSIDERATION SHALL MEAN THE FAIR MARKET  VALUE  OF  THE  REAL
 PROPERTY OR INTEREST THEREIN, APPORTIONED BASED ON THE PERCENTAGE OF THE
 OWNERSHIP INTEREST TRANSFERRED OR ACQUIRED IN THE ENTITY.
   (D)  IN THE CASE OF AN ASSIGNMENT OR SURRENDER OF A LEASEHOLD INTEREST
 OR THE ASSIGNMENT OR SURRENDER OF AN OPTION OR CONTRACT TO PURCHASE REAL
 PROPERTY, CONSIDERATION SHALL NOT INCLUDE THE  VALUE  OF  THE  REMAINING
 RENTAL  PAYMENTS REQUIRED TO BE MADE PURSUANT TO THE TERMS OF SUCH LEASE
 OR THE AMOUNT TO BE PAID FOR THE REAL PROPERTY PURSUANT TO THE TERMS  OF
 THE OPTION OR CONTRACT BEING ASSIGNED OR SURRENDERED.
   (E) IN THE CASE OF (1) THE ORIGINAL CONVEYANCE OF SHARES OF STOCK IN A
 COOPERATIVE HOUSING CORPORATION IN CONNECTION WITH THE GRANT OR TRANSFER
 OF A PROPRIETARY LEASEHOLD BY THE COOPERATIVE CORPORATION OR COOPERATIVE
 PLAN  SPONSOR  AND (2) THE SUBSEQUENT CONVEYANCE BY THE OWNER THEREOF OF
 SUCH STOCK IN A COOPERATIVE HOUSING CORPORATION IN CONNECTION  WITH  THE
 S. 3603                             3
 
 GRANT  OR  TRANSFER  OF  A  PROPRIETARY LEASEHOLD FOR A COOPERATIVE UNIT
 OTHER THAN AN INDIVIDUAL RESIDENTIAL UNIT, CONSIDERATION SHALL INCLUDE A
 PROPORTIONATE SHARE OF THE UNPAID PRINCIPAL OF ANY MORTGAGE ON THE  REAL
 PROPERTY  OF  THE COOPERATIVE HOUSING CORPORATION COMPRISING THE COOPER-
 ATIVE DWELLING OR DWELLINGS. SUCH SHARE SHALL BE DETERMINED BY MULTIPLY-
 ING THE TOTAL UNPAID PRINCIPAL OF THE MORTGAGE BY A FRACTION, THE NUMER-
 ATOR OF WHICH SHALL BE THE NUMBER OF SHARES OF STOCK BEING  CONVEYED  IN
 THE  COOPERATIVE  HOUSING  CORPORATION  IN  CONNECTION WITH THE GRANT OR
 TRANSFER OF A PROPRIETARY LEASEHOLD AND THE DENOMINATOR OF  WHICH  SHALL
 BE THE TOTAL NUMBER OF SHARES OF STOCK IN THE COOPERATIVE HOUSING CORPO-
 RATION.
   5.  "CONVEYANCE"  MEANS  THE  TRANSFER OR TRANSFERS OF ANY INTEREST IN
 REAL PROPERTY BY  ANY  METHOD,  INCLUDING  BUT  NOT  LIMITED  TO,  SALE,
 EXCHANGE,  ASSIGNMENT, SURRENDER, MORTGAGE FORECLOSURE, TRANSFER IN LIEU
 OF FORECLOSURE, OPTION,  TRUST  INDENTURE,  TAKING  BY  EMINENT  DOMAIN,
 CONVEYANCE UPON LIQUIDATION OR BY A RECEIVER, OR TRANSFER OR ACQUISITION
 OF A CONTROLLING INTEREST IN ANY ENTITY WITH AN INTEREST IN REAL PROPER-
 TY.  TRANSFER OF AN INTEREST IN REAL PROPERTY SHALL INCLUDE THE CREATION
 OF A LEASEHOLD OR SUBLEASE ONLY WHERE (A) THE SUM OF  THE  TERM  OF  THE
 LEASE  OR SUBLEASE AND ANY OPTIONS FOR RENEWAL EXCEEDS FORTY-NINE YEARS,
 (B) SUBSTANTIAL CAPITAL IMPROVEMENTS ARE OR MAY BE MADE BY  OR  FOR  THE
 BENEFIT OF THE LESSEE OR SUBLESSEE, AND (C) THE LEASE OR SUBLEASE IS FOR
 SUBSTANTIALLY  ALL  OF  THE  PREMISES  CONSTITUTING  THE  REAL PROPERTY.
 NOTWITHSTANDING THE FOREGOING, CONVEYANCE OF  REAL  PROPERTY  SHALL  NOT
 INCLUDE  THE  CREATION,  MODIFICATION,  EXTENSION, SPREADING, SEVERANCE,
 CONSOLIDATION, ASSIGNMENT, TRANSFER, RELEASE OR SATISFACTION OF A  MORT-
 GAGE;  A  MORTGAGE  SUBORDINATION AGREEMENT, A MORTGAGE SEVERANCE AGREE-
 MENT, AN INSTRUMENT GIVEN TO PERFECT OR CORRECT A RECORDED MORTGAGE;  OR
 A RELEASE OF LIEN OF TAX PURSUANT TO THIS CHAPTER OR THE INTERNAL REVEN-
 UE CODE.
   6.  "INTEREST IN THE REAL PROPERTY" INCLUDES TITLE IN FEE, A LEASEHOLD
 INTEREST, A BENEFICIAL INTEREST, AN ENCUMBRANCE, DEVELOPMENT RIGHTS, AIR
 SPACE AND AIR RIGHTS, OR ANY OTHER INTEREST WITH THE  RIGHT  TO  USE  OR
 OCCUPANCY  OF  REAL  PROPERTY  OR THE RIGHT TO RECEIVE RENTS, PROFITS OR
 OTHER INCOME DERIVED FROM REAL PROPERTY. IT SHALL ALSO INCLUDE AN OPTION
 OR CONTRACT TO PURCHASE REAL PROPERTY. IT SHALL NOT INCLUDE A  RIGHT  OF
 FIRST REFUSAL TO PURCHASE REAL PROPERTY.
   7.  "GRANTOR"  MEANS THE PERSON MAKING THE CONVEYANCE OF REAL PROPERTY
 OR INTEREST THEREIN. WHERE THE CONVEYANCE CONSISTS OF A TRANSFER  OR  AN
 ACQUISITION  OF  A CONTROLLING INTEREST IN AN ENTITY WITH AN INTEREST IN
 REAL PROPERTY, "GRANTOR" MEANS THE ENTITY WITH AN INTEREST IN REAL PROP-
 ERTY OR A SHAREHOLDER  OR  PARTNER  TRANSFERRING  STOCK  OR  PARTNERSHIP
 INTEREST.
   8.  "GRANTEE"  MEANS  THE PERSON WHO OBTAINS REAL PROPERTY OR INTEREST
 THEREIN AS A RESULT OF A CONVEYANCE.
   9. "RECORDING OFFICER" MEANS THE COUNTY CLERK OF THE COUNTY  OF  CORT-
 LAND.
   10.  "TREASURER" MEANS THE CHIEF FISCAL OFFICER OF THE COUNTY OF CORT-
 LAND.
   §  1449-BBBBBBB.  IMPOSITION  OF  TAX.   NOTWITHSTANDING   ANY   OTHER
 PROVISIONS  OF  LAW  TO  THE  CONTRARY,  THE  COUNTY OF CORTLAND, ACTING
 THROUGH ITS LOCAL LEGISLATIVE BODY, IS HEREBY AUTHORIZED  AND  EMPOWERED
 TO  ADOPT  AND  AMEND  LOCAL  LAWS IMPOSING IN SUCH COUNTY A TAX ON EACH
 CONVEYANCE OF REAL PROPERTY OR INTEREST THEREIN WHEN  THE  CONSIDERATION
 EXCEEDS  FIVE  HUNDRED  DOLLARS, AT THE RATE OF ONE DOLLAR FOR EACH FIVE
 HUNDRED DOLLARS OR FRACTIONAL PART THEREOF.  SUCH LOCAL LAW MAY APPLY TO
 S. 3603                             4
 
 ANY CONVEYANCE OCCURRING ON OR AFTER THE DATE DESIGNATED BY SUCH  LEGIS-
 LATIVE  BODY,  BUT  SHALL NOT APPLY TO CONVEYANCES MADE ON OR AFTER SUCH
 DATE PURSUANT TO BINDING WRITTEN CONTRACTS ENTERED INTO  PRIOR  TO  SUCH
 DATE,  PROVIDED THAT THE DATE OF EXECUTION OF SUCH CONTRACT IS CONFIRMED
 BY INDEPENDENT EVIDENCE SUCH AS THE RECORDING OF THE  CONTRACT,  PAYMENT
 OF A DEPOSIT OR OTHER FACTS AND CIRCUMSTANCES AS DETERMINED BY THE TREA-
 SURER.
   §  1449-CCCCCCC.  PAYMENT  OF  TAX.  1.  THE  REAL ESTATE TRANSFER TAX
 IMPOSED PURSUANT TO THIS ARTICLE SHALL BE PAID TO THE TREASURER  OR  THE
 RECORDING  OFFICER  ACTING AS THE AGENT OF THE TREASURER. SUCH TAX SHALL
 BE PAID AT THE SAME TIME AS THE REAL  ESTATE  TRANSFER  TAX  IMPOSED  BY
 ARTICLE THIRTY-ONE OF THIS CHAPTER IS REQUIRED TO BE PAID. SUCH TREASUR-
 ER  OR  RECORDING  OFFICER  SHALL  ENDORSE  UPON EACH DEED OR INSTRUMENT
 EFFECTING A CONVEYANCE A RECEIPT FOR THE AMOUNT OF THE TAX SO PAID.
   2. A RETURN SHALL BE REQUIRED TO  BE  FILED  WITH  SUCH  TREASURER  OR
 RECORDING  OFFICER  FOR PURPOSES OF THE REAL ESTATE TRANSFER TAX IMPOSED
 PURSUANT TO THIS ARTICLE AT THE SAME TIME AS A RETURN IS REQUIRED TO  BE
 FILED  FOR  PURPOSES  OF THE REAL ESTATE TRANSFER TAX IMPOSED BY ARTICLE
 THIRTY-ONE OF THIS CHAPTER. THE RETURN, FOR PURPOSES OF THE REAL  ESTATE
 TRANSFER  TAX  IMPOSED PURSUANT TO THIS ARTICLE, SHALL BE A PHOTOCOPY OR
 CARBON COPY OF THE REAL ESTATE TRANSFER TAX RETURN REQUIRED TO BE  FILED
 PURSUANT  TO  SECTION  FOURTEEN  HUNDRED NINE OF THIS CHAPTER.  HOWEVER,
 WHEN AN APPORTIONMENT IS REQUIRED TO BE MADE PURSUANT TO  SECTION  FOUR-
 TEEN  HUNDRED  FORTY-NINE-MMMMMMM  OF  THIS ARTICLE, A SUPPLEMENTAL FORM
 SHALL ALSO BE REQUIRED TO BE FILED. THE REAL ESTATE TRANSFER TAX RETURNS
 AND SUPPLEMENTAL FORMS REQUIRED TO BE FILED  PURSUANT  TO  THIS  SECTION
 SHALL  BE  PRESERVED FOR THREE YEARS AND THEREAFTER UNTIL SUCH TREASURER
 OR RECORDING OFFICER ORDERS THEM TO BE DESTROYED.
   3. THE RECORDING OFFICER SHALL NOT RECORD AN  INSTRUMENT  EFFECTING  A
 CONVEYANCE UNLESS THE RETURN REQUIRED BY THIS SECTION HAS BEEN FILED AND
 THE  TAX  IMPOSED  PURSUANT  TO  THIS  ARTICLE  SHALL  HAVE BEEN PAID AS
 PROVIDED IN THIS SECTION.
   § 1449-DDDDDDD. LIABILITY FOR TAX. 1. THE  REAL  ESTATE  TRANSFER  TAX
 SHALL  BE  PAID BY THE GRANTOR. IF THE GRANTOR HAS FAILED TO PAY THE TAX
 IMPOSED PURSUANT TO THIS ARTICLE OR IF THE GRANTOR IS EXEMPT  FROM  SUCH
 TAX,  THE  GRANTEE SHALL HAVE THE DUTY TO PAY THE TAX. WHERE THE GRANTEE
 HAS THE DUTY TO PAY THE TAX BECAUSE THE GRANTOR HAS FAILED TO PAY,  SUCH
 TAX  SHALL  BE  THE  JOINT  AND SEVERAL LIABILITY OF THE GRANTOR AND THE
 GRANTEE.
   2. FOR THE PURPOSE OF THE PROPER ADMINISTRATION OF THIS ARTICLE AND TO
 PREVENT EVASION OF THE TAX HEREBY AUTHORIZED, IT SHALL BE PRESUMED  THAT
 ALL  CONVEYANCES  ARE TAXABLE. WHERE THE CONSIDERATION INCLUDES PROPERTY
 OTHER THAN MONEY, IT SHALL BE PRESUMED THAT  THE  CONSIDERATION  IS  THE
 FAIR  MARKET  VALUE  OF  THE  REAL PROPERTY OR INTEREST THEREIN.   THESE
 PRESUMPTIONS SHALL PREVAIL UNTIL THE CONTRARY IS PROVEN, AND THE  BURDEN
 OF PROVING THE CONTRARY SHALL BE ON THE PERSON LIABLE FOR PAYMENT OF THE
 TAX.
   §  1449-EEEEEEE.  EXEMPTIONS.  1.  THE  FOLLOWING SHALL BE EXEMPT FROM
 PAYMENT OF THE REAL ESTATE TRANSFER TAX:
   (A) THE STATE OF NEW YORK, OR ANY OF ITS AGENCIES,  INSTRUMENTALITIES,
 POLITICAL  SUBDIVISIONS,  OR  PUBLIC  CORPORATIONS  (INCLUDING  A PUBLIC
 CORPORATION CREATED PURSUANT TO AGREEMENT OR COMPACT WITH ANOTHER  STATE
 OR THE DOMINION OF CANADA).
   (B)  THE  UNITED  NATIONS, THE UNITED STATES OF AMERICA AND ANY OF ITS
 AGENCIES AND INSTRUMENTALITIES.
 S. 3603                             5
 
   THE EXEMPTION OF SUCH GOVERNMENTAL BODIES OR PERSONS SHALL NOT, HOWEV-
 ER, RELIEVE A GRANTEE FROM THEM OF LIABILITY FOR THE TAX.
   2. THE TAX SHALL NOT APPLY TO ANY OF THE FOLLOWING CONVEYANCES:
   (A)  CONVEYANCES  TO THE UNITED NATIONS, THE UNITED STATES OF AMERICA,
 THE STATE OF NEW YORK, OR ANY OF THEIR  INSTRUMENTALITIES,  AGENCIES  OR
 POLITICAL  SUBDIVISIONS  (OR  ANY PUBLIC CORPORATION, INCLUDING A PUBLIC
 CORPORATION CREATED PURSUANT TO AGREEMENT OR COMPACT WITH ANOTHER  STATE
 OR THE DOMINION OF CANADA);
   (B) CONVEYANCES WHICH ARE OR WERE USED TO SECURE A DEBT OR OTHER OBLI-
 GATION;
   (C)  CONVEYANCES  WHICH,  WITHOUT  ADDITIONAL  CONSIDERATION, CONFIRM,
 CORRECT, MODIFY OR SUPPLEMENT A PRIOR CONVEYANCE;
   (D) CONVEYANCES OF REAL PROPERTY WITHOUT CONSIDERATION  AND  OTHERWISE
 THAN  IN  CONNECTION WITH A SALE, INCLUDING CONVEYANCES CONVEYING REALTY
 AS BONA FIDE GIFTS;
   (E) CONVEYANCES GIVEN IN CONNECTION WITH A TAX SALE;
   (F) CONVEYANCES TO EFFECTUATE A MERE CHANGE OF  IDENTITY  OR  FORM  OF
 OWNERSHIP  OR ORGANIZATION WHERE THERE IS NO CHANGE IN BENEFICIAL OWNER-
 SHIP, OTHER THAN CONVEYANCES TO A COOPERATIVE HOUSING CORPORATION OF THE
 REAL PROPERTY COMPRISING THE COOPERATIVE DWELLING OR DWELLINGS;
   (G) CONVEYANCES WHICH CONSIST OF A DEED OF PARTITION;
   (H) CONVEYANCES GIVEN PURSUANT TO THE FEDERAL BANKRUPTCY ACT;
   (I) CONVEYANCES OF REAL PROPERTY WHICH CONSIST OF THE EXECUTION  OF  A
 CONTRACT  TO  SELL  REAL  PROPERTY  WITHOUT THE USE OR OCCUPANCY OF SUCH
 PROPERTY OR THE GRANTING OF AN OPTION TO PURCHASE REAL PROPERTY  WITHOUT
 THE USE OR OCCUPANCY OF SUCH PROPERTY; AND
   (J)  CONVEYANCES  OF  AN  OPTION OR CONTRACT TO PURCHASE REAL PROPERTY
 WITH THE USE OR OCCUPANCY OF SUCH PROPERTY WHERE  THE  CONSIDERATION  IS
 LESS THAN TWO HUNDRED THOUSAND DOLLARS AND SUCH PROPERTY WAS USED SOLELY
 BY  THE  GRANTOR AS HIS PERSONAL RESIDENCE AND CONSISTS OF A ONE, TWO OR
 THREE-FAMILY HOUSE, AN INDIVIDUAL RESIDENTIAL CONDOMINIUM  UNIT  OR  THE
 SALE  OF  STOCK  IN A COOPERATIVE HOUSING CORPORATION IN CONNECTION WITH
 THE GRANT OR TRANSFER OF A PROPRIETARY LEASEHOLD COVERING AN  INDIVIDUAL
 RESIDENTIAL COOPERATIVE UNIT.
   §  1449-FFFFFFF.  CREDIT.  A GRANTOR SHALL BE ALLOWED A CREDIT AGAINST
 THE TAX DUE ON A CONVEYANCE OF REAL PROPERTY TO THE EXTENT TAX WAS  PAID
 BY  SUCH  GRANTOR ON A PRIOR CREATION OF A LEASEHOLD OF ALL OR A PORTION
 OF THE SAME REAL PROPERTY OR ON THE GRANTING OF AN OPTION OR CONTRACT TO
 PURCHASE ALL OR A PORTION OF THE SAME REAL PROPERTY,  BY  SUCH  GRANTOR.
 SUCH  CREDIT  SHALL  BE  COMPUTED  BY  MULTIPLYING  THE  TAX PAID ON THE
 CREATION OF THE LEASEHOLD OR ON THE GRANTING OF THE OPTION  OR  CONTRACT
 BY  A FRACTION, THE NUMERATOR OF WHICH IS THE VALUE OF THE CONSIDERATION
 USED TO COMPUTE SUCH TAX PAID WHICH IS NOT YET DUE TO  SUCH  GRANTOR  ON
 THE  DATE  OF THE SUBSEQUENT CONVEYANCE (AND WHICH SUCH GRANTOR WILL NOT
 BE ENTITLED TO RECEIVE AFTER SUCH DATE), AND THE DENOMINATOR OF WHICH IS
 THE TOTAL VALUE OF THE CONSIDERATION USED TO COMPUTE SUCH TAX PAID.
   §  1449-GGGGGGG.  COOPERATIVE  HOUSING   CORPORATION   TRANSFERS.   1.
 NOTWITHSTANDING  THE  DEFINITION  OF "CONTROLLING INTEREST" CONTAINED IN
 SUBDIVISION TWO OF SECTION FOURTEEN HUNDRED FORTY-NINE-AAAAAAA  OF  THIS
 ARTICLE  OR  ANYTHING  TO  THE CONTRARY CONTAINED IN SUBDIVISION FIVE OF
 SECTION FOURTEEN HUNDRED FORTY-NINE-AAAAAAA OF  THIS  ARTICLE,  THE  TAX
 IMPOSED PURSUANT TO THIS ARTICLE SHALL APPLY TO (A) THE ORIGINAL CONVEY-
 ANCE  OF  SHARES  OF  STOCK  IN  A  COOPERATIVE  HOUSING  CORPORATION IN
 CONNECTION WITH THE GRANT OR TRANSFER OF A PROPRIETARY LEASEHOLD BY  THE
 COOPERATIVE  CORPORATION OR COOPERATIVE PLAN SPONSOR, AND (B) THE SUBSE-
 QUENT CONVEYANCE OF SUCH STOCK IN A COOPERATIVE HOUSING  CORPORATION  IN
 S. 3603                             6
 
 CONNECTION  WITH THE GRANT OR TRANSFER OF A PROPRIETARY LEASEHOLD BY THE
 OWNER THEREOF.  WITH RESPECT TO ANY SUCH SUBSEQUENT CONVEYANCE WHERE THE
 PROPERTY IS AN INDIVIDUAL RESIDENTIAL UNIT, THE  CONSIDERATION  FOR  THE
 INTEREST  CONVEYED  SHALL EXCLUDE THE VALUE OF ANY LIENS ON CERTIFICATES
 OF STOCK OR OTHER EVIDENCES OF AN OWNERSHIP INTEREST IN AND  A  PROPRIE-
 TARY  LEASE  FROM A CORPORATION OR PARTNERSHIP FORMED FOR THE PURPOSE OF
 COOPERATIVE OWNERSHIP OF RESIDENTIAL INTEREST IN REAL  ESTATE  REMAINING
 THEREON  AT  THE TIME OF CONVEYANCE. IN DETERMINING THE TAX ON A CONVEY-
 ANCE DESCRIBED IN PARAGRAPH (A) OF THIS SUBDIVISION, A CREDIT  SHALL  BE
 ALLOWED  FOR A PROPORTIONATE PART OF THE AMOUNT OF ANY TAX PAID UPON THE
 CONVEYANCE TO THE COOPERATIVE HOUSING CORPORATION OF THE  REAL  PROPERTY
 COMPRISING THE COOPERATIVE DWELLING OR DWELLINGS TO THE EXTENT THAT SUCH
 CONVEYANCE EFFECTUATED A MERE CHANGE OF IDENTITY OR FORM OF OWNERSHIP OF
 SUCH PROPERTY AND NOT A CHANGE IN THE BENEFICIAL OWNERSHIP OF SUCH PROP-
 ERTY.    THE AMOUNT OF THE CREDIT SHALL BE DETERMINED BY MULTIPLYING THE
 AMOUNT OF TAX PAID UPON THE CONVEYANCE TO THE COOPERATIVE HOUSING CORPO-
 RATION BY A PERCENTAGE REPRESENTING THE EXTENT TO WHICH SUCH  CONVEYANCE
 EFFECTUATED  A  MERE  CHANGE  OF IDENTITY OR FORM OF OWNERSHIP AND NOT A
 CHANGE IN THE BENEFICIAL OWNERSHIP OF SUCH PROPERTY, AND THEN  MULTIPLY-
 ING THE RESULTING PRODUCT BY A FRACTION, THE NUMERATOR OF WHICH SHALL BE
 THE  NUMBER  OF  SHARES  OF STOCK CONVEYED IN A TRANSACTION DESCRIBED IN
 PARAGRAPH (A) OF THIS SUBDIVISION AND THE DENOMINATOR OF WHICH SHALL  BE
 THE  TOTAL  NUMBER  OF SHARES OF STOCK OF THE COOPERATIVE HOUSING CORPO-
 RATION (INCLUDING ANY STOCK HELD  BY  THE  CORPORATION).  IN  NO  EVENT,
 HOWEVER,  SHALL SUCH CREDIT REDUCE THE TAX, ON A CONVEYANCE DESCRIBED IN
 PARAGRAPH (A) OF THIS SUBDIVISION, BELOW ZERO, NOR SHALL ANY SUCH CREDIT
 BE ALLOWED FOR A TAX PAID MORE THAN TWENTY-FOUR MONTHS PRIOR TO THE DATE
 ON WHICH OCCURS THE FIRST IN A SERIES OF CONVEYANCES OF SHARES OF  STOCK
 IN  AN  OFFERING  OF COOPERATIVE HOUSING CORPORATION SHARES DESCRIBED IN
 PARAGRAPH (A) OF THIS SUBDIVISION.
   2. EVERY COOPERATIVE HOUSING CORPORATION SHALL BE REQUIRED TO FILE  AN
 INFORMATION  RETURN  WITH  THE  TREASURER BY JULY FIFTEENTH OF EACH YEAR
 COVERING THE PRECEDING PERIOD OF JANUARY FIRST THROUGH JUNE THIRTY-FIRST
 AND BY JANUARY FIFTEENTH OF EACH YEAR COVERING THE PRECEDING  PERIOD  OF
 JULY  FIRST THROUGH DECEMBER THIRTY-FIRST. THE RETURN SHALL CONTAIN SUCH
 INFORMATION REGARDING THE CONVEYANCE OF SHARES OF STOCK IN  THE  COOPER-
 ATIVE  HOUSING  CORPORATION AS THE TREASURER MAY DEEM NECESSARY, INCLUD-
 ING, BUT NOT LIMITED TO, THE NAMES, ADDRESSES AND  EMPLOYEE  IDENTIFICA-
 TION  NUMBERS OR SOCIAL SECURITY NUMBERS OF THE GRANTOR AND THE GRANTEE,
 THE NUMBER OF SHARES CONVEYED,  THE  DATE  OF  THE  CONVEYANCE  AND  THE
 CONSIDERATION PAID FOR SUCH CONVEYANCE.
   §  1449-HHHHHHH. DESIGNATION OF AGENTS. THE TREASURER IS AUTHORIZED TO
 DESIGNATE THE RECORDING OFFICER TO ACT AS  ITS  AGENT  FOR  PURPOSES  OF
 COLLECTING  THE  TAX  AUTHORIZED  BY  THIS  ARTICLE. THE TREASURER SHALL
 PROVIDE FOR THE MANNER IN WHICH SUCH PERSON MAY  BE  DESIGNATED  AS  ITS
 AGENT  SUBJECT  TO  SUCH TERMS AND CONDITIONS AS IT SHALL PRESCRIBE. THE
 REAL ESTATE TRANSFER TAX SHALL BE PAID TO  SUCH  AGENT  AS  PROVIDED  IN
 SECTION FOURTEEN HUNDRED FORTY-NINE-CCCCCCC OF THIS ARTICLE.
   §  1449-IIIIIII.  LIABILITY  OF RECORDING OFFICER. A RECORDING OFFICER
 SHALL NOT BE LIABLE FOR ANY INACCURACY IN  THE  AMOUNT  OF  TAX  IMPOSED
 PURSUANT  TO  THIS  ARTICLE  THAT  HE  SHALL COLLECT SO LONG AS HE SHALL
 COMPUTE AND COLLECT SUCH TAX ON THE AMOUNT OF CONSIDERATION OR THE VALUE
 OF THE INTEREST CONVEYED AS SUCH AMOUNTS ARE PROVIDED TO HIM OR  HER  BY
 THE PERSON PAYING THE TAX.
   §  1449-JJJJJJJ.  REFUNDS. WHENEVER THE TREASURER SHALL DETERMINE THAT
 ANY MONEYS RECEIVED UNDER THE PROVISIONS OF THE LOCAL LAW ENACTED PURSU-
 S. 3603                             7
 
 ANT TO THIS ARTICLE WERE PAID IN ERROR, IT MAY CAUSE SUCH MONEYS  TO  BE
 REFUNDED  PURSUANT  TO  SUCH  RULES  AND  REGULATIONS  IT MAY PRESCRIBE,
 PROVIDED ANY APPLICATION FOR SUCH REFUND IS  FILED  WITH  THE  TREASURER
 WITHIN  TWO  YEARS  FROM  THE DATE THE ERRONEOUS PAYMENT WAS MADE.  WHEN
 MAKING ANY FINDINGS OR DETERMINATIONS THE TREASURER MAY  RELY  UPON  ANY
 FINDINGS  OR  DETERMINATIONS OF THE COMMISSIONER AND ANY RULES AND REGU-
 LATIONS PROMULGATED PURSUANT TO ARTICLE THIRTY-ONE OF THIS CHAPTER.
   §  1449-KKKKKKK.  DEPOSIT  AND  DISPOSITION  OF  REVENUE.  ALL   TAXES
 COLLECTED  OR  RECEIVED  BY  THE  TREASURER OR HIS DULY AUTHORIZED AGENT
 UNDER THE PROVISIONS OF THE LOCAL LAW ENACTED PURSUANT TO  THIS  ARTICLE
 SHALL  BE DEPOSITED IN ACCORDANCE WITH PROVISIONS OF A LOCAL LAW ADOPTED
 BY THE LEGISLATIVE BODY OF THE COUNTY OF CORTLAND WHICH LOCAL LAW  SHALL
 DESIGNATE  PROPER  OFFICERS  TO  BE  RESPONSIBLE  FOR DEPOSIT OF REVENUE
 COLLECTED OR RECEIVED UNDER THIS ARTICLE.  SUCH  LOCAL  LAW  SHALL  ALSO
 PROVIDE THAT ANY OFFICER DESIGNATED TO COLLECT, RECEIVE, OR DEPOSIT SUCH
 REVENUE  SHALL  MAINTAIN  A  SYSTEM  OF  ACCOUNTS  SHOWING  THE  REVENUE
 COLLECTED OR RECEIVED FROM THE TAX IMPOSED  PURSUANT  TO  THIS  ARTICLE.
 SUCH  LOCAL  LAW  SHALL  ALSO  PROVIDE THAT ALL REVENUE DERIVED FROM THE
 IMPOSITION OF SUCH TAX SHALL BE DEPOSITED INTO THE GENERAL FUND  OF  THE
 COUNTY  OF CORTLAND AND SHALL BE USED FOR PURPOSES DEEMED APPROPRIATE BY
 THE LEGISLATIVE BODY OF THE COUNTY OF CORTLAND.
   § 1449-LLLLLLL. JUDICIAL REVIEW. 1. ANY  FINAL  DETERMINATION  OF  THE
 AMOUNT  OF  ANY  TAX  PAYABLE UNDER SECTION FOURTEEN HUNDRED FORTY-NINE-
 CCCCCCC OF THIS ARTICLE SHALL BE REVIEWABLE  FOR  ERROR,  ILLEGALITY  OR
 UNCONSTITUTIONALITY OR ANY OTHER REASON WHATSOEVER BY A PROCEEDING UNDER
 ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES IF APPLICATION
 THEREFOR  IS  MADE  TO  THE  SUPREME  COURT WITHIN FOUR MONTHS AFTER THE
 GIVING OF THE NOTICE OF SUCH  FINAL  DETERMINATION,  PROVIDED,  HOWEVER,
 THAT  ANY SUCH PROCEEDING UNDER ARTICLE SEVENTY-EIGHT OF THE CIVIL PRAC-
 TICE LAW AND RULES SHALL NOT BE INSTITUTED UNLESS (A) THE AMOUNT OF  ANY
 TAX  SOUGHT  TO BE REVIEWED, WITH SUCH INTEREST AND PENALTIES THEREON AS
 MAY BE PROVIDED FOR BY LOCAL LAW SHALL BE FIRST DEPOSITED AND  THERE  IS
 FILED  AN UNDERTAKING, ISSUED BY A SURETY COMPANY AUTHORIZED TO TRANSACT
 BUSINESS IN THIS STATE AND APPROVED BY THE SUPERINTENDENT  OF  FINANCIAL
 SERVICES OF THIS STATE AS TO SOLVENCY AND RESPONSIBILITY, IN SUCH AMOUNT
 AS  A  JUSTICE  OF THE SUPREME COURT SHALL APPROVE TO THE EFFECT THAT IF
 SUCH PROCEEDING BE DISMISSED OR THE TAX CONFIRMED  THE  PETITIONER  WILL
 PAY  ALL  COSTS  AND CHARGES WHICH MAY ACCRUE IN THE PROSECUTION OF SUCH
 PROCEEDING OR (B) AT THE OPTION OF THE PETITIONER, SUCH UNDERTAKING  MAY
 BE IN A SUM SUFFICIENT TO COVER THE TAXES, INTEREST AND PENALTIES STATED
 IN  SUCH  DETERMINATION,  PLUS  THE  COSTS  AND CHARGES WHICH MAY ACCRUE
 AGAINST IT IN THE PROSECUTION OF THE  PROCEEDING,  IN  WHICH  EVENT  THE
 PETITIONER  SHALL  NOT BE REQUIRED TO PAY SUCH TAXES, INTEREST OR PENAL-
 TIES AS A CONDITION PRECEDENT TO THE APPLICATION.
   2. WHERE ANY TAX IMPOSED HEREUNDER SHALL HAVE BEEN ERRONEOUSLY,  ILLE-
 GALLY  OR  UNCONSTITUTIONALLY  ASSESSED OR COLLECTED AND APPLICATION FOR
 THE REFUND OR REVISION THEREOF DULY MADE TO THE PROPER FISCAL OFFICER OR
 OFFICERS, AND SUCH OFFICER OR OFFICERS SHALL HAVE MADE  A  DETERMINATION
 DENYING  SUCH REFUND OR REVISION, SUCH DETERMINATION SHALL BE REVIEWABLE
 BY A PROCEEDING UNDER ARTICLE SEVENTY-EIGHT OF THE  CIVIL  PRACTICE  LAW
 AND  RULES;  PROVIDED,  HOWEVER,  THAT (A) SUCH PROCEEDING IS INSTITUTED
 WITHIN FOUR MONTHS AFTER THE GIVING OF THE NOTICE OF SUCH DENIAL, (B)  A
 FINAL  DETERMINATION  OF  TAX  DUE  WAS  NOT PREVIOUSLY MADE, AND (C) AN
 UNDERTAKING IS FILED WITH THE PROPER FISCAL OFFICER OR OFFICERS IN  SUCH
 AMOUNT  AND  WITH  SUCH SURETIES AS A JUSTICE OF THE SUPREME COURT SHALL
 APPROVE TO THE EFFECT THAT IF SUCH PROCEEDING BE DISMISSED  OR  THE  TAX
 S. 3603                             8
 
 CONFIRMED,  THE  PETITIONER  WILL  PAY  ALL  COSTS AND CHARGES WHICH MAY
 ACCRUE IN THE PROSECUTION OF SUCH PROCEEDING.
   3.  IN  ANY  PROCEEDINGS INSTITUTED PURSUANT TO THIS ARTICLE THE RULES
 AND REGULATIONS OF THE COMMISSIONER SHALL BE APPLIED WHERE APPLICABLE.
   § 1449-MMMMMMM. APPORTIONMENT. THE LOCAL LAW ADOPTED BY  THE  LEGISLA-
 TIVE BODY OF THE COUNTY OF CORTLAND SHALL PROVIDE FOR A METHOD OF APPOR-
 TIONMENT FOR DETERMINING THE AMOUNT OF TAX DUE WHENEVER THE REAL PROPER-
 TY  OR  INTEREST  THEREIN  IS  SITUATED WITHIN AND WITHOUT THE COUNTY OF
 CORTLAND.
   § 1449-NNNNNNN. MISCELLANEOUS. THE LOCAL LAW ADOPTED BY  THE  LEGISLA-
 TIVE BODY OF THE COUNTY OF CORTLAND MAY CONTAIN SUCH OTHER PROVISIONS AS
 SUCH  LEGISLATIVE  BODY DEEMS NECESSARY FOR THE PROPER ADMINISTRATION OF
 THE TAX IMPOSED PURSUANT TO THIS ARTICLE, INCLUDING PROVISIONS  CONCERN-
 ING  THE  DETERMINATION  OF TAX, THE IMPOSITION OF INTEREST ON UNDERPAY-
 MENTS AND OVERPAYMENTS AND  THE  IMPOSITION  OF  CIVIL  PENALTIES.  SUCH
 PROVISIONS  SHALL  BE  IDENTICAL  TO THE CORRESPONDING PROVISIONS OF THE
 REAL ESTATE TRANSFER TAX IMPOSED BY ARTICLE THIRTY-ONE OF THIS  CHAPTER,
 SO  FAR  AS  SUCH  PROVISIONS  CAN BE MADE APPLICABLE TO THE TAX IMPOSED
 PURSUANT TO THIS ARTICLE.
   § 1449-OOOOOOO. RETURNS TO BE SECRET. 1.  EXCEPT  IN  ACCORDANCE  WITH
 PROPER  JUDICIAL  ORDER  OR  AS  OTHERWISE  PROVIDED BY LAW, IT SHALL BE
 UNLAWFUL FOR THE TREASURER OR ANY OFFICER OR EMPLOYEE OF THE  COUNTY  OF
 CORTLAND  OR  ANY  PERSON ENGAGED OR RETAINED BY SUCH COUNTY ON AN INDE-
 PENDENT CONTRACT BASIS TO DIVULGE  OR  MAKE  KNOWN  IN  ANY  MANNER  THE
 PARTICULARS  SET FORTH OR DISCLOSED IN ANY RETURN REQUIRED UNDER A LOCAL
 LAW ENACTED PURSUANT TO THIS ARTICLE.  HOWEVER,  THAT  NOTHING  IN  THIS
 SECTION  SHALL  PROHIBIT THE RECORDING OFFICER FROM MAKING A NOTATION ON
 AN INSTRUMENT EFFECTING A CONVEYANCE INDICATING THE AMOUNT OF TAX  PAID.
 NO  RECORDED  INSTRUMENT  EFFECTING  A  CONVEYANCE SHALL BE CONSIDERED A
 RETURN FOR PURPOSES OF THIS SECTION.
   2. THE OFFICERS CHARGED WITH THE CUSTODY OF SUCH RETURNS SHALL NOT  BE
 REQUIRED  TO  PRODUCE  ANY  OF THEM OR EVIDENCE OF ANYTHING CONTAINED IN
 THEM IN ANY ACTION OR PROCEEDING IN ANY COURT, EXCEPT ON BEHALF  OF  THE
 COUNTY IN ANY ACTION OR PROCEEDING INVOLVING THE COLLECTION OF A TAX DUE
 UNDER  A LOCAL LAW ENACTED PURSUANT TO THIS ARTICLE TO WHICH SUCH COUNTY
 OR AN OFFICER OR EMPLOYEE OF SUCH COUNTY IS A PARTY OR A CLAIMANT, OR ON
 BEHALF OF ANY PARTY TO ANY ACTION OR PROCEEDING UNDER THE PROVISIONS  OF
 A  LOCAL  LAW ENACTED PURSUANT TO THIS ARTICLE WHEN THE RETURNS OR FACTS
 SHOWN THEREBY ARE DIRECTLY INVOLVED IN SUCH ACTION OR PROCEEDING, IN ANY
 OF WHICH EVENTS THE COURT MAY REQUIRE THE PRODUCTION OF, AND  MAY  ADMIT
 IN  EVIDENCE,  SO MUCH OF SAID RETURNS OR OF THE FACTS SHOWN THEREBY, AS
 ARE PERTINENT TO THE ACTION OR PROCEEDING AND NO MORE.
   3. NOTHING HEREIN SHALL BE CONSTRUED TO PROHIBIT  THE  DELIVERY  TO  A
 GRANTOR  OR  GRANTEE OF AN INSTRUMENT EFFECTING A CONVEYANCE OR THE DULY
 AUTHORIZED REPRESENTATIVE OF A GRANTOR OR GRANTEE OF A CERTIFIED COPY OF
 ANY RETURN FILED IN CONNECTION WITH SUCH INSTRUMENT OR TO  PROHIBIT  THE
 PUBLICATION OF STATISTICS SO CLASSIFIED AS TO PREVENT THE IDENTIFICATION
 OF  PARTICULAR  RETURNS  AND THE ITEMS THEREOF, OR THE INSPECTION BY THE
 LEGAL REPRESENTATIVES OF SUCH COUNTY OF THE RETURN OF ANY  TAXPAYER  WHO
 SHALL BRING ACTION TO SET ASIDE OR REVIEW THE TAX BASED THEREON.
   4.  ANY  OFFICER OR EMPLOYEE OF SUCH COUNTY WHO WILLFULLY VIOLATES THE
 PROVISIONS OF THIS SECTION SHALL BE DISMISSED FROM OFFICE AND BE INCAPA-
 BLE OF HOLDING ANY PUBLIC OFFICE IN THIS STATE  FOR  A  PERIOD  OF  FIVE
 YEARS THEREAFTER.
   § 1449-PPPPPPP. FORECLOSURE. WHERE THE CONVEYANCE CONSISTS OF A TRANS-
 FER  OF PROPERTY MADE AS A RESULT OF AN ORDER OF THE COURT IN A FORECLO-
 S. 3603                             9

 SURE PROCEEDING ORDERING THE SALE OF SUCH PROPERTY, THE REFEREE OR SHER-
 IFF EFFECTUATING SUCH TRANSFER SHALL NOT BE LIABLE FOR ANY  INTEREST  OR
 PENALTIES  THAT ARE AUTHORIZED PURSUANT TO THIS ARTICLE OR ARTICLE THIR-
 TY-SEVEN OF THIS CHAPTER.
   §  2.  This  act shall take effect immediately and shall expire and be
 deemed repealed seven years after such date.