S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8936

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              June 16, 2009
                               ___________

Introduced  by M. of A. SAYWARD -- read once and referred to the Commit-
  tee on Ways and Means

AN ACT to amend the tax law, in relation to imposing an additional  real
  estate transfer tax within the county of Essex

  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-B-1  to
read as follows:
                             ARTICLE 31-B-1
                      TAX ON REAL ESTATE TRANSFERS
                         IN THE COUNTY OF ESSEX

SECTION 1448-G. DEFINITIONS.
        1448-H. IMPOSITION OF TAX.
        1448-I. PAYMENT OF TAX.
        1448-J. LIABILITY FOR TAX.
        1448-K. EXEMPTIONS.
        1448-L. CREDIT.
        1448-M. COOPERATIVE HOUSING CORPORATION TRANSFERS.
        1448-N. DESIGNATION OF AGENTS.
        1448-O. LIABILITY OF RECORDING OFFICER.
        1448-P. REFUNDS.
        1448-Q. DEPOSIT AND DISPOSITION OF REVENUE.
        1448-R. JUDICIAL REVIEW.
        1448-S. APPORTIONMENT.
        1448-T. MISCELLANEOUS.
        1448-U. RETURNS TO BE SECRET.

  S  1448-G.  DEFINITIONS.  WHEN  USED IN THIS ARTICLE, UNLESS OTHERWISE
EXPRESSLY STATED:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09075-03-9

              

A. 8936                             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 ESSEX. 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

A. 8936                             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 ESSEX.
  10. "TREASURER" MEANS THE TREASURER OF THE COUNTY OF ESSEX.
  S 1448-H. IMPOSITION OF TAX. NOTWITHSTANDING ANY OTHER  PROVISIONS  OF
LAW  TO  THE  CONTRARY,  THE  COUNTY  OF ESSEX, 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 SHALL APPLY TO ANY CONVEYANCE
OCCURRING ON OR AFTER THE FIRST DAY OF A MONTH TO BE DESIGNATED BY  SUCH
LEGISLATIVE  BODY, WHICH IS NOT LESS THAN SIXTY DAYS AFTER THE ENACTMENT

A. 8936                             4

OF SUCH LOCAL LAWS, 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 TREASURER.
  S 1448-I. 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 UPON DESIGNATION AS SUCH
AGENT BY 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  TREASURER  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 FOURTEEN
HUNDRED FORTY-EIGHT-S OF THIS ARTICLE, A SUPPLEMENTAL FORM SHALL ALSO BE
REQUIRED TO BE FILED. THE REAL ESTATE TRANSFER TAX RETURNS  AND  SUPPLE-
MENTAL  FORMS  REQUIRED  TO  BE  FILED PURSUANT TO THIS SECTION SHALL BE
PRESERVED FOR THREE YEARS AND THEREAFTER UNTIL SUCH TREASURER OR RECORD-
ING 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.
  S 1448-J. 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.
  S 1448-K. 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.
  THE EXEMPTION OF SUCH GOVERNMENTAL BODIES OR PERSONS SHALL NOT, HOWEV-
ER, RELIEVE A GRANTEE FROM THEM OF LIABILITY FOR THE TAX.

A. 8936                             5

  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.
  S  1448-L. 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.
  S 1448-M. COOPERATIVE HOUSING CORPORATION TRANSFERS. 1.  NOTWITHSTAND-
ING  THE  DEFINITION  OF "CONTROLLING INTEREST" CONTAINED IN SUBDIVISION
TWO OF  SECTION  FOURTEEN  HUNDRED  FORTY-EIGHT-G  OF  THIS  ARTICLE  OR
ANYTHING  TO THE CONTRARY CONTAINED IN SUBDIVISION FIVE OF SECTION FOUR-
TEEN HUNDRED FORTY-EIGHT-G OF THIS ARTICLE, THE TAX IMPOSED PURSUANT  TO
THIS  ARTICLE  SHALL  APPLY  TO (A) 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  (B)  THE SUBSEQUENT CONVEYANCE OF SUCH
STOCK IN A COOPERATIVE HOUSING CORPORATION IN 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 INDI-

A. 8936                             6

VIDUAL 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  PROPRIETARY  LEASE  FROM  A
CORPORATION  OR PARTNERSHIP FORMED FOR THE PURPOSE OF COOPERATIVE OWNER-
SHIP OF RESIDENTIAL INTEREST IN REAL ESTATE  REMAINING  THEREON  AT  THE
TIME  OF CONVEYANCE. IN DETERMINING THE TAX ON A CONVEYANCE 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 PROP-
ERTY AND NOT A CHANGE IN THE BENEFICIAL OWNERSHIP OF SUCH PROPERTY.  THE
AMOUNT  OF  THE  CREDIT SHALL BE DETERMINED BY MULTIPLYING THE AMOUNT OF
TAX PAID UPON THE CONVEYANCE TO THE COOPERATIVE HOUSING CORPORATION 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 MULTIPLYING THE  RESULT-
ING 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 CORPORATION (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  THIRTIETH
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.
  S 1448-N. DESIGNATION OF AGENTS. THE TREASURER IS AUTHORIZED TO DESIG-
NATE THE RECORDING OFFICER TO ACT AS ITS AGENT FOR PURPOSES OF  COLLECT-
ING  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-EIGHT-I OF THIS ARTICLE.
  S 1448-O. 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 OR SHE SHALL COLLECT SO LONG AS HE OR SHE  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.
  S 1448-P. REFUNDS. WHENEVER THE TREASURER  SHALL  DETERMINE  THAT  ANY
MONEYS  RECEIVED  UNDER THE PROVISIONS OF THE LOCAL LAW ENACTED PURSUANT
TO THIS ARTICLE WERE PAID IN ERROR, IT  MAY  CAUSE  SUCH  MONEYS  TO  BE
REFUNDED  PURSUANT  TO  SUCH  RULES  AND  REGULATIONS  IT MAY PRESCRIBE,

A. 8936                             7

PROVIDED ANY APPLICATION FOR SUCH REFUND IS  FILED  WITH  THE  TREASURER
WITHIN TWO YEARS FROM THE DATE THE ERRONEOUS PAYMENT WAS MADE.
  S  1448-Q.  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 ESSEX 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 A SEPARATE ACCOUNT MAINTAINED BY THE COUNTY OF ESSEX
AND THE MONIES THEREIN SHALL BE DISBURSED EXCLUSIVELY FOR  ANY  AND  ALL
COSTS,  EXPENSES  AND DEBT INCURRED BY SUCH COUNTY FOR THE ESTABLISHMENT
OF THE ESSEX COUNTY PUBLIC SAFETY RADIO COMMUNICATIONS SYSTEM; AND  UPON
PAYMENT OF ALL SUCH COSTS, EXPENSES AND DEBT SHALL BE DEPOSITED INTO THE
GENERAL FUND OF THE COUNTY OF ESSEX.
  S 1448-R. JUDICIAL REVIEW. 1. ANY FINAL DETERMINATION OF THE AMOUNT OF
ANY  TAX  PAYABLE  UNDER  SECTION FOURTEEN HUNDRED FORTY-EIGHT-I 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 THERE-
FOR 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 PRACTICE 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  UNDER-
TAKING,  ISSUED  BY  A SURETY COMPANY AUTHORIZED TO TRANSACT BUSINESS IN
THIS STATE AND APPROVED BY THE SUPERINTENDENT OF INSURANCE 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 SUFFI-
CIENT TO COVER THE TAXES, INTEREST AND PENALTIES STATED IN SUCH DETERMI-
NATION, 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  PENALTIES  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
CONFIRMED, THE PETITIONER WILL PAY  ALL  COSTS  AND  CHARGES  WHICH  MAY
ACCRUE IN THE PROSECUTION OF SUCH PROCEEDING.

A. 8936                             8

  S 1448-S. APPORTIONMENT. THE LOCAL LAW ADOPTED BY THE LEGISLATIVE BODY
OF  THE  COUNTY OF ESSEX SHALL PROVIDE FOR A METHOD OF APPORTIONMENT FOR
DETERMINING THE AMOUNT OF TAX DUE WHENEVER THE REAL PROPERTY OR INTEREST
THEREIN IS SITUATED WITHIN AND WITHOUT THE COUNTY OF ESSEX.
  S 1448-T. MISCELLANEOUS. THE LOCAL LAW ADOPTED BY THE LEGISLATIVE BODY
OF  THE COUNTY OF ESSEX MAY CONTAIN SUCH OTHER PROVISIONS AS SUCH LEGIS-
LATIVE BODY DEEMS NECESSARY FOR THE PROPER  ADMINISTRATION  OF  THE  TAX
IMPOSED  PURSUANT  TO  THIS ARTICLE, INCLUDING PROVISIONS CONCERNING THE
DETERMINATION OF TAX, THE IMPOSITION OF INTEREST  ON  UNDERPAYMENTS  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.
  S  1448-U.  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 ESSEX  OR  ANY
PERSON  ENGAGED  OR  RETAINED  BY SUCH COUNTY ON AN INDEPENDENT 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.
  S 2. This act shall take effect immediately.