senate Bill S7208

Signed By Governor
2013-2014 Legislative Session

Relates to extending the tax rate reduction for conveyances of real property to existing real estate investment funds

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Archive: Last Bill Status Via A9394 - Signed by Governor


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Dec 17, 2014 signed chap.500
Dec 05, 2014 delivered to governor
Jun 10, 2014 returned to assembly
passed senate
3rd reading cal.1220
substituted for s7208
Jun 10, 2014 substituted by a9394
Jun 09, 2014 ordered to third reading cal.1220
committee discharged and committed to rules
Jun 02, 2014 reported and committed to finance
May 06, 2014 referred to investigations and government operations

Votes

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Jun 9, 2014 - Rules committee Vote

S7208
16
4
committee
16
Aye
4
Nay
4
Aye with Reservations
0
Absent
1
Excused
0
Abstained
show Rules committee vote details

Jun 2, 2014 - Investigations and Government Operations committee Vote

S7208
7
1
committee
7
Aye
1
Nay
1
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Investigations and Government Operations committee vote details

Investigations and Government Operations Committee Vote: Jun 2, 2014

nay (1)
aye wr (1)

S7208 - Bill Details

See Assembly Version of this Bill:
A9394
Law Section:
Tax Law
Laws Affected:
Amd §§1402 & 1201, Tax L; amd §11-2102, NYC Ad Cd

S7208 - Bill Texts

view summary

Extends the tax rate reduction under the NY state real estate transfer tax and the NYC real property transfer tax for conveyances of real property to existing real estate investment funds.

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BILL NUMBER:S7208

TITLE OF BILL: An act to amend the tax law and the administrative
code of the city of New York, in relation to extending the tax rate
reduction under the New York state real estate transfer tax and the
New York city real property transfer tax for conveyances of real
property to existing real estate investment funds

PURPOSE OR GENERAL IDEA OF BILL:

To extend the tax rate reduction under the state and New York City
real estate transfer tax for conveyances for real property to existing
real estate investment trusts (REITs).

SUMMARY OF SPECIFIC PROVISIONS:

The bill extends the tax rate reduction under the State and New York
City real estate transfer tax for conveyances of real property to
existing real estate investment trusts until September 1, 2017.
Currently, both the New York State and New York City real estate
transfer taxes to REITs are set to expire on September 1, 2014.

JUSTIFICATION:

The implementation of the REIT tax credit in 1996 contributed to
robust sales activity with REITs along with a surge in transfer tax
revenue. The REIT credit was extended again in 1999, 2002, 2005, 2008,
and 2011.

PRIOR LEGISLATIVE HISTORY:

Chapter 416 of 2008
Chapter 493 of 2011

FISCAL IMPLICATIONS:

Increase in transfer tax revenue for the State and the City of New
York.

EFFECTIVE DATE:

Immediately

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

                                  7208

                            I N  S E N A T E

                               May 6, 2014
                               ___________

Introduced  by  Sen.  DeFRANCISCO -- read twice and ordered printed, and
  when printed to be committed to the Committee  on  Investigations  and
  Government Operations

AN  ACT  to amend the tax law and the administrative code of the city of
  New York, in relation to extending the tax rate  reduction  under  the
  New  York  state  real  estate transfer tax and the New York city real
  property transfer tax for conveyances of  real  property  to  existing
  real estate investment funds

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The opening paragraph of subparagraph (B) of paragraph 2 of
subdivision (b) of section 1402 of the tax law, as  amended  by  chapter
493 of the laws of 2011, is amended to read as follows:
  For  purposes  of this subdivision, the phrase "real estate investment
trust transfer" shall mean any conveyance of real property or an  inter-
est  therein  to  a  REIT, or to a partnership or corporation in which a
REIT owns a controlling interest immediately following  the  conveyance,
which  conveyance (I) occurs in connection with the initial formation of
the REIT, provided that the conditions set forth in clauses (i) and (ii)
of this subparagraph are satisfied, or (II) in  the  case  of  any  real
estate  investment trust transfer occurring on or after July thirteenth,
nineteen hundred ninety-six and before  September  first,  two  thousand
[fourteen] SEVENTEEN, is described in the last sentence of this subpara-
graph.
  S  2.  Subparagraph  2 of paragraph (xi) of subdivision (b) of section
1201 of the tax law, as amended by chapter 493 of the laws of  2011,  is
amended to read as follows:
  (2)  any  issuance or transfer of an interest in a REIT, or in a part-
nership or corporation in which a REIT owns a controlling interest imme-
diately following the issuance or transfer, in connection with a  trans-
action described in subparagraph one of this paragraph.  Notwithstanding
the  foregoing,  a transaction described in the preceding sentence shall
not constitute a real estate investment trust  transfer  unless  (A)  it
occurs  in  connection  with  the  initial formation of the REIT and the

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14842-01-4

S. 7208                             2

conditions described in subparagraphs three and four of  this  paragraph
are  satisfied,  or  (B) in the case of any real estate investment trust
transfer occurring on or after July thirteenth, nineteen  hundred  nine-
ty-six  and  before  September first, two thousand [fourteen] SEVENTEEN,
the transaction is described in subparagraph five of this  paragraph  in
which case the provisions of such subparagraph shall apply.
  S  3.  Subparagraph  (B)  of  paragraph  2 of subdivision e of section
11-2102 of the administrative code of the city of New York,  as  amended
by chapter 493 of the laws of 2011, is amended to read as follows:
  (B)  any  issuance or transfer of an interest in a REIT, or in a part-
nership or corporation in which a REIT owns a controlling interest imme-
diately following the issuance or transfer in connection with  a  trans-
action described in subparagraph (A) of this paragraph.  Notwithstanding
the  foregoing,  a transaction described in the preceding sentence shall
not constitute a real estate investment trust  transfer  unless  (i)  it
occurs  in  connection  with  the  initial formation of the REIT and the
conditions described in subparagraphs (C) and (D) of this paragraph  are
satisfied,  or  (ii)  in  the  case  of any real estate investment trust
transfer occurring on or after July thirteenth, nineteen  hundred  nine-
ty-six  and  before  September first, two thousand [fourteen] SEVENTEEN,
the transaction is described in subparagraph (E) of  this  paragraph  in
which case the provision of such subparagraph shall apply.
  S 4. This act shall take effect immediately.

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