NY State Senate Bill 2017-S6041

Senate Bill S6041

2017-2018 Legislative Session

Relates to taxable conveyances under the real estate transfer tax in the Peconic Bay Region; repealer

download bill text pdf

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to investigations and government operations
May 10, 2017	referred to investigations and government operations

2017-S6041 (ACTIVE) - Details

See Assembly Version of this Bill:: A7704
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§1499-aa & 1499-nn, rpld & add §1499-aa sub 5, Tax L

2017-S6041 (ACTIVE) - Summary

Relates to taxable conveyances under the real estate transfer tax in the Peconic Bay Region.

2017-S6041 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S6041

 TITLE OF BILL :  An act to amend the tax law in relation to taxable
conveyances under the real estate transfer tax in the Peconic Bay
Region; and to repeal certain provisions of such law relating thereto

 PURPOSE :

Relates to tax on real estate transfers in the towns in the Peconic
Bay Region.

 SUMMARY OF PROVISIONS :

Amends provisions of the tax law relating to tax on real estate
transfers in the towns in the Peconic Bay Region.

 JUSTIFICATION :

This legislation relates to the tax on real tax on real estate
transfers in towns in the Peconic Bay Region (East Hampton,
Southampton, Riverhead, Shelter Island and Southold). "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 property.
This legislation also includes the transfer of an interest in a
partnership, limited liability corporation, S corporation or
non-publicly traded C corporation with fewer than one hundred
shareholders that owns an interest in real property that is located in
a town within the Peconic Bay Region and has a fair market value that
equals or exceeds fifty percent of all the assets of the entity on the
date of the transfer of an interest in the entity. The consideration
for the conveyance shall be calculated by multiplying 1) the fair
market value of the real property that is located in a town that is
owned by the entity and 2) a percentage of the entity that is
transferred.

It gives the towns in the Peconic Bay Region the authority to impose
the tax on any conveyance of an interest in real property made
pursuant to an agreement or understanding that would avoid or evade
the tax.

 LEGISLATIVE HISTORY :

2017: New legislation.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect immediately.

2017-S6041 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 6041                                                  A. 7704
 
                        2017-2018 Regular Sessions
 
                       S E N A T E - A S S E M B L Y
 
                               May 10, 2017
                                ___________
 
 IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
   ed,  and  when  printed  to  be committed to the Committee on Investi-
   gations and Government Operations
 
 IN ASSEMBLY -- Introduced by M. of A. THIELE -- read once  and  referred
   to the Committee on Ways and Means

 AN ACT to amend the tax law in relation to taxable conveyances under the
   real  estate  transfer  tax  in  the Peconic Bay Region; and to repeal
   certain provisions of such law relating thereto
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1. Subdivision 4 of section 1449-aa of the tax law is amended
 by adding a new paragraph (f) to read as follows:
   (F) IN THE CASE OF A TRANSFER OF AN INTEREST IN A PARTNERSHIP, LIMITED
 LIABILITY CORPORATION, S CORPORATION OR  NON-PUBLICLY  TRADED  C  CORPO-
 RATION  WITH  ONE  HUNDRED OR FEWER SHAREHOLDERS THAT OWNS REAL PROPERTY
 THAT IS LOCATED IN A TOWN AND HAS A FAIR MARKET  VALUE  THAT  EQUALS  OR
 EXCEEDS FIFTY PERCENT OF ALL THE ASSETS OF THE ENTITY ON THE DATE OF THE
 TRANSFER OF AN INTEREST IN THE ENTITY, THE CONSIDERATION FOR THE CONVEY-
 ANCE SHALL BE CALCULATED BY MULTIPLYING (1) THE FAIR MARKET VALUE OF THE
 REAL  PROPERTY THAT IS LOCATED IN A TOWN THAT IS OWNED BY THE ENTITY AND
 (2) THE PERCENTAGE OF THE ENTITY THAT IS TRANSFERRED.
   § 2. Subdivision 5 of section 1449-aa of the tax law is REPEALED and a
 new subdivision 5 is added to read as follows:
   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.  CONVEYANCE ALSO INCLUDES THE TRANSFER OF AN INTEREST IN A  PARTNER-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD10767-01-7

 S. 6041                             2                            A. 7704
 
 SHIP, LIMITED LIABILITY CORPORATION, S CORPORATION OR NON-PUBLICLY TRAD-
 ED  C  CORPORATION WITH FEWER THAN ONE HUNDRED SHAREHOLDERS THAT OWNS AN
 INTEREST IN REAL PROPERTY THAT IS LOCATED IN NEW YORK  AND  HAS  A  FAIR
 MARKET  VALUE  THAT EQUALS OR EXCEEDS FIFTY PERCENT OF ALL THE ASSETS OF
 THE ENTITY ON THE DATE OF THE TRANSFER OF AN  INTEREST  IN  THE  ENTITY.
 ONLY  THOSE  ASSETS  THAT THE ENTITY OWNED FOR AT LEAST TWO YEARS BEFORE
 THE DATE OF THE TRANSFER OF THE TAXPAYER'S INTEREST IN THE ENTITY  SHALL
 BE  USED  IN  DETERMINING THE FAIR MARKET VALUE OF ALL THE ASSETS OF THE
 ENTITY ON THE DATE OF THE TRANSFER. TRANSFER  OF  AN  INTEREST  IN  REAL
 PROPERTY  SHALL  INCLUDE  THE  CREATION  OF A LEASEHOLD OR SUBLEASE ONLY
 WHERE (I) THE SUM OF THE TERM OF THE LEASE OR SUBLEASE AND  ANY  OPTIONS
 FOR  RENEWAL EXCEEDS FORTY-NINE YEARS, (II) SUBSTANTIAL CAPITAL IMPROVE-
 MENTS ARE OR MAY BE MADE BY OR FOR THE BENEFIT OF THE LESSEE OR  SUBLES-
 SEE,  AND  (III)  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 A CONVEYANCE  PURSUANT  TO
 DEVISE,  BEQUEST  OR INHERITANCE; THE CREATION, MODIFICATION, EXTENSION,
 SPREADING, SEVERANCE, CONSOLIDATION, ASSIGNMENT,  TRANSFER,  RELEASE  OR
 SATISFACTION  OF A MORTGAGE; A MORTGAGE SUBORDINATION AGREEMENT, A MORT-
 GAGE SEVERANCE AGREEMENT, AN INSTRUMENT GIVEN TO PERFECT  OR  CORRECT  A
 RECORDED  MORTGAGE; OR A RELEASE OF A LIEN OF TAX PURSUANT TO THIS CHAP-
 TER OR THE INTERNAL REVENUE CODE.
   § 3. Section 1449-nn of the tax law is amended by adding a new  subdi-
 vision 5 to read as follows:
   5.  THE TOWN IS AUTHORIZED TO TREAT AS SUBJECT TO TAX UNDER THIS ARTI-
 CLE ANY CONVEYANCE OF AN INTEREST IN REAL PROPERTY MADE PURSUANT  TO  AN
 AGREEMENT, UNDERSTANDING OR ARRANGEMENT THAT RESULTS IN THE AVOIDANCE OR
 EVASION OF THE TAX IMPOSED BY THIS SECTION.
   §  4.  This act shall take effect immediately; provided, however, that
 the amendments to paragraph (f) of subdivision 4 of section  1449-aa  of
 the  tax law made by section one of this act shall not affect the repeal
 of such subdivision and shall be deemed to repeal  therewith;  provided,
 further,  that the amendments to subdivision 5 of section 1449-aa of the
 tax law made by section two of this act shall not affect the  repeal  of
 such  section and shall be deemed to repeal therewith; provided, further
 that the amendments to subdivision 5 of section 1449-nn of the  tax  law
 made  by  section  three of this act shall not affect the repeal of such
 section and shall be deemed to repeal therewith.

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