Senate Bill S1730

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1730
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 16, 2019
                                ___________
 
 Introduced  by  Sen. SKOUFIS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the tax law and the administrative code of the  city  of
   New York, in relation to real property transfer tax returns of limited
   liability companies

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1.  Subdivision (a) of section 1409 of the tax law, as amended
 by chapter 309 of the laws of 1996, is amended to read as follows:
   (a) A joint return shall be filed by both the grantor and the  grantee
 for  each  conveyance  whether  or not a tax is due thereon other than a
 conveyance of an easement or license to a public utility as  defined  in
 subdivision  two  of section one hundred eighty-six-a of this chapter or
 to a public utility which is a provider of telecommunication services as
 defined in subdivision one of section one hundred eighty-six-e  of  this
 chapter,  where  the consideration is two dollars or less and is clearly
 stated as actual consideration in the instrument of conveyance. WHEN THE
 GRANTOR OR GRANTEE OF A DEED FOR RESIDENTIAL  REAL  PROPERTY  CONTAINING
 ONE-  TO  FOUR-FAMILY DWELLING UNITS IS A LIMITED LIABILITY COMPANY, THE
 JOINT RETURN SHALL NOT BE ACCEPTED FOR FILING UNLESS IT  IS  ACCOMPANIED
 BY  A  DOCUMENT WHICH IDENTIFIES THE NAMES AND BUSINESS ADDRESSES OF ALL
 MEMBERS, MANAGERS, AND ANY OTHER AUTHORIZED PERSONS,  IF  ANY,  OF  SUCH
 LIMITED  LIABILITY  COMPANY  AND THE NAMES AND BUSINESS ADDRESSES OR, IF
 NONE, THE BUSINESS ADDRESSES OF ALL SHAREHOLDERS,  DIRECTORS,  OFFICERS,
 MEMBERS, MANAGERS AND PARTNERS OF ANY LIMITED LIABILITY COMPANY OR OTHER
 BUSINESS  ENTITY  THAT  ARE  TO  BE  THE MEMBERS, MANAGERS OR AUTHORIZED
 PERSONS, IF ANY, OF SUCH LIMITED LIABILITY COMPANY.  THE  IDENTIFICATION
 OF  SUCH NAMES AND ADDRESSES SHALL NOT BE DEEMED AN UNWARRANTED INVASION
 OF PERSONAL PRIVACY PURSUANT TO ARTICLE SIX OF THE PUBLIC OFFICERS  LAW.
 IF  ANY SUCH MEMBER, MANAGER OR AUTHORIZED PERSON OF THE LIMITED LIABIL-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06386-01-9

 S. 1730                             2
 
 ITY COMPANY IS ITSELF A LIMITED  LIABILITY  COMPANY  OR  OTHER  BUSINESS
 ENTITY,  THE  NAMES  AND ADDRESSES OF THE SHAREHOLDERS, DIRECTORS, OFFI-
 CERS, MEMBERS, MANAGERS AND PARTNERS OF THE LIMITED LIABILITY COMPANY OR
 OTHER  BUSINESS  ENTITY SHALL ALSO BE DISCLOSED UNTIL FULL DISCLOSURE OF
 ULTIMATE OWNERSHIP BY NATURAL PERSONS IS ACHIEVED. FOR PURPOSES OF  THIS
 SUBDIVISION,  THE  TERMS  "MEMBERS",  "MANAGERS",  "AUTHORIZED  PERSON",
 "LIMITED LIABILITY COMPANY" AND "OTHER BUSINESS ENTITY" SHALL  HAVE  THE
 SAME  MEANING  AS  THOSE TERMS ARE DEFINED IN SECTION ONE HUNDRED TWO OF
 THE LIMITED LIABILITY COMPANY LAW. The return shall be  filed  with  the
 recording  officer before the instrument effecting the conveyance may be
 recorded. However, if the tax is paid to the  commissioner  pursuant  to
 section  fourteen hundred ten of this article, the return shall be filed
 with such commissioner at the time the tax is paid. In that instance,  a
 receipt evidencing the filing of the return and the payment of tax shall
 be  filed with the recording officer before the instrument effecting the
 conveyance may be recorded. The  recording  officer  shall  handle  such
 receipt in the same manner as a return filed with the recording officer.
   §  2.  Section  11-2105  of the administrative code of the city of New
 York is amended by adding a new subdivision h to read as follows:
   H. WHEN THE GRANTOR OR GRANTEE OF A DEED FOR RESIDENTIAL REAL PROPERTY
 CONTAINING ONE- TO FOUR-FAMILY DWELLING UNITS  IS  A  LIMITED  LIABILITY
 COMPANY,  THE JOINT RETURN SHALL NOT BE ACCEPTED FOR FILING UNLESS IT IS
 ACCOMPANIED BY A  DOCUMENT  WHICH  IDENTIFIES  THE  NAMES  AND  BUSINESS
 ADDRESSES OF ALL MEMBERS, MANAGERS, AND ANY OTHER AUTHORIZED PERSONS, IF
 ANY,  OF  SUCH  LIMITED  LIABILITY  COMPANY  AND  THE NAMES AND BUSINESS
 ADDRESSES OR, IF NONE,  THE  BUSINESS  ADDRESSES  OF  ALL  SHAREHOLDERS,
 DIRECTORS,  OFFICERS,  MEMBERS,  MANAGERS  AND  PARTNERS  OF ANY LIMITED
 LIABILITY COMPANY OR OTHER BUSINESS ENTITY THAT ARE TO BE  THE  MEMBERS,
 MANAGERS OR AUTHORIZED PERSONS, IF ANY, OF SUCH LIMITED LIABILITY COMPA-
 NY.   THE IDENTIFICATION OF SUCH NAMES AND ADDRESSES SHALL NOT BE DEEMED
 AN UNWARRANTED INVASION OF PERSONAL PRIVACY PURSUANT TO ARTICLE  SIX  OF
 THE  PUBLIC  OFFICERS  LAW.    IF ANY SUCH MEMBER, MANAGER OR AUTHORIZED
 PERSON OF THE LIMITED LIABILITY COMPANY IS ITSELF  A  LIMITED  LIABILITY
 COMPANY  OR OTHER BUSINESS ENTITY, THE NAMES AND ADDRESSES OF THE SHARE-
 HOLDERS, DIRECTORS, OFFICERS, MEMBERS,  MANAGERS  AND  PARTNERS  OF  THE
 LIMITED  LIABILITY  COMPANY  OR  OTHER  BUSINESS  ENTITY  SHALL  ALSO BE
 DISCLOSED UNTIL FULL DISCLOSURE OF ULTIMATE OWNERSHIP BY NATURAL PERSONS
 IS ACHIEVED. FOR PURPOSES OF  THIS  SUBDIVISION,  THE  TERMS  "MEMBERS",
 "MANAGERS",  "AUTHORIZED PERSON", "LIMITED LIABILITY COMPANY" AND "OTHER
 BUSINESS ENTITY" SHALL HAVE THE SAME MEANING AS THOSE TERMS ARE  DEFINED
 IN SECTION ONE HUNDRED TWO OF THE LIMITED LIABILITY COMPANY LAW.
   § 3. This act shall take effect immediately.