NY State Senate Bill 2021-S4338B

Senate Bill S4338B

2021-2022 Legislative Session

Clarifies that certain documents attached to real estate tax returns are not considered tax returns for certain secrecy purposes

download bill text pdf

Archive: Last Bill Status - In Senate Committee Budget And Revenue 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

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to budget and revenue returned to senate died in assembly
Jun 09, 2021	referred to ways and means delivered to assembly passed senate
Mar 11, 2021	advanced to third reading
Mar 10, 2021	2nd report cal.
Mar 09, 2021	1st report cal.520
Mar 03, 2021	print number 4338b
Mar 03, 2021	amend and recommit to budget and revenue
Feb 16, 2021	print number 4338a
Feb 16, 2021	amend and recommit to budget and revenue
Feb 03, 2021	referred to budget and revenue

Votes

- Jun 9, 2021 - Floor Vote
  S4338B
  
  44
  
  Aye
  
  19
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 9, 2021
      
      aye (44)
      
      Addabbo Jr.
      
      Bailey
      
      Benjamin
      
      Biaggi
      
      Breslin
      
      Brisport
      
      Brooks
      
      Brouk
      
      Comrie
      
      Cooney
      
      Felder
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Harckham
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Kaminsky
      
      Kaplan
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      May
      
      Mayer
      
      Myrie
      
      Parker
      
      Persaud
      
      Ramos
      
      Reichlin-Melnick
      
      Rivera
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stewart-Cousins
      
      Thomas
      
      nay (19)
      
      Akshar
      
      Borrello
      
      Boyle
      
      Gallivan
      
      Griffo
      
      Helming
      
      Jordan
      
      Martucci
      
      Mattera
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Rath III
      
      Ritchie
      
      Serino
      
      Stec
      
      Tedisco
      
      Weik
  Mar 9, 2021 - Budget And Revenue Committee Vote
  S4338B
  
  5
  
  Aye
  
  2
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Budget And Revenue Committee Vote: Mar 9, 2021
      
      aye (5)
      
      Benjamin
      
      Kaminsky
      
      Krueger
      
      Liu
      
      Salazar
      
      nay (2)
      
      Rath III
      
      Weik

Bill Amendments

Original

B (Active)

2021-S4338 - Details

See Assembly Version of this Bill:: A5405
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§1409 & 1418, Tax L

2021-S4338 - Summary

Clarifies that certain documents attached to real estate tax returns are not considered tax returns for certain secrecy purposes.

2021-S4338 - Sponsor Memo

2021-S4338 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4338
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 3, 2021
                                ___________
 
 Introduced  by  Sen. SKOUFIS -- 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  clarifying  that  certain
   documents  attached  to real estate tax returns are not considered tax
   returns for certain secrecy purposes

   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 297 of the laws of 2019, 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.  SUCH  ACCOMPANYING
 DOCUMENT  SHALL  NOT BE CONSIDERED A RETURN OR BE SUBJECT TO THE SECRECY
 PROVISIONS SET FORTH IN SECTION FOURTEEN HUNDRED EIGHTEEN OF THIS  ARTI-
 CLE.  The identification of such names and addresses shall not be deemed
 an unwarranted invasion of personal privacy pursuant to article  six  of
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD08461-01-1

 S. 4338                             2
 
 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.  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  arti-
 cle,  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. This act shall take effect immediately.

2021-S4338A - Details

See Assembly Version of this Bill:: A5405
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§1409 & 1418, Tax L

2021-S4338A - Summary

Clarifies that certain documents attached to real estate tax returns are not considered tax returns for certain secrecy purposes.

2021-S4338A - Sponsor Memo

                                
 
BILL NUMBER: S4338A

SPONSOR: SKOUFIS
 
TITLE OF BILL:

An act to amend the tax law, in relation to clarifying that certain
documents attached to real estate tax returns are not considered tax
returns for certain secrecy purposes

 
PURPOSE OR GENERAL IDEA OF BILL:

The bill will clarify that documents disclosing LLC ownership for tax
returns on real estate transactions are not subject to tax secrecy laws.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one of the bill amends section 1409 of the tax law to prohibit a
grantor or a grantee of a deed for a building used as residential real
estate property containing up to four family dwelling units is a limited
liability company from filing a joint return unless it is accompanied by
a document which identifies the names and business addresses of all

members, managers, and any other authorized persons of such LLC and the
business addresses of all shareholders, directors, offices and other
relevant parties of such LLC. Also clarifies that documents disclosing
LLC ownership for tax returns on real estate transactions are not
subject to tax secrecy laws nor are considered a return. If a member,
manager, or authorized person of the LLC is itself a LLC or other busi-
ness entity, requires disclosure of relevant names and address of
parties, unless such entity is a publicly traded entity, a REIIT, a
UPREIT or a mutual fund.

Section two of the bill relates to the effective date.

 
JUSTIFICATION:

In 2019, New York required that real estate transactions where either
party is an LLC corporation that the tax return must be accompanied by a
document disclosing the identity of the LLC ownership. Following the
enactment of the law, the Tax Department interpreted that the LLC
disclosure was considered part of the tax return, therefore, barred from
public information laws. Since the intent of the original law was to
have the public and government agencies the ability to request copies of
such information, this bill would include clarification that explicitly
states that the LLC disclosure is not part of the tax return or subject
to tax secrecy laws.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S4338A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4338--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 3, 2021
                                ___________
 
 Introduced  by  Sen. SKOUFIS -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Budget  and  Revenue  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee
 
 AN ACT to amend the tax law, in  relation  to  clarifying  that  certain
   documents  attached  to real estate tax returns are not considered tax
   returns for certain secrecy purposes
 
   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 297 of the laws of 2019, is amended to read as follows:
   (a) (1) 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.
   (2) When the grantor or grantee of a deed for A BUILDING USED AS resi-
 dential real property containing [one-  to  four-]  UP  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. SUCH ACCOMPANYING DOCUMENT SHALL NOT BE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD08461-02-1

 S. 4338--A                          2
 
 CONSIDERED A RETURN OR BE SUBJECT TO THE SECRECY PROVISIONS SET FORTH IN
 SECTION FOURTEEN HUNDRED EIGHTEEN OF THIS ARTICLE. 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
 OTHER THAN A PUBLICLY TRADED ENTITY, A REIT, A UPREIT, OR A MUTUAL FUND,
 the names  and  addresses  of  the  shareholders,  directors,  officers,
 members, managers and partners of the limited liability company or other
 business  entity  shall also be disclosed until full disclosure of ulti-
 mate 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) 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. This act shall take effect immediately.

2021-S4338B (ACTIVE) - Details

See Assembly Version of this Bill:: A5405
Current Committee:: Senate Budget And Revenue
Law Section:: Tax Law
Laws Affected:: Amd §§1409 & 1418, Tax L

2021-S4338B (ACTIVE) - Summary

Clarifies that certain documents attached to real estate tax returns are not considered tax returns for certain secrecy purposes.

2021-S4338B (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S4338B

SPONSOR: SKOUFIS
 
TITLE OF BILL:

An act to amend the tax law, in relation to clarifying that certain
documents attached to real estate tax returns are not considered tax
returns for certain secrecy purposes

 
PURPOSE OR GENERAL IDEA OF BILL:

The bill will clarify that documents disclosing LLC ownership for tax
returns on real estate transactions are not subject to tax secrecy laws.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one of the bill amends section 1409 of the tax law to clarify
that documents disclosing LLC ownership for tax returns on real estate
transactions are not subject to tax secrecy laws nor are considered a
return.

Section two of the bill amends section 1418 of the tax law to permit the
Department of Tax commissioner to disclose any information reported
pursuant to paragraph two of subdivision (a) of section 1409 of this
article.

Section three of the bill relates to the effective date.

 
JUSTIFICATION:

In 2019, New York required that real estate transactions where either
party is an LLC corporation that the tax return must be accompanied by a
document disclosing the identity of the LLC ownership. Following the
enactment of the law, the Tax Department interpreted that the LLC
disclosure was considered part of the tax return, therefore, barred from
public information laws. Since the intent of the original law was to
have the public and government agencies the ability to request copies of
such information, this bill would include clarification that explicitly
states that the LLC disclosure is not part of the tax return or subject
to tax secrecy laws.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S4338B (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4338--B
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 3, 2021
                                ___________
 
 Introduced  by  Sen. SKOUFIS -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Budget  and  Revenue  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee -- committee discharged,  bill  amended,
   ordered reprinted as amended and recommitted to said committee

 AN  ACT  to  amend  the  tax law, in relation to clarifying that certain
   documents attached to real estate tax returns are not  considered  tax
   returns for certain secrecy purposes
 
   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 297 of the laws of 2019, is amended to read as follows:
   (a)  (1)  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.
   (2) When the grantor or grantee of a deed for A BUILDING USED AS resi-
 dential  real  property  containing  [one-  to  four-] UP 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD08461-05-1

 S. 4338--B                          2
 
 such limited liability company. The identification  of  such  names  and
 addresses shall not be deemed an unwarranted invasion of personal priva-
 cy  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 OTHER THAN A
 PUBLICLY  TRADED  ENTITY,  A REIT, A UPREIT, OR A MUTUAL FUND, the names
 and addresses of the shareholders, directors, officers, members,  manag-
 ers  and  partners  of  the  limited liability company or other business
 entity shall also be disclosed until full disclosure of ultimate  owner-
 ship  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) 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.  Subdivision  (h)  of  section  1418 of the tax law, as added by
 section 7 of part X of chapter 56 of the laws of  2010  and  as  further
 amended  by  subdivision (c) of section 1 of part W of chapter 56 of the
 laws of 2010, is amended to read as follows:
   (h) Notwithstanding the provisions of subdivision (a) of this section,
 the commissioner may  furnish  information  relating  to  real  property
 transfers  obtained or derived from returns filed pursuant to this arti-
 cle in relation to the real estate transfer tax, to the extent that such
 information is also required to  be  reported  to  the  commissioner  by
 section  three hundred thirty-three of the real property law and section
 five hundred seventy-four of the real property tax  law  and  the  rules
 adopted  thereunder,  provided  such information was collected through a
 combined process established pursuant to an agreement entered into  with
 the  commissioner  pursuant  to  paragraph  viii of subdivision one-e of
 section three hundred thirty-three of the real property law. The commis-
 sioner may redisclose such  information  to  the  extent  authorized  by
 section  five  hundred  seventy-four  of  the real property tax law. THE
 COMMISSIONER MAY ALSO DISCLOSE  ANY  INFORMATION  REPORTED  PURSUANT  TO
 PARAGRAPH  TWO  OF  SUBDIVISION  (A) OF SECTION FOURTEEN HUNDRED NINE OF
 THIS ARTICLE.
   § 3. This act shall take effect immediately.

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Senate Bill S4338B

Share this bill

Sponsored By

James Skoufis

Archive: Last Bill Status - In Senate Committee Budget And Revenue Committee

Bill Amendments

2021-S4338 - Details

2021-S4338 - Summary

2021-S4338 - Sponsor Memo

2021-S4338 - Bill Text download pdf

2021-S4338A - Details

2021-S4338A - Summary

2021-S4338A - Sponsor Memo

2021-S4338A - Bill Text download pdf

2021-S4338B (ACTIVE) - Details

2021-S4338B (ACTIVE) - Summary

2021-S4338B (ACTIVE) - Sponsor Memo

2021-S4338B (ACTIVE) - Bill Text download pdf

Comments