S. 572 2
(D) "FUND" MEANS THE COMMUNITY HOUSING FUND AUTHORIZED PURSUANT TO
SUBDIVISION TWO OF THIS SECTION.
(E) "FIRST-TIME HOMEBUYER" MEANS AN ELIGIBLE INDIVIDUAL WHO HAS NOT
OWNED A PRIMARY RESIDENTIAL PROPERTY AND IS NOT MARRIED TO A PERSON WHO
HAS OWNED A RESIDENTIAL PROPERTY DURING THE THREE-YEAR PERIOD PRIOR TO
SUCH PERSON'S PURCHASE OF THE PRIMARY RESIDENTIAL PROPERTY, AND WHO DOES
NOT OWN A VACATION OR INVESTMENT HOME.
(F) "PRIMARY RESIDENTIAL PROPERTY" MEANS ANY ONE OR TWO FAMILY HOUSE,
TOWNHOUSE, OR CONDOMINIUM, INCLUDING ACCESSORY APARTMENTS.
(G) "ELIGIBLE INDIVIDUAL" SHALL BE DEFINED BY THE GOVERNING BODY, BY
LOCAL LAW, PROVIDED THAT THE DEFINITION OF HOUSEHOLD INCOME IN SUCH
LOCAL LAW SHALL NOT EXCEED ONE HUNDRED PERCENT OF THE INCOME LIMITS AS
ESTABLISHED BY THE STATE OF NEW YORK MORTGAGE AGENCY LOW INTEREST RATE
LOAN PROGRAM IN NON-TARGET CATEGORIES FOR THE COUNTY IN EFFECT ON THE
CONTRACT DATE FOR THE SALE OF SUCH PROPERTY.
(H) "GOVERNING BODY" MEANS A CITY COUNCIL OR TOWN BOARD.
2. FUND AUTHORIZED. CITIES AND TOWNS ARE AUTHORIZED TO ESTABLISH, BY
LOCAL LAW, A COMMUNITY HOUSING FUND, PURSUANT TO THE PROVISIONS OF THIS
SECTION. DEPOSITS INTO THE FUND MAY INCLUDE REVENUES OF THE LOCAL
GOVERNMENT FROM WHATEVER SOURCE, INCLUDING BUT NOT LIMITED TO: (A) ALL
REVENUES FROM THE SUPPLEMENTAL REAL ESTATE TRANSFER TAX AUTHORIZED BY
SECTION FIFTEEN HUNDRED SEVENTY-SIX OF THE TAX LAW; (B) ALL PROCEEDS
FROM ANY INDEBTEDNESS OR OBLIGATIONS ISSUED PURSUANT TO THE LOCAL
FINANCE LAW FOR COMMUNITY HOUSING OPPORTUNITY PURPOSES AS AUTHORIZED IN
SUBDIVISION THREE OF THIS SECTION; (C) GENERAL FUND BALANCES OR SURPLUS-
ES; (D) ANY PROCEEDS RECEIVED BY THE LOCAL GOVERNMENT FROM THE SALE OR
RENTAL OF COMMUNITY HOUSING PRODUCED FROM REVENUES OF THE FUND; (E) THE
REPAYMENT OF ANY LOANS ISSUED FROM PROCEEDS OF THE FUND; (F) ANY GIFTS
OF INTERESTS IN LAND OR FUNDS; AND (G) ANY STATE OR FEDERAL GRANTS
RECEIVED BY THE CITY OR TOWN FOR PROVIDING AFFORDABLE HOMES.
3. PURPOSES OF THE FUND. THE PROCEEDS OF THE FUND ESTABLISHED PURSUANT
TO SUBDIVISION TWO OF THIS SECTION SHALL BE UTILIZED FOR THE FOLLOWING
PURPOSES:
(A) THE PROVISION OF FINANCIAL ASSISTANCE TO FIRST-TIME HOMEBUYERS WHO
ARE RESIDENTS OF THE CITY OR TOWN FOR THE PURCHASE OF A FIRST HOME. SUCH
FINANCIAL ASSISTANCE MAY BE IN THE FORM OF A GRANT OR A LOAN AND SUCH
PROGRAM SHALL MEET THE FOLLOWING CRITERIA:
(1) A CITY OR TOWN MAY PROVIDE FINANCIAL ASSISTANCE FOR THE PURCHASE
OF A FIRST HOME TO A FIRST-TIME HOMEBUYER WHO IS A RESIDENT OF THE CITY
OR TOWN OR WHO IS EMPLOYED IN THE CITY OR TOWN. A RESIDENT OF THE CITY
OR TOWN SHALL INCLUDE A PERSON WHO IS CURRENTLY A RESIDENT OF THE CITY
OR TOWN OR A NON-RESIDENT WHO HAS BEEN A RESIDENT WITHIN THE PAST FIVE
YEARS.
(2) SUCH FINANCIAL ASSISTANCE SHALL NOT EXCEED FIFTY PERCENT OF THE
PURCHASE PRICE OF THE HOME.
(3) IF SUCH FINANCIAL ASSISTANCE IS IN THE FORM OF A LOAN, SUCH LOAN
SHALL BE REPAYABLE TO THE CITY OR TOWN PURSUANT TO THE TERMS AGREED TO
BETWEEN THE RECIPIENT AND THE CITY OR TOWN, PROVIDED THAT ANY LOAN SHALL
BE FULLY REPAID BY THE RECIPIENT UPON THE RESALE OF THE HOME.
(4) FOR THE PURPOSES OF CALCULATING CITY OR TOWN REAL PROPERTY TAX
LIABILITY FOR SUCH PROPERTY, ONLY, THE DOLLAR AMOUNT OF ANY FINANCIAL
ASSISTANCE FOR THE PURCHASE OF A FIRST HOME MADE BY THE CITY OR TOWN
PURSUANT TO THIS SECTION SHALL BE SUBTRACTED FROM THE FULL EQUALIZED
ASSESSED VALUE OF SUCH PROPERTY.
(5) ALL REVENUES RECEIVED BY THE CITY OR TOWN FROM THE REPAYMENT OF A
LOAN SHALL BE DEPOSITED IN THE FUND.
S. 572 3
(6) A CITY OR TOWN MAY PROVIDE FINANCIAL ASSISTANCE FOR COMMUNITY
HOUSING IN CONJUNCTION WITH A PUBLIC/PRIVATE PARTNERSHIP FOR EMPLOYER
ASSISTED HOUSING.
(B) THE ACTUAL PRODUCTION OF COMMUNITY HOUSING FOR SALE TO ELIGIBLE
INDIVIDUALS BY THE CITY OR TOWN;
(C) THE ACTUAL PRODUCTION OF COMMUNITY HOUSING FOR SALE TO ELIGIBLE
INDIVIDUALS IN CONJUNCTION WITH A PUBLIC/PRIVATE PARTNERSHIP, WHERE THE
PRIVATE PARTNER AGREES TO COMPLY WITH THE PROFIT GUIDELINES OF THE NEW
YORK STATE AFFORDABLE HOUSING CORPORATION AND THE PROVISIONS OF THIS
SECTION;
(D) THE ACTUAL PRODUCTION AND MAINTENANCE OF COMMUNITY HOUSING,
INCLUDING ACCESSORY APARTMENTS FOR RENTAL TO ELIGIBLE INDIVIDUALS EITHER
BY THE CITY OR TOWN OR ITS HOUSING AUTHORITY; OR IN CONJUNCTION WITH A
PUBLIC/PRIVATE PARTNERSHIP, WHERE THE PRIVATE PARTNER AGREES TO COMPLY
WITH THE PROFIT GUIDELINES OF THE NEW YORK STATE AFFORDABLE HOUSING
CORPORATION AND THE PROVISIONS OF THIS SECTION;
(E) THE REHABILITATION OF EXISTING BUILDINGS AND STRUCTURES IN THE
CITY OR TOWN FOR THE PURPOSE OF CONVERSION TO COMMUNITY HOUSING FOR SALE
OR RENTAL TO ELIGIBLE INDIVIDUALS;
(F) THE ACQUISITION OF INTERESTS IN REAL PROPERTY IN EXISTING HOUSING
STOCK, WHICH WILL RESULT IN THE PRODUCTION OF COMMUNITY HOUSING FOR SALE
OR RENTAL TO ELIGIBLE INDIVIDUALS; AND
(G) THE PROVISION OF HOUSING COUNSELING SERVICES BY NOT-FOR-PROFIT
CORPORATIONS WHO ARE AUTHORIZED BY THE UNITED STATES DEPARTMENT OF HOUS-
ING AND URBAN DEVELOPMENT TO PROVIDE SUCH SERVICES.
4. FUND MANAGEMENT. INTEREST ACCRUED BY MONIES DEPOSITED INTO THE FUND
SHALL BE CREDITED TO THE FUND. IN NO EVENT SHALL MONIES DEPOSITED INTO
THE FUND BE TRANSFERRED TO ANY OTHER ACCOUNT. NOTHING CONTAINED IN THIS
SECTION SHALL BE CONSTRUED TO PREVENT THE FINANCING IN WHOLE OR IN PART,
PURSUANT TO THE LOCAL FINANCE LAW, OF ANY PURPOSE AUTHORIZED PURSUANT TO
THIS SECTION. MONIES FROM THE FUND MAY BE UTILIZED TO REPAY INDEBTEDNESS
OR OBLIGATIONS INCURRED PURSUANT TO THE LOCAL FINANCE LAW CONSISTENT
WITH EFFECTUATING THE PURPOSES OF THIS SECTION.
5. ELIGIBLE EXPENSES. FOR THE PURPOSES OF THIS SECTION, ELIGIBLE
EXPENSES RELATING TO THE PRODUCTION OF COMMUNITY HOUSING AND THE REHA-
BILITATION OF EXISTING BUILDINGS AND STRUCTURES UNDER THE FUND SHALL
INCLUDE BUT NOT BE LIMITED TO LAND ACQUISITION, PLANNING, ENGINEERING,
CONSTRUCTION COSTS, AND OTHER HARD AND SOFT COSTS DIRECTLY RELATED TO
THE CONSTRUCTION, REHABILITATION, PURCHASE OR RENTAL OF HOUSING PURSUANT
TO THIS SECTION. ALL REVENUES RECEIVED BY THE CITY OR TOWN FROM THE SALE
OR RENTAL OF COMMUNITY HOUSING, OR THE REPAYMENT OF LOANS SHALL BE
DEPOSITED IN THE FUND.
6. ADVISORY BOARD ESTABLISHED. THE GOVERNING BODY OF ANY CITY OR TOWN
WHICH HAS ESTABLISHED A COMMUNITY HOUSING FUND PURSUANT TO THIS SECTION
SHALL CREATE AN ADVISORY BOARD TO REVIEW AND MAKE RECOMMENDATIONS
REGARDING THE CITY OR TOWN'S COMMUNITY HOUSING PLAN REQUIRED BY SUBDIVI-
SION SEVEN OF THIS SECTION. SUCH BOARD SHALL CONSIST OF NOT LESS THAN
SEVEN NOR MORE THAN FIFTEEN LEGAL RESIDENTS OF THE MUNICIPALITY WHO
SHALL SERVE WITHOUT COMPENSATION. NO MEMBER OF THE LOCAL LEGISLATIVE
BODY SHALL SERVE ON THE BOARD. THE BOARD SHALL INCLUDE A REPRESENTATIVE
OF: (A) THE CONSTRUCTION INDUSTRY; (B) THE REAL ESTATE INDUSTRY; (C) THE
BANKING INDUSTRY; AND THREE REPRESENTATIVES OF LOCAL HOUSING ADVOCACY OR
HUMAN SERVICES ORGANIZATIONS. WHERE A VILLAGE OR VILLAGES, LOCATED WITH-
IN A TOWN, ELECT TO PARTICIPATE IN THE FUND, AS PROVIDED IN SUBDIVISION
EIGHT OF THIS SECTION, THE BOARD SHALL INCLUDE AT LEAST ONE RESIDENT OF
A PARTICIPATING VILLAGE OR VILLAGES. WHERE AN INDIAN NATION IS LOCATED
S. 572 4
WITHIN THE BOUNDARIES OF A CITY OR TOWN, THE BOARD SHALL INCLUDE AT
LEAST ONE MEMBER FROM SUCH NATION. THE BOARD SHALL ACT IN AN ADVISORY
CAPACITY TO THE GOVERNING BODY.
7. ADOPTION OF HOUSING PLAN. (A) BEFORE A CITY OR TOWN MAY EXPEND ANY
FUNDS PURSUANT TO THIS SECTION, THE GOVERNING BODY SHALL FIRST ADOPT A
HOUSING PLAN WHICH ESTABLISHES AN IMPLEMENTATION PLAN FOR THE PROVISION
OF COMMUNITY HOUSING OPPORTUNITIES BY THE FUND. SAID PLAN SHALL BE
ADOPTED BY LOCAL LAW. SUCH PLAN SHALL ADHERE TO THE FOLLOWING PRINCI-
PLES:
(1) PUBLIC INVESTMENT. TO ACCOUNT FOR AND MINIMIZE SOCIAL, ECONOMIC,
AND ENVIRONMENTAL COSTS OF NEW DEVELOPMENT, INCLUDING INFRASTRUCTURE
COSTS SUCH AS TRANSPORTATION, SEWERS, AND WASTEWATER TREATMENT, WATER,
SCHOOLS, RECREATION, AND LOSS OF OPEN SPACE AND AGRICULTURAL LAND;
(2) DEVELOPMENT. TO ENCOURAGE DEVELOPMENT IN AREAS WHERE TRANSPORTA-
TION, WATER, AND SEWAGE INFRASTRUCTURE ARE AVAILABLE OR PRACTICAL;
(3) CONSERVATION. TO PROTECT, PRESERVE, AND ENHANCE THE STATE'S
RESOURCES, INCLUDING AGRICULTURAL LAND, FORESTS, SURFACE WATERS, GROUND-
WATER, RECREATION AND OPEN SPACE, SCENIC AREAS, AND SIGNIFICANT HISTORIC
AND ARCHEOLOGICAL SITES;
(4) COORDINATION. TO PROMOTE COORDINATION OF STATE AND LOCAL GOVERN-
MENT DECISIONS AND COOPERATION AMONG COMMUNITIES TO WORK TOWARD THE MOST
EFFICIENT, PLANNED AND COST-EFFECTIVE DELIVERY OF GOVERNMENT SERVICES
BY, AMONG OTHER MEANS, FACILITATING COOPERATIVE AGREEMENTS AMONG ADJA-
CENT COMMUNITIES, AND TO COORDINATE PLANNING TO ENSURE COMPATIBILITY OF
ONE'S COMMUNITY DEVELOPMENT WITH DEVELOPMENT OF NEIGHBORING COMMUNITIES;
(5) COMMUNITY DESIGN. TO STRENGTHEN COMMUNITIES THROUGH DEVELOPMENT
AND REDEVELOPMENT STRATEGIES THAT INCLUDE INTEGRATION OF ALL INCOME AND
AGE GROUPS, MIXED LAND USES, AND COMPACT DEVELOPMENT, TRADITIONAL NEIGH-
BORHOOD DEVELOPMENT, PLANNED UNIT DEVELOPMENT, OPEN SPACE DISTRICTS,
DOWNTOWN REVITALIZATION, BROWNFIELD REDEVELOPMENT, ENHANCED BEAUTY IN
PUBLIC SPACES, AND DIVERSE AND COMMUNITY HOUSING IN CLOSE PROXIMITY TO
PLACES OF EMPLOYMENT, RECREATION, AND COMMERCIAL DEVELOPMENT;
(6) TRANSPORTATION. TO PROVIDE TRANSPORTATION CHOICES, INCLUDING
INCREASING PUBLIC TRANSIT AND ALTERNATIVE MODES OF TRANSPORTATION, IN
ORDER TO REDUCE AUTOMOBILE DEPENDENCY, TRAFFIC CONGESTION, AND AUTOMO-
BILE POLLUTION;
(7) CONSISTENCY. TO ENSURE PREDICTABILITY IN BUILDING AND LAND USE
CODES; AND
(8) COMMUNITY COLLABORATION. TO PROVIDE FOR AND ENCOURAGE LOCAL
GOVERNMENTS TO DEVELOP, THROUGH A COLLABORATIVE COMMUNITY-BASED EFFORT,
PLANS THAT INCLUDE LONG TERM LAND USE AND PERMIT PREDICTABILITY AND
COORDINATION, EFFICIENT DECISION MAKING AND PLANNING IMPLEMENTATION.
(B) SUCH PLAN MAY INCLUDE THE ESTABLISHMENT OF A MAP OR MAPS THAT
DELINEATE THE HOUSING IMPLEMENTATION RECOMMENDATIONS PROPOSED BY THE
CITY OR TOWN.
(C) SUCH PLAN SHALL BE UPDATED AT LEAST ONCE EVERY FIVE YEARS.
(D) THE HOUSING PLAN SHALL BE AN ELEMENT OF THE CITY OR TOWN COMPRE-
HENSIVE PLAN.
(E) SUCH PLAN SHALL ENSURE THAT ALL COMMUNITY HOUSING, CREATED PURSU-
ANT TO THIS SECTION, REMAINS AFFORDABLE. SUBSEQUENT PURCHASERS OF SUCH
COMMUNITY HOUSING, AT THE TIME OF PURCHASE, SHALL BE ELIGIBLE INDIVID-
UALS AS DEFINED HEREIN.
(F) SUCH PLAN SHALL PROVIDE FOR THE EQUITABLE DISTRIBUTION OF COMMUNI-
TY HOUSING OPPORTUNITIES AMONG ALL THE COMMUNITIES OF THE CITY OR TOWN.
THE PLAN SHALL ENSURE THAT NO COMMUNITY HAS AN UNDUE CONCENTRATION OF
COMMUNITY HOUSING OPPORTUNITIES THAT WOULD SUBSTANTIALLY ALTER THE CHAR-
S. 572 5
ACTER OF THE COMMUNITY. IN DETERMINING EQUITABLE DISTRIBUTION OF COMMU-
NITY HOUSING OPPORTUNITIES, EXISTING COMMUNITY HOUSING OPPORTUNITIES IN
A COMMUNITY SHALL BE CONSIDERED.
8. VILLAGE PARTICIPATION. (A) THE PARTICIPATION OF ANY VILLAGE, WHERE
THERE IS A TOWN COMMUNITY HOUSING FUND, IN THE PRODUCTION OF COMMUNITY
HOUSING AUTHORIZED BY THIS SECTION, SHALL BE AT THE OPTION OF THE
VILLAGE. IN ORDER TO PARTICIPATE, A VILLAGE SHALL PASS A RESOLUTION
OPTING INTO THE PROGRAM AND SHALL SUBMIT SAID RESOLUTION TO THE TOWN
BOARD.
(B) WHERE A VILLAGE OPTS TO PARTICIPATE PURSUANT TO THIS SUBDIVISION,
AN INTERGOVERNMENTAL AGREEMENT SHALL BE EXECUTED PURSUANT TO ARTICLE
FIVE-G OF THE GENERAL MUNICIPAL LAW OR OTHER APPLICABLE LEGAL AUTHORITY,
IN ORDER TO ESTABLISH THE RIGHTS AND RESPONSIBILITIES OF EACH GOVERNMENT
REGARDING COMMUNITY HOUSING OPPORTUNITIES.
(C) REGARDLESS OF WHETHER A VILLAGE PARTICIPATES IN THE PROGRAM
AUTHORIZED BY THIS SECTION, PROPERTIES IN THE VILLAGE SHALL BE SUBJECT
TO THE SUPPLEMENTAL REAL ESTATE TRANSFER TAX AUTHORIZED BY SECTION FOUR-
TEEN HUNDRED FORTY-NINE-BB OF THE TAX LAW.
§ 2. The tax law is amended by adding a new article 33-C to read as
follows:
ARTICLE 33-C
TAX ON REAL ESTATE TRANSFERS IN CITIES OR TOWNS
SECTION 1575. DEFINITIONS.
1576. IMPOSITION OF TAX.
1577. PAYMENT OF TAX.
1578. LIABILITY FOR TAX.
1579. EXEMPTIONS.
1580. CREDIT.
1581. COOPERATIVE HOUSING CORPORATION TRANSFERS.
1582. DESIGNATION OF AGENTS.
1583. LIABILITY OF RECORDING OFFICER.
1584. DEPOSIT AND DISPOSITION OF REVENUE.
1585. JUDICIAL REVIEW.
1586. APPORTIONMENT.
1587. MISCELLANEOUS.
1588. RETURNS TO BE SECRET.
1589. FORECLOSURE PROCEEDINGS.
§ 1575. DEFINITIONS. WHEN USED IN THIS ARTICLE, UNLESS OTHERWISE
EXPRESSLY STATED, THE FOLLOWING WORDS AND TERMS SHALL HAVE THE FOLLOWING
MEANINGS:
1. "PERSON" MEANS AN INDIVIDUAL, PARTNERSHIP, LIMITED LIABILITY COMPA-
NY, 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 UNIN-
CORPORATED 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,
S. 572 6
WHICH ARE LOCATED IN WHOLE OR IN PART WITHIN ANY CITY OR TOWN. 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
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
S. 572 7
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 A CONVEYANCE MADE PURSUANT TO DEVISE, BEQUEST OR INHERITANCE;
THE CREATION, MODIFICATION, EXTENSION, SPREADING, SEVERANCE, CONSOL-
IDATION, ASSIGNMENT, TRANSFER, RELEASE OR SATISFACTION OF A MORTGAGE; A
MORTGAGE SUBORDINATION AGREEMENT, A MORTGAGE SEVERANCE AGREEMENT, AN
INSTRUMENT GIVEN TO PERFECT OR CORRECT A RECORDED MORTGAGE; OR A RELEASE
OF LIEN OF TAX PURSUANT TO THIS CHAPTER OR THE INTERNAL REVENUE 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, RESPECTIVELY.
8. "GRANTEE" MEANS THE PERSON WHO OBTAINS REAL PROPERTY OR INTEREST
THEREIN AS A RESULT OF A CONVEYANCE.
9. "COMMUNITY HOUSING FUND" MEANS A COMMUNITY FUND CREATED PURSUANT TO
SECTION SIX-W OF THE GENERAL MUNICIPAL LAW.
10. "RECORDING OFFICER" MEANS THE COUNTY CLERK.
11. "CITY OR TOWN" MEANS A CITY OR TOWN, EXCEPT A CITY OF ONE MILLION
OR MORE.
12. "TREASURER" MEANS THE COUNTY TREASURER.
§ 1576. IMPOSITION OF TAX. NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW
TO THE CONTRARY, ANY CITY OR TOWN, ACTING THROUGH ITS GOVERNING BODY, IS
HEREBY AUTHORIZED AND EMPOWERED TO ADOPT A LOCAL LAW IMPOSING IN SUCH
CITY OR TOWN A SUPPLEMENTAL TAX ON EACH CONVEYANCE OF REAL PROPERTY OR
INTEREST THEREIN WHERE THE CONSIDERATION EXCEEDS FIVE HUNDRED DOLLARS,
AT THE RATE OF UP TO ONE HALF OF ONE PERCENT OF THE CONSIDERATION FOR
SUCH CONVEYANCE. PROVIDED, HOWEVER, ANY SUCH LOCAL LAW IMPOSING, REPEAL-
ING OR RE-IMPOSING SUCH SUPPLEMENTAL TAX SHALL BE SUBJECT TO A MANDATORY
REFERENDUM PURSUANT TO SECTION TWENTY-THREE OF THE MUNICIPAL HOME RULE
LAW. NOTWITHSTANDING THE FOREGOING, PRIOR TO ADOPTION OF SUCH LOCAL
LAW, THE CITY OR TOWN MUST ESTABLISH A COMMUNITY HOUSING FUND PURSUANT
TO SECTION SIX-W OF THE GENERAL MUNICIPAL LAW. REVENUES FROM SUCH
SUPPLEMENTAL TAX SHALL BE DEPOSITED IN SUCH COMMUNITY HOUSING FUND AND
MAY BE USED SOLELY FOR THE PURPOSES OF SUCH COMMUNITY HOUSING FUND. SUCH
LOCAL LAW SHALL APPLY TO ANY CONVEYANCE OCCURRING ON OR AFTER THE FIRST
DAY OF A MONTH TO BE DESIGNATED BY THE GOVERNING BOARD, WHICH IS NOT
LESS THAN SIXTY DAYS AFTER THE ENACTMENT OF SUCH LOCAL LAW, 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
S. 572 8
SUCH AS THE RECORDING OF THE CONTRACT, PAYMENT OF A DEPOSIT OR OTHER
FACTS AND CIRCUMSTANCES AS DETERMINED BY THE TREASURER.
§ 1577. PAYMENT OF TAX. 1. THE REAL ESTATE TRANSFER TAX IMPOSED PURSU-
ANT 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 TREASURER SHALL PRESCRIBE THE FORM OF
RETURN, THE INFORMATION WHICH IT SHALL CONTAIN, AND THE DOCUMENTATION
THAT SHALL ACCOMPANY THE RETURN. SAID FORM SHALL BE IDENTICAL TO THE
REAL ESTATE TRANSFER TAX RETURN REQUIRED TO BE FILED PURSUANT TO SECTION
FOURTEEN HUNDRED NINE OF THIS CHAPTER, EXCEPT THAT THE TREASURER SHALL
ADAPT SAID FORM TO REFLECT THE PROVISIONS IN THIS CHAPTER THAT ARE
INCONSISTENT, DIFFERENT, OR IN ADDITION TO THE PROVISIONS OF ARTICLE
THIRTY-ONE OF THIS CHAPTER. THE REAL ESTATE TRANSFER TAX RETURNS
REQUIRED TO BE FILED PURSUANT TO THIS SECTION SHALL BE PRESERVED FOR
THREE YEARS AND THEREAFTER UNTIL SUCH TREASURER OR RECORDING 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
REQUIRED IN THIS SECTION.
§ 1578. LIABILITY FOR TAX. 1. THE REAL ESTATE TRANSFER TAX SHALL BE
PAID BY THE GRANTEE. IF THE GRANTEE HAS FAILED TO PAY THE TAX IMPOSED
PURSUANT TO THIS ARTICLE OR IF THE GRANTEE IS EXEMPT FROM SUCH TAX, THE
GRANTOR SHALL HAVE THE DUTY TO PAY THE TAX. WHERE THE GRANTOR HAS THE
DUTY TO PAY THE TAX BECAUSE THE GRANTEE HAS FAILED TO PAY THE TAX, SUCH
TAX SHALL BE THE JOINT AND SEVERAL LIABILITY OF THE GRANTEE AND THE
GRANTOR.
2. FOR THE PURPOSE OF THE PROPER ADMINISTRATION OF THIS ARTICLE AND TO
PREVENT EVASION OF THE TAX HEREBY IMPOSED, 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 PRESUMP-
TIONS 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.
§ 1579. EXEMPTIONS. 1. THE FOLLOWING SHALL BE EXEMPT FROM THE 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 AN
AGREEMENT OR COMPACT WITH ANOTHER STATE OR CANADA; AND
(B) THE UNITED NATIONS, THE UNITED STATES OF AMERICA OR ANY OF ITS
AGENCIES OR INSTRUMENTALITIES.
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 POLI-
TICAL SUBDIVISIONS, OR ANY PUBLIC CORPORATION, INCLUDING A PUBLIC CORPO-
RATION CREATED PURSUANT TO AGREEMENT OR COMPACT WITH ANOTHER STATE OR
S. 572 9
THE DOMINION OF CANADA; (B) CONVEYANCES WHICH ARE OR WERE USED TO SECURE
A DEBT OR OTHER OBLIGATION; (C) CONVEYANCES WHICH, WITHOUT ADDITIONAL
CONSIDERATION, CONFIRM, CORRECT, MODIFY OR SUPPLEMENT A DEED PREVIOUSLY
RECORDED; (D) CONVEYANCES OF REAL PROPERTY WITHOUT CONSIDERATION AND
OTHERWISE THAN IN CONNECTION WITH A SALE, INCLUDING DEEDS 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
OWNERSHIP, 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 PROP-
ERTY 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; (J) CONVEYANCES OF REAL PROPERTY, WHERE THE ENTIRE PARCEL OF
REAL PROPERTY TO BE CONVEYED IS THE SUBJECT OF ONE OR MORE OF THE
FOLLOWING DEVELOPMENT RESTRICTIONS: (1) AGRICULTURAL, CONSERVATION,
SCENIC, OR AN OPEN SPACE EASEMENT, (2) COVENANTS OR RESTRICTIONS PROHIB-
ITING DEVELOPMENT, (3) A PURCHASE OF DEVELOPMENT RIGHTS AGREEMENT, (4) A
TRANSFER OF DEVELOPMENT RIGHTS AGREEMENT, WHERE THE PROPERTY BEING
CONVEYED HAS HAD ITS DEVELOPMENT RIGHTS REMOVED, (5) SAID REAL PROPERTY
IS SUBJECT TO THE DEVELOPMENT RESTRICTION OF AN AGRICULTURAL DISTRICT OR
INDIVIDUAL COMMITMENT, PURSUANT TO ARTICLE TWENTY-FIVE-AA OF THE AGRI-
CULTURE AND MARKETS LAW, (6) REAL PROPERTY SUBJECT TO ANY LOCALLY
ADOPTED LAND PRESERVATION AGREEMENT, PROVIDED SAID EXEMPTION IS INCLUDED
IN THE LOCAL LAW IMPOSING THE TAX AUTHORIZED BY THIS ARTICLE; (K)
CONVEYANCES OF REAL PROPERTY, WHERE THE PROPERTY IS VIABLE AGRICULTURAL
LAND AS DEFINED IN SUBDIVISION SEVEN OF SECTION THREE HUNDRED ONE OF THE
AGRICULTURE AND MARKETS LAW AND THE ENTIRE PROPERTY TO BE CONVEYED IS TO
BE MADE SUBJECT TO ONE OF THE DEVELOPMENT RESTRICTIONS PROVIDED FOR IN
SUBPARAGRAPH TWO OF PARAGRAPH (J) OF THIS SUBDIVISION PROVIDED THAT SAID
DEVELOPMENT RESTRICTION PRECLUDES THE CONVERSION OF THE PROPERTY TO A
NON-AGRICULTURAL USE FOR AT LEAST THREE YEARS FROM THE DATE OF TRANSFER,
AND SAID DEVELOPMENT RESTRICTION IS EVIDENCED BY AN EASEMENT, AGREEMENT,
OR OTHER SUITABLE INSTRUMENT WHICH IS TO BE CONVEYED TO THE CITY OR TOWN
SIMULTANEOUSLY WITH THE CONVEYANCE OF THE REAL PROPERTY; OR (L) CONVEY-
ANCES OF REAL PROPERTY FOR OPEN SPACE, PARKS, COMMUNITY HOUSING, OR
HISTORIC PRESERVATION PURPOSES TO ANY NOT-FOR-PROFIT TAX EXEMPT CORPO-
RATION OPERATED FOR CONSERVATION, ENVIRONMENTAL, COMMUNITY HOUSING OR
HISTORIC PRESERVATION PURPOSES.
3. THE GOVERNING BODY OF A CITY OR TOWN, BY LOCAL LAW MAY ESTABLISH A
COMMUNITY HOUSING EXEMPTION FROM THE PAYMENT OF THE REAL ESTATE TRANSFER
TAX. SUCH EXEMPTION MAY NOT EXCEED AN AMOUNT EQUAL TO THE RESIDENTIAL
MEDIAN SALE PRICE OF THE COUNTY IN WHICH THE CITY OR TOWN IS LOCATED, AS
DETERMINED BY THE OFFICE OF REAL PROPERTY SERVICES WITHIN THE DEPARTMENT
OF TAXATION AND FINANCE. SUCH EXEMPTION SHALL BE ALLOWED ON THE CONSID-
ERATION OF THE CONVEYANCE OF IMPROVED REAL PROPERTY OR AN INTEREST THER-
EIN. THE EXEMPTION GRANTED PURSUANT TO THE PROVISIONS OF THIS SUBDIVI-
SION SHALL ONLY APPLY TO CONVEYANCES FOR RESIDENTIAL PROPERTY WHERE THE
CONSIDERATION IS TWO MILLION DOLLARS OR LESS.
§ 1580. CREDIT. A GRANTEE SHALL BE ALLOWED A CREDIT AGAINST THE TAX
DUE ON A CONVEYANCE OF REAL PROPERTY TO THE EXTENT TAX WAS PAID BY SUCH
GRANTEE 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 GRANTEE.
S. 572 10
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.
§ 1581. COOPERATIVE HOUSING CORPORATION TRANSFERS. 1. NOTWITHSTANDING
THE DEFINITION OF "CONTROLLING INTEREST" CONTAINED IN SUBDIVISION TWO OF
SECTION FIFTEEN HUNDRED SEVENTY-FIVE OF THIS ARTICLE OR ANYTHING TO THE
CONTRARY CONTAINED IN SUBDIVISION FIVE OF SECTION FIFTEEN HUNDRED SEVEN-
TY-FIVE 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 COOPER-
ATIVE 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 INDIVIDUAL 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 OWNERSHIP OF RESIDEN-
TIAL INTEREST IN REAL ESTATE REMAINING THEREON AT THE TIME OF CONVEY-
ANCE. 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 PROPERTY 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 BENEFI-
CIAL OWNERSHIP OF SUCH PROPERTY, AND THEN MULTIPLYING THE RESULTING
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,
S. 572 11
THE NUMBER OF SHARES CONVEYED, THE DATE OF THE CONVEYANCE AND THE
CONSIDERATION PAID FOR SUCH CONVEYANCE.
§ 1582. DESIGNATION OF AGENTS. THE TREASURER IS AUTHORIZED TO DESIG-
NATE THE RECORDING OFFICER TO ACT AS THE TREASURER'S AGENT FOR PURPOSES
OF COLLECTING THE TAX AUTHORIZED BY THIS ARTICLE. THE TREASURER SHALL
PROVIDE FOR THE MANNER IN WHICH SUCH PERSON MAY BE DESIGNATED AS THE
TREASURER'S AGENT SUBJECT TO SUCH TERMS AND CONDITIONS AS THE TREASURER
SHALL PRESCRIBE. THE REAL ESTATE TRANSFER TAX SHALL BE PAID TO SUCH
AGENT AS PROVIDED IN SECTION FIFTEEN HUNDRED SEVENTY-SEVEN OF THIS ARTI-
CLE.
§ 1583. 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 SUCH OFFICER SHALL COLLECT SO LONG AS SUCH OFFICER
SHALL COMPUTE AND COLLECT SUCH TAX ON THE AMOUNT OF CONSIDERATION OR THE
VALUE OF THE INTEREST CONVEYED AS SUCH AMOUNTS ARE PROVIDED TO SUCH
OFFICER BY THE PERSON PAYING THE TAX.
§ 1584. DEPOSIT AND DISPOSITION OF REVENUE. 1. ALL TAXES, PENALTIES
AND INTEREST IMPOSED BY THE CITY OR TOWN UNDER THE AUTHORITY OF SECTION
FIFTEEN HUNDRED SEVENTY-SIX OF THIS ARTICLE, WHICH ARE COLLECTED BY THE
TREASURER OR SUCH TREASURER'S AGENTS, SHALL BE DEPOSITED IN A SINGLE
TRUST FUND FOR THE CITY OR TOWN AND SHALL BE KEPT IN TRUST AND SEPARATE
AND APART FROM ALL OTHER MONIES IN POSSESSION OF THE TREASURER. MONEYS
IN SUCH FUND SHALL BE DEPOSITED AND SECURED IN THE MANNER PROVIDED BY
SECTION TEN OF THE GENERAL MUNICIPAL LAW. PENDING EXPENDITURE FROM SUCH
FUND, MONEYS THEREIN MAY BE INVESTED IN THE MANNER PROVIDED IN SECTION
ELEVEN OF THE GENERAL MUNICIPAL LAW. ANY INTEREST EARNED OR CAPITAL GAIN
REALIZED ON THE MONEYS SO DEPOSITED OR INVESTED SHALL ACCRUE TO AND
BECOME PART OF SUCH FUND.
2. THE TREASURER SHALL RETAIN SUCH AMOUNT AS THEY MAY DETERMINE TO BE
NECESSARY FOR REFUNDS WITH RESPECT TO THE TAX IMPOSED BY THE CITY OR
TOWN, UNDER THE AUTHORITY OF SECTION FIFTEEN HUNDRED SEVENTY-SIX OF THIS
ARTICLE, OUT OF WHICH THE TREASURER SHALL PAY ANY REFUNDS OF SUCH TAXES
TO THOSE TAXPAYERS ENTITLED TO A REFUND PURSUANT TO THE PROVISIONS OF
THIS ARTICLE.
3. THE TREASURER, AFTER RESERVING SUCH REFUNDS, SHALL ON OR BEFORE THE
TWELFTH DAY OF EACH MONTH PAY TO THE CITY COMPTROLLER OR THE TOWN SUPER-
VISOR THE TAXES, PENALTIES AND INTEREST IMPOSED BY THE CITY OR TOWN
UNDER THE AUTHORITY OF SECTION FIFTEEN HUNDRED SEVENTY-SIX OF THIS ARTI-
CLE, COLLECTED BY THE TREASURER, PURSUANT TO THIS ARTICLE DURING THE
NEXT PRECEDING CALENDAR MONTH. THE AMOUNT SO PAYABLE SHALL BE CERTIFIED
TO THE CITY COMPTROLLER OR THE TOWN SUPERVISOR BY THE TREASURER, WHO
SHALL NOT BE HELD LIABLE FOR ANY INACCURACY IN SUCH CERTIFICATION.
PROVIDED, HOWEVER, ANY SUCH CERTIFICATION MAY BE BASED ON SUCH INFORMA-
TION AS MAY BE AVAILABLE TO THE TREASURER AT THE TIME SUCH CERTIFICATION
MUST BE MADE UNDER THIS SECTION. WHERE THE AMOUNT SO PAID OVER TO THE
CITY OR TOWN IN ANY SUCH DISTRIBUTION IS MORE OR LESS THAN THE AMOUNT
DUE TO THE CITY OR TOWN, THE AMOUNT OF THE OVERPAYMENT OR UNDERPAYMENT
SHALL BE CERTIFIED TO THE CITY COMPTROLLER OR THE TOWN SUPERVISOR BY THE
TREASURER, WHO SHALL NOT BE HELD LIABLE FOR ANY INACCURACY IN SUCH
CERTIFICATION. THE AMOUNT OF THE OVERPAYMENT OR UNDERPAYMENT SHALL BE SO
CERTIFIED TO THE CITY COMPTROLLER OR THE TOWN SUPERVISOR AS SOON AFTER
THE DISCOVERY OF THE OVERPAYMENT OR UNDERPAYMENT AS REASONABLY POSSIBLE
AND SUBSEQUENT PAYMENTS AND DISTRIBUTIONS BY THE TREASURER TO SUCH CITY
OR TOWN SHALL BE ADJUSTED BY SUBTRACTING THE AMOUNT OF ANY SUCH OVERPAY-
MENT FROM OR BY ADDING THE AMOUNT OF ANY SUCH UNDERPAYMENT TO SUCH
NUMBER OF SUBSEQUENT PAYMENTS AND DISTRIBUTIONS AS THE TREASURER AND
S. 572 12
CITY COMPTROLLER OR TOWN SUPERVISOR SHALL CONSIDER REASONABLE IN VIEW OF
THE OVERPAYMENT OR UNDERPAYMENT AND ALL OTHER FACTS AND CIRCUMSTANCES.
4. ALL MONIES RECEIVED FROM THE TREASURER SHALL BE DEPOSITED IN THE
APPROPRIATE FUND OF THE CITY OR TOWN, PURSUANT TO SECTION SIX-W OF THE
GENERAL MUNICIPAL LAW.
§ 1585. JUDICIAL REVIEW. 1. ANY FINAL DETERMINATION OF THE AMOUNT OF
ANY TAX PAYABLE UNDER SECTION FIFTEEN HUNDRED SEVENTY-EIGHT 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 THEREFOR 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 STATE SUPERINTENDENT OF INSURANCE 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 SUFFICIENT TO COVER THE
TAXES, INTEREST AND PENALTIES STATED IN SUCH DETERMINATION, 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 APPLI-
CATION.
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.
§ 1586. APPORTIONMENT. A LOCAL LAW ADOPTED BY ANY CITY OR TOWN, PURSU-
ANT TO THIS ARTICLE, 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 CITY OR TOWN.
§ 1587. MISCELLANEOUS. A LOCAL LAW ADOPTED BY ANY CITY OR TOWN, PURSU-
ANT TO THIS ARTICLE, MAY CONTAIN SUCH OTHER PROVISIONS AS THE CITY OR
TOWN DEEMS NECESSARY FOR THE PROPER ADMINISTRATION OF THE TAX IMPOSED
PURSUANT TO THIS ARTICLE, INCLUDING PROVISIONS CONCERNING THE DETERMI-
NATION OF TAX, THE IMPOSITION OF INTEREST ON UNDERPAYMENTS AND OVERPAY-
MENTS 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. 572 13
§ 1588. 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, CITY OR TOWN,
INCLUDING ANY PERSON ENGAGED OR RETAINED 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. PROVIDED, HOWEVER, THAT NOTHING IN THIS SECTION SHALL
PROHIBIT THE RECORDING OFFICER FROM MAKING A NOTATION ON AN INSTRUMENT
AFFECTING A CONVEYANCE INDICATING THE AMOUNT OF TAX PAID. NO RECORDED
INSTRUMENT AFFECTING 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, CITY, OR TOWN IN ANY ACTION OR PROCEEDING INVOLVING THE
COLLECTION OF A TAX DUE UNDER A LOCAL LAW ENACTED PURSUANT TO THIS ARTI-
CLE TO WHICH SUCH COUNTY, CITY, OR TOWN 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 IN THIS SECTION 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, CITY, OR TOWN 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, CITY, OR TOWN WHO WILLFULLY
VIOLATES THE PROVISIONS OF THIS SECTION SHALL BE DISMISSED FROM OFFICE
AND BE INCAPABLE OF HOLDING ANY PUBLIC OFFICE IN THIS STATE FOR A PERIOD
OF FIVE YEARS THEREAFTER.
§ 1589. FORECLOSURE PROCEEDINGS. WHERE THE CONVEYANCE CONSISTS OF A
TRANSFER OF PROPERTY MADE AS A RESULT OF AN ORDER OF THE COURT IN A
FORECLOSURE PROCEEDING ORDERING THE SALE OF SUCH PROPERTY, THE REFEREE
OR SHERIFF EFFECTUATING SUCH TRANSFER SHALL NOT BE LIABLE FOR ANY INTER-
EST OR PENALTIES THAT ARE AUTHORIZED PURSUANT TO THIS ARTICLE OR ARTICLE
THIRTY-SEVEN OF THIS CHAPTER.
§ 3. Severability. If any provision of this act or the application
thereof shall for any reason be adjudged by any court of competent
jurisdiction to be invalid, such judgment shall not affect, impair, or
invalidate the remainder of this act, but shall be confined in its oper-
ation to the provision thereof directly involved in the controversy in
which such judgment shall have been rendered.
§ 4. This act shall take effect immediately; provided, however, that
section two of this act shall take effect on the ninetieth day after it
shall have become a law and shall expire December 31, 2045 when upon
such date the provisions of such section shall be deemed repealed.
