S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    572
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by  Sen. S. RYAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT to amend the general municipal law, in  relation  to  authorizing
   cities  and  towns,  except a city with a population of one million or
   more, to establish community housing funds; to amend the tax  law,  in
   relation  to  authorizing cities and towns, except a city with a popu-
   lation of one million or more, to impose a real  estate  transfer  tax
   with  revenues  therefrom to be deposited in such funds; and providing
   for the repeal of certain provisions of the tax law relating thereto
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The  general  municipal  law  is  amended by adding a new
 section 6-w to read as follows:
   § 6-W. COMMUNITY  HOUSING  FUND.  1.  DEFINITIONS.  AS  USED  IN  THIS
 SECTION,  THE  FOLLOWING  WORDS AND TERMS SHALL HAVE THE FOLLOWING MEAN-
 INGS:
   (A) "CITY OR TOWN" MEANS A CITY, EXCEPT A CITY WITH  A  POPULATION  OF
 ONE MILLION OR MORE, OR A TOWN.
   (B)  "COMMUNITY  HOUSING"  MEANS A PRIMARY RESIDENTIAL PROPERTY FOR AN
 ELIGIBLE INDIVIDUAL. THE GOVERNING BODY SHALL ESTABLISH, BY  LOCAL  LAW,
 PURCHASE  PRICE  LIMIT  FOR COMMUNITY HOUSING, PROVIDED THAT LIMIT SHALL
 NOT EXCEED ONE HUNDRED FIFTY PERCENT OF THE PURCHASE PRICE LIMITS ESTAB-
 LISHED 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.  COMMUNITY  HOUSING  SHALL
 INCLUDE  APARTMENTS THAT ARE ACCESSORY TO A LEGALLY ESTABLISHED RESIDEN-
 TIAL OR COMMERCIAL USE.
   (C) "BOARD" MEANS THE ADVISORY BOARD CREATED PURSUANT  TO  SUBDIVISION
 SIX OF THIS SECTION.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
 S                                                          LBD00173-01-5
              

 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.