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This entry was published on 2020-04-24
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SECTION 1439-G
Cooperative housing corporation transfers
Tax (TAX) CHAPTER 60, ARTICLE 31-A-2
* § 1439-g. Cooperative housing corporation transfers. 1.
Notwithstanding the definition of "controlling interest" contained in
subdivision two of section fourteen hundred thirty-nine-a of this
article or anything to the contrary contained in subdivision five of
section fourteen hundred thirty-nine-a 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 cooperative 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 residential interest in real estate
remaining thereon at the time of conveyance. 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 beneficial 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
cooperative housing corporation as the treasurer may deem necessary,
including, but not limited to, the names, addresses and employee
identification numbers or social security numbers of the grantor and the
grantee, the number of shares conveyed, the date of the conveyance and
the consideration paid for such conveyance.

* NB Repealed December 31, 2023

* NB There are 3 § 1439-g's