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This entry was published on 2021-10-15
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SECTION 1449-EE
Exemptions
Tax (TAX) CHAPTER 60, ARTICLE 31-D
* § 1449-ee. 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 Dominion of 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
political subdivisions (or any public corporation, including a public
corporation created pursuant to agreement or compact with another state
or 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 property 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 prohibiting 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 agriculture 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 agricultural 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 town simultaneously with the conveyance of the
real property; or

(l) Conveyances of real property for open space, parks, or historic
preservation purposes to any not-for-profit tax exempt corporation
operated for conservation, environmental, or historic preservation
purposes.

(m) Conveyances of real property to any tax exempt corporation,
incorporated pursuant to the not-for-profit corporation law or the
private housing finance law, where such conveyance is for the purposes
of providing affordable housing opportunities within the towns and such
corporation is incorporated for the purposes of providing housing
opportunities. For the purposes of this paragraph, "affordable housing"
shall mean housing opportunities exclusively for town residents of the
towns whose income is at or below the median income for the town.

3. (a) In the towns of East Hampton, Shelter Island and Southampton,
an exemption of four hundred thousand dollars shall be allowed on the
consideration of the conveyance of improved real property or an interest
therein and an exemption of one hundred thousand dollars shall be
allowed on the consideration of the conveyance of unimproved real
property.

(b) In the towns of Riverhead and Southold, an exemption of two
hundred thousand dollars shall be allowed on the consideration of the
conveyance of improved real property or an interest therein and an
exemption of seventy-five thousand dollars shall be allowed on the
consideration of the conveyance of unimproved real property.

(c) The exemption granted pursuant to the provisions of this
subdivision shall only apply to conveyances for residential property
where the consideration is two million dollars or less.

4. Primary residential property purchased by one or more persons, each
of whom is a first-time homebuyer shall be exempt from the payment of
the real estate transfer tax, in the towns of Southampton, East Hampton,
Shelter Island and Southold, provided that:

(a) (1) in the towns of Southampton, East Hampton and Shelter Island,
the primary residential property is within one hundred fifty percent of
the purchase price limits defined by the state of New York mortgage
agency low interest rate mortgage program in the non-target one family
categories for Suffolk county in effect on the contract date for the
sale of such property;

(2) in the town of Southold, the primary residential property is
within sixty percent of the purchase price limits defined by the state
of New York mortgage agency low interest rate mortgage program in the
non-target one family categories for Suffolk county in effect on the
contract date for the sale of such property; and

(b) the buyer's household income does not exceed the income limits
defined by the state of New York mortgage agency low interest rate
mortgage program in the non-target, one and two person household
category for Suffolk county in effect on the contract date for the sale
of such property.

5. Such exemption shall be granted only upon application by the owner
of such building on a form prescribed by the town. The application shall
be filed with the town. If satisfied that the applicant is entitled to
an exemption pursuant to this section, the town shall approve the
application and the conveyance of such primary residential property
shall be exempt from the real estate transfer tax imposed by this
article.

* NB Repealed December 31, 2050