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This entry was published on 2014-09-22
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SECTION 1449-L
Cooperative housing corporation transfers
Tax (TAX) CHAPTER 60, ARTICLE 31-C
§ 1449-l. Cooperative housing corporation transfers. 1.
Notwithstanding the definition of "controlling interest" contained in
subdivision two of section fourteen hundred forty-nine-f of this article
or anything to the contrary contained in subdivision five of section
fourteen hundred forty-nine-f 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 thirty-first
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.