Legislation

Search OpenLegislation Statutes
This entry was published on 2014-09-22
The selection dates indicate all change milestones for the entire volume, not just the location being viewed. Specifying a milestone date will retrieve the most recent version of the location before that date.
SECTION 1566
Cooperative housing corporation transfers
Tax (TAX) CHAPTER 60, ARTICLE 33-B
§ 1566. Cooperative housing corporation transfers. 1. Notwithstanding
the definition of "controlling interest" contained in subdivision two of
section fifteen hundred sixty of this article or anything to the
contrary contained in subdivision five of section fifteen hundred sixty
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 seller and the
buyer, the number of shares conveyed, the date of the conveyance and the
consideration paid for such conveyance.