N.Y. Tax Law § 1201: Taxes administered by cities of one million or more

§ 1201. Taxes administered by cities of one million or more.

Notwithstanding any other provisions of law to the contrary, but subject

to the applicable limitations and exemptions in part II of this article,

any city in this state having a population of one million or more,

acting through its local legislative body, is hereby authorized and

empowered to adopt and amend local laws imposing in any such city any or

all of the types of taxes set forth in the following subdivisions of

this section, such taxes to be administered and collected by the fiscal

officers of such city in the manner provided for in subpart A of part

III of this article:

(a) Taxes on the privilege of doing any business, engaging in any

trade, calling, occupation or profession; owning, holding or occupying

any property; possessing or exercising any franchise or franchises; or

on the gross receipts from sales to persons within such city; except

that no tax may be imposed pursuant to this subdivision on persons as to

whom authority to tax is granted by article two-b of the general city

law. The rate of the taxes authorized in this subdivision shall not be

in excess of one and seventeen one hundredths times the rate fixed for

the corresponding taxes by local law fifty-one of the city of New York

for the year nineteen hundred forty-one, and not in excess of two and

thirty-five one hundredths times the rate fixed for the corresponding

tax by local law forty-nine of the city of New York for the year

nineteen hundred forty-one, except that as to persons engaged in the

business of operating or leasing sleeping and parlor railroad cars or of

operating railroads other than street surface, rapid transit, subway and

elevated railroads, the rate shall not be in excess of three and

fifty-two one hundredths percent of gross income and except that as to

persons engaged in the business of operating omnibuses with a carrying

capacity of more than seven persons, whether or not such persons are

subject to the supervision of the state department of public service,

the rate shall not be in excess of one and seventeen one hundredths

percent of gross income or gross operating income, as the case may be.

Notwithstanding the limitations as to rate provided above, for the

years nineteen hundred seventy-three and those following, such city may

impose, by local law, a surtax of forty per centum of the percentage of

tax in effect pursuant to this subdivision in such city for the year

nineteen hundred seventy-two.

(b) (i) Taxes on each deed, other instrument or transaction (other

than a deed or instrument given solely as security or a transaction the

sole purpose of which is to secure an obligation or indebtedness) by

which any real property or any economic interest therein is conveyed or

transferred, measured by the consideration or value of the interest or

property conveyed or transferred, (1) at a rate not to exceed one-half

of one percent of such consideration or value with respect to

conveyances made before July first, nineteen hundred seventy-one, or

made in performance of a contract therefor executed before such date,

(2) at a rate not to exceed one percent of such consideration or value

with respect to (A) all conveyances made on or after July first,

nineteen hundred seventy-one and before February first, nineteen hundred

eighty-two, or made in performance of a contract therefor executed

during such period, (B) conveyances or transfers made on or after

February first, nineteen hundred eighty-two of one, two or three-family

houses, individual cooperative apartments and individual residential

condominium units, or interests therein, and (C) conveyances or

transfers made on or after February first, nineteen hundred eighty-two

(other than grants, assignments or surrenders of leasehold interests in

real property) where the consideration or value is less than five

hundred thousand dollars, (3) at a rate not to exceed two percent of

such consideration or value with respect to all other conveyances or

transfers made on or after February first, nineteen hundred eighty-two

(other than grants, assignments or surrenders of leasehold interests in

real property) other than those conveyances or transfers specified in

subparagraphs four, five and six of this paragraph, (4) at a rate not to

exceed one and four hundred twenty-five thousandths of one percent of

such consideration or value where such consideration or value is less

than five hundred thousand dollars with respect to all conveyances or

transfers other than for conveyances or transfers of one, two or three

family houses, individual cooperative apartments, and individual

residential condominium units, or interests therein (other than grants,

assignment or surrenders of leasehold interests in real property), made

on or after August first, nineteen hundred eighty-nine, (5) at a rate

not to exceed one and four hundred twenty-five thousandths of one

percent of such consideration or value where such consideration or value

is more than five hundred thousand dollars with respect to conveyances

or transfers of one, two or three family houses, individual cooperative

apartments, and individual residential condominium units, or interests

therein (other than grants, assignments or surrenders of leasehold

interests in real property), made on or after August first, nineteen

hundred eighty-nine, and (6) at a rate not to exceed two and six hundred

twenty-five one thousandths of one percent of such consideration or

value where such consideration or value is greater than five hundred

thousand dollars with respect to all conveyances or transfers other than

for conveyances or transfers of one, two or three family houses,

individual cooperative apartments, and individual residential

condominium units, or interests therein (other than grants, assignment

or surrenders of leasehold interests in real property), made on or after

August first, nineteen hundred eighty-nine. Provided, however, that any

such city may allow deductions, in determining the portion of any tax

authorized hereby the proceeds of which are payable to the New York city

transit authority as hereinafter provided, for any continuing liens on

such interest or property where such interest or property is a one, two

or three-family house, an individual cooperative apartment or an

individual residential condominium unit or where the consideration for

or value of the interest or property conveyed or transferred is less

than five hundred thousand dollars, and may also allow an exemption not

in excess of twenty-five thousand dollars on the consideration or value

of the interest or property conveyed and provided, further, that such

taxes shall not apply if the contract for any such conveyance was made

prior to May first, nineteen hundred fifty-nine. Anything to the

contrary notwithstanding, where the tax authorized hereby is imposed on

the consideration or value without any deduction for continuing liens,

the portion of the consideration or value ascribable to such liens shall

not be taxed at a rate in excess of one percent prior to July first,

nineteen hundred eighty-two, in excess of two percent on and after July

first, nineteen hundred eighty-two and before August first, nineteen

hundred eighty-nine, or in excess of two and six hundred twenty-five

thousandths of one percent on and after August first, nineteen hundred

eighty-nine, except that where the interest or property is a one, two or

three-family house, an individual cooperative apartment or an individual

residential condominium unit or where the consideration for a value of

the interest or property conveyed or transferred is less than five

hundred thousand dollars the rate on and after July first, nineteen

hundred eighty-two shall not be in excess of one percent. The amount of

any pre-existing liens on such property or interest which continue

thereon after the conveyance or transfer shall be deemed to be part of

the consideration or value for purposes of measuring the tax without

regard to whether or not payment of the liens or of the underlying debt

is assumed by the grantee or transferee. The tax authorized hereby may

also be imposed (A) prior to July first, nineteen hundred eighty-two, at

a rate not to exceed one percent, on the granting, assignment or

surrender of a leasehold interest in real property, other than a

leasehold interest in a one, two or three-family house or an individual

dwelling unit in a dwelling which is to be occupied or is occupied as

the residence or home of four or more families living independently of

each other, where the consideration for or value of such grant,

assignment or surrender is five hundred thousand dollars or more, (B) on

and after July first, nineteen hundred eighty-two and before August

first, nineteen hundred eighty-nine, at a rate not to exceed two

percent, on the granting, assignment or surrender of a leasehold

interest in real property, except that in the case of a leasehold

interest in a one, two or three-family house or an individual dwelling

unit in a dwelling which is to be occupied or is occupied as the

residence or home of four or more families living independently of each

other, or where the consideration for or value of such grant, assignment

or surrender is less than five hundred thousand dollars, the rate shall

not exceed one percent and (C) on and after August first, nineteen

hundred eighty-nine, at a rate not to exceed two and six hundred

twenty-five thousandths of one percent, on the granting, assignment or

surrender of a leasehold interest in real property, except that in the

case of a leasehold interest in a one, two or three-family house or an

individual dwelling unit in a dwelling which is to be occupied or is

occupied as the residence or home of four or more families living

independently of each other where the consideration for or value of such

grant, assignment or surrender is less than five hundred thousand

dollars, the rate shall not exceed one percent, or in the case of a

leasehold interest in a one, two or three family house or an individual

dwelling unit in a dwelling which is to be occupied or is occupied as

the residence or home of four or more families living independently of

each other where the consideration for or value of such grant,

assignment or surrender is greater than five hundred thousand dollars,

the rate shall not exceed one and four hundred twenty-five thousandths

of one percent, or where the consideration for or value of any other

grant, assignment or surrender is less than five hundred thousand

dollars, the rate shall not exceed one and four hundred twenty-five

thousandths of one percent; provided, however, that for purposes of a

tax on the granting of a leasehold interest in real property, the amount

subject to tax shall be only such amount as is not considered rent for

purposes of the tax authorized to be imposed on the occupancy of

commercial premises by chapter two hundred fifty-seven of the laws of

nineteen hundred sixty-three, as amended, and imposed by a city having a

population of one million or more pursuant thereto. In the case of any

conveyance or transfer of real property or any economic interest therein

in complete or partial liquidation of a corporation, partnership,

association, trust or other entity, the tax shall be measured by the

consideration for such conveyance or transfer or the value of the real

property or interest therein, whichever is greater. Such taxes may be

imposed on any conveyance or transfer of real property or interest

therein where the real property is located in such city regardless of

where transactions, negotiations, transfers of deeds or other actions

with regard to the transfer or conveyance take place, subject only to

the restrictions contained in section twelve hundred thirty. The payment

of, and the filing of a return relating to, any such taxes may be

required as a condition precedent (1) to the recording or filing of a

deed, lease, assignment or surrender of lease or other instrument, (2)

to the commencement of any action or proceeding in any court of this

state in which any conveyance, transfer or lease described herein is in

issue, directly or indirectly, or (3) to the receipt in evidence of such

deed, lease, assignment or surrender of lease or other instrument in any

such court. In each instance where the tax rate imposed pursuant to this

subdivision is two percent, fifty percent of the total amount of such

tax, including fifty percent of any interest or penalties thereon, shall

be set aside in a special account by the commissioner of finance of such

city, provided, however, that where the consideration for or value of

property or interest conveyed or transferred includes the amount of any

nondeductible mortgage, lien or other encumbrance which existed before

the conveyance or transfer and remains thereon after such conveyance or

transfer, (A) prior to July first, nineteen hundred eighty-two the

entire amount of tax imposed at a rate not in excess of one percent on

the portion of the consideration or value ascribable to such

nondeductible mortgage, lien or other encumbrance, including any

interest or penalties thereon, and fifty percent of the tax on the

balance of the consideration or value, including fifty percent of any

interest or penalties thereon, shall be set aside in such special

account, and (B) on and after July first, nineteen hundred eighty-two

and before August first, nineteen hundred eighty-nine, fifty percent of

the amount of tax imposed at a rate in excess of one percent but not in

excess of two percent on the portion of the consideration or value

ascribable to such nondeductible mortgage, lien or other encumbrance,

including fifty percent of any interest or penalties thereon, and fifty

percent of the tax on the balance of the consideration or value,

including fifty percent of any interest or penalties thereon, shall be

set aside in such special account. On and after August first, nineteen

hundred eighty-nine, in each instance where the tax rate imposed

pursuant to this subdivision is in excess of two percent, the portion of

the tax, and any interest or penalty thereon, to be set aside in such

special account shall be an amount equal to one percent of the total

consideration for or value of the real property or economic interest

therein conveyed or transferred, plus any interest or penalty

attributable to such portion of the tax. There shall also be set aside

in such special account prior to July first, nineteen hundred eighty-two

the total amount of taxes imposed on grants, assignments or surrenders

of leasehold interests in real property, including any interest or

penalties thereon; on and after July first, nineteen hundred eighty-two

and before August first, nineteen hundred eighty-nine, there shall be

set aside in such special account fifty percent of the amount of taxes

imposed on grants, assignments or surrenders of leasehold interests in

real property, other than a leasehold interest in a one, two or

three-family house or an individual dwelling unit in a dwelling which is

to be occupied or is occupied as the residence or home of four or more

families living independently of each other, or where the consideration

for or value of such grant, assignment or surrender is less than five

hundred thousand dollars, including fifty percent of any interest or

penalties thereon. On and after August first, nineteen hundred

eighty-nine, there shall be set aside in such special account, in each

instance where the rate of tax on grants, assignments or surrenders of

leasehold interests in real property is two percent or more, an amount

equal to one percent of the consideration for or value of the leasehold

interest granted, assigned or surrendered, plus any interest or penalty

attributable to such portion of the tax. Notwithstanding anything in

this paragraph (i) to the contrary, in each instance where the tax rate

imposed pursuant to paragraph (xi) of this subdivision is in excess of

one percent, the portion of tax, and any interest or penalty thereon, to

be set aside in such special account shall be an amount equal to

one-half of one percent of the total consideration for or value of the

real property or economic interest therein conveyed or transferred, plus

any interest or penalty attributable to such portion of the tax, and

there shall be set aside in such special account, in each instance where

the rate of tax imposed under paragraph (xi) of this subdivision on

grants, assignments or surrenders of leasehold interests in real

property is in excess of one percent, an amount equal to one-half of one

percent of the consideration for or value of the leasehold interest

granted, assigned or surrendered, plus any interest or penalty

attributable to such portion of the tax. Moneys in such account shall be

used for payment by such commissioner to the state comptroller for

deposit in the urban mass transit operating assistance account of the

mass transportation operating assistance fund of any amount of

insufficiency certified by the state comptroller pursuant to the

provisions of subdivision six of section eighty-eight-a of the state

finance law, and, on the fifteenth day of each month such commissioner

shall transmit all funds in such account on the last day of the

preceding month, except the amount required for the payment of any

amount of insufficiency certified by the state comptroller and such

amount as he deems necessary for refunds and such other amounts

necessary to finance the New York city transportation disabled committee

and the New York city paratransit system as established by section

fifteen-b of the transportation law, provided, however, that such

amounts shall not exceed six percent of the total funds in the account

but in no event be less than one hundred seventy-five thousand dollars

beginning April first, nineteen hundred eighty-six, and further that

beginning November fifteenth, nineteen hundred eighty-four and during

the entire period prior to operation of such system, the total of such

amounts shall not exceed three hundred seventy-five thousand dollars for

the administrative expenses of such committee and fifty thousand dollars

for the expenses of the agency designated pursuant to paragraph b of

subdivision five of such section, and other amounts necessary to finance

the operating needs of the private bus companies franchised by the city

of New York and eligible to receive state operating assistance under

section eighteen-b of the transportation law, provided, however, that

such amounts shall not exceed four percent of the total funds in the

account, to the New York city transit authority for mass transit within

the city.

(ii) For purposes of this subdivision, an "economic interest" in real

property shall mean (1) the ownership of shares of stock in a

corporation which owns real property, (2) the ownership of an interest

or interests in a partnership, association or other entity which owns

real property, and (3) the ownership of a beneficial interest or

interests in a trust which owns real property.

(iii) For purposes of this subdivision, the terms "transferred" or

"transfer," when used in relation to an economic interest in real

property, shall include the transfer or transfers of shares of stock in

a corporation, interest or interests in a partnership, association or

other entity, or beneficial interest or interests in a trust, whether

made by one or several persons, or in one or several related

transactions, which shares of stock or interest or interests constitute

a controlling interest in such corporation, partnership, association,

trust or other entity.

(iv) "Controlling interest" for purposes of this subdivision shall

mean: (1) in the case of a corporation, 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 fair market value of all classes of

stock of such corporation; and (2) in the case of a partnership,

association, trust or other entity, fifty percent or more of the

capital, profits or beneficial interest in such partnership,

association, trust or other entity.

(v) Notwithstanding the definition of "controlling interest" contained

in paragraph (iv) or any provision to the contrary contained in

paragraph (iii) of this subdivision, in the case of any transfer of

shares of stock in a cooperative housing corporation in connection with

the grant or transfer of a proprietary leasehold, the tax authorized by

this subdivision shall apply to (1) the original transfer of such shares

of stock by the cooperative corporation or cooperative plan sponsor, and

(2) any subsequent transfer of such shares of stock by the owner

thereof. Notwithstanding any provisions of this subdivision to the

contrary, in the case of a transfer described in clause two of this

paragraph which relates to an individual residential unit, the

consideration for such transfer shall not include any portion of the

unpaid principal of any mortgage on the real property of the cooperative

housing corporation. In determining the tax on a transfer described in

clause (1) of this paragraph, a credit shall be allowed for a

proportionate part of the amount of any tax imposed pursuant to the

authority of this subdivision and paid upon the conveyance to the

cooperative housing corporation of the land and building or buildings

comprising the cooperative dwelling or dwellings. Such proportionate

part shall be the amount determined by multiplying the amount of tax

paid upon the conveyance to the cooperative housing corporation by a

fraction, the numerator of which shall be the number of shares of stock

transferred in a transaction described in clause (1) and the denominator

of which shall be the total number of outstanding 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 transfer described in clause (1) below zero, nor shall any such credit

be allowed for any tax paid more than twenty-four months prior to the

date on which occurs the first in a series of transfers of shares of

stock in an offering of cooperative housing corporation shares described

in clause (1). For purposes of this subdivision, the term "cooperative

housing corporation" shall not include a housing company organized and

operating pursuant to the provisions of article two, four, five, or

eleven of the private housing finance law.

(vi) In the case of a transfer of an economic interest in any entity

that owns assets in addition to real property or interest therein, the

consideration subject to tax shall be deemed equal to the fair market

value of the real property or interest therein apportioned based on the

percentage of the ownership interest in the entity transferred.

(vii) Any local law enacted pursuant to this subdivision may provide

for such credits as are required to avoid multiple taxation.

(viii) Any city which has imposed the tax authorized by this

subdivision prior to its amendment by a chapter of the laws of nineteen

hundred eighty-one may continue to impose such tax without regard to the

amendments made by such chapter, or may amend the local law imposing

such tax to incorporate therein the provisions authorized by this

subdivision as amended by such chapter of the laws of nineteen hundred

eighty-one. If such city amends such local law to include therein the

additional provisions authorized by such chapter of the laws of nineteen

hundred eighty-one, the provisions so added shall not apply to any

transfer made pursuant to a written contract entered into prior to the

effective date of such chapter of the laws of nineteen hundred

eighty-one.

(ix) Notwithstanding the definition of "controlling interest"

contained in paragraph (iv) or anything to the contrary contained in

paragraph (iii) of this subdivision, in the case of a corporation (other

than a cooperative housing corporation), partnership, association, trust

or other entity formed for the purpose of cooperative ownership of real

property, the tax authorized by this subdivision shall apply to each

transfer of: shares of stock in such corporation, interest in such

partnership, association or other entity or beneficial interest in such

trust, in connection with the grant or transfer of a proprietary

leasehold. Notwithstanding any provisions of this subdivision to the

contrary, in the case of a transfer described in this paragraph which

relates to an individual residential unit (other than the original

transfer of such a unit by the cooperative entity or cooperative plan

sponsor), the consideration for such transfer shall not include any

portion of the unpaid principal of any mortgage on the real property of

such corporation, partnership, association, trust or other entity.

(x) Notwithstanding any other provision of law to the contrary, all

revenues resulting from the imposition of the tax authorized by

paragraph (ix) of this subdivision shall be credited to and deposited in

the general fund of the city imposing such tax, but no part of such

revenues may be expended unless appropriated in the annual budget of

such city.

(xi) Notwithstanding anything contained in this subdivision, the tax

imposed under paragraphs (i), (v) and (ix) of this subdivision on any

deed or other instrument or transaction conveying or transferring real

property or an economic interest therein, that qualifies as a real

estate investment trust transfer, as defined below, shall be imposed at

a rate equal to fifty percent of the otherwise applicable rate. For

purposes of this paragraph (xi), a real estate investment trust transfer

shall mean (1) any deed or other instrument or transaction conveying or

transferring real property or an economic interest therein to a real

estate investment trust as defined in section 856 of the internal

revenue code (a "REIT") or to a partnership or corporation in which a

REIT owns a controlling interest immediately following the transaction;

and

(2) any issuance or transfer of an interest in a REIT, or in a

partnership or corporation in which a REIT owns a controlling interest

immediately following the issuance or transfer, in connection with a

transaction described in subparagraph one of this paragraph.

Notwithstanding the foregoing, a transaction described in the preceding

sentence shall not constitute a real estate investment trust transfer

unless (A) it occurs in connection with the initial formation of the

REIT and the conditions described in subparagraphs three and four of

this paragraph are satisfied, or (B) in the case of any real estate

investment trust transfer occurring on or after July thirteenth,

nineteen hundred ninety-six and before September first, two thousand

twenty-nine, the transaction is described in subparagraph five of this

paragraph in which case the provisions of such subparagraph shall apply.

(3) The value of the ownership interests in the REIT, or in a

partnership or corporation in which the REIT owns a controlling

interest, received by the grantor as consideration for such conveyance

or transfer must be equal to an amount not less than forty percent of

the value of the equity interest in the real property or economic

interest therein conveyed or transferred by the grantor to the grantee

and such ownership interests must be retained by the grantor or owners

of the grantor for a period of not less than two years following the

date of such conveyance or transfer; provided, however, that in the case

of the death of the grantor or an owner of the grantor within such two

year period, this two year retention requirement shall be deemed to be

satisfied notwithstanding any conveyance or transfer of such ownership

interests held by such individual as a result of such death. The value

of the equity interest in such real property or economic interest

therein shall be computed by subtracting from the consideration for the

conveyance or transfer of the real property or economic interest therein

the unpaid balance of any loans secured by mortgages or other

encumbrances which are liens on the real property or economic interest

therein immediately before the conveyance or transfer. For purposes of

this computation, in the case of a conveyance or transfer of real

property other than a conveyance or transfer of an economic interest in

real property, the amount of the unpaid balance of any loans secured by

mortgages or other encumbrances to be subtracted from consideration is

determined by multiplying the total unpaid balance of any loans secured

by mortgages or other encumbrances on the real property by the

percentage of the ownership interest in the real property being conveyed

or transferred to the grantee. In the case of a transfer of an economic

interest in real property, such amount to be subtracted is equal to the

sum of the following amounts: (I) a reasonable apportionment to the

interests in real property owned by the entity of the amount of any

loans secured by encumbrances on the ownership interests in the entity

which are being conveyed or transferred and (II) the amount of any loans

secured by mortgages or other encumbrances on the real property of the

entity multiplied by the percentage interest in the entity which is

being conveyed or transferred. Provided, however that, for purposes of

the computation made pursuant to this subparagraph three, any mortgages

or other encumbrances on the real property or economic interest therein

which are created in contemplation of the initial formation of the REIT

or in contemplation of the conveyance or transfer of such real property

or economic interest therein to the REIT or to a partnership or

corporation in which the REIT owns a controlling interest immediately

following the conveyance or transfer shall not be considered.

(4) Seventy-five percent or more of the cash proceeds received by such

REIT from the sale of ownership interests in such REIT upon its initial

formation must be used: (I) to make payments on loans secured by any

interest in real property (including an ownership interest in an entity

owning real property) which is owned directly or indirectly by such

REIT; (II) to pay for capital improvements to real property or any

interest therein owned directly or indirectly by such REIT; (III) to pay

brokerage fees and commissions, professional fees and payments to or on

behalf of a tenant as an inducement to enter into a lease or sublease

incurred in connection with the creation of a leasehold or sublease

pertaining to real property or any interest therein owned directly or

indirectly by such REIT; (IV) to acquire any interest in real property

(including an ownership interest in any entity owning real property),

apart from any acquisition to which a reduced rate of tax is applicable

pursuant to this paragraph (without regard to this subparagraph); or (V)

for reserves established for any of the purposes described in clause I,

II or III of this subparagraph. For purposes of this subparagraph, the

term real property shall include real property wherever located.

(5) If a transaction otherwise described in subparagraph two of this

paragraph occurs other than in connection with the initial formation of

a REIT, the condition set forth in subparagraph four of this paragraph

shall be disregarded and such transaction shall constitute a "real

estate investment trust transfer" if the condition set forth in

subparagraph three of this paragraph would be satisfied if "fifty

percent" is substituted for "forty percent" therein.

For purposes of determining the consideration for a real estate

investment trust transfer taxable under this paragraph (xi), the value

of the real property or interest therein shall be equal to the estimated

market value as determined by the commissioner of finance of the city of

New York for real property tax purposes as reflected on the most recent

notice of assessment issued by such commissioner, or such other value as

the taxpayer may establish to the satisfaction of such commissioner.

This paragraph (xi) shall only apply to real estate investment trust

transfers occurring on or after the effective date of this paragraph.

(xii) Notwithstanding any other provision of this subdivision, in

determining the tax authorized by this subdivision with respect to a

deed, instrument or transaction conveying or transferring a one, two or

three-family house, an individual residential condominium unit, an

individual residential cooperative apartment, or an interest therein,

the consideration for such conveyance or transfer shall exclude, to the

extent otherwise included therein, the amount of any mortgage or other

lien or encumbrance on the real property or interest therein that

existed before the delivery of the deed or the transfer and remains

thereon after the date of delivery of the deed or the transfer, other

than any mortgage, lien or encumbrance placed on the property or

interest in connection with, or in anticipation of, the conveyance or

transfer, or by reason of deferred payments of the purchase price

whether represented by notes or otherwise. Provided, however, that this

paragraph shall not apply to a conveyance or transfer (1) to a

mortgagee, lienor or encumbrancer, regardless of whether the grantor or

transferor is or was personally liable for the indebtedness secured by

the mortgage, lien or encumbrance or whether the mortgage, lien or

encumbrance is canceled of record, or (2) which qualifies as a "real

estate investment trust transfer" as defined in paragraph (xi) of this

subdivision.

(c) Privilege taxes on amusement devices operated by coins, tokens or

currency (either generally or upon selected types or classes of such

devices), including, but not limited to, juke box, music, skill game,

digger, pool or billiard tables, booths providing live entertainment and

moving picture and video devices, at a rate not to exceed twenty-five

dollars per annum for each such device.

(d) Taxes on the privilege of selling liquor, wine or beer at retail

for on or off premises consumption, at a rate or in an amount per annum

not in excess of twenty-five percent of the amount of license fees

prescribed therefor from time to time in the alcoholic beverage control

law.

(e) Taxes on the use of passenger motor vehicles of a type commonly

used for non-commercial purposes owned by residents of the city at a

rate per annum for each such vehicle of not in excess of five dollars if

such vehicle weighs thirty-five hundred pounds or less and not in excess

of ten dollars per annum if such vehicle weighs more than thirty-five

hundred pounds; and taxes on the use of trucks, buses and other such

commercial motor vehicles used principally in connection with a business

carried on within the city, except when owned and used in connection

with the operation of a farm by the owner or tenant thereof, at a rate

per annum for each such vehicle of not in excess of ten dollars.

(f) (1) Taxes on the sale of containers made in whole or in part of

rigid or semi-rigid paperboard, fibre, glass, metal, plastic or any

combination of such materials, including, but not limited to, barrels,

baskets, bottles, boxes, cans, cartons, carrying cases, crates, cups,

cylinders, drums, glasses, jars, jugs, pails, pots, rigid foil

containers, trays, tubs, tubes, tumblers, and vessels, intended for use

in packing or packaging any product intended for sale. Such taxes shall

be levied upon the seller or supplier of the container who or which

makes sales thereof to the person who purchases them (whether filled or

unfilled) for the purpose of using them in connection with and as part

of sales at retail or who receives them as containers of products

intended for sale at retail. Where no tax has been paid by such seller

or supplier, the buyer or person who purchases the container to use it

or its contents in making a sale at retail shall be liable for tax

thereon upon purchasing such container. Notwithstanding the provisions

of section twelve hundred twenty of this article, sellers and suppliers

having no business situs in the city imposing the tax, who sell such

containers to retailers within the city may pay the tax so as to prevent

its levy upon such retailers. Such taxes shall be imposed at rates not

to exceed (i) three cents for each plastic bottle, (ii) two cents for

each other plastic container, (iii) two cents for each glass container,

(iv) two cents for each metal container except one cent for metal

containers shown to be made of one metal only. Where a container is made

of a combination of two or more of the materials with which this

subdivision deals, it shall be classified and be taxable as if it were

made of that of its component materials for which the following table

provides the highest rate:

fibre and paperboard metal glass plastic

1ø 2ø 2ø 3ø

(2) Any local law enacted pursuant to this subdivision may provide

that: (i) metal containers and paperboard or fibre containers which

have been impregnated, lined or coated with plastic or other materials

shall be considered to be classified and taxable as metal containers and

paperboard containers, respectively; (ii) paperboard or fibre containers

with fastenings, tops and/or bottoms made of other materials dealt with

by this subdivision shall be classified and taxed as paperboard or fibre

containers; (iii) paperboard, metal, or plastic caps that are easily,

readily, usually, and customarily separated from the container before

disposal shall not be considered part of the container; and (iv)

notwithstanding any exception made pursuant to subparagraphs (i), (ii)

and (iii) of this paragraph, where a preponderantly glass container is

made of a combination of taxable materials, the complete separation of

which materials is not easily, readily, usually and customarily effected

after use and before disposal, such container shall be taxed one cent in

addition to the tax otherwise imposed upon it, but in no event shall the

aggregate tax on such container exceed three cents.

(3) Any local law enacted pursuant to this subdivision may provide

that containers sold or furnished containing products intended for use

in manufacturing processes and not for final retail sale shall be exempt

from such taxes.

(4) Local laws imposing taxes authorized by this subdivision shall

provide for the allowance of credits against such taxes as follows:

(i) one cent for each taxable container if manufactured with the

following minimum percentages of recycled material:

(A) Paperboard and fibre containers: eighty per cent, if made of

boxboard; thirty per cent if made of foodboard, fibre or

containerboard.

(B) Metal containers: thirty per cent if taxed during the period

beginning July first, nineteen hundred seventy-one and ending June

thirtieth, nineteen hundred seventy-two; and forty per cent, if taxed

thereafter.

(C) Glass containers: twenty per cent if taxed during the period

beginning July first, nineteen hundred seventy-one and ending June

thirtieth, nineteen hundred seventy-two; and thirty per cent, if taxed

thereafter.

(D) Plastic containers: thirty per cent.

(ii) one cent for each container of a clearly distinct type, class,

pattern or form taxed during any taxable period provided that sixty per

cent or more of all the containers of such distinct type, class, pattern

or form subject to tax during such period were reused containers.

(iii) Provided that the credits for each container during any taxable

period shall not exceed the amount of taxes due on such container for

such period.

(5) The fiscal officer of any such city in charge of the

administration of any tax imposed pursuant to this subdivision, may be

authorized by any local law enacted pursuant to this subdivision, to

prescribe by regulation, upon the joint recommendation of the chief

officer in charge of the department or agency of such city dealing with

the interests of consumers and the chief officer in charge of the

department or agency of such city charged with the duty of waste

collection and disposal:

(i) additional exemptions from and credits against the tax imposed by

such local law; and

(ii) an additional surtax of no more than one cent per container, to

be imposed upon containers made of any of the taxable components dealt

with by this subdivision or any combination thereof.

In granting such exemption or credit or providing for such additional

surtax, the above mentioned officers shall take into consideration the

following qualities and characteristics of the container in question:

(A) the difficulty the container's material poses to the process of

making recycled material.

(B) the difficulty of its manufacture from recycled materials.

(C) the difficulty and relative cost of its disposal.

(D) any obstacle it poses to consumer protection.

(E) the degree to which the container can or cannot be reused.

(F) the slowness, difficulty, and incompleteness with which the

container degrades in the natural environment, either chemically or

biologically.

Any such exemption, credit or surtax may be revoked by joint action of

such officers, or by local law.

(6) There shall be exempted from any tax imposed pursuant to the

authority of this subdivision, containers used as receptacles for food,

food products, beverages, dietary foods and health supplements, sold for

human consumption but not including (i) candy and confectionery, (ii)

fruit drinks with contain less than seventy per cent of natural fruit

juice, (iii) soft drinks, sodas and beverages such as are ordinarily

dispensed at soda fountains or in connection therewith (other than

coffee, tea and cocoa) and (iv) beer, wine or other alcoholic beverages.

(7) When used in this subdivision the words (i) "recycled material"

mean component materials which have been derived from previously used

material or from new or old scrap material, (ii) "retail sale" or "sale

at retail" means a sale to any person for any purpose other than for

resale as such or as a physical component part of tangible personal

property, (iii) "taxable period" means each calendar month or such other

periods as the official administering any tax enacted pursuant to this

subdivision may provide for by regulation, (iv) "one metal only" means

metal with such minimum amounts of alloys as the officer charged with

the administration of any local law enacted pursuant to this subdivision

shall provide by regulation, but shall not include metal which has been

plated or lined with another metal. In formulating such regulations such

officer shall consult with the chief officer in charge of the department

or agency of such city dealing with the interests of consumers and the

chief officer in charge of the department or agency of such city charged

with the duty of waste collection and disposal and shall consider the

difficulty of using the metal in the making of recycled material and the

availability of or technical feasibility of manufacturing other metals

for the same purpose and use as the metal in question but with a lower

alloy content.

(g) A tax not to exceed fifteen dollars per annum per vehicle to be

paid by the owner thereof: (1) for every motor vehicle registered or

required to be registered pursuant to subdivision six of section four

hundred one of the vehicle and traffic law if such vehicle is owned by

(i) one or more natural persons, other than a firm, co-partnership,

limited liability company, trustee or trustees conducting a business or

association, who, or one of whom: (A) at the time when he makes

application for the registration, re-registration or renewal thereof of

such motor vehicle is domiciled in the city, unless he maintains no

permanent place of abode in the city, maintains a permanent place of

abode elsewhere, and during the period of one year next preceding the

date upon which such application is made, spent in the aggregate not

more than thirty days in the city, or (B) at the time when he makes such

application, is not domiciled in the city, but maintains a permanent

place of abode in the city and, during the period of one year next

preceding the date upon which such application is made, spent in the

aggregate more than one hundred and eighty-three days in the city,

unless such individual is in the armed forces of the United States; or

(ii) a person, firm, co-partnership, limited liability company,

trustee or trustees conducting a business or association, or a

corporation who or which at the time when such owner makes application

for registration, re-registration or renewal thereof of such motor

vehicle, regularly keeps, stores, garages or maintains such motor

vehicle in the city; and

(2) for every motor vehicle owned by a person, firm, partnership,

limited liability company, association or corporation engaged in the

business of renting or leasing motor vehicles to be operated upon the

public highways for carrying passengers registered or required to be

registered pursuant to any provision of section four hundred one of the

vehicle and traffic law, which vehicle at the time when such owner makes

application for registration, re-registration or renewal thereof is

regularly kept, stored, garaged or maintained in the city including such

vehicles which have been rented or leased by the owner and are in

possession of lessees when such application for registration,

re-registration or renewal is made.

(3) The payment of such tax shall be a condition precendent to the

registration, re-registration or renewal therof of such motor vehicle

and to the issuance of any certificate of registration and plates or

removable date tag specified in subdivision three of section four

hundred one and in sections four hundred three and four hundred four of

the vehicle and traffic law, and no such certificate of registration,

plates or tag shall be issued unless such tax has been paid. The

commissioner of motor vehicles shall not issue a registration

certificate for any motor vehicle for which the registrant's address is

within any such city, except upon proof, in a form approved by the

commissioner of motor vehicles, that such tax, if imposed by such city,

has been paid, or is not due, with respect to such motor vehicle.

(h) Notwithstanding the provisions of this article or of any other

law, any local law adopted by a city of one million or more, imposing a

tax authorized by subdivision (g) of this section may provide that such

tax shall be administered and collected by the commissioner of motor

vehicles or his agents. In the event that such local law does so

provide, such tax shall not be imposed upon an application for the

re-registration of a motor vehicle, and further, the commissioner of

motor vehicles shall enter into an agreement with the finance

administrator or other appropriate fiscal officer of such city, which

agreement shall govern the administration and collection of any such tax

and which agreement shall have the force and effect of a rule or

regulation of the commissioner and shall be filed and published in

accordance with any statutory requirements relating thereto.

Notwithstanding any other provision of law, such agreement shall provide

for the exclusive method of collection, custody and remittal of the

proceeds of any such tax; for the payment by such city of the reasonable

expenses incurred by the department of motor vehicles in connection with

the collection and administration of any such tax; for the finance

administrator or other appropriate fiscal officer, or a duly designated

representative, upon his request, not more frequently than once in each

calendar year at a time agreed upon by the state comptroller, to audit

the accuracy of the payments, distributions and remittances to such

finance administrator or other appropriate fiscal officer made pursuant

to this subdivision; and for such other matters as may be necessary and

proper to effectuate the purposes of such agreement.

(i) A tax on admission charges for admission to motion picture

exhibitions or live dramatic, choreographic or musical performances,

whether at a theatre, opera house, concert hall or other place, at a

rate not to exceed three percent. However, such a tax shall not apply to

any admission charge to a motion picture exhibition for admission of a

person twelve years of age or under.

(j) (1) A tax on the transfer of a taxicab license, or interest

therein, at a rate not to exceed eight percent of the consideration

given for such transfer.

(2) The tax shall be imposed on the transferee, but any local law

imposing the tax authorized by this subdivision may provide that the

transferor shall also be liable for the payment of such tax in the event

that the amount of tax due is not paid by the transferee.

(3) Notwithstanding any other law to the contrary, no transfer of a

taxicab license shall be effective until any tax imposed pursuant to the

authority of this subdivision has been paid.

(4) Where there is a transfer of the economic interest in a taxicab

license effected by the sale of shares of stock of a corporation which

holds the taxicab license, or by the transfer of an interest or

interests in a partnership or association which holds the taxicab

license, any local law enacted pursuant to the authority of this

subdivision may provide that such a transfer shall be treated as a

transfer of the taxicab license or interest therein, subject to the tax

authorized by this subdivision.

(5) Where there is a transfer of a taxicab or other property in

conjunction with the transfer of a taxicab license or interest therein,

such local law may provide that the tax shall be computed on the total

consideration for the transfer of the license, or interest therein, the

taxicab and any other property so transferred less the market value of

such taxicab and such other property.

(6) When used in this subdivision, the following terms shall mean:

(i) "Transfer." Any transfer of interest whether or not such interest

constitutes title, or possession, or both, exchange or barter, rental,

lease, or license to use, conditional or otherwise, in any manner or by

any means whatsoever for a consideration, or any agreement therefor.

(ii) "Taxicab." A motor vehicle carrying passengers for hire in a city

imposing the tax authorized by this subdivision, duly licensed as a

taxicab by such city, and permitted to accept hails from passengers in

the street.

(iii) "Taxicab license." A license issued by the taxi and limousine

commission in such city, or its successor agency, to operate a taxicab.

(k) Any local law imposing a tax on the gross receipts (or gross

income or gross operating income) from sales of electricity, gas or

steam, or sales of delivery services for any of the foregoing, to

persons within such city enacted pursuant to subdivision (a) of this

section may provide for a deduction from gross receipts (or gross income

or gross operating income) of all receipts derived from the sale of

electricity, gas or steam, or sale of delivery services for any of the

foregoing, to non-residential energy users of such electricity, gas or

steam, or from the sale of delivery services to a public utility service

operated by such city in accordance with a local law adopted pursuant to

article fourteen-A of the general muncipal law or from the sale of

delivery services to the power authority of the state of New York, in

connection with the sale of electricity, gas or steam to non-residential

energy users of such electricity, gas or steam, except that no deduction

shall be allowed for receipts derived from sales of electricity, or

sales of delivery services for electricity, to or by an electricity

redistributor, or sales of delivery services for electricity to a public

utility service operated by such city in accordance with a local law

adopted pursuant to article fourteen-A of the general municipal law or

sales of such delivery services to the power authority of the state of

New York, in connection with the sale of electricity by such public

utility service or such authority to an electricity redistributor,

unless such electricity redistributor has obtained a certification of

eligibility pursuant to a local law enacted in accordance with the

authorization contained in article two-G of the general city law. No

such deduction authorized herein shall affect the computation specified

in subdivision four of section three contained in section one or

subdivision (a) of section one hundred three contained in section two of

chapter seven hundred seventy-two of the laws of nineteen hundred

sixty-six, as amended, with regard to vendors of utility services. For

purposes of this subdivision, the terms "non-residential energy user"

and "electricity redistributor" shall have the same meaning as ascribed

by article two-G of the general city law.

(l) In addition to any privilege taxes on amusement devices authorized

by subdivision (c) of this section, there shall be authorized an

additional privilege tax on amusement devices operated by coins, tokens

or currency (either generally or upon selected types or classes of such

devices) including, but not limited to, juke box, music, skill game,

digger, pool or billiard tables, booths providing live entertainment,

and moving picture and video devices, at a rate not to exceed one

hundred fifty dollars per annum for each such device.

(m) Any city in this state having a population of one million or more,

acting through its local legislative body, is hereby authorized to adopt

and amend local laws which conform the local law of such city to the

provisions of law set forth in part U3 of a chapter of the laws of two

thousand three amending the general business law and other laws relating

to implementing the state fiscal plan for the 2003-2004 state fiscal

year, as proposed in legislative bill numbers S. 1406-B and A. 2106-B,

as amended, with such modifications as may be necessary to adapt such

provisions to such local law so that such local law is substantially

similar to the law of the state.