N.Y. Tax Law § 1351: Definitions

* § 1351. Definitions. As used in this article, the following terms

shall have the following meanings:

(a) "Administrative code" means the administrative code of the city of

New York.

(b) "Class one property" means class one, as such class of property is

defined in section eighteen hundred two of the real property tax law,

other than such property described in subparagraph (c) of such

definition.

(c) "Class two property" means class two, as such class of property is

defined in section eighteen hundred two of the real property tax law.

(d) "Covered owner" means:

(1) an owner or owners of real property classified as class one

property;

(2) a tenant-stockholder of a cooperative corporation whose interest

in a portion of real property held by such corporation is represented by

shares of stock in such corporation;

(3) an owner or owners of a residential condominium dwelling unit;

(4) where real property classified as class one or a residential

condominium dwelling unit is held, or shares of stock in a cooperative

corporation are held, in trust, a beneficial owner or owners of such

trust, provided that such beneficial owner or owners are the sole

beneficiaries of such trust; or

(5) where real property classified as class one or a residential

condominium dwelling unit is held, or shares of stock in a cooperative

corporation are held, by a partnership, corporation or limited liability

company, a partner or partners, shareholder or shareholders or member or

members of such partnership, corporation, or limited liability company,

respectively, provided that such partner or partners, shareholder or

shareholders, or member or members hold a majority interest in such

partnership, corporation or limited liability company respectively.

(e) "Covered property" means real property, other than excluded

property, classified as:

(1) class one property, other than vacant land;

(2) class two property that is a residential cooperative property in

which at least one residential cooperative dwelling unit: (A) has a

phase one market value equal to or greater than one million dollars or

phase two market value equal to or greater than five million dollars;

and (B) is not a primary residence; and

(3) class two property that is a residential condominium dwelling

unit.

(f) "Department of finance" means the department of finance in a city

having a population of one million or more.

(g) "Excluded property" means a class one or class two property:

(1) for which a temporary or permanent certificate of occupancy is

required and has not yet been issued; or

(2) a residential condominium dwelling unit or residential cooperative

dwelling unit that is subject to an offering plan required by section

three hundred fifty-two-e of the general business law and such unit has

not been sold, or an economic interest in such unit has not been

transferred, by the person, partnership, corporation, company, trust or

association who has filed such plan.

(h) "Imputed cooperative phase one market value" means the market

value of a residential cooperative dwelling unit in a residential

cooperative property, calculated as the product of:

(1) the market value of such residential cooperative property as

determined by the department of finance pursuant to chapter fifty-eight

of the New York city charter for the fiscal year in which the surcharge

described in this article is imposed; and

(2) the quotient of (A) the shares in a cooperative corporation

representing an interest in such residential cooperative dwelling unit;

divided by (B) the total shares of stock in such cooperative

corporation.

(i) "Notice of surcharge" means a notice issued by the department of

finance to an owner indicating that a covered property, or, in the case

of a residential cooperative property, a residential cooperative

dwelling unit, is, or may be, subject to the surcharge authorized by

this article, including the phase one market value or phase two market

value, as applicable, of such covered property or residential

cooperative dwelling unit and a determination by the department of

finance that such covered property or residential cooperative dwelling

unit is not a primary residence.

(j) "Owner" means:

(1) an owner or owners of real property classified as class one

property;

(2) a tenant-stockholder of a cooperative corporation whose interest

in a portion of real property held by such corporation is represented by

shares of stock in such corporation, or such corporation; or

(3) an owner or owners of a residential condominium dwelling unit.

(k) "Phase one market value" means:

(1) for a class one property, the market value of a covered property

as determined by the department of finance pursuant to chapter

fifty-eight of the New York city charter for the fiscal year in which

the surcharge described in this article is imposed;

(2) for a class two property that is a residential condominium

dwelling unit, the market value of such residential condominium dwelling

unit as determined by the department of finance pursuant to chapter

fifty-eight of the New York city charter for the fiscal year in which

the surcharge described in this article is imposed; and

(3) for a class two property that is a residential cooperative

property, the imputed cooperative phase one market value for any

residential cooperative dwelling unit in such residential cooperative

property.

(l) "Phase two market value" means:

(1) for a class one property, the market value of a covered property

as determined by the department of finance pursuant to chapter

fifty-eight of the New York city charter for the fiscal year in which

the surcharge described in this article is imposed;

(2) for a class two property that is a residential condominium

dwelling unit, the market value of such residential condominium dwelling

unit, as determined by the department of finance pursuant to chapter

fifty-eight of the New York city charter for the fiscal year in which

the surcharge described in this article is imposed, provided that such

market value shall be determined using a method that considers sales of

comparable residential condominium dwelling units or comparable

residential cooperative dwelling units without regard to the

restrictions described in section five hundred eighty-one of the real

property tax law or section three hundred thirty-nine-y of the real

property law; and

(3) for a class two property that is a residential cooperative

property, the market value of any residential cooperative dwelling unit

in such residential cooperative property, as determined by the

department of finance pursuant to chapter fifty-eight of the New York

city charter for the fiscal year in which the surcharge described in

this article is imposed, provided that such market value shall be

determined using a method that considers sales of comparable residential

cooperative dwelling units or comparable residential condominium

dwelling units without regard to the restrictions found in section five

hundred eighty-one of the real property tax law.

(m) "Primary residence" means the use of a covered property, or, in

the case of a residential cooperative property, a residential

cooperative dwelling unit, as of the taxable status date immediately

preceding the fiscal year in which the surcharge described by this

article is imposed, as a primary residence of (1) one or more of the

covered owners, or an immediate family member of one or more of the

covered owners, provided such covered owners are natural persons; or (2)

one or more lessees, and any sub-lessees to which a lessee has sublet

the covered property or residential cooperative dwelling unit pursuant

to subdivision two of section two hundred twenty-six-b of the real

property law, provided any such lessee or sub-lessee is a natural person

occupying such covered property or residential cooperative dwelling unit

pursuant to a bona fide lease agreement negotiated in an arms-length

transaction with a term of not less than one year. For purposes of this

article, the phrase "immediate family member" means a spouse, child,

sibling, parent, grandparent, or grandchild.

(n) "Residential condominium dwelling unit" means a unit, as defined

in section three hundred thirty-nine-e of the real property law, held in

a condominium form of ownership and used as residential real property,

other than: (1) such a unit that is residential cooperative property; or

(2) such a unit that includes more than three dwelling units and all

such dwelling units are held by the same owner, except where the

department of finance determines that a unit has been divided into more

than three units to avoid application of the surcharge.

(o) "Residential cooperative dwelling unit" means a dwelling unit in

real property held by a cooperative corporation where an owner is a

tenant-stockholder of such cooperative corporation and such dwelling

unit is used as residential real property.

(p) "Residential cooperative property" means real property owned or

leased by a cooperative corporation and that contains one or more

residential cooperative dwelling units.

(q) "Taxable status date" means the January fifth immediately

preceding the fiscal year in which the surcharge is imposed pursuant to

this article.

* NB Repealed June 30, 2031