N.Y. Tax Law § 1404: Liability for tax

§ 1404. Liability for tax. * (a) The real estate transfer tax shall be

paid by the grantor. If the grantor has failed to pay the tax imposed by

this article at the time required by section fourteen hundred ten of

this article or if the grantor is exempt from such tax, the grantee

shall have the duty to pay the tax. Where the grantee has the duty to

pay the tax because the grantor has failed to pay, such tax shall be the

joint and several liability of the grantor and the grantee.

* NB Effective until July 1, 2021

* (a) The real estate transfer tax imposed pursuant to section

fourteen hundred two of this article shall be paid by the grantor and

such tax shall not be payable, directly or indirectly, by the grantee

except as provided in a contract between grantor and grantee or as

otherwise provided in this section. If the grantor has failed to pay the

tax imposed by this article at the time required by section fourteen

hundred ten of this article or if the grantor is exempt from such tax,

the grantee shall have the duty to pay the tax. Where the grantee has

the duty to pay the tax because the grantor has failed to pay, such tax

shall be the joint and several liability of the grantor and the grantee;

provided that in the event of such failure, the grantee shall have a

cause of action against the grantor for recovery of payment of such tax,

interest and penalties by the grantee. In the case of a conveyance of

residential real property as defined in subdivision (a) of section

fourteen hundred two-a of this article, if the tax imposed by this

article is paid by the grantee pursuant to a contract between the

grantor and the grantee, the amount of such tax shall be excluded from

the calculation of consideration subject to tax under this article.

* NB Effective July 1, 2021

(b) For the purpose of the proper administration of this article and

to prevent evasion of the tax hereby imposed, it shall be presumed that

all conveyances are taxable. Where the consideration includes property

other than money, it shall be presumed that the consideration is the

fair market value of the real property or interest therein. These

presumptions shall prevail until the contrary is proven, and the burden

of proving the contrary shall be on the person liable for payment of the

tax.