N.Y. Tax Law § 1405-b: Cooperative housing corporation transfers

§ 1405-B. Cooperative housing corporation transfers. (a)

Notwithstanding the definition of "controlling interest" contained in

subdivision (b) of section fourteen hundred one of this article or

anything to the contrary contained in subdivision (e) of section

fourteen hundred one of this article, the tax imposed by this article

shall apply to (1) 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 (2) 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 one 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 one 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 one 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 one of this subdivision.

(b) Every cooperative housing corporation shall be required to file an

information return with the commissioner of taxation and finance 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 commissioner 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. The

commissioner of taxation and finance may enter into an agreement with

the chief fiscal officer of the city of New York to provide that a

single information return may be filed for purposes of the tax imposed

by this article and the real property transfer tax imposed by such city.

(c) The information contained within information returns filed under

subdivision (b) of this section may be provided by the commissioner to

local assessors for use in real property tax administration, and such

information shall not be subject to the secrecy provisions set forth in

section fourteen hundred eighteen of this chapter, provided, however,

that the commissioner shall not disclose social security numbers or

employer identification numbers.