N.Y. Tax Law § 1448-m: Cooperative housing corporation transfers

§ 1448-m. Cooperative housing corporation transfers. 1.

Notwithstanding the definition of "controlling interest" contained in

subdivision two of section fourteen hundred forty-eight-g of this

article or anything to the contrary contained in subdivision five of

section fourteen hundred forty-eight-g 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 grantor and the

grantee, the number of shares conveyed, the date of the conveyance and

the consideration paid for such conveyance.