N.Y. Tax Law § 1449-aa: Definitions

* § 1449-aa. Definitions. When used in this article, unless otherwise

expressly stated, the following words and terms shall have the following

meanings:

1. "Person" means an individual, partnership, limited liability

company, society, association, joint stock company, corporation, estate,

receiver, trustee, assignee, referee or any other person acting in a

fiduciary or representative capacity, whether appointed by a court or

otherwise, any combination of individuals, and any other form of

unincorporated enterprise owned or conducted by two or more persons.

2. "Controlling interest" means (a) in the case of a corporation,

either 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

capital, profits or beneficial interest in such voting stock of such

corporation, and (b) 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.

3. "Real property" means every estate or right, legal or equitable,

present or future, vested or contingent, in lands, tenements or

hereditaments, including buildings, structures and other improvements

thereon, which are located in whole or in part within any town in the

Peconic Bay region. It shall not include rights to sepulture.

4. "Consideration" means the price actually paid or required to be

paid for the real property or interest therein, including payment for an

option or contract to purchase real property, whether or not expressed

in the deed and whether paid or required to be paid by money, property,

or any other thing of value. It shall include the cancellation or

discharge of an indebtedness or obligation. It shall also include the

amount of any mortgage, purchase money mortgage, lien or other

encumbrance, whether or not the underlying indebtedness is assumed or

taken subject to.

(a) In the case of a creation of a leasehold interest or the granting

of an option with use and occupancy of real property, consideration

shall include, but not be limited to, the value of the rental and other

payments attributable to the use and occupancy of the real property or

interest therein, the value of any amount paid for an option to purchase

or renew and the value of rental or other payments attributable to the

exercise of any option to renew.

(b) In the case of a creation of a subleasehold interest,

consideration shall include, but not be limited to, the value of the

sublease rental payments attributable to the use and occupancy of the

real property, the value of any amount paid for an option to renew and

the value of rental or other payments attributable to the exercise of

any option to renew less the value of the remaining prime lease rental

payments required to be made.

(c) In the case of a controlling interest in any entity that owns real

property, consideration shall mean the fair market value of the real

property or interest therein, apportioned based on the percentage of the

ownership interest transferred or acquired in the entity.

(d) In the case of an assignment or surrender of a leasehold interest

or the assignment or surrender of an option or contract to purchase real

property, consideration shall not include the value of the remaining

rental payments required to be made pursuant to the terms of such lease

or the amount to be paid for the real property pursuant to the terms of

the option or contract being assigned or surrendered.

(e) In the case of (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 by the owner thereof of

such stock in a cooperative housing corporation in connection with the

grant or transfer of a proprietary leasehold for a cooperative unit

other than an individual residential unit, consideration shall include a

proportionate share of the unpaid principal of any mortgage on the real

property of the cooperative housing corporation comprising the

cooperative dwelling or dwellings. Such share shall be determined by

multiplying the total unpaid principal of the mortgage by a fraction,

the numerator of which shall be the number of shares of stock being

conveyed in the cooperative housing corporation in connection with the

grant or transfer of a proprietary leasehold and the denominator of

which shall be the total number of shares of stock in the cooperative

housing corporation.

5. "Conveyance" means the transfer or transfers of any interest in

real property by any method, including but not limited to, sale,

exchange, assignment, surrender, mortgage foreclosure, transfer in lieu

of foreclosure, option, trust indenture, taking by eminent domain,

conveyance upon liquidation or by a receiver, or transfer or acquisition

of a controlling interest in any entity with an interest in real

property. Transfer of an interest in real property shall include the

creation of a leasehold or sublease only where (a) the sum of the term

of the lease or sublease and any options for renewal exceeds forty-nine

years, (b) substantial capital improvements are or may be made by or for

the benefit of the lessee or sublessee, and (c) the lease or sublease is

for substantially all of the premises constituting the real property.

Notwithstanding the foregoing, conveyance of real property shall not

include a conveyance made pursuant to devise, bequest or inheritance;

the creation, modification, extension, spreading, severance,

consolidation, assignment, transfer, release or satisfaction of a

mortgage; a mortgage subordination agreement, a mortgage severance

agreement, an instrument given to perfect or correct a recorded

mortgage; or a release of lien of tax pursuant to this chapter or the

internal revenue code.

6. "Interest in the real property" includes title in fee, a leasehold

interest, a beneficial interest, an encumbrance, development rights, air

space and air rights, or any other interest with the right to use or

occupancy of real property or the right to receive rents, profits or

other income derived from real property. It shall also include an option

or contract to purchase real property. It shall not include a right of

first refusal to purchase real property.

7. "Grantor" means the person making the conveyance of real property

or interest therein. Where the conveyance consists of a transfer or an

acquisition of a controlling interest in an entity with an interest in

real property, "grantor" means the entity with an interest in real

property or a shareholder or partner transferring stock or partnership

interest, respectively.

8. "Grantee" means the person who obtains real property or interest

therein as a result of a conveyance.

9. "Fund" means a community preservation fund created pursuant to

section sixty-four-e of the town law.

10. "Recording officer" means the county clerk of the county of

Suffolk.

11. "Town" means any town in the Peconic Bay region, county of

Suffolk.

12. "Treasurer" means the treasurer of the county of Suffolk.

13. "Town supervisor" means the town supervisor of a town.

14. "Peconic Bay region" means the towns of East Hampton, Riverhead,

Shelter Island, Southampton and Southold.

15. "Household income" means the total combined income of all the

owners, and of any owners' spouses residing on the premises for the

income tax year preceding the date of making application for the

exemption.

16. "Income" means the adjusted gross income for federal income tax

purposes as reported on the applicant's latest available federal or

state income tax return subject to any subsequent amendments or

revisions, reduced by distributions, to the extent included in federal

adjusted gross income, received from an individual retirement account

and an individual retirement annuity; provided that if no such return

was filed within the one year period preceding taxable status date,

income shall mean the adjusted gross income that would have been so

reported if such a return had been filed.

17. "Latest available return" shall mean the federal or state income

tax return for the year immediately preceding the date of making

application, provided however, that if the tax return for such tax year

has not been filed, then the income tax return for the tax year two

years preceding the date of making application shall be considered the

latest available.

18. "First-time homebuyer" means a person who has not owned a primary

residential property and is not married to a person who has owned a

residential property during the three-year period prior to his or her

purchase of the primary residential property, and who does not own a

vacation or investment home.

19. "Primary residential property" means any one or two family house,

townhouse or condominium located in the town which is to be owner

occupied by such homebuyer.

* NB Repealed December 31, 2050