N.Y. Tax Law § 1449-ee: Exemptions

* § 1449-ee. Exemptions. 1. The following shall be exempt from the

payment of the real estate transfer tax:

(a) The state of New York, or any of its agencies, instrumentalities,

political subdivisions, or public corporations (including a public

corporation created pursuant to an agreement or compact with another

state or Dominion of Canada); and

(b) The United Nations, the United States of America or any of its

agencies or instrumentalities.

2. The tax shall not apply to any of the following conveyances:

(a) Conveyances to the United Nations, the United States of America,

the state of New York, or any of their instrumentalities, agencies or

political subdivisions (or any public corporation, including a public

corporation created pursuant to agreement or compact with another state

or the Dominion of Canada);

(b) Conveyances which are or were used to secure a debt or other

obligation;

(c) Conveyances which, without additional consideration, confirm,

correct, modify or supplement a deed previously recorded;

(d) Conveyances of real property without consideration and otherwise

than in connection with a sale, including deeds conveying realty as bona

fide gifts;

(e) Conveyances given in connection with a tax sale;

(f) Conveyances to effectuate a mere change of identity or form of

ownership or organization where there is no change in beneficial

ownership, other than conveyances to a cooperative housing corporation

of the real property comprising the cooperative dwelling or dwellings;

(g) Conveyances which consist of a deed of partition;

(h) Conveyances given pursuant to the federal bankruptcy act;

(i) Conveyances of real property which consist of the execution of a

contract to sell real property without the use or occupancy of such

property or the granting of an option to purchase real property without

the use or occupancy of such property;

(j) Conveyances of real property, where the entire parcel of real

property to be conveyed is the subject of one or more of the following

development restrictions:

(1) agricultural, conservation, scenic, or an open space easement,

(2) covenants or restrictions prohibiting development,

(3) a purchase of development rights agreement,

(4) a transfer of development rights agreement, where the property

being conveyed has had its development rights removed,

(5) said real property is subject to the development restriction of an

agricultural district or individual commitment, pursuant to article

twenty-five-AA of the agriculture and markets law,

(6) real property subject to any locally adopted land preservation

agreement, provided said exemption is included in the local law imposing

the tax authorized by this article;

(k) Conveyances of real property, where the property is viable

agricultural land as defined in subdivision seven of section three

hundred one of the agricultural and markets law and the entire property

to be conveyed is to be made subject to one of the development

restrictions provided for in subparagraph two of paragraph (j) of this

subdivision provided that said development restriction precludes the

conversion of the property to a non-agricultural use for at least three

years from the date of transfer, and said development restriction is

evidenced by an easement, agreement, or other suitable instrument which

is to be conveyed to the town simultaneously with the conveyance of the

real property; or

(l) Conveyances of real property for open space, parks, or historic

preservation purposes to any not-for-profit tax exempt corporation

operated for conservation, environmental, or historic preservation

purposes.

(m) Conveyances of real property to any tax exempt corporation,

incorporated pursuant to the not-for-profit corporation law or the

private housing finance law, where such conveyance is for the purposes

of providing affordable housing opportunities within the towns and such

corporation is incorporated for the purposes of providing housing

opportunities. For the purposes of this paragraph, "affordable housing"

shall mean housing opportunities exclusively for town residents of the

towns whose income is at or below the median income for the town.

3. (a) In the towns of East Hampton, Shelter Island and Southampton,

an exemption of four hundred thousand dollars shall be allowed on the

consideration of the conveyance of improved real property or an interest

therein and an exemption of one hundred thousand dollars shall be

allowed on the consideration of the conveyance of unimproved real

property.

(b) In the towns of Riverhead and Southold, an exemption of two

hundred thousand dollars shall be allowed on the consideration of the

conveyance of improved real property or an interest therein and an

exemption of seventy-five thousand dollars shall be allowed on the

consideration of the conveyance of unimproved real property.

(c) The exemption granted pursuant to the provisions of this

subdivision shall only apply to conveyances for residential property

where the consideration is two million dollars or less.

4. Primary residential property purchased by one or more persons, each

of whom is a first-time homebuyer shall be exempt from the payment of

the real estate transfer tax, in the towns of Southampton, East Hampton,

Shelter Island and Southold, provided that:

(a) (1) in the towns of Southampton, East Hampton and Shelter Island,

the primary residential property is within one hundred fifty percent of

the purchase price limits defined by the state of New York mortgage

agency low interest rate mortgage program in the non-target one family

categories for Suffolk county in effect on the contract date for the

sale of such property;

(2) in the town of Southold, the primary residential property is

within sixty percent of the purchase price limits defined by the state

of New York mortgage agency low interest rate mortgage program in the

non-target one family categories for Suffolk county in effect on the

contract date for the sale of such property; and

(b) the buyer's household income does not exceed the income limits

defined by the state of New York mortgage agency low interest rate

mortgage program in the non-target, one and two person household

category for Suffolk county in effect on the contract date for the sale

of such property.

5. Such exemption shall be granted only upon application by the owner

of such building on a form prescribed by the town. The application shall

be filed with the town. If satisfied that the applicant is entitled to

an exemption pursuant to this section, the town shall approve the

application and the conveyance of such primary residential property

shall be exempt from the real estate transfer tax imposed by this

article.

* NB Repealed December 31, 2050