N.Y. Tax Law § 1449-l: Cooperative housing corporation transfers

§ 1449-l. Cooperative housing corporation transfers. 1.

Notwithstanding the definition of "controlling interest" contained in

subdivision two of section fourteen hundred forty-nine-f of this article

or anything to the contrary contained in subdivision five of section

fourteen hundred forty-nine-f 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 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 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.