N.Y. Tax Law § 1566: Cooperative housing corporation transfers

§ 1566. Cooperative housing corporation transfers. 1. Notwithstanding

the definition of "controlling interest" contained in subdivision two of

section fifteen hundred sixty of this article or anything to the

contrary contained in subdivision five of section fifteen hundred sixty

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 seller and the

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

consideration paid for such conveyance.