N.Y. Tax Law § 663: Estimated tax on sale or transfer of real property by nonresident

§ 663. Estimated tax on sale or transfer of real property by

nonresident. (a) Upon the sale of real property within the state by a

nonresident taxpayer, the nonresident shall estimate the personal income

tax liability on the gain, if any, from such sale or transfer. In

addition, upon the sale, conveyance or other disposition of shares of

stock in a cooperative housing corporation in connection with the

transfer of a proprietary leasehold by the owner thereof and subject to

the provisions of article thirty-one of this chapter, the nonresident

shall estimate the personal income tax liability on the gain, if any,

from such sale, conveyance or other disposition.

(b) Such estimation shall be done upon a form prescribed by the

commissioner, utilizing an estimated tax rate equal to the highest rate

of tax for the taxable year set forth in section six hundred one of this

article.

(c) This section shall not apply where:

(1) The real property being sold or transferred is a principal

residence of the seller or transferor within the meaning of section 121

of the Internal Revenue Code;

(2) The seller or transferor is a mortgagor conveying the mortgaged

property to a mortgagee in foreclosure or in a transfer in lieu of

foreclosure with no additional consideration; or

(3) The transferor or transferee is an agency or authority of the

United States of America, an agency or authority of the state of New

York, the Federal National Mortgage Association, the Federal Home Loan

Mortgage Corporation, or the Government National Mortgage Association,

or a private mortgage insurance company; or

(4) The proprietary leasehold being transferred in connection with the

sale, conveyance or other disposition of the shares of stock in a

cooperative housing corporation is a principal residence of the seller

or transferor within the meaning of section 121 of the Internal Revenue

Code;

(d) A recording officer shall not record or accept for recording any

deed unless one of the following conditions is satisfied:

(1) it is accompanied by a receipt issued by the commissioner

indicating that the estimated tax required by this section has been paid

to the commissioner either electronically or as otherwise prescribed by

him or her;

(2) it is accompanied by a form prescribed by the commissioner

pursuant to subsection (b) of this section and the payment of any

estimated tax shown as payable on such form; or

(3) such receipt or form includes a certification by the transferor

that this section is inapplicable to the sale or transfer.

(e) Every recording officer shall act as an agent of the commissioner

for purposes of collecting the estimated personal income tax, if any,

shown to be payable upon the form prescribed pursuant to subsection (b)

of this section. The commissioner, by regulation, shall prescribe one or

more methods for the recording officer's collection of such estimated

tax. Every recording officer shall remit to the commissioner any funds

collected and any returns filed with such recording officer under this

section on such days as the commissioner shall set by regulation

consistent with the provisions of section fourteen hundred ten of this

chapter for the remission of the tax imposed under article thirty-one of

this chapter. Every recording officer also shall follow such procedures

and keep such records in respect to the implementation of this section

as the commissioner may prescribe.

(f) A recording officer shall not be liable under this section for any

inaccuracy in any statement on the form prescribed pursuant to

subsection (b) of this section or in the amount of estimated personal

income tax he or she shall collect under this section so long as he or

she shall collect the estimated personal income tax shown as payable on

such form.

(g) If a deed is recorded notwithstanding an omission or inaccuracy in

the form prescribed pursuant to subsection (b) of this section or in any

certification by the transferor on such form or a deficiency in the

payment of estimated personal income tax required by this section, the

record of such deed shall not be invalidated by reason of such omission,

inaccuracy, erroneous certification or deficiency nor shall the title

founded on such deed be impaired thereby.

(h) The commissioner shall promulgate rules and regulations

implementing this section.

(i) The estimated personal income tax liability on the gain, if any,

from the sale, conveyance or other disposition of shares of stock in a

cooperative housing corporation shall be paid to the commissioner no

later than the fifteenth day after the delivery of the instrument

affecting such sale, conveyance or other disposition. For purposes of

this section, the date of the instrument affecting such sale, conveyance

or other disposition shall be presumed to be the date of delivery of

such instrument.