Bill Text: NY A09394 | 2013-2014 | General Assembly | Introduced

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Bill Title: Extends the tax rate reduction under the NY state real estate transfer tax and the NYC real property transfer tax for conveyances of real property to existing real estate investment funds.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2014-12-17 - signed chap.500 [A09394 Detail]

Download: New_York-2013-A09394-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         9394
                                 I N  A S S E M B L Y
                                    April 25, 2014
                                      ___________
       Introduced  by M. of A. FARRELL -- read once and referred to the Commit-
         tee on Ways and Means
       AN ACT to amend the tax law and the administrative code of the  city  of
         New  York,  in  relation to extending the tax rate reduction under the
         New York state real estate transfer tax and the  New  York  city  real
         property  transfer  tax  for  conveyances of real property to existing
         real estate investment funds
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. The opening paragraph of subparagraph (B) of paragraph 2 of
    2  subdivision  (b)  of  section 1402 of the tax law, as amended by chapter
    3  493 of the laws of 2011, is amended to read as follows:
    4    For purposes of this subdivision, the phrase "real  estate  investment
    5  trust  transfer" shall mean any conveyance of real property or an inter-
    6  est therein to a REIT, or to a partnership or  corporation  in  which  a
    7  REIT  owns  a controlling interest immediately following the conveyance,
    8  which conveyance (I) occurs in connection with the initial formation  of
    9  the REIT, provided that the conditions set forth in clauses (i) and (ii)
   10  of  this  subparagraph  are  satisfied,  or (II) in the case of any real
   11  estate investment trust transfer occurring on or after July  thirteenth,
   12  nineteen  hundred  ninety-six  and  before September first, two thousand
   13  [fourteen] SEVENTEEN, is described in the last sentence of this subpara-
   14  graph.
   15    S 2. Subparagraph 2 of paragraph (xi) of subdivision  (b)  of  section
   16  1201  of  the tax law, as amended by chapter 493 of the laws of 2011, is
   17  amended to read as follows:
   18    (2) any issuance or transfer of an interest in a REIT, or in  a  part-
   19  nership or corporation in which a REIT owns a controlling interest imme-
   20  diately  following the issuance or transfer, in connection with a trans-
   21  action described in subparagraph one of this paragraph.  Notwithstanding
   22  the foregoing, a transaction described in the preceding  sentence  shall
   23  not  constitute  a  real  estate investment trust transfer unless (A) it
   24  occurs in connection with the initial formation  of  the  REIT  and  the
   25  conditions  described  in subparagraphs three and four of this paragraph
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD14842-01-4
       A. 9394                             2
    1  are satisfied, or (B) in the case of any real  estate  investment  trust
    2  transfer  occurring  on or after July thirteenth, nineteen hundred nine-
    3  ty-six and before September first, two  thousand  [fourteen]  SEVENTEEN,
    4  the  transaction  is described in subparagraph five of this paragraph in
    5  which case the provisions of such subparagraph shall apply.
    6    S 3. Subparagraph (B) of paragraph  2  of  subdivision  e  of  section
    7  11-2102  of  the administrative code of the city of New York, as amended
    8  by chapter 493 of the laws of 2011, is amended to read as follows:
    9    (B) any issuance or transfer of an interest in a REIT, or in  a  part-
   10  nership or corporation in which a REIT owns a controlling interest imme-
   11  diately  following  the issuance or transfer in connection with a trans-
   12  action described in subparagraph (A) of this paragraph.  Notwithstanding
   13  the foregoing, a transaction described in the preceding  sentence  shall
   14  not  constitute  a  real  estate investment trust transfer unless (i) it
   15  occurs in connection with the initial formation  of  the  REIT  and  the
   16  conditions  described in subparagraphs (C) and (D) of this paragraph are
   17  satisfied, or (ii) in the case  of  any  real  estate  investment  trust
   18  transfer  occurring  on or after July thirteenth, nineteen hundred nine-
   19  ty-six and before September first, two  thousand  [fourteen]  SEVENTEEN,
   20  the  transaction  is  described in subparagraph (E) of this paragraph in
   21  which case the provision of such subparagraph shall apply.
   22    S 4. This act shall take effect immediately.