Bill Text: NY S05739 | 2017-2018 | General Assembly | Introduced

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

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2017-06-20 - SUBSTITUTED BY A7523 [S05739 Detail]

Download: New_York-2017-S05739-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          5739
                               2017-2018 Regular Sessions
                    IN SENATE
                                     April 27, 2017
                                       ___________
        Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
          printed to be committed to the Committee on Investigations and Govern-
          ment Operations
        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  500 of the laws of 2014, 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  [seventeen] twenty, is described in the last sentence of  this  subpara-
    14  graph.
    15    §  2.  Subparagraph  2 of paragraph (xi) of subdivision (b) of section
    16  1201 of the tax law, as amended by chapter 500 of the laws of  2014,  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
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11222-02-7
        S. 5739                             2
     1  the  foregoing,  a transaction described in the preceding sentence shall
     2  not constitute a real estate investment trust  transfer  unless  (A)  it
     3  occurs  in  connection  with  the  initial formation of the REIT and the
     4  conditions  described  in subparagraphs three and four of this paragraph
     5  are satisfied, or (B) in the case of any real  estate  investment  trust
     6  transfer  occurring  on or after July thirteenth, nineteen hundred nine-
     7  ty-six and before September first, two thousand [seventeen] twenty,  the
     8  transaction is described in subparagraph five of this paragraph in which
     9  case the provisions of such subparagraph shall apply.
    10    §  3.  Subparagraph  (B)  of  paragraph  2 of subdivision e of section
    11  11-2102 of the administrative code of the city of New York,  as  amended
    12  by chapter 500 of the laws of 2014, is amended to read as follows:
    13    (B)  any  issuance or transfer of an interest in a REIT, or in a part-
    14  nership or corporation in which a REIT owns a controlling interest imme-
    15  diately following the issuance or transfer in connection with  a  trans-
    16  action described in subparagraph (A) of this paragraph.  Notwithstanding
    17  the  foregoing,  a transaction described in the preceding sentence shall
    18  not constitute a real estate investment trust  transfer  unless  (i)  it
    19  occurs  in  connection  with  the  initial formation of the REIT and the
    20  conditions described in subparagraphs (C) and (D) of this paragraph  are
    21  satisfied,  or  (ii)  in  the  case  of any real estate investment trust
    22  transfer occurring on or after July thirteenth, nineteen  hundred  nine-
    23  ty-six  and before September first, two thousand [seventeen] twenty, the
    24  transaction is described in subparagraph (E) of this paragraph in  which
    25  case the provision of such subparagraph shall apply.
    26    § 4. This act shall take effect immediately.