Bill Text: NY S06041 | 2017-2018 | General Assembly | Introduced
Bill Title: Relates to taxable conveyances under the real estate transfer tax in the Peconic Bay Region.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2018-01-03 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S06041 Detail]
Download: New_York-2017-S06041-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ S. 6041 A. 7704 2017-2018 Regular Sessions SENATE - ASSEMBLY May 10, 2017 ___________ IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print- ed, and when printed to be committed to the Committee on Investi- gations and Government Operations IN ASSEMBLY -- Introduced by M. of A. THIELE -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law in relation to taxable conveyances under the real estate transfer tax in the Peconic Bay Region; and to repeal certain provisions of such law relating thereto The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 4 of section 1449-aa of the tax law is amended 2 by adding a new paragraph (f) to read as follows: 3 (f) In the case of a transfer of an interest in a partnership, limited 4 liability corporation, S corporation or non-publicly traded C corpo- 5 ration with one hundred or fewer shareholders that owns real property 6 that is located in a town and has a fair market value that equals or 7 exceeds fifty percent of all the assets of the entity on the date of the 8 transfer of an interest in the entity, the consideration for the convey- 9 ance shall be calculated by multiplying (1) the fair market value of the 10 real property that is located in a town that is owned by the entity and 11 (2) the percentage of the entity that is transferred. 12 § 2. Subdivision 5 of section 1449-aa of the tax law is REPEALED and a 13 new subdivision 5 is added to read as follows: 14 5. "Conveyance" means the transfer or transfers of any interest in 15 real property by any method, including, but not limited to sale, 16 exchange, assignment, surrender, mortgage foreclosure, transfer in lieu 17 of foreclosure, option, trust indenture, taking by eminent domain, 18 conveyance upon liquidation or by a receiver, or transfer or acquisition 19 of a controlling interest in any entity with an interest in real proper- 20 ty. Conveyance also includes the transfer of an interest in a partner- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD10767-01-7S. 6041 2 A. 7704 1 ship, limited liability corporation, S corporation or non-publicly trad- 2 ed C corporation with fewer than one hundred shareholders that owns an 3 interest in real property that is located in New York and has a fair 4 market value that equals or exceeds fifty percent of all the assets of 5 the entity on the date of the transfer of an interest in the entity. 6 Only those assets that the entity owned for at least two years before 7 the date of the transfer of the taxpayer's interest in the entity shall 8 be used in determining the fair market value of all the assets of the 9 entity on the date of the transfer. Transfer of an interest in real 10 property shall include the creation of a leasehold or sublease only 11 where (i) the sum of the term of the lease or sublease and any options 12 for renewal exceeds forty-nine years, (ii) substantial capital improve- 13 ments are or may be made by or for the benefit of the lessee or subles- 14 see, and (iii) the lease or sublease is for substantially all of the 15 premises constituting the real property. Notwithstanding the foregoing, 16 conveyance of real property shall not include a conveyance pursuant to 17 devise, bequest or inheritance; the creation, modification, extension, 18 spreading, severance, consolidation, assignment, transfer, release or 19 satisfaction of a mortgage; a mortgage subordination agreement, a mort- 20 gage severance agreement, an instrument given to perfect or correct a 21 recorded mortgage; or a release of a lien of tax pursuant to this chap- 22 ter or the internal revenue code. 23 § 3. Section 1449-nn of the tax law is amended by adding a new subdi- 24 vision 5 to read as follows: 25 5. The town is authorized to treat as subject to tax under this arti- 26 cle any conveyance of an interest in real property made pursuant to an 27 agreement, understanding or arrangement that results in the avoidance or 28 evasion of the tax imposed by this section. 29 § 4. This act shall take effect immediately; provided, however, that 30 the amendments to paragraph (f) of subdivision 4 of section 1449-aa of 31 the tax law made by section one of this act shall not affect the repeal 32 of such subdivision and shall be deemed to repeal therewith; provided, 33 further, that the amendments to subdivision 5 of section 1449-aa of the 34 tax law made by section two of this act shall not affect the repeal of 35 such section and shall be deemed to repeal therewith; provided, further 36 that the amendments to subdivision 5 of section 1449-nn of the tax law 37 made by section three of this act shall not affect the repeal of such 38 section and shall be deemed to repeal therewith.
