Bill Text: NY S08821 | 2021-2022 | General Assembly | Introduced


Bill Title: Authorizes the board of trustees of the village of Saltaire in the county of Suffolk to adopt a local law imposing a 2% tax on real estate transfers for ten years to lessen the real property tax burden and fund infrastructure improvements; provides for the repeal of such provisions upon expiration thereof.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2022-04-20 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S08821 Detail]

Download: New_York-2021-S08821-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          8821

                    IN SENATE

                                     April 20, 2022
                                       ___________

        Introduced  by  Sen.  BOYLE  -- 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 village law, in relation to  author-
          izing  the  village of Saltaire, county of Suffolk, to impose a tax on
          real estate transfers; and providing for the repeal of such provisions
          upon expiration thereof

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section 1. The tax law is amended by adding a new article 31-H to read
     2  as follows:
     3                                ARTICLE 31-H
     4           TAX ON REAL ESTATE TRANSFERS IN THE VILLAGE OF SALTAIRE
     5  Section 1449-aaaaaa. Definitions.
     6          1449-bbbbbb. Imposition of tax.
     7          1449-cccccc. Payment of tax.
     8          1449-dddddd. Liability for tax.
     9          1449-eeeeee. Exemptions.
    10          1449-ffffff. Credit.
    11          1449-gggggg. Cooperative housing corporation transfers.
    12          1449-hhhhhh. Designation of agents.
    13          1449-iiiiii. Liability of recording officer.
    14          1449-jjjjjj. Refunds.
    15          1449-kkkkkk. Deposit and disposition of revenue.
    16          1449-llllll. Judicial review.
    17          1449-mmmmmm. Apportionment.
    18          1449-nnnnnn. Miscellaneous.
    19          1449-oooooo. Returns to be secret.
    20          1449-pppppp. Foreclosure.
    21    §  1449-aaaaaa.  Definitions. When used in this article, unless other-
    22  wise expressly stated:
    23    1. "Person" means an individual,  partnership,  society,  association,
    24  joint  stock  company, corporation, estate, receiver, trustee, assignee,
    25  referee or any other person acting  in  a  fiduciary  or  representative

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14394-01-2

        S. 8821                             2

     1  capacity,  whether appointed by a court or otherwise, any combination of
     2  individuals, and any other form of unincorporated  enterprise  owned  or
     3  conducted by two or more persons.
     4    2.  "Controlling  interest"  means  (a)  in the case of a corporation,
     5  either fifty percent or more of the total combined voting power  of  all
     6  classes  of  stock  of such corporation, or fifty percent or more of the
     7  capital, profits or beneficial interest in such  voting  stock  of  such
     8  corporation, and (b) in the case of a partnership, association, trust or
     9  other  entity,  fifty percent or more of the capital, profits or benefi-
    10  cial interest in such partnership, association, trust or other entity.
    11    3. "Real property" means every estate or right,  legal  or  equitable,
    12  present  or future, vested or contingent, in lands, tenements or heredi-
    13  taments, including buildings, structures and other improvements thereon,
    14  which are located in whole or in part within the village of Saltaire, in
    15  the county of Suffolk. It shall not include rights to sepulture.
    16    4. "Consideration" means the price actually paid  or  required  to  be
    17  paid for the real property or interest therein, including payment for an
    18  option  or  contract to purchase real property, whether or not expressed
    19  in the deed and whether paid or required to be paid by money,  property,
    20  or  any  other  thing  of  value.  It  shall include the cancellation or
    21  discharge of an indebtedness or obligation. It shall  also  include  the
    22  amount  of  any  mortgage, purchase money mortgage, lien or other encum-
    23  brance, whether or not the underlying indebtedness is assumed  or  taken
    24  subject to.
    25    (a)  In the case of a creation of a leasehold interest or the granting
    26  of an option with use and  occupancy  of  real  property,  consideration
    27  shall  include, but not be limited to, the value of the rental and other
    28  payments attributable to the use and occupancy of the real  property  or
    29  interest therein, the value of any amount paid for an option to purchase
    30  or  renew  and the value of rental or other payments attributable to the
    31  exercise of any option to renew.
    32    (b) In the case of a creation of a  subleasehold  interest,  consider-
    33  ation  shall  include,  but not be limited to, the value of the sublease
    34  rental payments attributable to the use and occupancy of the real  prop-
    35  erty,  the value of any amount paid for an option to renew and the value
    36  of rental or other payments attributable to the exercise of  any  option
    37  to  renew  less  the  value of the remaining prime lease rental payments
    38  required to be made.
    39    (c) In the case of a controlling interest in any entity that owns real
    40  property, consideration shall mean the fair market  value  of  the  real
    41  property or interest therein, apportioned based on the percentage of the
    42  ownership interest transferred or acquired in the entity.
    43    (d)  In the case of an assignment or surrender of a leasehold interest
    44  or the assignment or surrender of an option or contract to purchase real
    45  property, consideration shall not include the  value  of  the  remaining
    46  rental  payments required to be made pursuant to the terms of such lease
    47  or the amount to be paid for the real property pursuant to the terms  of
    48  the option or contract being assigned or surrendered.
    49    (e) In the case of (1) the original conveyance of shares of stock in a
    50  cooperative housing corporation in connection with the grant or transfer
    51  of a proprietary leasehold by the cooperative corporation or cooperative
    52  plan  sponsor  and (2) the subsequent conveyance by the owner thereof of
    53  such stock in a cooperative housing corporation in connection  with  the
    54  grant  or  transfer  of  a  proprietary leasehold for a cooperative unit
    55  other than an individual residential unit, consideration shall include a
    56  proportionate share of the unpaid principal of any mortgage on the  real

        S. 8821                             3

     1  property  of  the cooperative housing corporation comprising the cooper-
     2  ative dwelling or dwellings. Such share shall be determined by multiply-
     3  ing the total unpaid principal of the mortgage by a fraction, the numer-
     4  ator  of  which shall be the number of shares of stock being conveyed in
     5  the cooperative housing corporation in  connection  with  the  grant  or
     6  transfer  of  a proprietary leasehold and the denominator of which shall
     7  be the total number of shares of stock in the cooperative housing corpo-
     8  ration.
     9    5. "Conveyance" means the transfer or transfers  of  any  interest  in
    10  real  property  by  any  method,  including  but  not  limited to, sale,
    11  exchange, assignment, surrender, mortgage foreclosure, transfer in  lieu
    12  of  foreclosure,  option,  trust  indenture,  taking  by eminent domain,
    13  conveyance upon liquidation or by a receiver, or transfer or acquisition
    14  of a controlling interest in any entity with an interest in real proper-
    15  ty. Transfer of an interest in real property shall include the  creation
    16  of  a  leasehold  or  sublease only where (a) the sum of the term of the
    17  lease or sublease and any options for renewal exceeds forty-nine  years,
    18  (b)  substantial  capital  improvements are or may be made by or for the
    19  benefit of the lessee or sublessee, and (c) the lease or sublease is for
    20  substantially all  of  the  premises  constituting  the  real  property.
    21  Notwithstanding  the  foregoing,  conveyance  of real property shall not
    22  include the creation,  modification,  extension,  spreading,  severance,
    23  consolidation,  assignment, transfer, release or satisfaction of a mort-
    24  gage; a mortgage subordination agreement, a  mortgage  severance  agree-
    25  ment,  an instrument given to perfect or correct a recorded mortgage; or
    26  a release of lien of tax pursuant to this chapter or the internal reven-
    27  ue code.
    28    6. "Interest in the real property" includes title in fee, a  leasehold
    29  interest, a beneficial interest, an encumbrance, development rights, air
    30  space  and  air  rights,  or any other interest with the right to use or
    31  occupancy of real property or the right to  receive  rents,  profits  or
    32  other income derived from real property. It shall also include an option
    33  or  contract  to purchase real property. It shall not include a right of
    34  first refusal to purchase real property.
    35    7. "Grantor" means the person making the conveyance of  real  property
    36  or  interest  therein. Where the conveyance consists of a transfer or an
    37  acquisition of a controlling interest in an entity with an  interest  in
    38  real property, "grantor" means the entity with an interest in real prop-
    39  erty  or  a  shareholder  or  partner  transferring stock or partnership
    40  interest.
    41    8. "Grantee" means the person who obtains real  property  or  interest
    42  therein as a result of a conveyance.
    43    9.  "Recording  officer"  means  the  village  clerk of the village of
    44  Saltaire.
    45    10.  "Treasurer"  means  the  chief  fiscal  officer  of  the  village
    46  Saltaire.
    47    11.  "Local  legislative  body"  means  the   board of trustees of the
    48  village of Saltaire.
    49    12. "Village" means the village of Saltaire, town of Islip, county  of
    50  Suffolk.
    51    § 1449-bbbbbb. Imposition of tax. Notwithstanding any other provisions
    52  of  law  to  the  contrary,  the  village  of Saltaire, in the county of
    53  Suffolk, acting through its local legislative body, is hereby authorized
    54  and empowered to adopt and amend local laws imposing in such  village  a
    55  tax  on  each  conveyance  of real property or interest therein when the
    56  consideration exceeds five hundred dollars, at a rate not  to  exceed  a

        S. 8821                             4

     1  maximum  of  two percent of the consideration for such conveyance.  Such
     2  local law may apply to any conveyance occurring on  or  after  the  date
     3  designated  by such legislative body, but shall not apply to conveyances
     4  made on or after such date pursuant to binding written contracts entered
     5  into  prior  to  such  date, provided that the date of execution of such
     6  contract is confirmed by independent evidence such as the  recording  of
     7  the  contract,  payment of a deposit or other facts and circumstances as
     8  determined by the treasurer.
     9    § 1449-cccccc. Payment of tax. 1. The real estate transfer tax imposed
    10  pursuant to this article shall be paid to the treasurer or the recording
    11  officer acting as the agent of the treasurer. Such tax shall be paid  at
    12  the  same  time as the real estate transfer tax imposed by article thir-
    13  ty-one of this chapter is required to be paid. Such treasurer or record-
    14  ing officer shall endorse upon  each  deed  or  instrument  effecting  a
    15  conveyance a receipt for the amount of the tax so paid.
    16    2.  A  return  shall  be  required  to be filed with such treasurer or
    17  recording officer for purposes of the real estate transfer  tax  imposed
    18  pursuant  to this article at the same time as a return is required to be
    19  filed for purposes of the real estate transfer tax  imposed  by  article
    20  thirty-one  of this chapter. The return, for purposes of the real estate
    21  transfer tax imposed pursuant to this article, shall be a  photocopy  or
    22  carbon  copy of the real estate transfer tax return required to be filed
    23  pursuant to section fourteen hundred nine of this chapter. However, when
    24  an apportionment is required to be made  pursuant  to  section  fourteen
    25  hundred  forty-nine-mmmmmm  of  this  article, a supplemental form shall
    26  also be required to be filed. The real estate transfer tax  returns  and
    27  supplemental  forms  required to be filed pursuant to this section shall
    28  be preserved for three years and  thereafter  until  such  treasurer  or
    29  recording officer orders them to be destroyed.
    30    3.  The  recording  officer shall not record an instrument effecting a
    31  conveyance unless the return required by this section has been filed and
    32  the tax imposed pursuant  to  this  article  shall  have  been  paid  as
    33  provided in this section.
    34    §  1449-dddddd.  Liability  for  tax.  1. The real estate transfer tax
    35  shall be paid by the grantee. If the grantee has failed to pay  the  tax
    36  imposed  pursuant  to this article or if the grantee is exempt from such
    37  tax, the grantor shall have the duty to pay the tax. Where  the  grantor
    38  has  the duty to pay the tax because the grantee has failed to pay, such
    39  tax shall be the joint and several liability  of  the  grantor  and  the
    40  grantee.
    41    2. For the purpose of the proper administration of this article and to
    42  prevent  evasion of the tax hereby authorized, it shall be presumed that
    43  all conveyances are taxable. Where the consideration  includes  property
    44  other  than  money,  it  shall be presumed that the consideration is the
    45  fair market value of  the  real  property  or  interest  therein.  These
    46  presumptions  shall prevail until the contrary is proven, and the burden
    47  of proving the contrary shall be on the person liable for payment of the
    48  tax.
    49    § 1449-eeeeee. Exemptions. 1.  The  following  shall  be  exempt  from
    50  payment of the real estate transfer tax:
    51    (a)  The state of New York, or any of its agencies, instrumentalities,
    52  political subdivisions,  or  public  corporations  (including  a  public
    53  corporation  created pursuant to agreement or compact with another state
    54  or the Dominion of Canada).
    55    (b) The United Nations, the United States of America and  any  of  its
    56  agencies and instrumentalities.

        S. 8821                             5

     1    2. The tax shall not apply to any of the following conveyances:
     2    (a)  Conveyances  to the United Nations, the United States of America,
     3  the state of New York, or any of their  instrumentalities,  agencies  or
     4  political  subdivisions  (or  any public corporation, including a public
     5  corporation created pursuant to agreement or compact with another  state
     6  or the Dominion of Canada);
     7    (b) Conveyances which are or were used to secure a debt or other obli-
     8  gation;
     9    (c)  Conveyances  which,  without  additional  consideration, confirm,
    10  correct, modify or supplement a prior conveyance;
    11    (d) Conveyances of real property without consideration  and  otherwise
    12  than  in  connection with a sale, including conveyances conveying realty
    13  as bona fide gifts;
    14    (e) Conveyances given in connection with a tax sale;
    15    (f) Conveyances to effectuate a mere change of  identity  or  form  of
    16  ownership  or organization where there is no change in beneficial owner-
    17  ship, other than conveyances to a cooperative housing corporation of the
    18  real property comprising the cooperative dwelling or dwellings;
    19    (g) Conveyances which consist of a deed of partition;
    20    (h) Conveyances given pursuant to the federal bankruptcy act;
    21    (i) Conveyances of real property which consist of the execution  of  a
    22  contract  to  sell  real  property  without the use or occupancy of such
    23  property or the granting of an option to purchase real property  without
    24  the use or occupancy of such property; and
    25    (j)  Conveyances  of  real  property  or a portion or portions of real
    26  property that are the subject of one or more of the  following  develop-
    27  ment restrictions:
    28    (i) agricultural, conservation, scenic, or an open space easement,
    29    (ii) covenants or restrictions prohibiting development where the prop-
    30  erty  or  portion  of  property  being  conveyed has had its development
    31  rights permanently removed,
    32    (iii) a purchase of development rights agreement where the property or
    33  portion of property being conveyed has had its development rights perma-
    34  nently removed,
    35    (iv) a transfer of development rights agreement,  where  the  property
    36  being conveyed has had its development rights removed,
    37    (v)  real  property  subject  to any locally adopted land preservation
    38  agreement, provided said exemption is included in the local law imposing
    39  the tax authorized by this article;
    40    (k) Conveyances of real property, where the property is  viable  agri-
    41  cultural  land  as defined in subdivision seven of section three hundred
    42  one of the agriculture and markets law and the  entire  property  to  be
    43  conveyed  is  to  be made subject to one of the development restrictions
    44  provided for in subparagraph (ii) of paragraph (j) of  this  subdivision
    45  provided  that  said development restriction precludes the conversion of
    46  the property to a non-agricultural use for at least eight years from the
    47  date of transfer, and said development restriction is  evidenced  by  an
    48  easement,  agreement,  or  other  suitable  instrument  which  is  to be
    49  conveyed to the village simultaneously with the conveyance of  the  real
    50  property; or
    51    (l)  Conveyances  of  real property for open space, parks, or historic
    52  preservation purposes to any not-for-profit tax exempt corporation oper-
    53  ated for conservation, environmental, or historic preservation purposes.
    54    3. An exemption of one hundred thousand dollars shall  be  allowed  on
    55  the  consideration  of  the  conveyance  of improved real property or an
    56  interest therein, and an exemption of fifty thousand  dollars  shall  be

        S. 8821                             6

     1  allowed  on the consideration of the conveyance of unimproved real prop-
     2  erty.
     3    § 1449-ffffff. Credit. A grantee shall be allowed a credit against the
     4  tax  due  on a conveyance of real property to the extent tax was paid by
     5  such grantee on a prior creation of a leasehold of all or a  portion  of
     6  the  same  real  property or on the granting of an option or contract to
     7  purchase all or a portion of the same real property,  by  such  grantee.
     8  Such  credit  shall  be  computed  by  multiplying  the  tax paid on the
     9  creation of the leasehold or on the granting of the option  or  contract
    10  by  a fraction, the numerator of which is the value of the consideration
    11  used to compute such tax paid which is not yet due to  such  grantee  on
    12  the  date  of the subsequent conveyance (and which such grantee will not
    13  be entitled to receive after such date), and the denominator of which is
    14  the total value of the consideration used to compute such tax paid.
    15    § 1449-gggggg. Cooperative housing corporation transfers. 1.  Notwith-
    16  standing the definition of "controlling interest" contained in  subdivi-
    17  sion  two  of section fourteen hundred forty-nine-aaaaaa of this article
    18  or anything to the contrary contained in  subdivision  five  of  section
    19  fourteen  hundred  forty-nine-aaaaaa  of  this  article, the tax imposed
    20  pursuant to this article shall apply to (a) the original  conveyance  of
    21  shares  of stock in a cooperative housing corporation in connection with
    22  the grant or transfer of a  proprietary  leasehold  by  the  cooperative
    23  corporation  or cooperative plan sponsor, and (b) the subsequent convey-
    24  ance of such stock in a cooperative housing  corporation  in  connection
    25  with the grant or transfer of a proprietary leasehold by the owner ther-
    26  eof.  With  respect to any such subsequent conveyance where the property
    27  is an individual residential unit, the consideration  for  the  interest
    28  conveyed  shall  exclude the value of any liens on certificates of stock
    29  or other evidences of an ownership interest in and a  proprietary  lease
    30  from  a corporation or partnership formed for the purpose of cooperative
    31  ownership of residential interest in real estate  remaining  thereon  at
    32  the time of conveyance. In determining the tax on a conveyance described
    33  in  paragraph  (a)  of this subdivision, a credit shall be allowed for a
    34  proportionate part of the amount of any tax paid upon the conveyance  to
    35  the  cooperative housing corporation of the real property comprising the
    36  cooperative dwelling or dwellings to the  extent  that  such  conveyance
    37  effectuated a mere change of identity or form of ownership of such prop-
    38  erty  and not a change in the beneficial ownership of such property. The
    39  amount of the credit shall be determined by multiplying  the  amount  of
    40  tax paid upon the conveyance to the cooperative housing corporation by a
    41  percentage  representing the extent to which such conveyance effectuated
    42  a mere change of identity or form of ownership and not a change  in  the
    43  beneficial  ownership of such property, and then multiplying the result-
    44  ing product by a fraction, the numerator of which shall be the number of
    45  shares of stock conveyed in a transaction described in paragraph (a)  of
    46  this  subdivision and the denominator of which shall be the total number
    47  of shares of stock of the cooperative housing corporation (including any
    48  stock held by the corporation). In no event, however, shall such  credit
    49  reduce  the  tax,  on  a  conveyance  described in paragraph (a) of this
    50  subdivision, below zero, nor shall any such credit be allowed for a  tax
    51  paid  more than twenty-four months prior to the date on which occurs the
    52  first in a series of conveyances of shares of stock in  an  offering  of
    53  cooperative  housing  corporation  shares  described in paragraph (a) of
    54  this subdivision.
    55    2. Every cooperative housing corporation shall be required to file  an
    56  information  return  with  the  treasurer by July fifteenth of each year

        S. 8821                             7

     1  covering the preceding period of January first  through  June  thirtieth
     2  and  by  January fifteenth of each year covering the preceding period of
     3  July first through December thirty-first. The return shall contain  such
     4  information  regarding  the conveyance of shares of stock in the cooper-
     5  ative housing corporation as the treasurer may deem  necessary,  includ-
     6  ing,  but  not limited to, the names, addresses and employee identifica-
     7  tion numbers or social security numbers of the grantor and the  grantee,
     8  the  number  of  shares  conveyed,  the  date  of the conveyance and the
     9  consideration paid for such conveyance.
    10    § 1449-hhhhhh. Designation of agents. The treasurer is  authorized  to
    11  designate  the  recording  officer  to  act as its agent for purposes of
    12  collecting the tax authorized  by  this  article.  The  treasurer  shall
    13  provide  for  the  manner  in which such person may be designated as its
    14  agent subject to such terms and conditions as it  shall  prescribe.  The
    15  real  estate  transfer  tax  shall  be paid to such agent as provided in
    16  section fourteen hundred forty-nine-cccccc of this article.
    17    § 1449-iiiiii. Liability of recording  officer.  A  recording  officer
    18  shall  not  be  liable  for  any inaccuracy in the amount of tax imposed
    19  pursuant to this article that he or she shall collect so long as  he  or
    20  she shall compute and collect such tax on the amount of consideration or
    21  the  value  of the interest conveyed as such amounts are provided to him
    22  or her by the person paying the tax.
    23    § 1449-jjjjjj. Refunds. Whenever the treasurer  shall  determine  that
    24  any moneys received under the provisions of the local law enacted pursu-
    25  ant  to  this article were paid in error, it may cause such moneys to be
    26  refunded pursuant to  such  rules  and  regulations  it  may  prescribe,
    27  provided  any  application  for  such refund is filed with the treasurer
    28  within two years from the date the  erroneous  payment  was  made.  When
    29  making  any  findings  or determinations the treasurer may rely upon any
    30  findings or determinations of the commissioner and any rules  and  regu-
    31  lations promulgated pursuant to article thirty-one of this chapter.
    32    § 1449-kkkkkk. Deposit and disposition of revenue. All taxes collected
    33  or  received  by the treasurer or his or her duly authorized agent under
    34  the provisions of the local law enacted pursuant to this  article  shall
    35  be deposited in accordance with provisions of a local law adopted by the
    36  legislative body of the village of Saltaire which local law shall desig-
    37  nate  proper officers to be responsible for deposit of revenue collected
    38  or received under this article. Such local law shall also  provide  that
    39  any  officer  designated  to  collect,  receive, or deposit such revenue
    40  shall maintain a system of accounts showing  the  revenue  collected  or
    41  received  from  the tax imposed pursuant to this article. Such local law
    42  shall also provide that all revenue derived from the imposition of  such
    43  tax  shall  be  deposited  into  the special reserve account fund of the
    44  village of Saltaire established  pursuant  to  section  5-532-a  of  the
    45  village  law  and  shall  be used for purposes authorized by subdivision
    46  three of such section.
    47    § 1449-llllll. Judicial review. 1.  Any  final  determination  of  the
    48  amount  of  any  tax  payable under section fourteen hundred forty-nine-
    49  cccccc of this article shall be  reviewable  for  error,  illegality  or
    50  unconstitutionality or any other reason whatsoever by a proceeding under
    51  article seventy-eight of the civil practice law and rules if application
    52  therefor  is  made  to  the  supreme  court within four months after the
    53  giving of the notice of such  final  determination,  provided,  however,
    54  that  any such proceeding under article seventy-eight of the civil prac-
    55  tice law and rules shall not be instituted unless (a) the amount of  any
    56  tax  sought  to be reviewed, with such interest and penalties thereon as

        S. 8821                             8

     1  may be provided for by local law shall be first deposited and  there  is
     2  filed  an undertaking, issued by a surety company authorized to transact
     3  business in this state and approved by the superintendent  of  financial
     4  services of this state as to solvency and responsibility, in such amount
     5  as  a  justice  of the supreme court shall approve to the effect that if
     6  such proceeding be dismissed or the tax confirmed  the  petitioner  will
     7  pay  all  costs  and charges which may accrue in the prosecution of such
     8  proceeding or (b) at the option of the petitioner, such undertaking  may
     9  be in a sum sufficient to cover the taxes, interest and penalties stated
    10  in  such  determination,  plus  the  costs  and charges which may accrue
    11  against it in the prosecution of the  proceeding,  in  which  event  the
    12  petitioner  shall  not be required to pay such taxes, interest or penal-
    13  ties as a condition precedent to the application.
    14    2. Where any tax imposed hereunder shall have been erroneously,  ille-
    15  gally  or  unconstitutionally  assessed or collected and application for
    16  the refund or revision thereof duly made to the proper fiscal officer or
    17  officers, and such officer or officers shall have made  a  determination
    18  denying  such refund or revision, such determination shall be reviewable
    19  by a proceeding under article seventy-eight of the  civil  practice  law
    20  and  rules;  provided,  however,  that (a) such proceeding is instituted
    21  within four months after the giving of the notice of such denial, (b)  a
    22  final  determination  of  tax  due  was  not previously made, and (c) an
    23  undertaking is filed with the proper fiscal officer or officers in  such
    24  amount  and  with  such sureties as a justice of the supreme court shall
    25  approve to the effect that if such proceeding be dismissed  or  the  tax
    26  confirmed,  the  petitioner  will  pay  all  costs and charges which may
    27  accrue in the prosecution of such proceeding.
    28    3. In any proceedings instituted pursuant to this  article  the  rules
    29  and regulations of the commissioner shall be applied where applicable.
    30    § 1449-mmmmmm. Apportionment. The local law adopted by the legislative
    31  body of the village of Saltaire shall provide for a method of apportion-
    32  ment for determining the amount of tax due whenever the real property or
    33  interest therein is situated within and without the village of Saltaire.
    34    § 1449-nnnnnn. Miscellaneous. The local law adopted by the legislative
    35  body  of  the  village  of Saltaire may contain such other provisions as
    36  such legislative body deems necessary for the proper  administration  of
    37  the  tax imposed pursuant to this article, including provisions concern-
    38  ing the determination of tax, the imposition of  interest  on  underpay-
    39  ments  and  overpayments  and  the  imposition  of civil penalties. Such
    40  provisions shall be identical to the  corresponding  provisions  of  the
    41  real  estate transfer tax imposed by article thirty-one of this chapter,
    42  so far as such provisions can be made  applicable  to  the  tax  imposed
    43  pursuant to this article.
    44    §  1449-oooooo.  Returns  to  be  secret. 1. Except in accordance with
    45  proper judicial order or as otherwise  provided  by  law,  it  shall  be
    46  unlawful  for the treasurer or any officer or employee of the village of
    47  Saltaire or any person engaged or retained by such village on  an  inde-
    48  pendent  contract  basis  to  divulge  or  make  known in any manner the
    49  particulars set forth or disclosed in any return required under a  local
    50  law  enacted  pursuant  to  this  article. However, that nothing in this
    51  section shall prohibit the recording officer from making a  notation  on
    52  an  instrument effecting a conveyance indicating the amount of tax paid.
    53  No recorded instrument effecting a  conveyance  shall  be  considered  a
    54  return for purposes of this section.
    55    2.  The officers charged with the custody of such returns shall not be
    56  required to produce any of them or evidence  of  anything  contained  in

        S. 8821                             9

     1  them  in  any action or proceeding in any court, except on behalf of the
     2  village in any action or proceeding involving the collection  of  a  tax
     3  due  under  a  local  law enacted pursuant to this article to which such
     4  village or an officer or employee of such village is a party or a claim-
     5  ant,  or  on  behalf  of any party to any action or proceeding under the
     6  provisions of a local law enacted pursuant  to  this  article  when  the
     7  returns  or  facts shown thereby are directly involved in such action or
     8  proceeding, in any of which events the court may require the  production
     9  of,  and  may admit in evidence, so much of said returns or of the facts
    10  shown thereby, as are pertinent to the action or proceeding and no more.
    11    3. Nothing herein shall be construed to prohibit  the  delivery  to  a
    12  grantor  or  grantee of an instrument effecting a conveyance or the duly
    13  authorized representative of a grantor or grantee of a certified copy of
    14  any return filed in connection with such instrument or to  prohibit  the
    15  publication of statistics so classified as to prevent the identification
    16  of  particular  returns  and the items thereof, or the inspection by the
    17  legal representatives of such village of the return of any taxpayer  who
    18  shall bring action to set aside or review the tax based thereon.
    19    4.  Any officer or employee of such village who willfully violates the
    20  provisions of this section shall be dismissed from office and be incapa-
    21  ble of holding any public office in this state  for  a  period  of  five
    22  years thereafter.
    23    §  1449-pppppp. Foreclosure. Where the conveyance consists of a trans-
    24  fer of property made as a result of an order of the court in a  foreclo-
    25  sure proceeding ordering the sale of such property, the referee or sher-
    26  iff  effectuating  such transfer shall not be liable for any interest or
    27  penalties that are authorized pursuant to this article or article  thir-
    28  ty-seven of this chapter.
    29    §  2.    The village law is amended by adding a new section 5-532-a to
    30  read as follows:
    31    § 5-532-a Village of Saltaire authorized to impose a transfer  tax  on
    32  conveyances  of real property. 1. Notwithstanding any other provision of
    33  law to the contrary, the village of Saltaire, in the county of  Suffolk,
    34  is hereby authorized and empowered to adopt and amend a local law impos-
    35  ing  in  such  village a tax pursuant to article thirty-one-H of the tax
    36  law, and may make provision for the  collection  thereof  by  the  chief
    37  fiscal  officer  of such village; provided, however, that nothing herein
    38  contained shall be construed so as to prevent such village from adopting
    39  local laws exempting from such tax omnibus corporations subject  to  the
    40  supervision  of  the state department of public service under the public
    41  service law. A tax imposed pursuant to this section shall have  applica-
    42  tion  only  within the territorial limits of any such village, and shall
    43  be in addition to any and  all  other  taxes.  This  section  shall  not
    44  authorize  the  imposition  of  a  tax on any transaction originating or
    45  consummated outside of the  territorial  limits  of  any  such  village,
    46  notwithstanding  that  some act be necessarily performed with respect to
    47  such transaction within such limits.
    48    2. Revenues resulting from the imposition of taxes authorized by  this
    49  section  and article thirty-one-H of the tax law heretofore or hereafter
    50  imposed shall be paid to the treasurer of the village imposing the same,
    51  and shall be credited to and deposited to the  special  reserve  account
    52  established pursuant to subdivision three of this section.
    53    3.  A local law adopted pursuant to this section shall provide for the
    54  establishment and maintenance of a special reserve account  for  infras-
    55  tructure resiliency and sustainability initiatives. The purposes of such
    56  account  shall  be  to stabilize the annual real property tax burden and

        S. 8821                            10

     1  preserve the environment and  character  of  the  community  by  funding
     2  improvements  to  and  continuing  maintenance  of public water delivery
     3  systems,  wastewater  and  stormwater   systems,   and   other   coastal
     4  protections  and  providing incentives for sustainability and resiliency
     5  projects.
     6    § 3. Severability. If any provision of this  act  or  the  application
     7  thereof  shall  for  any  reason  be  adjudged by any court of competent
     8  jurisdiction to be invalid, such judgment shall not affect,  impair,  or
     9  invalidate the remainder of this act, but shall be confined in its oper-
    10  ation  to  the provision thereof directly involved in the controversy in
    11  which such judgment shall have been rendered.
    12    § 4. This act shall take effect immediately and shall expire ten years
    13  after it shall have become a law.
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