2012 New York Consolidated Laws
TAX - Tax
Article 31 - (1400 - 1421) REAL ESTATE TRANSFER TAX
1401 - Definitions.

 
    §  1401.  Definitions.  When  used  in  this article, unless otherwise
  expressly stated:
    (a) "Person"  means  an  individual,  partnership,  limited  liability
  company, society, association, joint stock company, corporation, estate,
  receiver,  trustee,  assignee,  referee  or any other person acting in a
  fiduciary or representative capacity, whether appointed by  a  court  or
  otherwise,  any  combination  of  individuals,  and  any  other  form of
  unincorporated enterprise owned or conducted by two or more persons.
    (b) "Controlling interest" means (i) in the  case  of  a  corporation,
  either  fifty  percent or more of the total combined voting power of all
  classes of stock of such corporation, or fifty percent or  more  of  the
  capital,  profits  or  beneficial  interest in such voting stock of such
  corporation, and (ii) in the case of a partnership,  association,  trust
  or  other  entity,  fifty  percent  or  more  of the capital, profits or
  beneficial interest in such partnership,  association,  trust  or  other
  entity.
    (c)  "Real  property" means every estate or right, legal or equitable,
  present  or  future,  vested  or  contingent,  in  lands,  tenements  or
  hereditaments,  including  buildings,  structures and other improvements
  thereon, which are located in whole or in part within the state  of  New
  York.  It shall not include rights to sepulture.
    (d)  "Consideration"  means  the price actually paid or required to be
  paid for the real property or interest therein, including payment for an
  option or contract to purchase real property, whether or  not  expressed
  in  the deed and whether paid or required to be paid by money, property,
  or any other thing of  value.  It  shall  include  the  cancellation  or
  discharge  of  an  indebtedness or obligation. It shall also include the
  amount  of  any  mortgage,  purchase  money  mortgage,  lien  or   other
  encumbrance,  whether  or  not the underlying indebtedness is assumed or
  taken subject to.
    (i) In the case of a creation of a leasehold interest or the  granting
  of  an  option  with  use  and occupancy of real property, consideration
  shall include but not be limited to the value of the  rental  and  other
  payments  attributable  to the use and occupancy of the real property or
  interest therein, the value of any amount paid for an option to purchase
  or renew and the value of rental or other payments attributable  to  the
  exercise of any option to renew.
    (ii)   In   the  case  of  a  creation  of  a  subleasehold  interest,
  consideration shall include but not be  limited  to  the  value  of  the
  sublease  rental  payments  attributable to the use and occupancy of the
  real property, the value of any amount paid for an option to  renew  and
  the  value  of  rental or other payments attributable to the exercise of
  any option to renew less the value of the remaining prime  lease  rental
  payments required to be made.
    (iii)  In  the  case of a controlling interest in any entity that owns
  real property, consideration shall mean the fair  market  value  of  the
  real  property  or interest therein, apportioned based on the percentage
  of the ownership interest transferred or acquired in the entity.
    (iv) In the case of an assignment or surrender of a leasehold interest
  or the assignment or surrender of an option or contract to purchase real
  property, consideration shall not include the  value  of  the  remaining
  rental  payments required to be made pursuant to the terms of such lease
  or the amount to be paid for the real property pursuant to the terms  of
  the option or contract being assigned or surrendered.
    (v) In the case of (i) the original conveyance of shares of stock in a
  cooperative housing corporation in connection with the grant or transfer
  of a proprietary leasehold by the cooperative corporation or cooperative
  plan  sponsor and (ii) the subsequent conveyance by the owner thereof of

  such stock in a cooperative housing corporation in connection  with  the
  grant  or  transfer  of  a  proprietary leasehold for a cooperative unit
  other than an individual residential unit, consideration shall include a
  proportionate  share of the unpaid principal of any mortgage on the real
  property  of  the  cooperative  housing   corporation   comprising   the
  cooperative  dwelling  or  dwellings.  Such share shall be determined by
  multiplying the total unpaid principal of the mortgage  by  a  fraction,
  the  numerator  of  which  shall  be the number of shares of stock being
  conveyed in the cooperative housing corporation in connection  with  the
  grant  or  transfer  of  a  proprietary leasehold and the denominator of
  which shall be the total number of shares of stock  in  the  cooperative
  housing corporation.
    (e)  "Conveyance"  means  the transfer or transfers of any interest in
  real property  by  any  method,  including  but  not  limited  to  sale,
  exchange,  assignment, surrender, mortgage foreclosure, transfer in lieu
  of foreclosure, option,  trust  indenture,  taking  by  eminent  domain,
  conveyance upon liquidation or by a receiver, or transfer or acquisition
  of  a  controlling  interest  in  any  entity  with  an interest in real
  property. Transfer of an interest in real  property  shall  include  the
  creation  of  a leasehold or sublease only where (i) the sum of the term
  of the lease or sublease and any options for renewal exceeds  forty-nine
  years,  (ii)  substantial  capital improvements are or may be made by or
  for the benefit of the lessee or  sublessee,  and  (iii)  the  lease  or
  sublease  is for substantially all of the premises constituting the real
  property. Notwithstanding the foregoing,  conveyance  of  real  property
  shall   not   include  a  conveyance  pursuant  to  devise,  bequest  or
  inheritance;   the   creation,   modification,   extension,   spreading,
  severance,  consolidation, assignment, transfer, release or satisfaction
  of a mortgage; a mortgage subordination agreement, a mortgage  severance
  agreement,  an  instrument  given  to  perfect  or  correct  a  recorded
  mortgage; or a release of lien of tax pursuant to this  chapter  or  the
  internal revenue code.
    (f) "Interest in the real property" includes title in fee, a leasehold
  interest, a beneficial interest, an encumbrance, development rights, air
  space  and  air  rights,  or any other interest with the right to use or
  occupancy of real property or the right to  receive  rents,  profits  or
  other income derived from real property. It shall also include an option
  or  contract  to purchase real property. It shall not include a right of
  first refusal to purchase real property.
    (g) "Grantor" means the person making the conveyance of real  property
  or  interest  therein. Where the conveyance consists of a transfer or an
  acquisition of a controlling interest in an entity with an  interest  in
  real  property,  "grantor"  means  the  entity  with an interest in real
  property or a shareholder or partner transferring stock  or  partnership
  interest, respectively.
    (h)  "Grantee"  means the person who obtains real property or interest
  therein as a result of a conveyance.
    (i) "Recording officer" means the county clerk of the  county,  except
  in  a  county  having  a  register,  where  it means the register of the
  county, or in the city of New York where it means the city register.