NYS Tax Law Amendments

    Section 1. Subdivision (a) of section 1402 of the tax law, as amended by chapter 170 of the laws of 1994, is amended to read as follows: (a) A tax is hereby imposed on each conveyance of real property or interest therein when the consideration exceeds five hundred dollars, at the rate of two dollars for each five hundred dollars or fractional part thereof; provided, however, that with respect to (A) a conveyance of a one, two or three-family house and an individual residential condominium unit, or interests therein; and (B) conveyances where the consideration is less than five hundred thousand dollars, the consideration for the interest conveyed shall exclude the value of any lien or encumbrance remaining thereon at the time of conveyance. The rate of this tax shall be: (1) two dollars for each five hundred dollars or fractional part thereof on all conveyances of real property or interest therein; plus (2) an additional one dollar and twenty-five cents for each five hundred dollars or fractional part thereof of consideration on each conveyance of real property or interest therein within any city in this state having a population of one million or more (i) when the consideration for the entire conveyance of residential real property is three million dollars or more, and (ii) when the consideration for the entire convey- ance of any other property is two million dollars or more. For purposes of this section, residential real property shall include any premises that is or may be used in whole or in part as a personal residence, and shall include a one, two, or three-family house, an individual condomin- ium unit, or a cooperative apartment unit. § 2. Subdivision (b) of section 1402-a of the tax law, as added by chapter 61 of the laws of 1989, is amended to read as follows: S. 1509–C 154 A. 2009–C (b) Notwithstanding the provisions of subdivision (a) of section four- teen hundred four of this article, the additional tax imposed by this section shall be paid by the grantee. If the grantee has failed to pay the tax imposed by this article at the time required by section fourteen hundred ten of this article or if the grantee is exempt from such tax, the grantor shall have the duty to pay the tax. Where the grantor has the duty to pay the tax because the grantee has failed to pay, such tax shall be the joint and several liability of the grantor and the grantee. § 3. The tax law is amended by adding a new section 1402-b to read as follows:

§ 1402-b. Supplemental tax in cities having a population of one million or more. (a) In addition to the taxes imposed by sections four- teen hundred two and fourteen hundred two-a of this article, a tax is hereby imposed on each conveyance of residential real property or inter- est therein within any city in this state having a population of one million or more when the consideration for the conveyance is two million dollars or more. For purposes of this section, residential real property shall include any premises that is or may be used in whole or in part as a personal residence, and shall include a one, two, or three-family house, an individual condominium unit, or a cooperative apartment unit. Such tax shall be paid at the same time and in the same manner as the taxes imposed by sections fourteen hundred two and fourteen hundred two-a of this article. The rate of such tax shall be: (1) one-quarter of one percent of the consideration or part thereof attributable to the residential real property when such consideration for the entire conveyance is at least two million dollars but less than three million dollars; (2) one-half of one percent of the consideration or part thereof attributable to the residential real property when such consideration for the entire conveyance is at least three million dollars but less than five million dollars; (3) one and one-quarter percent of the consideration or part thereof attributable to the residential real property when such consideration for the entire conveyance is at least five million dollars but less than ten million dollars; (4) two and one-quarter percent of the consideration or part thereof attributable to the residential real property when such consideration for the entire conveyance is at least ten million dollars but less than fifteen million dollars; (5) two and one-half percent of the consideration or part thereof attributable to the residential real property when such consideration for the entire conveyance is at least fifteen million dollars but less than twenty million dollars; (6) two and three-quarters percent of the consideration or part there- of attributable to the residential real property when such consideration for the entire conveyance is at least twenty million dollars but less than twenty-five million dollars; and (7) two and nine-tenths percent of the consideration or part thereof attributable to the residential real property when such consideration for the entire conveyance is at least twenty-five million dollars. (b) Notwithstanding the provisions of subdivision (a) of section four- teen hundred four of this article, the tax imposed by this section shall be paid by the grantee. If the grantee has failed to pay the tax imposed by this article at the time required by section fourteen hundred ten of this article or if the grantee is exempt from such tax, the grantor S. 1509–C 155 A. 2009–C shall have the duty to pay the tax. Where the grantor has the duty to pay the tax because the grantee has failed to pay, such tax shall be the joint and several liability of the grantor and the grantee. (c) Except as otherwise provided in this section, all the provisions of this article relating to or applicable to the administration, collection, determination and distribution of the tax imposed by section fourteen hundred two of this article shall apply to the tax imposed under the authority of this section with such modifications as may be necessary to adapt such language to the tax so authorized. Such provisions shall apply with the same force and effect as if those provisions had been set forth in this section except to the extent that any provision is either inconsistent with a provision of this section or not relevant to the tax authorized by this section. § 4. Section 1421 of the tax law, as amended by chapter 99 of the laws of 2010, is amended to read as follows:

§ 1421. Deposit and dispositions of revenues. (a) From the taxes, interest and penalties attributable to the tax imposed pursuant to section fourteen hundred two of this article, the amount of one hundred ninety-nine million three hundred thousand dollars shall be deposited by the comptroller in the environmental protection fund established pursu- ant to section ninety-two-s of the state finance law for the fiscal year beginning April first, two thousand nine; the amount of one hundred nineteen million one hundred thousand dollars shall be deposited in such fund for the fiscal year beginning April first, two thousand ten; and for each fiscal year thereafter. On or before June twelfth, nineteen hundred ninety-five and on or before the twelfth day of each month ther- eafter (excepting the first and second months of each fiscal year), the comptroller shall deposit into such fund from the taxes, interest and penalties collected pursuant to such section fourteen hundred two of this article which have been deposited and remain to the comptroller’s credit in the banks, banking houses or trust companies referred to in section one hundred seventy-one-a of this chapter at the close of busi- ness on the last day of the preceding month, an amount equal to one- tenth of the annual amount required to be deposited in such fund pursu- ant to this section for the fiscal year in which such deposit is required to be made. In the event such amount of taxes, interest and penalties so remaining to the comptroller’s credit is less than the amount required to be deposited in such fund by the comptroller, an amount equal to the shortfall shall be deposited in such fund by the comptroller with subsequent deposits, as soon as the revenue is avail- able. Beginning April first, nineteen hundred ninety-seven, the comp- troller shall transfer monthly to the clean water/clean air fund estab- lished pursuant to section ninety-seven-bbb of the state finance law, all moneys remaining from such taxes, interest and penalties collected that are not required for deposit in the environmental protection fund. (b) Notwithstanding subdivision (a) of this section, the taxes, inter- est and penalties attributable to (i) the tax imposed under section fourteen hundred two of this article at the rate specified in paragraph two of subdivision (a) of such section, and (ii) the tax imposed under section fourteen hundred two-b of this article, and collected or received by the commissioner shall be deposited daily with such respon- sible banks, banking houses or trust companies, as may be designated by the comptroller, to the credit of the comptroller in trust for the metropolitan transportation authority. An account may be established in one or more of such depositories. Such deposits will be kept separate and apart from all other money in the possession of the comptroller. The     156

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comptroller shall require adequate security from all such depositories. Of the total revenue collected or received under this article, the comp- troller shall retain such amount as the commissioner may determine to be necessary for refunds under this article. On or before the twelfth and twenty-sixth day of each succeeding month, after reserving such amount for such refunds, the commissioner shall certify to the comptroller the amount of all revenues so received during the prior month as a result of the taxes, interest and penalties so imposed. The amount of revenues so certified shall be paid over by the fifteenth and the final business day of each succeeding month from such account without appropriation into the central business district tolling capital lockbox fund established pursuant to section five hundred fifty-three-j of the public authorities law, provided, however, that the comptroller shall ensure that any payments to the central business district tolling capital lockbox fund established that are due to be paid by the final business day in the month of December pursuant to this subdivision shall be received by the central business district tolling capital lockbox fund on the same busi- ness day in which it is paid.

§ 5. This act shall take effect July 1, 2019, and shall apply to conveyances occurring on or after such date other than conveyances which are made pursuant to binding written contracts entered into on or before April 1, 2019, provided that the date of execution of such contract is confirmed by independent evidence, such as the recording of the contract, payment of a deposit or other facts and circumstances as determined by the commissioner of taxation and finance.