N.Y. Comp. Codes R. & Regs. tit. 20 § 575.9

Current through Register Vol. 46, No. 25, June 18, 2024

Section 575.9 - Exemptions and non-taxable transactions

Tax Law, § 1405

(a) Certain governmental organizations or entities are exempt from the payment of the real estate transfer tax. In addition, there are certain types of transactions to which this tax does not apply.

(b) The exemption for certain governmental organizations or entities does not extend to the grantee: that is, if the exempt governmental entity conveys title to real property to a nonexempt individual or entity, there will be a tax due which is payable by the grantee. The exemption for governmental organizations or entities includes the following:

(1) the State of New York, or any of its agencies, instrumentalities, political subdivisions, or public corporations including a public corporation created pursuant to agreement or compact with another state or the Dominion of Canada. A public corporation includes a public benefit corporation such as the Urban Development Corporation. (For a full definition of public corporation, see section 66 of the General Construction Law);

(2) the United Nations; and

(3) the United States of America and any of its agencies or instrumentalities.

(c) In addition to the exemptions described in subdivision (b) of this section, certain transactions are not subject to the real estate transfer tax. These include:

(1) conveyances to any of the governmental organizations or entities described in subdivision (b) of this section, including any instrumentality or agency of the United Nations;

(2) conveyances which are or were used to secure a debt or other obligation;

(3) conveyances which, without additional consideration, confirm, correct, modify or supplement a prior conveyance;

(4) conveyances without consideration and otherwise than in connection with a sale, including conveyances by bona fide gift;

(5) conveyances given in connection with a tax sale;

(6) conveyances to effectuate a mere chance of identity or form of ownership or organization where there is no change in beneficial ownership, other than conveyances to a cooperative housing corporation of the real property comprising the cooperative dwelling or dwellings. Examples of such conveyances are set out at section 575.10 of this Part:

(7) conveyances which consist of a deed of partition;

(8) conveyances given pursuant to the Federal Bankruptcy Act;

(9) conveyances which consist of the execution of a contract to sell real property without the use or occupancy of such property, or the granting of an option to purchase real property without the use or occupancy of such property; and

(10) conveyances of an option or contract to purchase real property which include the right to use or occupy such property where:

(i) the consideration is less than $200,000; and

(ii) such property or at least one unit of a two- or three-family house was used solely as the grantor's personal residence; and

(iii) the real property consists of a one-, two- or three-family house, an individual residential condominium unit or the sale of stock in a cooperative housing corporation in connection with the grant or transfer of a proprietary leasehold covering an individual residential cooperative unit.

N.Y. Comp. Codes R. & Regs. Tit. 20 § 575.9