Section 11-2101
§ 11-2101 Definitions. When used in this chapter the following terms
shall mean or include:
1. "Person." An individual, partnership, 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.
2. "Deed." Any document or writing (other than a will), regardless of
where made, executed or delivered, whereby any real property or interest
therein is created, vested, granted, bargained, sold, transferred,
assigned or otherwise conveyed, including any such document or writing
whereby any leasehold interest in real property is granted, assigned or
surrendered.
3. "Instrument." Any document or writing (other than a deed or a
will), regardless of where made, executed or delivered, whereby any
econonic interest in real property is transferred.
4. "Transaction." Any act or acts, regardless of where performed, and
whether or not reduced to writing, unless evidenced by a deed or
instrument, whereby any economic interest in real property is
transferred (other than a transfer pursuant to the laws of intestate
succession).
5. "Real property." Every estate or right, legal or equitable, present
or future, vested or contingent, in lands, tenements or hereditaments,
which are located in whole or in part within the city of New York. It
shall not include a mortgage, a release of mortgage or, for purposes of
paragraph three and subparagraphs (ii) and (iii) of paragraph seven of
subdivision a of section 11-2102 of this chapter, a leasehold interest
in a one, two or three-family house or an individual dwelling unit in a
dwelling which is to be occupied or is occupied as the residence or home
of four or more families living independently of each other. It shall
not include rights to sepulture.
6. "Economic interest in real property." The ownership of shares of
stock in a corporation which owns real property; the ownership of an
interest or interests in a partnership, association or other
unincorporated entity which owns real property; and the ownership of a
beneficial interest or interests in a trust which owns real property.
7. "Transfer" or "transferred." When used in relation to an economic
interest in real property, the terms "transfer" or "transferred" shall
include the transfer or transfers or issuance of shares of stock in a
corporation, interest or interests in a partnership, association or
other unincorporated entity, or beneficial interest in a trust, whether
made by one or several persons, or in one or several related
transactions, which shares of stock or interest or interests constitute
a controlling interest in such corporation, partnership, association,
trust or other entity.
8. "Controlling interest." In the case of a corporation, 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 total fair market
value of all classes of stock of such corporation; and, 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.
9. "Consideration." The price actually paid or required to be paid for
the real property or economic interest therein, without deduction for
mortgages, liens or encumbrances, whether or not expressed in the deed
or instrument 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, lien or other encumbrance, whether or not the
underlying indebtedness is assumed.
10. "Net consideration." Any consideration, exclusive of any mortgage
or other lien or encumbrance on the real property or interest therein
which existed before the delivery of the deed and remains thereon after
the delivery of the deed.
11. "Comptroller." The comptroller of the city of New York.
12. "Commissioner of finance." The commissioner of finance of the city
of New York.
13. "City." The city of New York.
14. "Grantor." The person or persons making, executing or delivering
the deed. The term "grantor" also includes the entity with an interest
in real property or the person or persons who transfer an economic
interest in real property.
15. "Grantee." The person or persons accepting the deed or who obtain
any of the real property which is the subject of the deed or any
interest therein. The term "grantee" also includes the person or persons
to whom an economic interest in real property is transferred.
16. "Affixed." Includes attached or annexed by adhesion, stapling or
otherwise, or a notation by stamp, imprint or writing. 17. "Register."
Includes the city register and the county clerk of the county of
Richmond.
18. "Tax appeals tribunal." The tax appeals tribunal established by
section one hundred sixty-eight of the charter.
Section 11-2102
§ 11-2102 Imposition of tax. a. A tax is hereby imposed on each deed
at the time of delivery by a grantor to a grantee when the consideration
for the real property and any improvement thereon (whether or not
included in the same deed) exceeds twenty-five thousand dollars. The tax
shall be:
(1) at the rate of one-half of one per centum of the net consideration
with respect to conveyances made before July first, nineteen hundred
seventy-one, or made in performance of a contract therefor executed
before such date;
(2) at the rate of one percent of such net consideration with respect
to
(i) all conveyance made on or after July first, nineteen hundred
seventy-one and before February first, nineteen hundred eighty-two, or
made in performance of a contract therefor executed during such period;
(ii) conveyances made on or after February first, nineteen hundred
eighty-two and before July first, nineteen hundred eighty-two of one,
two or three-family houses and individual residential condominium units,
and
(iii) conveyances made on or after February first, nineteen hundred
eighty-two and before July first, nineteen hundred eighty-two where the
consideration is less than five hundred thousand dollars (other than
grants, assignments or surrenders of leasehold interests in real
property taxable under paragraph three of this subdivision);
(3) at the rate of one percent of the consideration with respect to
grants, assignments or surrenders of leasehold interests in real
property made on or after February first, nineteen hundred eighty-two
and before July first, nineteen hundred eighty-two where the
consideration is five hundred thousand dollars or more, provided
however, that for purposes of this paragraph the amount subject to tax
in the case of a grant of a leasehold interest in real property shall be
only such amount as is not considered rent for purposes of the tax
imposed by chapter seven of this title;
(4) at the rate of two percent of the consideration with respect to
all other conveyances made on or after February first, nineteen hundred
eighty-two and before July first, nineteen hundred eighty-two, except
that, for purposes of this paragraph, where the consideration includes
the amount of any mortgage or other lien or encumbrance on the real
property or interest therein which existed before the delivery of the
deed and remains thereon after the delivery of the deed, the portion of
the consideration ascribable to such mortgage, lien or encumbrance shall
be taxed at the rate of one percent, and only the balance of such
consideration shall be taxed at the rate of two percent;
(5) at the rate of one percent of the consideration with respect to
conveyances made on or after July first, nineteen hundred eighty-two and
before August first, nineteen hundred eighty-nine of one, two or
three-family houses and individual residential condominium units;
(6) at the rate of one percent of the consideration with respect to
conveyances made on or after July first, nineteen hundred eighty-two and
before August first, nineteen hundred eighty-nine where the
consideration is less than five hundred thousand dollars (other than
grants, assignments or surrenders of leasehold interests in real
property taxable as hereafter provided);
(7) (i) at the rate of one percent of the consideration with respect
to a grant, assignment or surrender, made on or after July first,
nineteen hundred eighty-two and before August first, nineteen hundred
eighty-nine, of a leasehold interest in a one, two or three-family house
or an individual dwelling unit in a dwelling which is to be occupied or
is occupied as the residence or home of four or more families living
independently of each other,
(ii) at the rate of one percent of the consideration with respect to
grants, assignments or surrenders of leasehold interests in real
property made on or after July first, nineteen hundred eighty-two and
before August first, nineteen hundred eighty-nine where the
consideration is less than five hundred thousand dollars, or
(iii) at the rate of two percent of the consideration with respect to
grants, assignments or surrenders of leasehold interests in real
property made on or after July first, nineteen hundred eighty-two and
before August first, nineteen hundred eighty-nine where the
consideration is five hundred thousand dollars or more;
(iv) provided, however, that for purposes of subparagraphs (i), (ii)
and (iii) of this paragraph, the amount subject to tax in the case of a
grant of a leasehold interest shall be only such amount as is not
considered rent for purposes of the tax imposed by chapter seven of this
title; and
(8) at the rate of two percent of the consideration with respect to
all other conveyances made on or after July first, nineteen hundred
eighty-two and before August first, nineteen hundred eighty-nine;
(9) with respect to conveyances made on or after August first,
nineteen hundred eighty-nine (other than grants, assignments or
surrenders of leasehold interests in real property taxable as provided
in paragraph ten of this subdivision), the tax shall be at the following
rates:
(i) at the rate of one percent of the consideration for conveyances of
one, two or three-family houses and individual residential condominium
units where the consideration is five hundred thousand dollars or less,
and at the rate of one and four hundred twenty-five thousandths of one
percent of the consideration for such conveyances where the
consideration is more than five hundred thousand dollars, and
(ii) at the rate of one and four hundred twenty-five thousandths of
one percent of the consideration with respect to all other conveyances
where the consideration is five hundred thousand dollars or less, and at
the rate of two and six hundred twenty-five thousandths of one percent
where the consideration for such conveyances is more than five hundred
thousand dollars;
(10) With respect to a grant, assignment or surrender of a leasehold
interest in real property made on or after August first, nineteen
hundred eighty-nine, the tax shall be at the following rates:
(i) at the rate of one percent of the consideration for the granting,
assignment or surrender of a leasehold interest in a one, two or
three-family house or an individual dwelling unit in a dwelling which is
to be occupied or is occupied as the residence or home of four or more
families living independently of each other where the consideration is
five hundred thousand dollars or less, and at the rate of one and four
hundred twenty-five thousandths of one percent of the consideration
where the consideration for granting, assignment or surrender or such
leasehold interest is more than five hundred thousand dollars, and
(ii) at the rate of one and four hundred twenty-five thousandths of
one percent of the consideration for the granting, assignment or
surrender of a leasehold interest in all other real property where the
consideration is five hundred thousand dollars or less, and at the rate
of two and six hundred twenty-five thousandths of one percent of the
consideration where the consideration for the granting, assignment or
surrender of such a leasehold interest is more than five hundred
thousand dollars;
(iii) provided, however, that for purposes of subparagraphs (i) and
(ii) of this paragraph, the amount subject to tax in the case of a grant
of a leasehold interest shall be only such amount as is not considered
rent for purposes of the tax imposed by chapter seven of this title.
Where any real property is situated partly within and partly without
the boundaries of the city of New York the consideration and net
consideration subject to tax shall be such part of the total
consideration and total net consideration attributable to that portion
of such real property situated within the city of New York or to the
interest in such portion.
b. (1) In addition to the taxes imposed by subdivision a, there is
hereby imposed a tax on each instrument or transaction (unless evidenced
by a deed subject to tax under subdivision a), at the time of the
transfer, whereby any economic interest in real property is transferred
by a grantor to a grantee, where the consideration exceeds twenty-five
thousand dollars.
(A) With respect to such transfers made on or after July thirteenth,
nineteen hundred eighty-six and before August first, nineteen hundred
eighty-nine, the tax shall be (i) at the rate of one percent of the
consideration where the real property the economic interest in which is
transferred is a one, two or three-family house, an individual
cooperative apartment, an individual residential condominium unit or an
individual dwelling unit in a dwelling which is to be occupied or is
occupied as the residence or home of four or more families living
independently of each other, or where the consideration for the transfer
is less than five hundred thousand dollars, and (ii) at the rate of two
percent of the consideration with respect to all other transfers.
(B) With respect to such transfers made on or after August first,
nineteen hundred eighty-nine, the tax shall be at the following rates:
(i) at the rate of one percent of the consideration where the real
property, the economic interest in which is transferred, is a one, two
or three-family house, an individual cooperative apartment, an
individual residential condominium unit or an individual dwelling unit
in a dwelling which is to be occupied or is occupied as the residence or
home of four or more families living independently of each other and
where the consideration for such transfer of an economic interest in
such real property is five hundred thousand dollars or less, and at the
rate of one and four hundred twenty-five thousandths of one percent of
the consideration where the consideration for such transfer of an
economic interest in such property is more than five hundred thousand
dollars, and
(ii) at the rate of one and four hundred twenty-five thousandths of
one percent of the consideration with respect to all other transfers of
an economic interest in real property where the consideration is five
hundred thousand dollars or less, and at the rate of two and six hundred
twenty-five thousandths of one percent of the consideration where the
consideration for such transfers is more than five hundred thousand
dollars.
(C) Where any real property, the economic interest in which is
transferred, is situated partly within and partly without the boundaries
of the city of New York, the consideration subject to tax shall be such
part of the consideration as is attributable to that portion of such
real property which is situated within the city of New York.
(2) Notwithstanding the definition of "controlling interest" contained
in subdivision eight of section 11-2101 or anything to the contrary
contained in subdivision seven of that section, in the case of any
transfer of shares of stock in a cooperative housing corporation in
connection with the grant or transfer of a proprietary leasehold, the
tax imposed by this subdivision shall apply to (i) the original transfer
of such shares of stock by the cooperative corporation or cooperative
plan sponsor, and (ii) any subsequent transfer of such shares of stock
by the owner thereof. Notwithstanding any provision of this chapter to
the contrary, in the case of a transfer described in clause (ii) of this
paragraph which relates to an individual residential unit, the
consideration for such transfer shall not include any portion of the
unpaid principal of any mortgage on the real property of the cooperative
housing corporation. In determining the tax on a transfer described in
clause (i) of this paragraph, a credit shall be allowed for a
proportionate part of the amount of any tax paid upon the conveyance to
the cooperative housing corporation of the land and building or
buildings comprising the cooperative dwelling or dwellings. Such
proportionate part shall be the amount determined by multiplying the
amount of tax paid upon the conveyance to the cooperative housing
corporation by a fraction, the numerator of which shall be the number of
shares of stock transferred in a transaction described in clause (i) and
the denominator of which shall be the total number of outstanding shares
of stock of the cooperative housing corporation (including any stock
held by the corporation). In no event, however, shall such credit reduce
the tax on a transfer described in clause (i) below zero, nor shall any
such credit be allowed for any tax paid more than twenty-four months
prior to the date on which occurs the first in a series of transfers of
shares of stock in an offering of cooperative housing corporation shares
described in clause (i). For purposes of this paragraph, the term
"cooperative housing corporation" shall not include a housing company
organized and operating pursuant to the provisions of article two, four,
five or eleven of the private housing finance law.
(3) Notwithstanding the definition of "controlling interest" contained
in paragraph eight of section 11-2101 or anything to the contrary
contained in paragraph seven of that section, in the case of a
corporation (other than a cooperative housing corporation), partnership,
association, trust or other entity formed for the purpose of cooperative
ownership of real property, the tax imposed by this subdivision shall
apply to each transfer of shares of stock in such corporation, interest
in such partnership, association or other entity or beneficial interest
in such trust, in connection with the grant or transfer of a proprietary
leasehold. Notwithstanding any provision of this chapter to the
contrary, in the case of a transfer described in this paragraph which
relates to an individual residential unit (other than the original
transfer of such a unit by the cooperative entity or cooperative plan
sponsor), the consideration for such transfer shall not include any
portion of the unpaid principal of any mortgage on the real property of
such corporation, partnership, association, trust or other entity.
Notwithstanding any other provision of law to the contrary, all revenues
arising from the tax imposed pursuant to this paragraph shall be
credited to and deposited in the general fund of the city, but no part
of such revenues may be expended unless appropriated in the annual
budget of the city.
c. (1) Anything to the contrary notwithstanding, in the case of any
conveyance or transfer of real property or any economic interest therein
in complete or partial liquidation of a corporation, partnership,
association, trust or other entity, the taxes imposed by this section
shall be measured by (i) the consideration for such conveyance or
transfer, or (ii) the value of the real property or economic interest
therein, whichever is greater.
(2) If, within twenty-four months following the transfer of an
economic interest in real property which is subject to the tax imposed
by this chapter, the corporation, partnership, association, trust or
other entity owning the real property the economic interest in which was
so transferred, is liquidated, and such real property is conveyed to the
grantee or grantees of such economic interest, a credit shall be allowed
against the tax imposed by this chapter upon such conveyance in
liquidation to such grantee or grantees. The amount of such credit shall
be equal to the amount of the tax paid upon the prior transfer of the
economic interest in such real property, but shall in no event be
greater than the tax payable upon the conveyance in liquidation.
d. In the case of a transfer of an economic interest in any entity
that owns assets in addition to real property or interest therein, the
consideration subject to tax shall be deemed equal to the fair market
value of the real property or interest therein apportioned based on the
percentage of the ownership interest in the entity transferred.
e. (1) Notwithstanding anything contained in this section, the tax
imposed under subdivisions a and b on any deed or other instrument or
transaction conveying or transferring real property or an economic
interest therein, that qualifies as a real estate investment trust
transfer, as defined below, shall be imposed at a rate equal to fifty
percent of the otherwise applicable rate.
(2) For purposes of this subdivision e, a real estate investment trust
transfer shall mean (A) any deed or other instrument or transaction
conveying or transferring real property or an economic interest therein
to a real estate investment trust as defined in section eight hundred
fifty-six of the internal revenue code (a "REIT") or to a partnership or
corporation in which a REIT owns a controlling interest immediately
following the transaction; and
(B) any issuance or transfer of an interest in a REIT, or in a
partnership or corporation in which a REIT owns a controlling interest
immediately following the issuance or transfer in connection with a
transaction described in subparagraph (A) of this paragraph.
Notwithstanding the foregoing, a transaction described in the preceding
sentence shall not constitute a real estate investment trust transfer
unless (i) it occurs in connection with the initial formation of the
REIT and the conditions described in subparagraphs (C) and (D) of this
paragraph are satisfied, or (ii) in the case of any real estate
investment trust transfer occurring on or after July thirteenth,
nineteen hundred ninety-six and before September first, two thousand
fourteen, the transaction is described in subparagraph (E) of this
paragraph in which case the provision of such subparagraph shall apply.
(C) The value of the ownership interests in the REIT, or in a
partnership or corporation in which the REIT owns a controlling
interest, received by the grantor as consideration for such conveyance
or transfer must be equal to an amount not less than forty percent of
the value of the equity interest in the real property or economic
interest therein conveyed or transferred by the grantor to the grantee
and such ownership interests must be retained by the grantor or owners
of the grantor for a period of not less than two years following the
date of such conveyance or transfer; provided, however, that in the case
of the death of the grantor or an owner of the grantor within such two
year period, this two year retention requirement shall be deemed to be
satisfied notwithstanding any conveyance or transfer of such ownership
interests held by such individual as a result of such death. The value
of the equity interest in such real property or economic interest
therein shall be computed by subtracting from the consideration for the
conveyance or transfer of the real property or economic interest therein
the unpaid balance of any loans secured by mortgages or other
encumbrances which are liens on the real property or economic interest
therein immediately before the conveyance or transfer. For purposes of
this computation, in the case of a conveyance or transfer of real
property other than a conveyance or transfer of an economic interest in
real property, the amount of the unpaid balance of any loans secured by
mortgages or other encumbrances to be subtracted from consideration is
determined by multiplying the total unpaid balance of any loans secured
by mortgages or other encumbrances on the real property by the
percentage of the ownership interest in the real property being conveyed
or transferred to the grantee. In the case of a transfer of an economic
interest in real property, such amount to be subtracted is equal to the
sum of the following amounts: (i) a reasonable apportionment to the
interests in real property owned by the entity of the amount of any
loans secured by encumbrances on the ownership interests in the entity
which are being conveyed or transferred and (ii) the amount of any loans
secured by mortgages or other encumbrances on the real property of the
entity multiplied by the percentage interest in the entity which is
being conveyed or transferred.
Provided, however, that for purposes of the computation made pursuant
to this subparagraph (C), any mortgages or other encumbrances on the
real property or economic interest therein which are created in
contemplation of the initial formation of the REIT or in contemplation
of the conveyance or transfer of such real property or economic interest
therein to the REIT or to a partnership or corporation in which the REIT
owns a controlling interest immediately following the conveyance or
transfer shall not be considered.
(D) Seventy-five percent or more of the cash proceeds received by such
REIT from the sale of ownership interests in such REIT upon its initial
formation must be used: (i) to make payments on loans secured by any
interest in real property (including an ownership interest in an entity
owning real property) which is owned directly or indirectly by such
REIT; (ii) to pay for capital improvements to real property or any
interest therein owned directly or indirectly by such REIT; (iii) to pay
brokerage fees and commissions, professional fees and payments to or on
behalf of a tenant as an inducement to enter into a lease or sublease
incurred in connection with the creation of a leasehold or sublease
pertaining to real property or any interest therein owned directly or
indirectly by such REIT; (iv) to acquire any interest in real property
(including an ownership interest in any entity owning real property),
apart from any acquisition to which a reduced rate of tax is applicable
pursuant to this subdivision (without regard to this subparagraph); or
(v) for reserves established for any of the purposes described in clause
(i), (ii) or (iii) of this subparagraph. For purposes of this
subparagraph, the term real property shall include real property
wherever located.
(E) If a transaction otherwise described in subparagraph (A) or (B) of
this paragraph occurs other than in connection with the initial
formation of a REIT, the condition set forth in subparagraph (D) shall
be disregarded and such transaction shall constitute a "real estate
investment trust transfer" if the condition set forth in subparagraph
(C) would be satisfied if "fifty percent" is substituted for "forty
percent" therein.
(3) For purposes of determining the consideration for a real estate
investment trust transfer taxable under this subdivision e the value of
the real property or interest therein shall be equal to the estimated
market value as determined by the commissioner of finance for real
property tax purposes as reflected on the most recent notice of
assessment issued by such commissioner, or such other value as the
taxpayer may establish to the satisfaction of such commissioner.
(4) This subdivision e shall only apply to real estate investment
trust transfers occurring on or after the effective date of this
subdivision.
f. Notwithstanding any other provision of this chapter, in determining
the tax imposed by this chapter with respect to a deed, instrument or
transaction conveying or transferring a one, two or three-family house,
an individual residential condominium unit, an individual residential
cooperative apartment, or an interest therein, the consideration for
such conveyance or transfer shall exclude, to the extent otherwise
included therein, the amount of any mortgage or other lien or
encumbrance on the real property or interest therein that existed before
the delivery of the deed or the transfer and remains thereon after the
date of delivery of the deed or the transfer, other than any mortgage,
lien or encumbrance placed on the property or interest in connection
with, or in anticipation of, the conveyance or transfer, or by reason of
deferred payments of the purchase price whether represented by notes or
otherwise. Provided, however, that this subdivision shall not apply to a
conveyance or transfer (1) to a mortgagee, lienor or encumbrancer,
regardless of whether the grantor or transferor is or was personally
liable for the indebtedness secured by the mortgage, lien or encumbrance
or whether the mortgage, lien or encumbrance is canceled of record, or
(2) which qualifies as a "real estate investment trust transfer" as
defined in subdivision e of this section.
Section 11-2103
§ 11-2103 Presumptions and burden of proof. For the purpose of the
proper administration of this chapter and to prevent evasion of the tax
hereby imposed, it shall be presumed that all deeds and transfers of
economic interests in real property are taxable. Where the consideration
includes property other than money, it shall be presumed that the
consideration is the value of the real property or interest therein.
Such presumptions shall prevail until the contrary is established and
the burden of proving the contrary shall be on the taxpayer. The burden
of proving that a lien or encumbrance existed on the real property or
interest therein before the delivery of the deed and remained thereon
thereafter and the burden of proving the amount of such lien or
encumbrance at the time of the delivery of the deed shall be on the
taxpayer.
Section 11-2104
§ 11-2104 Payment. The tax imposed hereunder shall be paid by the
grantor to the commissioner of finance at the office of the register in
the county where the deed is or would be recorded within thirty days
after the delivery of the deed by the grantor to the grantee but before
the recording of such deed, or, in the case of a tax on the transfer of
an economic interest in real property, at such place as the commissioner
of finance shall designate, within thirty days after the transfer. The
grantee shall also be liable for the payment of such tax in the event
that the amount of tax due is not paid by the grantor or the grantor is
exempt from tax. All moneys received as such payments by the register
during the preceding month shall be transmitted to the commissioner of
finance on the first day of each month or on such other day as is
mutually agreeable to the commissioner of finance and the register. From
the moneys so received by him or her, the commissioner of finance shall
set said in a special account:
(1) the total amount of taxes imposed pursuant to the provisions of
paragraph three of subdivision a of section 11-2102 of this chapter
including any interest or penalties thereon;
(2) fifty percent of the total amount of taxes imposed pursuant to the
provisions of paragraph four of subdivision a of section 11-2102 of this
chapter, including fifty percent of any interest or penalties thereon,
provided, however, that where such tax is measured by the consideration
for a conveyance without deduction for the amount of any mortgage or
other lien or encumbrance on the real property or interest therein which
existed before the delivery of the deed and remains thereon after the
delivery of the deed, the entire amount of tax imposed at the rate of
one percent on the portion of the consideration ascribable to such
nondeductible mortgage, lien or other encumbrance, including any
interest or penalties thereon, and fifty percent of the tax on the
balance of the consideration, including fifty percent of any interest or
penalties thereon, shall be set aside in such special account;
(3) fifty percent of the total amount of taxes imposed pursuant to the
provisions of subparagraph (iii) of paragraph seven of subdivision a of
section 11-2102 of this chapter, including fifty percent of any interest
or penalties thereon;
(4) fifty percent of the total amount of taxes imposed pursuant to the
provisions of paragraph eight of subdivision a of section 11-2102 of
this chapter, including fifty percent of any interest or penalties
thereon;
(5) fifty percent of the total amount of taxes imposed at the rate of
two percent pursuant to the provisions of clause (ii) of subparagraph A
of paragraph one of subdivision b of section 11-2102 of this chapter
including fifty percent of any interest or penalties thereon;
(6) with respect to any conveyance of real property, transfer of an
economic interest therein, or any grant, assignment or surrender of a
leasehold interest in real property, made on or after August first,
nineteen hundred eighty-nine and taxable under this chapter, in each
instance where the tax rate is in excess of two percent, a portion of
the tax received equal to one percent of the consideration subject to
the tax plus any interest or penalty attributable to such portion of the
tax; and
(7) notwithstanding anything in subdivision six to the contrary, in
each instance where the tax rate imposed pursuant to subdivision e of
section 11-2102 of this chapter is in excess of one percent, a portion
of the tax received equal to one-half of one percent of the total
consideration for the real property or economic interest therein
conveyed or transferred, plus any interest or penalty attributable to
such portion of the tax.
Moneys in such account shall be used for payment by such commissioner
to the state comptroller for deposit in the urban mass transit operating
assistance account of the mass transportation operating assistance fund
of any amount of insufficiency certified by the state comptroller
pursuant to the provisions of subdivision six of section eight-eight-a
of the state finance law, and, on the fifteenth day of each month, the
commissioner of finance shall transmit all funds in such account on the
last day of the preceding month, except the amount required for the
payment of any amount of insufficiency certified by the state
comptroller and such amount as he or she deems necessary for refunds and
such other amounts necessary to finance the New York City transportation
disabled committee and the New York City paratransit system as
established by section fifteen-b of the transportation law, provided,
however, that such amounts shall not exceed six percent of the total
funds in the account but in no event be less than one hundred
seventy-five thousand dollars beginning April first, nineteen hundred
eighty-six, and further that beginning November fifteenth, nineteen
hundred eighty-four and during the entire period prior to operation of
such system, the total of such amounts shall not exceed three hundred
seventy-five thousand dollars for the administrative expenses of such
committee and fifty thousand dollars for the expenses of the agency
designated pursuant to paragraph b of subdivision five of such section,
and other amounts necessary to finance the operating needs of the
private bus companies franchised by the city of New York and eligible to
receive state operating assistance under section eighteen-b of the
transportation law, provided, however, that such amounts shall not
exceed four percent of the total funds in the account, to the New York
city transit authority for mass transit within the city.
Section 11-2105
§ 11-2105 Returns. a. A joint return shall be filed by both the
grantor and the grantee for each deed whether or not a tax is due
thereon. Such return shall be filed with the commissioner of finance
within thirty days after the delivery of the deed by the grantor to the
grantee but before the recording of such deed. The commissioner of
finance may, by rule, require that such returns be filed electronically.
Filing shall be accomplished by delivering the return to the register
for transmittal to the commissioner of finance or, where required by the
commissioner of finance, by electronic filing of the return in a manner
designated by the commissioner of finance. In the case of a transfer of
an economic interest in real property, a joint return shall be filed in
the above manner by both the grantor and the grantee for each instrument
or transaction by which such transfer is effected, whether or not a tax
is due thereon. Such return shall be filed with the commissioner of
finance, at such place and in such manner as he or she may designate
within thirty days after the transfer. The commissioner of finance shall
prescribe the form of the return and the information which it shall
contain. The return shall be signed by both the grantor or the grantor's
agent and the grantee or the grantee's agent. Where the commissioner of
finance requires electronic filing, the return shall be signed
electronically. Upon the filing of such return for a deed, evidence of
the filing shall be affixed to the deed by the register. The
commissioner of finance may provide for the use of stamps as evidence of
payment and that they shall be affixed to the deed before it is
recorded. Where either the grantor or grantee has failed to sign the
return, it shall be accepted as a return, but the party who has failed
to sign the return or file a separate return shall be subject to the
penalties applicable to a person who has failed to file a return and the
period of limitations for assessment of tax or of additional tax shall
not apply to such party. For good cause, the commissioner of finance may
waive any rule requiring electronic filing and may permit a return to be
filed in such other manner as the commissioner of finance may designate.
b. Returns shall be preserved for three years and thereafter until the
commissioner of finance permits them to be destroyed.
c. The commissioner of finance may require amended returns to be filed
within twenty days after notice and to contain the information specified
in the notice.
d. If a return required by this chapter is not filed or if a return
when filed is incorrect or insufficient on its face the commissioner of
finance shall take the necessary steps to enforce the filing of such a
return or of a corrected return.
e. Where a deed, or instrument or transaction has more than one
grantor or more than one grantee, the return may be signed by any one of
the grantors and by any one of the grantees, provided, however, that
those not signing shall not be relieved of any liability for the tax
imposed by this chapter.
f. The payment of, and the filing of returns relating to, the taxes
imposed hereunder, shall be required as a condition precedent to the
recording or filing of a deed, lease, assignment or surrender of lease
or other instrument effecting a conveyance or transfer subject to such
taxes.
* (g) Every cooperative housing corporation shall be required to file
an information return with the commissioner of finance as follows: such
information return shall be filed by February fifteenth of the year two
thousand and of each year thereafter, covering the reporting period
beginning on January sixth of the year preceding the filing and ending
on January fifth of the year of the filing. For reporting periods
beginning before January sixth, nineteen hundred ninety-nine, such
information return shall be filed by July fifteenth of each year
covering the preceding period of January first through June thirtieth
and by January fifteenth of each year covering the preceding period of
July first through December thirty-first provided, however, that for the
reporting period from January first through June thirtieth, nineteen
hundred eighty-nine, such information return shall be filed by July
thirty-first, nineteen hundred eighty-nine. The return shall contain
such information regarding the transfer of shares of stock in the
cooperative housing corporation as the commissioner may deem necessary,
including but not limited to, the names, addresses and employer
identification numbers or social security numbers of the grantor and the
grantee, the number of shares transferred, the date of the transfer and
the consideration paid for such transfer, provided, however, that if
such cooperative housing corporation elects that such information return
be deemed an application for an abatement pursuant to paragraph (f) of
subdivision three of section four hundred sixty-seven-a of the real
property tax law, such return shall contain the information required
pursuant to paragraph (d) of subdivision three of such section. The
commissioner of finance may enter into an agreement with the
commissioner of taxation and finance of the state of New York to provide
that a single information return may be filed for purposes of the tax
imposed by this chapter and the real estate transfer tax imposed by
article thirty-one of the tax law.
* NB There are 2 sub g's
* g. Returns with respect to the conveyance of a one- or two-family
dwelling will not be accepted for filing unless accompanied by an
affidavit signed by the grantor and grantee indicating that the premises
is equipped with an approved and operational smoke detecting device as
provided in article six of subchapter seventeen of chapter one of title
twenty-seven of this code.
* NB There are 2 sub g's
Section 11-2106
§ 11-2106 Exemptions a. The following shall be exempt from the
payment of the tax imposed by this chapter and from filing a return:
1. The state of New York, or any of its agencies, instrumentalities,
public corporations (including a public corporation created pursuant to
agreement or compact with another state or the Dominion of Canada) or
political subdivisions;
2. The United States of America, and any of its agencies and
instrumentalities, insofar, as they are immune from taxation, provided,
however, that the exemption of such governmental bodies or persons shall
not relieve a grantee from them of liability for the tax or from filing
a return.
b. The tax imposed by this chapter shall not apply to any of the
following deeds, instruments or transactions:
1. A deed, instrument or transaction conveying or transferring real
property or an economic interest therein by or to the United Nations or
other world-wide international organizations of which the United States
of America is a member;
2. A deed, instrument or transaction conveying or transferring real
property or an economic interest therein by or to any corporation, or
association, or trust, or community chest, fund or foundation, organized
or operated exclusively for religious, charitable, or educational
purposes, or for the prevention of cruelty to children or animals, and
no part of the net earnings of which inures to the benefit of any
private shareholder or individual and no substantial part of the
activities of which is carrying on propaganda, or otherwise attempting
to influence legislation; provided, however, that nothing in this
paragraph shall include an organization operated for the primary purpose
of carrying on a trade or business for profit, whether or not all of its
profits are payable to one or more organizations described in this
paragraph;
3. A deed, instrument or transaction conveying or transferring real
property or an economic interest therein to any governmental body or
person exempt from payment of the tax pursuant to subdivision a of this
section;
4. A deed delivered pursuant to a contract made prior to May first,
nineteen hundred fifty-nine;
5. A deed delivered by any governmental body or person exempt from
payment of the tax pursuant to subdivision a of this section as a result
of a sale at a public auction held in accordance with the provisions of
a contract made prior to May first, nineteen hundred fifty-nine;
6. A deed or instrument given solely as security for, or a transaction
the sole purpose of which is to secure, a debt or obligation or a deed
or instrument given, or a transaction entered into, solely for the
purpose of returning such security;
7. A deed, instrument or transaction conveying or transferring real
property or an economic interest therein from a mere agent, dummy, straw
man or conduit to his principal or a deed, instrument or transaction
conveying or transferring real property or an economic interest therein
from the principal to his agent, dummy, straw man or conduit.
8. A deed, instrument or transaction conveying or transferring real
property or an economic interest therein that effects a mere change of
identity or form of ownership or organization to the extent the
beneficial ownership of such real property or economic interest therein
remains the same, other than a conveyance to a cooperative housing
corporation of the land and building or buildings comprising the
cooperative dwelling or dwellings. For purposes of this paragraph, the
term "cooperative housing corporation" shall not include a housing
company organized and operating pursuant to the provisions of article
two, four, five or eleven of the private housing finance law.
c. Notwithstanding any provision of this chapter to the contrary,
where stock of a cooperative housing corporation and the appurtenant
proprietary leasehold are transferred to such cooperative housing
corporation or a wholly owned subsidiary of such housing corporation, or
to the holder of a mortgage on the real property of such cooperative
housing corporation or a wholly owned subsidiary of such holder of a
mortgage on the real property of such cooperative housing corporation,
such cooperative housing corporation or its wholly owned subsidiary, or
such mortgage holder or its wholly owned subsidiary, shall not be liable
as grantee for the tax determined to be due under this chapter from the
grantor in such transfer, provided that such transfer occurred pursuant
to, as the result of, or in connection with an action, proceeding, or
other procedure to which such cooperative housing corporation is a
party, to enforce a lien, security interest or other rights on or in
such stock and proprietary leasehold, including but not limited to
rights under the proprietary lease. This subdivision shall apply to
transfers occurring on or after June sixteenth, nineteen hundred
ninety-two.
Section 11-2107
§ 11-2107 Determination of tax. If a return required by this chapter
is not filed, or if a return when filed is incorrect or insufficient,
the amount of tax due shall be determined by the commissioner of finance
from such information as may be obtainable, including the assessed
valuation of the real property or interest therein. Notice of such
determination shall be given to the person liable for the tax. Such
determination shall finally and irrevocably fix the tax unless the
person against whom it is assessed, within ninety days after the giving
of notice of such determination, or, if the commissioner of finance has
established a conciliation procedure pursuant to section 11-124 of the
code and the taxpayer has requested a conciliation conference in
accordance therewith, within ninety days from the mailing of a
conciliation decision or the date of the commissioner's confirmation of
the discontinuance of the conciliation proceeding, both (1) serves a
petition upon the commissioner of finance and (2) files a petition with
the tax appeals tribunal for a hearing, or, unless the commissioner of
finance of his or her own motion shall redetermine the same. Such
hearing and any appeal to the tax appeals tribunal sitting en banc from
the decision rendered in such hearing shall be conducted in the manner
and subject to the requirements prescribed by the tax appeals tribunal
pursuant to sections one hundred sixty-eight through one hundred
seventy-two of the charter. After such hearing the tax appeals tribunal
shall give notice of its decision to the person against whom the tax is
assessed and to the commissioner of finance. A decision of the tax
appeals tribunal sitting en banc shall be reviewable for error,
illegality or unconstitutionality or any other reason whatsoever by a
proceeding under article seventy-eight of the civil practice law and
rules if application therefor is made to the supreme court by the person
against whom the tax was assessed within four months after the giving of
the notice of such tax appeals tribunal decision. A proceeding under
article seventy-eight of the civil practice law and rules shall not be
instituted by a taxpayer unless: (a) the amount of any tax sought to be
reviewed, with penalties and interest thereon, if any, shall be first
deposited with the commissioner of finance and there shall be filed with
the commissioner of finance an undertaking, issued by a surety company
authorized to transact business in this state and approved by the
superintendent of insurance of this state as to solvency and
responsibility, in such amount and with such sureties as a justice of
the supreme court shall approve, to the effect that if such proceeding
be dismissed or the tax confirmed, the taxpayer will pay all costs and
charges which may accrue in the prosecution of the proceeding; or (b) at
the option of the taxpayer such undertaking filed with the commissioner
of finance may be in a sum sufficient to cover the taxes, penalties and
interest thereon stated in such decision plus the costs and charges
which may accrue against it in the prosecution of the proceeding, in
which event the taxpayer shall not be required to deposit such taxes,
penalties and interest as a condition precedent to the application.
Section 11-2108
§ 11-2108 Refunds. a. In the manner provided in this section the
commissioner of finance shall refund or credit, without interest, any
tax, penalty or interest erroneously, illegally or unconstitutionally
collected or paid if application to the commissioner of finance for such
refund shall be made within one year from the payment thereof. Whenever
a refund is made or denied by the commissioner of finance, the
commissioner shall state his or her reason therefor and give notice
thereof to the taxpayer in writing. Such application may be made by the
grantor, grantee or other person who has actually paid the tax. The
commissioner of finance may, in lieu of any refund required to be made,
allow credit therefor on payments due from the applicant.
b. Any determination of the commissioner of finance denying a refund
or credit pursuant to subdivision a of this section shall be final and
irrevocable unless the applicant for such refund or credit, within
ninety days from the mailing of notice of such determination, or, if the
commissioner of finance has established a conciliation procedure
pursuant to section 11-124 and the applicant has requested a
conciliation conference in accordance therewith, within ninety days from
the mailing of a conciliation decision or the date of the commissioner's
confirmation of the discontinuance of the conciliation proceeding, both
(1) serves a petition upon the commissioner of finance and (2) files a
petition with the tax appeals tribunal for a hearing. Such petition for
a refund or credit made as herein provided shall be deemed an
application for a revision of any tax, penalty or interest complained
of. Such hearing and any appeal to the tax appeals tribunal sitting en
banc from the decision rendered in such hearing shall be conducted in
the manner and subject to the requirements prescribed by the tax appeals
tribunal pursuant to sections one hundred sixty-eight through one
hundred seventy-two of the charter. After such hearing, the tax appeals
tribunal shall give notice of its decision to the applicant and the
commissioner of finance. The applicant shall be entitled to review such
decision of the tax appeals tribunal sitting en banc by a proceeding
pursuant to article seventy-eight of the civil practice law and rules,
provided such proceeding is instituted within four months after the
giving of notice of such decision, and provided, in the case of an
application by a taxpayer, that a final determination of tax due was not
previously made. Such a proceeding shall not be instituted by a taxpayer
unless an undertaking is filed with the commissioner of finance in such
amount and with such sureties as a justice of the supreme court shall
approve to the effect that if such proceeding be dismissed or the tax
confirmed, the taxpayer will pay all costs and charges which may accrue
in the prosecution of such proceeding.
c. A person shall not be entitled to a revision, refund or credit
under this section of a tax, interest or penalty which had been
determined to be due pursuant to the provisions of section 11-2107 of
this chapter where he or she has had a hearing or an opportunity for a
hearing, as provided in said section, or has failed to avail himself or
herself of the remedies therein provided. No refund or credit shall be
made of a tax, interest or penalty paid after a determination by the
commissioner of finance made pursuant to section 11-2107 of this chapter
unless it be found that such determination was erroneous, illegal or
unconstitutional or otherwise improper, by the tax appeals tribunal
after a hearing, or on the commissioner of finance's own motion, or, if
such tax appeals tribunal affirms in whole or in part the determination
of the commissioner of finance, in a proceeding under article
seventy-eight of the civil practice law and rules, pursuant to the
provisions of said section, in which event refund or credit without
interest shall be made of the tax, interest or penalty found to have
been overpaid.
Section 11-2109
§ 11-2109 Reserves. In cases where the grantor or grantee has applied
for a refund and has instituted a proceeding under article seventy-eight
of the civil practice law and rules to review a determination adverse to
him or her on his or her application for refund, the comptroller shall
set up appropriate reserves to meet any decision adverse to the city.
Section 11-2110
§ 11-2110 Remedies exclusive. The remedies provided by sections
11-2107 and 11-2108 of this chapter shall be exclusive remedies
available to any person for the review of tax liability imposed by this
chapter; and no determination or proposed determination of tax or
determination on any application for refund shall be enjoined or
reviewed by an action for declaratory judgment, an action for money had
and received or by any action or proceeding other than a proceeding in
the nature of a certiorari proceeding under article seventy-eight of the
civil practice law and rules; provided, however, that a taxpayer may
proceed by declaratory judgment if he or she institutes suit within
thirty days after a deficiency assessment is made and pays the amount of
the deficiency assessment to the commissioner of finance prior to the
institution of such suit and posts a bond for costs as provided in
section 11-2107 of this chapter.
Section 11-2111
§ 11-2111 Proceedings to recover tax. a. Whenever any grantor or
grantee shall fail to pay any tax, penalty or interest imposed by this
chapter as herein provided, the corporation counsel shall, upon the
request of the commissioner of finance bring or cause to be brought an
action to enforce the payment of the same on behalf of the city of New
York in any court of the state of New York or of any other state or of
the United States. If, however, the commissioner of finance in his or
her discretion believes that any such grantor or grantee subject to the
provisions of this chapter is about to cease business, leave the state
or remove or dissipate the assets out of which the tax or penalty might
be satisfied, and that any such tax or penalty will not be paid when
due, such commissioner may declare such tax or penalty to be immediately
due and payable and may issue a warrant immediately.
b. As an additional or alternate remedy, the commissioner of finance
may issue a warrant, directed to the city sheriff commanding him or her
to levy upon and sell the real and personal property of the grantor,
grantee or other person liable for the tax which may be found within the
city, for the payment of the amount thereof, with any penalty and
interest, and the cost of executing the warrant, and to return such
warrant to the commissioner of finance and to pay to him or her the
money collected by virtue thereof within sixty days after the receipt of
such warrant. The city sheriff shall within five days after the receipt
of the warrant file with the county clerk a copy thereof, and thereupon
such clerk shall enter in the judgment docket the name of the person
mentioned in the warrant and the amount of the tax, penalty and interest
for which the warrant is issued and the date when such copy is filed.
Thereupon the amount of such warrant so docketed shall become a lien
upon the title to and the interest in real and personal property of the
person against whom the warrant is issued. The city sheriff shall then
proceed upon the warrant in the same manner, and with like effect, as
that provided by law in respect to executions issued against property
upon judgments of a court of record and for services in executing the
warrant he or she shall be entitled to the same fees, which such sheriff
may collect in the same manner. In the discretion of the commissioner of
finance a warrant of like terms, force and effect may be issued and
directed to an officer or employee of the department of finance, and in
the execution thereof such officer or employee shall have all the powers
conferred by law upon sheriffs, but shall be entitled to no fee or
compensation in excess of the actual expenses paid in the performance of
such duty. If a warrant is returned not satisfied in full, the
commissioner of finance may from time to time issue new warrants and
shall also have the same remedies to enforce the amount due thereunder
as if the city had recovered judgment therefor and execution thereon had
been returned unsatisfied.
c. The commissioner of finance, if he or she finds that the interests
of the city will not thereby be jeopardized, and upon such conditions as
the commissioner of finance may require, may release any property from
the lien of any warrant or vacate such warrant for unpaid taxes,
additions to tax, penalties and interest filed pursuant to subdivision b
of this section, and such release or vacating of the warrant may be
recorded in the office of any recording officer in which such warrant
has been filed. The clerk shall thereupon cancel and discharge as of the
original date of docketing the vacated warrant.
Section 11-2112
§ 11-2112 General powers of the commissioner of finance. In addition
to the powers granted to the commissioner of finance in this chapter, he
or she is hereby authorized and empowered:
1. To make, adopt and amend rules and regulations appropriate to the
carrying out of this chapter and the purposes thereof;
2. To extend, for cause shown, the time for filing any return for a
period not exceeding thirty days; and to compromise disputed claims in
connection with the taxes hereby imposed;
3. To request information from the tax commission of the state of New
York or the treasury department of the United States relative to any
person; and to afford returns, reports and other information to such tax
commission or such treasury department relative to any person, any other
provision of this chapter to the contrary notwithstanding;
4. To delegate his or her functions hereunder to a deputy commissioner
of finance or any employee or employees of the department of finance;
5. To prescribe the methods for determining the consideration and net
consideration attributable to that portion of real property located
partly within and partly without the city of New York which is located
within the city of New York or any interest therein;
6. To require any grantor or grantee to keep such records, and for
such length of time as may be required for the proper administration of
this chapter and to furnish such records to the commissioner of finance
upon request;
7. To assess, determine, revise and adjust the taxes imposed under
this chapter.
Section 11-2113
§ 11-2113 Administration of oaths and compelling testimony. a. The
commissioner of finance, his or her employees or agents duly designated
and authorized by him or her, the tax appeals tribunal and any of its
duly designated and authorized employees or agents shall have power to
administer oaths and take affidavits in relation to any matter or
proceeding in the exercise of their powers and duties under this
chapter. The commissioner of finance and the tax appeals tribunal shall
have power to subpoena and require the attendance of witnesses and the
production of books, papers and documents to secure information
pertinent to the performance of the duties of the commissioner or of the
tax appeals tribunal hereunder and of the enforcement of this chapter
and to examine them in relation thereto, and to issue commissions for
the examination of witnesses who are out of the state or unable to
attend before such commissioner or the tax appeals tribunal or excused
from attendance.
b. A justice of the supreme court either in court or at chambers shall
have power summarily to enforce by proper proceedings the attendance and
testimony of witnesses and the production and examination of books,
papers and documents called for by the subpoena of the commissioner of
finance or the tax appeals tribunal under this chapter.
c. Cross-reference; criminal penalties. For failure to obey subpoenas
or for testifying falsely, see section 11-4007 of this title; for
supplying false or fraudulent information, see section 11-4009 of this
title.
d. The officers who serve the summons or subpoena of the commissioner
of finance or the tax appeals tribunal and witnesses attending in
response thereto shall be entitled to the same fees as are allowed to
officers and witnesses in civil cases in courts of record, except as
herein otherwise provided. Such officers shall be the city sheriff and
his or her duly appointed deputies or any officers or employees of the
department of finance or the tax appeals tribunal, designated to serve
such process.
Section 11-2114
§ 11-2114 Interest and penalties. (a) Interest on underpayments. If
any amount of tax is not paid on or before the last date prescribed for
payment (without regard to any extension of time granted for payment),
interest on such amount at the rate set by the commissioner of finance
pursuant to subdivision (g) of this section, or, if no rate is set, at
the rate of seven and one-half percent per annum, shall be paid for the
period from such last date to the date of payment. In computing the
amount of interest to be paid, such interest shall be compounded daily.
Interest under this subdivision shall not be paid if the amount thereof
is less than one dollar.
(b) * (1) Failure to file return. (A) In case of failure to file a
return under this chapter on or before the prescribed date (determined
with regard to any extension of time for filing), unless it is shown
that such failure is due to reasonable cause and not due to willful
neglect, there shall be added to the amount required to be shown as tax
on such return five percent of the amount of such tax if the failure is
for not more than one month, with an additional five percent for each
additional month or fraction thereof during which such failure
continues, not exceeding twenty-five percent in the aggregate.
(B) In the case of a failure to file a return of tax within sixty days
of the date prescribed for filing of such return (determined with regard
to any extension of time for filing), unless it is shown that such
failure is due to reasonable cause and not due to willful neglect, the
addition to tax under subparagraph (A) of this paragraph shall not be
less than the lesser of one hundred dollars or one hundred percent of
the amount required to be shown as tax on such return. (C) For purposes
of this paragraph, the amount of tax required to be shown on the return
shall be reduced by the amount of any part of the tax which is paid on
or before the date prescribed for payment of the tax and by the amount
of any credit against the tax which may be claimed upon the return.
* NB Amended Ch. 765/85 § 45, language juxtaposed per Ch. 907/85 § 14
(2) Failure to pay tax shown on return. In case of failure to pay the
amount shown as tax on a return required to be filed under this chapter
on or before the prescribed date (determined with regard to any
extension of time for payment), unless it is shown that such failure is
due to reasonable cause and not due to willful neglect, there shall be
added to the amount shown as tax on such return one-half of one percent
of the amount of such tax if the failure is not for more than one month,
with an additional one-half of one percent for each additional month or
fraction thereof during which such failure continues, not exceeding
twenty-five percent in the aggregate. For the purpose of computing the
addition for any month the amount of tax shown on the return shall be
reduced by the amount of any part of the tax which is paid on or before
the beginning of such month and by the amount of any credit against the
tax which may be claimed upon the return. If the amount of tax required
to be shown on a return is less than the amount shown as tax on such
return, this paragraph shall be applied by substituting such lower
amount.
(3) Failure to pay tax required to be shown on return. In case of
failure to pay any amount in respect of any tax required to be shown on
a return required to be filed under this chapter which is not so shown
(including a determination made pursuant to section 11-2107 of this
chapter) within ten days of the date of a notice and demand therefor,
unless it is shown that such failure is due to reasonable cause and not
due to willful neglect, there shall be added to the amount of tax stated
in such notice and demand one-half of one percent of such tax if the
failure is not for more than one month, with an additional one-half of
one percent for each additional month or fraction thereof during which
such failure continues, not exceeding twenty-five percent in the
aggregate. For the purpose of computing the addition for any month, the
amount of tax stated in the notice and demand shall be reduced by the
amount of any part of the tax which is paid before the beginning of such
month.
* (4) Limitations on additions.
(A) With respect to any return, the amount of the addition under
paragraph one of this subdivision shall be reduced by the amount of the
addition under paragraph two of this subdivision for any month to which
an addition applies under both paragraphs one and two. In any case
described in subparagraph (B) of paragraph one of this subdivision, the
amount of the addition under such paragraph one shall not be reduced
below the amount provided in such subparagraph.
(B) With respect to any return, the maximum amount of the addition
permitted under paragraph three of this subdivision shall be reduced by
the amount of the addition under paragraph one of this subdivision
(determined without regard to subparagraph (B) of such paragraph one)
which is attributable to the tax for which the notice and demand is made
and which is not paid within ten days of such notice and demand.
* NB Amended Ch. 765/85 § 45, language juxtaposed per Ch. 907/85 § 14
* (c) Underpayment due to negligence. (1) If any part of an
underpayment of tax is due to negligence or intentional disregard of
this chapter or any rules or regulations hereunder (but without intent
to defraud), there shall be added to the tax a penalty equal to five
percent of the underpayment.
(2) There shall be added to the tax (in addition to the amount
determined under paragraph one of this subdivision) an amount equal to
fifty percent of the interest payable under subdivision (a) of this
section with respect to the portion of the underpayment described in
such paragraph one which is attributable to the negligence or
intentional disregard referred to in such paragraph one, for the period
beginning on the last date prescribed by law for payment of such
underpayment (determined without regard to any extension) and ending on
the date of the assessment of the tax (or, if earlier, the date of the
payment of the tax).
* NB Amended Ch. 765/85 § 45, language juxtaposed per Ch. 907/85 § 14
* (d) Underpayment due to fraud. (1) If any part of an underpayment of
tax is due to fraud, there shall be added to the tax a penalty equal to
fifty percent of the underpayment.
(2) There shall be added to the tax (in addition to the penalty
determined under paragraph one of this subdivision) an amount equal to
fifty percent of the interest payable under subdivision (a) of this
section with respect to the portion of the underpayment described in
such paragraph one which is attributable to fraud, for the period
beginning on the last day prescribed by law for payment of such
underpayment (determined without regard to any extension) and ending on
the date of the assessment of the tax (or, if earlier, the date of the
payment of the tax.)
(3) The penalty under this subdivision shall be in lieu of any other
addition to tax imposed by subdivision (b) or (c) of this section.
* NB Amended Ch. 765/85 § 45, language juxtaposed per Ch. 907/85 § 14
(e) Additional penalty. Any person who, with fraudulent intent, shall
fail to pay any tax imposed by this chapter, or to make, render, sign or
certify any return, or to supply any information within the time
required by or under this chapter, shall be liable for a penalty of not
more than one thousand dollars, in addition to any other amounts
required under this chapter to be imposed, assessed and collected by the
commissioner of finance. The commissioner of finance shall have the
power, in his or her discretion, to waive, reduce or compromise any
penalty under this subdivision.
(f) The interest and penalties imposed by this section shall be paid
and disposed of in the same manner as other revenues from this chapter.
Unpaid interest and penalties may be enforced in the same manner as the
tax imposed by this chapter.
(g) (1) Authority to set interest rates. The commissioner of finance
shall set the rate of interest to be paid pursuant to subdivision (a) of
this section, but if no such rate of interest is set, such rate shall be
deemed to be set at seven and one-half percent per annum. Such rate
shall be the rate prescribed in paragraph two of this subdivision but
shall not be less than seven and one-half percent per annum. Any such
rate set by the commissioner of finance shall apply to taxes, or any
portion thereof, which remain or become due on or after the date on
which such rate becomes effective and shall apply only with respect to
interest computed or computable for periods or portions of periods
occurring in the period in which such rate is in effect.
(2) General rule. The rate of interest set under this subdivision
shall be the sum of (i) the federal short-term rate as provided under
paragraph three of this subdivision, plus (ii) seven percentage points.
(3) Federal short-term rate. For purposes of this subdivision:
(A) The federal short-term rate for any month shall be the federal
short-term rate determined by the United States secretary of the
treasury during such month in accordance with subsection (d) of section
twelve hundred seventy-four of the internal revenue code for use in
connection with section six thousand six hundred twenty-one of the
internal revenue code. Any such rate shall be rounded to the nearest
full percent (or, if a multiple of one-half of one percent, such rate
shall be increased to the next highest full percent).
(B) Period during which rate applies.
(i) In general. Except as provided in clause (ii) of this
subparagraph, the federal short-term rate for the first month in each
calendar quarter shall apply during the first calendar quarter beginning
after such month.
(ii) Special rule for the month of September, nineteen hundred
eighty-nine. The federal short-term rate for the month of April,
nineteen hundred eighty-nine shall apply with respect to setting the
rate of interest for the month of September, nineteen hundred
eighty-nine.
(4) Publication of interest rate. The commissioner of finance shall
cause to be published in the city record, and give other appropriate
general notice of, the interest rate to be set under this subdivision no
later than twenty days preceding the first day of the calendar quarter
during which such interest rate applies. The setting and publication of
such interest rate shall not be included within paragraph (a) of
subdivision five of section one thousand forty-one of the city charter
relating to the definition of a rule.
* (h) Miscellaneous. (1) The certificate of the commissioner to the
effect that a tax has not been paid or that information has not been
supplied pursuant to the provisions of this chapter shall be presumptive
evidence thereof.
(2) Cross-reference: For criminal penalties, see chapter forty of this
title.
* NB Amended Ch. 765/85 § 45, language juxtaposed per Ch. 907/85 § 14
(i) Failure to file information return. If a cooperative housing
corporation fails to file an information return required under
subdivision (g) of section 11-2105 of this chapter on or before the
prescribed date (determined with regard to any extension of time for
filing), unless it is shown that such failure is due to reasonable cause
and not due to willful neglect, there shall be imposed on such
cooperative housing corporation a penalty of one hundred dollars for
each such failure.
Section 11-2115
§ 11-2115 Returns to be secret. a. Except in accordance with proper
judicial order, or as otherwise provided by law, it shall be unlawful
for the commissioner of finance, register or tax appeals tribunal or any
officer or employee of the department of finance, register or tax
appeals tribunal to divulge or make known in any manner any information
contained in or relating to any return provided for by this chapter. The
officers charged with the custody of such returns shall not be required
to produce any of them or evidence of anything contained in them in any
action or proceeding in any court, except on behalf of the commissioner
of finance in an action or proceeding under the provisions of this
chapter, or on behalf of any party to an action or proceeding under the
provisions of this chapter when the returns or facts shown thereby are
directly involved in such action or proceeding, in either of which
events the court may require the production of, and may admit in
evidence, so much of said returns or of the facts shown thereby, as are
pertinent to the action or proceeding and no more. Nothing herein shall
be construed to prohibit the delivery to a grantor or grantee of a deed
or to any subsequent owner of the real property conveyed by such deed or
to the duly authorized representative of any of them of a certified copy
of any return filed in connection with the tax on such deed; nor to
prohibit the delivery of such a certified copy of such return or of any
information contained in or relating thereto to the United States of
America or any department thereof, the state of New York or any
department thereof, the city of New York or any department thereof
provided the same is required for official business; nor to prohibit the
inspection for official business of such returns by the register, the
corporation counsel or other legal representatives of the city or by the
district attorney of any county within the city; nor to prohibit the
publication of statistics so classified as to prevent the identification
of particular returns or items thereof.
b. (1) Any officer or employee of the city who willfully violates the
provisions of subdivision a of this section shall be dismissed from
office and be incapable of holding any public office in this city for a
period of five years thereafter.
(2) Cross-reference: For criminal penalties, see chapter forty of this
title.
c. This section shall be deemed a state statute for purposes of
paragraph (a) of subdivision two of section eighty-seven of the public
officers law.
d. Notwithstanding anything in subdivision a of this section to the
contrary, if a taxpayer has petitioned the tax appeals tribunal for
administrative review as provided in section one hundred seventy of the
charter, the commissioner of finance shall be authorized to present to
the tribunal any report or return of such taxpayer, or any information
contained therein or relating thereto, which may be material or relevant
to the proceeding before the tribunal. The tax appeals tribunal shall be
authorized to publish a copy or a summary of any decision rendered
pursuant to section one hundred seventy-one of the charter.
e. This section shall not apply to any information contained in or
relating to a return filed on or after the first day of January, two
thousand three with respect to a transaction or transfer occurring on or
after that date; provided, however, that this section shall continue to
apply to any social security account number contained in any report or
return pursuant to this chapter.
Section 11-2116
§ 11-2116 Notices and limitations of time. a. Any notice authorized or
required under the provisions of this chapter may be given by mailing
the same to the person for whom it is intended in a postpaid envelope
addressed to such person at the address given in the last return filed
by him or her pursuant to the provisions of this chapter in any
application made by him or her, or in any deed or instrument which is
the subject of the notice, or, if no return has been filed or
application made or address stated in the deed or instrument, then to
such address as may be obtainable. The mailing of such notice shall be
presumptive evidence of the receipt of the same by the person to whom
addressed. Any period of time which is determined according to the
provisions of this chapter by the giving of notice shall commence to run
from the date of mailing of such notice.
b. The provisions of the civil practice law and rules or any other law
relative to limitations of time for the enforcement of a civil remedy
shall not apply to any proceeding or action taken by the city to levy,
appraise, assess, determine or enforce the collection of any tax or
penalty provided by this chapter. However, except in the case of a
wilfully false or fraudulent return with intent to evade the tax, no
assessment of additional tax shall be made after the expiration of more
than three years from the date of the filing of a return; provided,
however, that where no return has been filed as provided by law the tax
may be assessed at any time.
c. Where, before the expiration of the period prescribed herein for
the assessment of an additional tax, a taxpayer has consented in writing
that such period be extended, the amount of such additional tax due may
be determined at any time within such extended period. The period so
extended may be further extended by subsequent consents in writing made
before the expiration of the extended period.
d. Except as otherwise provided in this subdivision, if any return,
claim, statement, notice, application, or other document required to be
filed, or any payment required to be made, within a prescribed period or
on or before a prescribed date under authority of any provision of this
chapter is, after such period or such date, delivered by United States
mail to the commissioner of finance, the tax appeals tribunal, bureau,
office, officer or person with which or with whom such document is
required to be filed, or to which or to whom such payment is required to
be made, the date of the United States postmark stamped on the envelope
shall be deemed to be the date of delivery. This subdivision shall apply
only if the postmark date falls within the prescribed period or on or
before the prescribed date for the filing of such document, or for
making the payment, including any extension granted for such filing or
payment, and only if such document or payment was deposited in the mail,
postage prepaid, properly addressed to the commissioner of finance, the
tax appeals tribunal, bureau, office, officer or person with which or
with whom the document is required to be filed or to which or to whom
such payment is required to be made. If any document is sent by United
States registered mail, such registration shall be prima facie evidence
that such document was delivered to the commissioner of finance, the tax
appeals tribunal, bureau, office, officer or person to which or to whom
addressed, and the date of registration shall be deemed the postmark
date. The commissioner of finance and, where relevant, the tax appeals
tribunal are authorized to provide by regulation the extent to which the
provisions of the preceding sentence with respect to prima facie
evidence of delivery and the postmark date shall apply to certified
mail. Except as provided in subdivision f of this section, this
subdivision shall apply in the case of postmarks not made by the United
States postal service only if and to the extent provided by regulation
of the commissioner of finance or, where relevant, the tax appeals
tribunal. Any return filed electronically shall be deemed to be filed on
the date of issuance by the commissioner of finance of a confirmation.
e. When the last day prescribed under authority of this chapter
(including any extension of time) for performing any act falls on a
Saturday, Sunday or legal holiday in the state, the performance of such
act shall be considered timely if it is performed on the next succeeding
day which is not a Saturday, Sunday or legal holiday.
f. (1) Any reference in subdivision d of this section to the United
States mail shall be treated as including a reference to any delivery
service designated by the secretary of the treasury of the United States
pursuant to section seventy-five hundred two of the internal revenue
code and any reference in subdivision d of this section to a United
States postmark shall be treated as including a reference to any date
recorded or marked in the manner described in section seventy-five
hundred two of the internal revenue code by a designated delivery
service. If the commissioner of finance finds that any delivery service
designated by such secretary is inadequate for the needs of the city,
the commissioner of finance may withdraw such designation for purposes
of this title. The commissioner of finance may also designate additional
delivery services meeting the criteria of section seventy-five hundred
two of the internal revenue code for purposes of this title, or may
withdraw any such designation if the commissioner of finance finds that
a delivery service so designated is inadequate for the needs of the
city. Any reference in subdivision d of this section to the United
States mail shall be treated as including a reference to any delivery
service designated by the commissioner of finance and any reference in
subdivision d of this section to a United States postmark shall be
treated as including a reference to any date recorded or marked in the
manner described in section seventy-five hundred two of the internal
revenue code by a delivery service designated by the commissioner of
finance. Notwithstanding the foregoing, any withdrawal of designation or
additional designation by the commissioner of finance shall not be
effective for purposes of service upon the tax appeals tribunal, unless
and until such withdrawal of designation or additional designation is
ratified by the president of the tax appeals tribunal.
(2) Any equivalent of registered or certified mail designated by the
United States secretary of the treasury, or as may be designated by the
commissioner of finance pursuant to the same criteria used by such
secretary for such designations pursuant to section seventy-five hundred
two of the internal revenue code, shall be included within the meaning
of registered or certified mail as used in subdivision d of this
section. If the commissioner of finance finds that any equivalent of
registered or certified mail designated by such secretary or the
commissioner of finance is inadequate for the needs of the city, the
commissioner of finance may withdraw such designation for purposes of
this title. Notwithstanding the foregoing, any withdrawal of designation
or additional designation by the commissioner of finance shall not be
effective for purposes of service upon the tax appeals tribunal, unless
and until such withdrawal of designation or additional designation is
ratified by the president of the tax appeals tribunal.
Section 11-2117
§ 11-2117 Construction and enforcement. This chapter shall be
construed and enforced in conformity with chapter ninety-three of the
laws of nineteen hundred sixty-five, as amended.
Section 11-2118
§ 11-2118 Disposition of revenues. Except as otherwise provided, all
revenues resulting from the imposition of the tax under this chapter
shall be paid into the treasury of the city and shall be credited to and
deposited in the general fund of the city. Except as otherwise provided,
no part of such revenues may be expended unless appropriated in the
annual budget of the city.
To the extent possible under law, Friends of Devin Balkind for Public Advocate has waived all copyright and related or neighboring rights to New York City Administrative Code. This work is published from: United States.
Special thanks to Benjarmin Kallos and Thom Neale who made this content publicly available as a bulk download.