N.Y. Tax Law 1564 – Exemptions
§ 1564. Exemptions. 1. The following shall be exempt from the payment of the tax:
Terms Used In N.Y. Tax Law 1564
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- Consideration: means the price actually paid or required to be paid for the real property or interest therein, including payment for an option or contract to purchase real property, whether or not expressed in the deed and whether paid or required to be paid by money, property, or any other thing of value. See N.Y. Tax Law 1560
- Contract: A legal written agreement that becomes binding when signed.
- Conveyance: means the transfer or transfers of any interest in real property by any method, including but not limited to, sale, exchange, assignment, surrender, mortgage foreclosure, transfer in lieu of foreclosure, option, trust indenture, taking by eminent domain, conveyance upon liquidation or by a receiver, or transfer or acquisition of a controlling interest in any entity with an interest in real property. See N.Y. Tax Law 1560
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Deed: The legal instrument used to transfer title in real property from one person to another.
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Real property: means every estate or right, legal or equitable, present or future, vested or contingent, in lands, tenements or hereditaments, including buildings, structures and other improvements thereon, which are located in whole or in part within any designated community. See N.Y. Tax Law 1560
- Residential real property: means property which satisfies at least one of the following conditions:
(a) the property classification code assigned to the property on the latest final assessment roll, as reported on the transfer report form, indicates that the property is a one, two or three family home or a rural residence; or
(b) the transfer report form indicates that the property is one, two or three family residential property that has been newly constructed on vacant land; or
(c) the transfer report form indicates that the property is a residential condominium. See N.Y. Tax Law 1560 - Tax: means the real estate transfer tax payable on a real property conveyance pursuant to section fifteen hundred sixty-one of this article, but shall have a different meaning if the context clearly indicates such as the real estate transfer tax imposed pursuant to article thirty-one of this chapter. See N.Y. Tax Law 1560
(a) The state of New York, or any of its agencies, instrumentalities, political subdivisions, or public corporations (including a public corporation created pursuant to an agreement or compact with another state or the Dominion of Canada); and
(b) The United Nations, the United States of America or any of its agencies or instrumentalities.
2. The tax shall not apply to any of the following conveyances:
(a) Conveyances to the United Nations, the United States of America, the state of New York, or any of their instrumentalities, agencies or political subdivisions or any public corporation (including a public corporation created pursuant to agreement or compact with another state or the Dominion of Canada);
(b) Conveyances which are or were used to secure a debt or other obligation;
(c) Conveyances which, without additional consideration, confirm, correct, modify or supplement a deed previously recorded;
(d) Conveyances of real property without consideration and otherwise than in connection with a sale, including deeds conveying realty as bona fide gifts;
(e) Conveyances given in connection with a tax sale;
(f) Conveyances to effectuate a mere change 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;
(g) Conveyances which consist of a deed of partition;
(h) Conveyances given pursuant to the federal bankruptcy act;
(i) Conveyances of real property 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;
(j) Conveyances of real property, where the entire parcel of real property to be conveyed is the subject of one or more of the following development restrictions:
(1) agricultural, conservation, scenic, or open space easement,
(2) covenants or restrictions prohibiting development where the property being conveyed has had its development rights permanently removed,
(3) a purchase of development rights agreement where the property being conveyed has had its development rights permanently removed,
(4) a transfer of development rights agreement, where the property being conveyed has had its development rights permanently removed, or
(5) real property subject to any locally adopted land preservation agreement; provided that the municipal legislative body exempts from the tax those conveyances subject to such development restriction in the local law adopted pursuant to this article;
(k) Conveyances of real property, where the property is viable agricultural land as defined in subdivision seven of § 301 of the agriculture and markets law, and the entire property to be conveyed is to be made subject to one of the development restrictions provided for in paragraph (j) of this subdivision; provided that such development restriction precludes the conversion of the property to a non-agricultural use for at least eight years from the date of transfer, and that said development restriction is evidenced by an easement, agreement, or other suitable instrument which is to be conveyed to the municipality simultaneously with the conveyance of the real property; or
(l) Conveyances of real property for open space, parks, or historic preservation purposes to any not-for-profit tax exempt corporation operated for conservation, environmental, parks or historic preservation purposes.
3. An exemption from the tax which is equal to the median sales price of residential real property within the applicable town or city, as determined by the commissioner, shall be allowed on the consideration of the conveyance of improved or unimproved real property or an interest therein.