Bill S7208-2013

Relates to extending the tax rate reduction for conveyances of real property to existing real estate investment funds

Extends the tax rate reduction under the NY state real estate transfer tax and the NYC real property transfer tax for conveyances of real property to existing real estate investment funds.

Details

Actions

  • Jun 10, 2014: SUBSTITUTED BY A9394
  • Jun 9, 2014: ORDERED TO THIRD READING CAL.1220
  • Jun 9, 2014: COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • Jun 2, 2014: REPORTED AND COMMITTED TO FINANCE
  • May 6, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Investigations and Government Operations - Jun 2, 2014
Ayes (7): Marcellino, Carlucci, Golden, Nozzolio, O'Mara, Zeldin, Diaz
Ayes W/R (1): Squadron
Nays (1): Hoylman
VOTE: COMMITTEE VOTE: - Rules - Jun 9, 2014
Ayes (16): Skelos, Libous, Bonacic, Carlucci, Farley, Flanagan, Hannon, Larkin, LaValle, Marcellino, Maziarz, Nozzolio, Seward, Valesky, Little, Stewart-Cousins
Ayes W/R (4): Breslin, Dilan, Parker, Gianaris
Nays (4): Krueger, Montgomery, Perkins, Espaillat
Excused (1): Hassell-Thompson

Memo

BILL NUMBER:S7208

TITLE OF BILL: An act to amend the tax law and the administrative code of the city of New York, in relation to extending the tax rate reduction under the New York state real estate transfer tax and the New York city real property transfer tax for conveyances of real property to existing real estate investment funds

PURPOSE OR GENERAL IDEA OF BILL:

To extend the tax rate reduction under the state and New York City real estate transfer tax for conveyances for real property to existing real estate investment trusts (REITs).

SUMMARY OF SPECIFIC PROVISIONS:

The bill extends the tax rate reduction under the State and New York City real estate transfer tax for conveyances of real property to existing real estate investment trusts until September 1, 2017. Currently, both the New York State and New York City real estate transfer taxes to REITs are set to expire on September 1, 2014.

JUSTIFICATION:

The implementation of the REIT tax credit in 1996 contributed to robust sales activity with REITs along with a surge in transfer tax revenue. The REIT credit was extended again in 1999, 2002, 2005, 2008, and 2011.

PRIOR LEGISLATIVE HISTORY:

Chapter 416 of 2008 Chapter 493 of 2011

FISCAL IMPLICATIONS:

Increase in transfer tax revenue for the State and the City of New York.

EFFECTIVE DATE:

Immediately


Text

STATE OF NEW YORK ________________________________________________________________________ 7208 IN SENATE May 6, 2014 ___________
Introduced by Sen. DeFRANCISCO -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations AN ACT to amend the tax law and the administrative code of the city of New York, in relation to extending the tax rate reduction under the New York state real estate transfer tax and the New York city real property transfer tax for conveyances of real property to existing real estate investment funds THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The opening paragraph of subparagraph (B) of paragraph 2 of subdivision (b) of section 1402 of the tax law, as amended by chapter 493 of the laws of 2011, is amended to read as follows: For purposes of this subdivision, the phrase "real estate investment trust transfer" shall mean any conveyance of real property or an inter- est therein to a REIT, or to a partnership or corporation in which a REIT owns a controlling interest immediately following the conveyance, which conveyance (I) occurs in connection with the initial formation of the REIT, provided that the conditions set forth in clauses (i) and (ii) of this subparagraph 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] SEVENTEEN, is described in the last sentence of this subpara- graph. S 2. Subparagraph 2 of paragraph (xi) of subdivision (b) of section 1201 of the tax law, as amended by chapter 493 of the laws of 2011, is amended to read as follows: (2) any issuance or transfer of an interest in a REIT, or in a part- nership or corporation in which a REIT owns a controlling interest imme- diately following the issuance or transfer, in connection with a trans- action described in subparagraph one of this paragraph. Notwithstanding the foregoing, a transaction described in the preceding sentence shall not constitute a real estate investment trust transfer unless (A) it occurs in connection with the initial formation of the REIT and the
conditions described in subparagraphs three and four of this paragraph are satisfied, or (B) in the case of any real estate investment trust transfer occurring on or after July thirteenth, nineteen hundred nine- ty-six and before September first, two thousand [fourteen] SEVENTEEN, the transaction is described in subparagraph five of this paragraph in which case the provisions of such subparagraph shall apply. S 3. Subparagraph (B) of paragraph 2 of subdivision e of section 11-2102 of the administrative code of the city of New York, as amended by chapter 493 of the laws of 2011, is amended to read as follows: (B) any issuance or transfer of an interest in a REIT, or in a part- nership or corporation in which a REIT owns a controlling interest imme- diately following the issuance or transfer in connection with a trans- action 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 nine- ty-six and before September first, two thousand [fourteen] SEVENTEEN, the transaction is described in subparagraph (E) of this paragraph in which case the provision of such subparagraph shall apply. S 4. This act shall take effect immediately.

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