Requires certain joint tax returns pertaining to residential real estate cash purchases by limited liability companies to be accompanied by a document which identifies the source or sources of funds used for the purchase, including the type of funding used, the bank account information of any funds used in the purchase and the amount used by each source of funds.
STATE OF NEW YORK
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3448
2023-2024 Regular Sessions
IN ASSEMBLY
February 3, 2023
___________
Introduced by M. of A. ZEBROWSKI, THIELE, EPSTEIN -- read once and
referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to requiring certain joint tax
returns pertaining to residential real estate cash purchases by limit-
ed liability companies to disclose the source of funds used for the
purchase
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph 3 of subdivision (a) of section 1409 of the tax
2 law, as amended by section 3 of part O of chapter 59 of the laws of
3 2021, is amended to read as follows:
4 (3) In addition to the requirements in paragraph two of this subdivi-
5 sion, when the grantor or grantee of a deed for a building used as resi-
6 dential real property containing up to four family dwelling units,
7 including condominiums and cooperatives, is a limited liability company
8 and the purchase is not secured by a mortgage, the joint return shall
9 not be accepted for filing unless it is accompanied by a document which
10 identifies the source or sources of funds used for the purchase, includ-
11 ing the type of funding used, the bank account information of any funds
12 used in the purchase and the amount used by each source of funds. If
13 any source of funds for such purchase originated from a foreign national
14 as defined in section 30121 of title 52 of the United States code, the
15 document shall identify such foreign national including their name and
16 address and any corporate entity owned by such foreign national.
17 (4) The return shall be filed with the recording officer before the
18 instrument effecting the conveyance may be recorded. However, if the tax
19 is paid to the commissioner pursuant to section fourteen hundred ten of
20 this article, the return shall be filed with such commissioner at the
21 time the tax is paid. In that instance, a receipt evidencing the filing
22 of the return and the payment of tax shall be filed with the recording
23 officer before the instrument effecting the conveyance may be recorded.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04703-01-3
A. 3448 2
1 The recording officer shall handle such receipt in the same manner as a
2 return filed with the recording officer.
3 § 2. This act shall take effect immediately and shall apply to returns
4 filed on and after January 1, 2024.
