Requires the real property transfer tax return relating to residential property sold or purchased by a limited liability company to include information on the ownership of such company.
STATE OF NEW YORK
________________________________________________________________________
1730
2019-2020 Regular Sessions
IN SENATE
January 16, 2019
___________
Introduced by Sen. SKOUFIS -- read twice and ordered printed, and when
printed to be committed to the Committee on Investigations and Govern-
ment Operations
AN ACT to amend the tax law and the administrative code of the city of
New York, in relation to real property transfer tax returns of limited
liability companies
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision (a) of section 1409 of the tax law, as amended
2 by chapter 309 of the laws of 1996, is amended to read as follows:
3 (a) A joint return shall be filed by both the grantor and the grantee
4 for each conveyance whether or not a tax is due thereon other than a
5 conveyance of an easement or license to a public utility as defined in
6 subdivision two of section one hundred eighty-six-a of this chapter or
7 to a public utility which is a provider of telecommunication services as
8 defined in subdivision one of section one hundred eighty-six-e of this
9 chapter, where the consideration is two dollars or less and is clearly
10 stated as actual consideration in the instrument of conveyance. When the
11 grantor or grantee of a deed for residential real property containing
12 one- to four-family dwelling units is a limited liability company, the
13 joint return shall not be accepted for filing unless it is accompanied
14 by a document which identifies the names and business addresses of all
15 members, managers, and any other authorized persons, if any, of such
16 limited liability company and the names and business addresses or, if
17 none, the business addresses of all shareholders, directors, officers,
18 members, managers and partners of any limited liability company or other
19 business entity that are to be the members, managers or authorized
20 persons, if any, of such limited liability company. The identification
21 of such names and addresses shall not be deemed an unwarranted invasion
22 of personal privacy pursuant to article six of the public officers law.
23 If any such member, manager or authorized person of the limited liabil-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06386-01-9
S. 1730 2
1 ity company is itself a limited liability company or other business
2 entity, the names and addresses of the shareholders, directors, offi-
3 cers, members, managers and partners of the limited liability company or
4 other business entity shall also be disclosed until full disclosure of
5 ultimate ownership by natural persons is achieved. For purposes of this
6 subdivision, the terms "members", "managers", "authorized person",
7 "limited liability company" and "other business entity" shall have the
8 same meaning as those terms are defined in section one hundred two of
9 the limited liability company law. The return shall be filed with the
10 recording officer before the instrument effecting the conveyance may be
11 recorded. However, if the tax is paid to the commissioner pursuant to
12 section fourteen hundred ten of this article, the return shall be filed
13 with such commissioner at the time the tax is paid. In that instance, a
14 receipt evidencing the filing of the return and the payment of tax shall
15 be filed with the recording officer before the instrument effecting the
16 conveyance may be recorded. The recording officer shall handle such
17 receipt in the same manner as a return filed with the recording officer.
18 § 2. Section 11-2105 of the administrative code of the city of New
19 York is amended by adding a new subdivision h to read as follows:
20 h. When the grantor or grantee of a deed for residential real property
21 containing one- to four-family dwelling units is a limited liability
22 company, the joint return shall not be accepted for filing unless it is
23 accompanied by a document which identifies the names and business
24 addresses of all members, managers, and any other authorized persons, if
25 any, of such limited liability company and the names and business
26 addresses or, if none, the business addresses of all shareholders,
27 directors, officers, members, managers and partners of any limited
28 liability company or other business entity that are to be the members,
29 managers or authorized persons, if any, of such limited liability compa-
30 ny. The identification of such names and addresses shall not be deemed
31 an unwarranted invasion of personal privacy pursuant to article six of
32 the public officers law. If any such member, manager or authorized
33 person of the limited liability company is itself a limited liability
34 company or other business entity, the names and addresses of the share-
35 holders, directors, officers, members, managers and partners of the
36 limited liability company or other business entity shall also be
37 disclosed until full disclosure of ultimate ownership by natural persons
38 is achieved. For purposes of this subdivision, the terms "members",
39 "managers", "authorized person", "limited liability company" and "other
40 business entity" shall have the same meaning as those terms are defined
41 in section one hundred two of the limited liability company law.
42 § 3. This act shall take effect immediately.
