Section 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
  eleven, 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.