Section 1449-AA. Definitions

When used in this article, unless otherwise
  expressly stated, the following words and terms shall have the following
  meanings:
    1.  "Person"  means  an  individual,  partnership,  limited  liability
  company, society, association, joint stock company, corporation, estate,
  receiver,  trustee,  assignee,  referee  or any other person acting in a
  fiduciary or representative capacity, whether appointed by  a  court  or
  otherwise,  any  combination  of  individuals,  and  any  other  form of
  unincorporated enterprise owned or conducted by two or more persons.
    2. "Controlling interest" means (a) in  the  case  of  a  corporation,
  either  fifty  percent or more of the total combined voting power of all
  classes of stock of such corporation, or fifty percent or  more  of  the
  capital,  profits  or  beneficial  interest in such voting stock of such
  corporation, and (b) in the case of a partnership, association, trust or
  other  entity,  fifty  percent  or  more  of  the  capital,  profits  or
  beneficial  interest  in  such  partnership, association, trust or other
  entity.
    3. "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 town in the
  Peconic Bay region. It shall not include rights to sepulture.
    4. "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.  It  shall include the cancellation or
  discharge of an indebtedness or obligation. It shall  also  include  the
  amount   of  any  mortgage,  purchase  money  mortgage,  lien  or  other
  encumbrance, whether or not the underlying indebtedness  is  assumed  or
  taken subject to.
    (a)  In the case of a creation of a leasehold interest or the granting
  of an option with use and  occupancy  of  real  property,  consideration
  shall  include, but not be limited to, the value of the rental and other
  payments attributable to the use and occupancy of the real  property  or
  interest therein, the value of any amount paid for an option to purchase
  or  renew  and the value of rental or other payments attributable to the
  exercise of any option to renew.
    (b)  In  the  case  of  a  creation  of   a   subleasehold   interest,
  consideration  shall  include,  but  not be limited to, the value of the
  sublease rental payments attributable to the use and  occupancy  of  the
  real  property,  the value of any amount paid for an option to renew and
  the value of rental or other payments attributable to  the  exercise  of
  any  option  to renew less the value of the remaining prime lease rental
  payments required to be made.
    (c) In the case of a controlling interest in any entity that owns real
  property, consideration shall mean the fair market  value  of  the  real
  property or interest therein, apportioned based on the percentage of the
  ownership interest transferred or acquired in the entity.
    (d)  In the case of an assignment or surrender of a leasehold interest
  or the assignment or surrender of an option or contract to purchase real
  property, consideration shall not include the  value  of  the  remaining
  rental  payments required to be made pursuant to the terms of such lease
  or the amount to be paid for the real property pursuant to the terms  of
  the option or contract being assigned or surrendered.
    (e) In the case of (1) the original conveyance of shares of stock in a
  cooperative housing corporation in connection with the grant or transfer
  of a proprietary leasehold by the cooperative corporation or cooperative

  plan  sponsor, and (2) the subsequent conveyance by the owner thereof of
  such stock in a cooperative housing corporation in connection  with  the
  grant  or  transfer  of  a  proprietary leasehold for a cooperative unit
  other than an individual residential unit, consideration shall include a
  proportionate  share of the unpaid principal of any mortgage on the real
  property  of  the  cooperative  housing   corporation   comprising   the
  cooperative  dwelling  or  dwellings.  Such share shall be determined by
  multiplying the total unpaid principal of the mortgage  by  a  fraction,
  the  numerator  of  which  shall  be the number of shares of stock being
  conveyed in the cooperative housing corporation in connection  with  the
  grant  or  transfer  of  a  proprietary leasehold and the denominator of
  which shall be the total number of shares of stock  in  the  cooperative
  housing corporation.
    5.  "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. Transfer of an interest in real  property  shall  include  the
  creation  of  a leasehold or sublease only where (a) the sum of the term
  of the lease or sublease and any options for renewal exceeds  forty-nine
  years, (b) substantial capital improvements are or may be made by or for
  the benefit of the lessee or sublessee, and (c) the lease or sublease is
  for  substantially  all  of the premises constituting the real property.
  Notwithstanding the foregoing, conveyance of  real  property  shall  not
  include  a  conveyance  made pursuant to devise, bequest or inheritance;
  the   creation,   modification,   extension,    spreading,    severance,
  consolidation,  assignment,  transfer,  release  or  satisfaction  of  a
  mortgage; a  mortgage  subordination  agreement,  a  mortgage  severance
  agreement,  an  instrument  given  to  perfect  or  correct  a  recorded
  mortgage; or a release of lien of tax pursuant to this  chapter  or  the
  internal revenue code.
    6.  "Interest in the real property" includes title in fee, a leasehold
  interest, a beneficial interest, an encumbrance, development rights, air
  space and air rights, or any other interest with the  right  to  use  or
  occupancy  of  real  property  or the right to receive rents, profits or
  other income derived from real property. It shall also include an option
  or contract to purchase real property. It shall not include a  right  of
  first refusal to purchase real property.
    7.  "Grantor"  means the person making the conveyance of real property
  or interest therein. Where the conveyance consists of a transfer  or  an
  acquisition  of  a controlling interest in an entity with an interest in
  real property, "grantor" means the  entity  with  an  interest  in  real
  property  or  a shareholder or partner transferring stock or partnership
  interest, respectively.
    8. "Grantee" means the person who obtains real  property  or  interest
  therein as a result of a conveyance.
    9.  "Fund"  means  a  community  preservation fund created pursuant to
  section sixty-four-e of the town law.
    10. "Recording officer" means  the  county  clerk  of  the  county  of
  Suffolk.
    11.  "Town"  means  any  town  in  the  Peconic  Bay region, county of
  Suffolk.
    12. "Treasurer" means the treasurer of the county of Suffolk.
    13. "Town supervisor" means the town supervisor of a town.
    14. "Peconic Bay region" means the towns of East  Hampton,  Riverhead,
  Shelter Island, Southampton and Southold.

    15.  "Household  income"  means  the  total combined income of all the
  owners, and of any owners' spouses residing  on  the  premises  for  the
  income  tax  year  preceding  the  date  of  making  application for the
  exemption.
    16.  "Income"  means  the adjusted gross income for federal income tax
  purposes as reported on the  applicant's  latest  available  federal  or
  state  income  tax  return  subject  to  any  subsequent  amendments  or
  revisions, reduced by distributions, to the extent included  in  federal
  adjusted  gross  income,  received from an individual retirement account
  and an individual retirement annuity; provided that if  no  such  return
  was  filed  within  the  one  year period preceding taxable status date,
  income shall mean the adjusted gross income  that  would  have  been  so
  reported if such a return had been filed.
    17.  "Latest  available return" shall mean the federal or state income
  tax return for  the  year  immediately  preceding  the  date  of  making
  application,  provided however, that if the tax return for such tax year
  has not been filed, then the income tax return  for  the  tax  year  two
  years  preceding  the date of making application shall be considered the
  latest available.
    18. "First-time homebuyer" means a person who has not owned a  primary
  residential  property  and  is  not  married to a person who has owned a
  residential property during the three-year period prior to  his  or  her
  purchase  of  the  primary  residential property, and who does not own a
  vacation or investment home.
    19. "Primary residential property" means any one or two family  house,
  townhouse  or  condominium  located  in  the  town  which is to be owner
  occupied by such homebuyer.
    * NB Repealed December 31, 2030