N.Y.
Tax Law Section 1201
Taxes administered by cities of one million or more
(a)
Taxes on the privilege of doing any business, engaging in any trade, calling, occupation or profession; owning, holding or occupying any property; possessing or exercising any franchise or franchises; or on the gross receipts from sales to persons within such city; except that no tax may be imposed pursuant to this subdivision on persons as to whom authority to tax is granted by article two-b of the general city law. The rate of the taxes authorized in this subdivision shall not be in excess of one and seventeen one hundredths times the rate fixed for the corresponding taxes by local law fifty-one of the city of New York for the year nineteen hundred forty-one, and not in excess of two and thirty-five one hundredths times the rate fixed for the corresponding tax by local law forty-nine of the city of New York for the year nineteen hundred forty-one, except that as to persons engaged in the business of operating or leasing sleeping and parlor railroad cars or of operating railroads other than street surface, rapid transit, subway and elevated railroads, the rate shall not be in excess of three and fifty-two one hundredths percent of gross income and except that as to persons engaged in the business of operating omnibuses with a carrying capacity of more than seven persons, whether or not such persons are subject to the supervision of the state department of public service, the rate shall not be in excess of one and seventeen one hundredths percent of gross income or gross operating income, as the case may be. Notwithstanding the limitations as to rate provided above, for the years nineteen hundred seventy-three and those following, such city may impose, by local law, a surtax of forty per centum of the percentage of tax in effect pursuant to this subdivision in such city for the year nineteen hundred seventy-two.(b)
(i) Taxes on each deed, other instrument or transaction (other than a deed or instrument given solely as security or a transaction the sole purpose of which is to secure an obligation or indebtedness) by which any real property or any economic interest therein is conveyed or transferred, measured by the consideration or value of the interest or property conveyed or transferred, (1) at a rate not to exceed one-half of one percent of such consideration or value 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 a rate not to exceed one percent of such consideration or value with respect to (A) all conveyances 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, (B) conveyances or transfers made on or after February first, nineteen hundred eighty-two of one, two or three-family houses, individual cooperative apartments and individual residential condominium units, or interests therein, and (C) conveyances or transfers made on or after February first, nineteen hundred eighty-two (other than grants, assignments or surrenders of leasehold interests in real property) where the consideration or value is less than five hundred thousand dollars, (3) at a rate not to exceed two percent of such consideration or value with respect to all other conveyances or transfers made on or after February first, nineteen hundred eighty-two (other than grants, assignments or surrenders of leasehold interests in real property) other than those conveyances or transfers specified in subparagraphs four, five and six of this paragraph, (4) at a rate not to exceed one and four hundred twenty-five thousandths of one percent of such consideration or value where such consideration or value is less than five hundred thousand dollars with respect to all conveyances or transfers other than for conveyances or transfers of one, two or three family houses, individual cooperative apartments, and individual residential condominium units, or interests therein (other than grants, assignment or surrenders of leasehold interests in real property), made on or after August first, nineteen hundred eighty-nine, (5) at a rate not to exceed one and four hundred twenty-five thousandths of one percent of such consideration or value where such consideration or value is more than five hundred thousand dollars with respect to conveyances or transfers of one, two or three family houses, individual cooperative apartments, and individual residential condominium units, or interests therein (other than grants, assignments or surrenders of leasehold interests in real property), made on or after August first, nineteen hundred eighty-nine, and(6)
at a rate not to exceed two and six hundred twenty-five one thousandths of one percent of such consideration or value where such consideration or value is greater than five hundred thousand dollars with respect to all conveyances or transfers other than for conveyances or transfers of one, two or three family houses, individual cooperative apartments, and individual residential condominium units, or interests therein (other than grants, assignment or surrenders of leasehold interests in real property), made on or after August first, nineteen hundred eighty-nine. Provided, however, that any such city may allow deductions, in determining the portion of any tax authorized hereby the proceeds of which are payable to the New York city transit authority as hereinafter provided, for any continuing liens on such interest or property where such interest or property is a one, two or three-family house, an individual cooperative apartment or an individual residential condominium unit or where the consideration for or value of the interest or property conveyed or transferred is less than five hundred thousand dollars, and may also allow an exemption not in excess of twenty-five thousand dollars on the consideration or value of the interest or property conveyed and provided, further, that such taxes shall not apply if the contract for any such conveyance was made prior to May first, nineteen hundred fifty-nine. Anything to the contrary notwithstanding, where the tax authorized hereby is imposed on the consideration or value without any deduction for continuing liens, the portion of the consideration or value ascribable to such liens shall not be taxed at a rate in excess of one percent prior to July first, nineteen hundred eighty-two, in excess of two percent on and after July first, nineteen hundred eighty-two and before August first, nineteen hundred eighty-nine, or in excess of two and six hundred twenty-five thousandths of one percent on and after August first, nineteen hundred eighty-nine, except that where the interest or property is a one, two or three-family house, an individual cooperative apartment or an individual residential condominium unit or where the consideration for a value of the interest or property conveyed or transferred is less than five hundred thousand dollars the rate on and after July first, nineteen hundred eighty-two shall not be in excess of one percent. The amount of any pre-existing liens on such property or interest which continue thereon after the conveyance or transfer shall be deemed to be part of the consideration or value for purposes of measuring the tax without regard to whether or not payment of the liens or of the underlying debt is assumed by the grantee or transferee. The tax authorized hereby may also be imposed (A) prior to July first, nineteen hundred eighty-two, at a rate not to exceed one percent, on the granting, assignment or surrender of a leasehold interest in real property, other than 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 for or value of such grant, assignment or surrender is five hundred thousand dollars or more, (B) on and after July first, nineteen hundred eighty-two and before August first, nineteen hundred eighty-nine, at a rate not to exceed two percent, on the granting, assignment or surrender of a leasehold interest in real property, except that in the case 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, or where the consideration for or value of such grant, assignment or surrender is less than five hundred thousand dollars, the rate shall not exceed one percent and (C) on and after August first, nineteen hundred eighty-nine, at a rate not to exceed two and six hundred twenty-five thousandths of one percent, on the granting, assignment or surrender of a leasehold interest in real property, except that in the case 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 for or value of such grant, assignment or surrender is less than five hundred thousand dollars, the rate shall not exceed one percent, or in the case 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 for or value of such grant, assignment or surrender is greater than five hundred thousand dollars, the rate shall not exceed one and four hundred twenty-five thousandths of one percent, or where the consideration for or value of any other grant, assignment or surrender is less than five hundred thousand dollars, the rate shall not exceed one and four hundred twenty-five thousandths of one percent; provided, however, that for purposes of a tax on the granting of a leasehold interest in real property, the amount subject to tax shall be only such amount as is not considered rent for purposes of the tax authorized to be imposed on the occupancy of commercial premises by chapter two hundred fifty-seven of the laws of nineteen hundred sixty-three, as amended, and imposed by a city having a population of one million or more pursuant thereto. 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 tax shall be measured by the consideration for such conveyance or transfer or the value of the real property or interest therein, whichever is greater. Such taxes may be imposed on any conveyance or transfer of real property or interest therein where the real property is located in such city regardless of where transactions, negotiations, transfers of deeds or other actions with regard to the transfer or conveyance take place, subject only to the restrictions contained in section twelve hundred thirty. The payment of, and the filing of a return relating to, any such taxes may be required as a condition precedent (1) to the recording or filing of a deed, lease, assignment or surrender of lease or other instrument, (2) to the commencement of any action or proceeding in any court of this state in which any conveyance, transfer or lease described herein is in issue, directly or indirectly, or(3)
to the receipt in evidence of such deed, lease, assignment or surrender of lease or other instrument in any such court. In each instance where the tax rate imposed pursuant to this subdivision is two percent, fifty percent of the total amount of such tax, including fifty percent of any interest or penalties thereon, shall be set aside in a special account by the commissioner of finance of such city, provided, however, that where the consideration for or value of property or interest conveyed or transferred includes the amount of any nondeductible mortgage, lien or other encumbrance which existed before the conveyance or transfer and remains thereon after such conveyance or transfer, (A) prior to July first, nineteen hundred eighty-two the entire amount of tax imposed at a rate not in excess of one percent on the portion of the consideration or value ascribable to such nondeductible mortgage, lien or other encumbrance, including any interest or penalties thereon, and fifty percent of the tax on the balance of the consideration or value, including fifty percent of any interest or penalties thereon, shall be set aside in such special account, and (B) on and after July first, nineteen hundred eighty-two and before August first, nineteen hundred eighty-nine, fifty percent of the amount of tax imposed at a rate in excess of one percent but not in excess of two percent on the portion of the consideration or value ascribable to such nondeductible mortgage, lien or other encumbrance, including fifty percent of any interest or penalties thereon, and fifty percent of the tax on the balance of the consideration or value, including fifty percent of any interest or penalties thereon, shall be set aside in such special account. On and after August first, nineteen hundred eighty-nine, in each instance where the tax rate imposed pursuant to this subdivision is in excess of two percent, the portion of the tax, and any interest or penalty thereon, to be set aside in such special account shall be an amount equal to one percent of the total consideration for or value of the real property or economic interest therein conveyed or transferred, plus any interest or penalty attributable to such portion of the tax. There shall also be set aside in such special account prior to July first, nineteen hundred eighty-two the total amount of taxes imposed on grants, assignments or surrenders of leasehold interests in real property, including any interest or penalties thereon; on and after July first, nineteen hundred eighty-two and before August first, nineteen hundred eighty-nine, there shall be set aside in such special account fifty percent of the amount of taxes imposed on grants, assignments or surrenders of leasehold interests in real property, other than 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, or where the consideration for or value of such grant, assignment or surrender is less than five hundred thousand dollars, including fifty percent of any interest or penalties thereon. On and after August first, nineteen hundred eighty-nine, there shall be set aside in such special account, in each instance where the rate of tax on grants, assignments or surrenders of leasehold interests in real property is two percent or more, an amount equal to one percent of the consideration for or value of the leasehold interest granted, assigned or surrendered, plus any interest or penalty attributable to such portion of the tax. Notwithstanding anything in this paragraph (i) to the contrary, in each instance where the tax rate imposed pursuant to paragraph (xi) of this subdivision is in excess of one percent, the portion of tax, and any interest or penalty thereon, to be set aside in such special account shall be an amount equal to one-half of one percent of the total consideration for or value of the real property or economic interest therein conveyed or transferred, plus any interest or penalty attributable to such portion of the tax, and there shall be set aside in such special account, in each instance where the rate of tax imposed under paragraph (xi) of this subdivision on grants, assignments or surrenders of leasehold interests in real property is in excess of one percent, an amount equal to one-half of one percent of the consideration for or value of the leasehold interest granted, assigned or surrendered, plus any interest or penalty attributable to such portion of the tax. Moneys in such account shall be used for payment by such commissioner to the state comptroller for deposit in the urban mass transit operating assistance account of the mass transportation operating assistance fund of any amount of insufficiency certified by the state comptroller pursuant to the provisions of subdivision six of State Finance Law § 88-A (Mass transportation operating assistance fund)section eighty-eight-a of the state finance law, and, on the fifteenth day of each month such commissioner shall transmit all funds in such account on the last day of the preceding month, except the amount required for the payment of any amount of insufficiency certified by the state comptroller and such amount as he deems necessary for refunds and such other amounts necessary to finance the New York city transportation disabled committee and the New York city paratransit system as established by Transportation Law § 15-B (New York city accessible transportation system)section fifteen-b of the transportation law, provided, however, that such amounts shall not exceed six percent of the total funds in the account but in no event be less than one hundred seventy-five thousand dollars beginning April first, nineteen hundred eighty-six, and further that beginning November fifteenth, nineteen hundred eighty-four and during the entire period prior to operation of such system, the total of such amounts shall not exceed three hundred seventy-five thousand dollars for the administrative expenses of such committee and fifty thousand dollars for the expenses of the agency designated pursuant to paragraph b of subdivision five of such section, and other amounts necessary to finance the operating needs of the private bus companies franchised by the city of New York and eligible to receive state operating assistance under Transportation Law § 18-B (Statewide mass transportation operating assistance program)section eighteen-b of the transportation law, provided, however, that such amounts shall not exceed four percent of the total funds in the account, to the New York city transit authority for mass transit within the city.(ii)
For purposes of this subdivision, an “economic interest” in real property shall mean (1) the ownership of shares of stock in a corporation which owns real property, (2) the ownership of an interest or interests in a partnership, association or other entity which owns real property, and(3)
the ownership of a beneficial interest or interests in a trust which owns real property.(iii)
For purposes of this subdivision, the terms “transferred” or “transfer,” when used in relation to an economic interest in real property, shall include the transfer or transfers of shares of stock in a corporation, interest or interests in a partnership, association or other entity, or beneficial interest or interests in a trust, whether made by one or several persons, or in one or several related transactions, which shares of stock or interest or interests constitute a controlling interest in such corporation, partnership, association, trust or other entity.(iv)
“Controlling interest” for purposes of this subdivision shall mean:(1)
in the case of a corporation, 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 fair market value of all classes of stock of such corporation; and(2)
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.(v)
Notwithstanding the definition of “controlling interest” contained in paragraph (iv) or any provision to the contrary contained in paragraph (iii) of this subdivision, 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 authorized by this subdivision shall apply to (1) the original transfer of such shares of stock by the cooperative corporation or cooperative plan sponsor, and(2)
any subsequent transfer of such shares of stock by the owner thereof. Notwithstanding any provisions of this subdivision to the contrary, in the case of a transfer described in clause two 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 (1) of this paragraph, a credit shall be allowed for a proportionate part of the amount of any tax imposed pursuant to the authority of this subdivision and 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 (1) 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 (1) 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 (1). For purposes of this subdivision, 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.(vi)
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.(vii)
Any local law enacted pursuant to this subdivision may provide for such credits as are required to avoid multiple taxation.(viii)
Any city which has imposed the tax authorized by this subdivision prior to its amendment by a chapter of the laws of nineteen hundred eighty-one may continue to impose such tax without regard to the amendments made by such chapter, or may amend the local law imposing such tax to incorporate therein the provisions authorized by this subdivision as amended by such chapter of the laws of nineteen hundred eighty-one. If such city amends such local law to include therein the additional provisions authorized by such chapter of the laws of nineteen hundred eighty-one, the provisions so added shall not apply to any transfer made pursuant to a written contract entered into prior to the effective date of such chapter of the laws of nineteen hundred eighty-one.(ix)
Notwithstanding the definition of “controlling interest” contained in paragraph (iv) or anything to the contrary contained in paragraph (iii) of this subdivision, 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 authorized 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 provisions of this subdivision 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.(x)
Notwithstanding any other provision of law to the contrary, all revenues resulting from the imposition of the tax authorized by paragraph (ix) of this subdivision shall be credited to and deposited in the general fund of the city imposing such tax, but no part of such revenues may be expended unless appropriated in the annual budget of such city.(xi)
Notwithstanding anything contained in this subdivision, the tax imposed under paragraphs (i), (v) and (ix) of this subdivision 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. For purposes of this paragraph (xi), a real estate investment trust transfer shall mean (1) 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 856 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(2)
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 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 ninety-six and before September first, two thousand twenty-six, the transaction is described in subparagraph five of this paragraph in which case the provisions of such subparagraph shall apply.(3)
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 three, 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.(4)
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 paragraph (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.(5)
If a transaction otherwise described in subparagraph two of this paragraph occurs other than in connection with the initial formation of a REIT, the condition set forth in subparagraph four of this paragraph shall be disregarded and such transaction shall constitute a “real estate investment trust transfer” if the condition set forth in subparagraph three of this paragraph would be satisfied if “fifty percent” is substituted for “forty percent” therein. For purposes of determining the consideration for a real estate investment trust transfer taxable under this paragraph (xi), the value of the real property or interest therein shall be equal to the estimated market value as determined by the commissioner of finance of the city of New York 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. This paragraph (xi) shall only apply to real estate investment trust transfers occurring on or after the effective date of this paragraph.(xii)
Notwithstanding any other provision of this subdivision, in determining the tax authorized by this subdivision 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 paragraph 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 paragraph (xi) of this subdivision.(c)
Privilege taxes on amusement devices operated by coins, tokens or currency (either generally or upon selected types or classes of such devices), including, but not limited to, juke box, music, skill game, digger, pool or billiard tables, booths providing live entertainment and moving picture and video devices, at a rate not to exceed twenty-five dollars per annum for each such device.(d)
Taxes on the privilege of selling liquor, wine or beer at retail for on or off premises consumption, at a rate or in an amount per annum not in excess of twenty-five percent of the amount of license fees prescribed therefor from time to time in the alcoholic beverage control law.(e)
Taxes on the use of passenger motor vehicles of a type commonly used for non-commercial purposes owned by residents of the city at a rate per annum for each such vehicle of not in excess of five dollars if such vehicle weighs thirty-five hundred pounds or less and not in excess of ten dollars per annum if such vehicle weighs more than thirty-five hundred pounds; and taxes on the use of trucks, buses and other such commercial motor vehicles used principally in connection with a business carried on within the city, except when owned and used in connection with the operation of a farm by the owner or tenant thereof, at a rate per annum for each such vehicle of not in excess of ten dollars.(f)
(1) Taxes on the sale of containers made in whole or in part of rigid or semi-rigid paperboard, fibre, glass, metal, plastic or any combination of such materials, including, but not limited to, barrels, baskets, bottles, boxes, cans, cartons, carrying cases, crates, cups, cylinders, drums, glasses, jars, jugs, pails, pots, rigid foil containers, trays, tubs, tubes, tumblers, and vessels, intended for use in packing or packaging any product intended for sale. Such taxes shall be levied upon the seller or supplier of the container who or which makes sales thereof to the person who purchases them (whether filled or unfilled) for the purpose of using them in connection with and as part of sales at retail or who receives them as containers of products intended for sale at retail. Where no tax has been paid by such seller or supplier, the buyer or person who purchases the container to use it or its contents in making a sale at retail shall be liable for tax thereon upon purchasing such container. Notwithstanding the provisions of § 1220 (Territorial limitations)section twelve hundred twenty of this article, sellers and suppliers having no business situs in the city imposing the tax, who sell such containers to retailers within the city may pay the tax so as to prevent its levy upon such retailers. Such taxes shall be imposed at rates not to exceed (i) three cents for each plastic bottle, (ii) two cents for each other plastic container, (iii) two cents for each glass container, (iv) two cents for each metal container except one cent for metal containers shown to be made of one metal only. Where a container is made of a combination of two or more of the materials with which this subdivision deals, it shall be classified and be taxable as if it were made of that of its component materials for which the following table provides the highest rate: fibre and paperboard metal glass plastic 1ø 2ø 2ø 3ø (2) Any local law enacted pursuant to this subdivision may provide that:(i)
metal containers and paperboard or fibre containers which have been impregnated, lined or coated with plastic or other materials shall be considered to be classified and taxable as metal containers and paperboard containers, respectively;(ii)
paperboard or fibre containers with fastenings, tops and/or bottoms made of other materials dealt with by this subdivision shall be classified and taxed as paperboard or fibre containers;(iii)
paperboard, metal, or plastic caps that are easily, readily, usually, and customarily separated from the container before disposal shall not be considered part of the container; and(iv)
notwithstanding any exception made pursuant to subparagraphs (i), (ii) and (iii) of this paragraph, where a preponderantly glass container is made of a combination of taxable materials, the complete separation of which materials is not easily, readily, usually and customarily effected after use and before disposal, such container shall be taxed one cent in addition to the tax otherwise imposed upon it, but in no event shall the aggregate tax on such container exceed three cents.(3)
Any local law enacted pursuant to this subdivision may provide that containers sold or furnished containing products intended for use in manufacturing processes and not for final retail sale shall be exempt from such taxes.(4)
Local laws imposing taxes authorized by this subdivision shall provide for the allowance of credits against such taxes as follows:(i)
one cent for each taxable container if manufactured with the following minimum percentages of recycled material: (A) Paperboard and fibre containers: eighty per cent, if made of boxboard; thirty per cent if made of foodboard, fibre or containerboard. (B) Metal containers: thirty per cent if taxed during the period beginning July first, nineteen hundred seventy-one and ending June thirtieth, nineteen hundred seventy-two; and forty per cent, if taxed thereafter. (C) Glass containers: twenty per cent if taxed during the period beginning July first, nineteen hundred seventy-one and ending June thirtieth, nineteen hundred seventy-two; and thirty per cent, if taxed thereafter. (D) Plastic containers: thirty per cent.(ii)
one cent for each container of a clearly distinct type, class, pattern or form taxed during any taxable period provided that sixty per cent or more of all the containers of such distinct type, class, pattern or form subject to tax during such period were reused containers.(iii)
Provided that the credits for each container during any taxable period shall not exceed the amount of taxes due on such container for such period.(5)
The fiscal officer of any such city in charge of the administration of any tax imposed pursuant to this subdivision, may be authorized by any local law enacted pursuant to this subdivision, to prescribe by regulation, upon the joint recommendation of the chief officer in charge of the department or agency of such city dealing with the interests of consumers and the chief officer in charge of the department or agency of such city charged with the duty of waste collection and disposal:(i)
additional exemptions from and credits against the tax imposed by such local law; and(ii)
an additional surtax of no more than one cent per container, to be imposed upon containers made of any of the taxable components dealt with by this subdivision or any combination thereof. In granting such exemption or credit or providing for such additional surtax, the above mentioned officers shall take into consideration the following qualities and characteristics of the container in question: (A) the difficulty the container’s material poses to the process of making recycled material. (B) the difficulty of its manufacture from recycled materials. (C) the difficulty and relative cost of its disposal. (D) any obstacle it poses to consumer protection. (E) the degree to which the container can or cannot be reused. (F) the slowness, difficulty, and incompleteness with which the container degrades in the natural environment, either chemically or biologically. Any such exemption, credit or surtax may be revoked by joint action of such officers, or by local law.(6)
There shall be exempted from any tax imposed pursuant to the authority of this subdivision, containers used as receptacles for food, food products, beverages, dietary foods and health supplements, sold for human consumption but not including (i) candy and confectionery, (ii) fruit drinks with contain less than seventy per cent of natural fruit juice, (iii) soft drinks, sodas and beverages such as are ordinarily dispensed at soda fountains or in connection therewith (other than coffee, tea and cocoa) and (iv) beer, wine or other alcoholic beverages.(7)
When used in this subdivision the words (i) “recycled material” mean component materials which have been derived from previously used material or from new or old scrap material, (ii) “retail sale” or “sale at retail” means a sale to any person for any purpose other than for resale as such or as a physical component part of tangible personal property, (iii) “taxable period” means each calendar month or such other periods as the official administering any tax enacted pursuant to this subdivision may provide for by regulation, (iv) “one metal only” means metal with such minimum amounts of alloys as the officer charged with the administration of any local law enacted pursuant to this subdivision shall provide by regulation, but shall not include metal which has been plated or lined with another metal. In formulating such regulations such officer shall consult with the chief officer in charge of the department or agency of such city dealing with the interests of consumers and the chief officer in charge of the department or agency of such city charged with the duty of waste collection and disposal and shall consider the difficulty of using the metal in the making of recycled material and the availability of or technical feasibility of manufacturing other metals for the same purpose and use as the metal in question but with a lower alloy content.(g)
A tax not to exceed fifteen dollars per annum per vehicle to be paid by the owner thereof:(1)
for every motor vehicle registered or required to be registered pursuant to subdivision six of Vehicle & Traffic Law § 401 (Registration of motor vehicles)section four hundred one of the vehicle and traffic law if such vehicle is owned by (i) one or more natural persons, other than a firm, co-partnership, limited liability company, trustee or trustees conducting a business or association, who, or one of whom: (A) at the time when he makes application for the registration, re-registration or renewal thereof of such motor vehicle is domiciled in the city, unless he maintains no permanent place of abode in the city, maintains a permanent place of abode elsewhere, and during the period of one year next preceding the date upon which such application is made, spent in the aggregate not more than thirty days in the city, or (B) at the time when he makes such application, is not domiciled in the city, but maintains a permanent place of abode in the city and, during the period of one year next preceding the date upon which such application is made, spent in the aggregate more than one hundred and eighty-three days in the city, unless such individual is in the armed forces of the United States; or(ii)
a person, firm, co-partnership, limited liability company, trustee or trustees conducting a business or association, or a corporation who or which at the time when such owner makes application for registration, re-registration or renewal thereof of such motor vehicle, regularly keeps, stores, garages or maintains such motor vehicle in the city; and(2)
for every motor vehicle owned by a person, firm, partnership, limited liability company, association or corporation engaged in the business of renting or leasing motor vehicles to be operated upon the public highways for carrying passengers registered or required to be registered pursuant to any provision of Vehicle & Traffic Law § 401 (Registration of motor vehicles)section four hundred one of the vehicle and traffic law, which vehicle at the time when such owner makes application for registration, re-registration or renewal thereof is regularly kept, stored, garaged or maintained in the city including such vehicles which have been rented or leased by the owner and are in possession of lessees when such application for registration, re-registration or renewal is made.(3)
The payment of such tax shall be a condition precendent to the registration, re-registration or renewal therof of such motor vehicle and to the issuance of any certificate of registration and plates or removable date tag specified in subdivision three of section four hundred one and in sections four hundred three and four hundred four of the vehicle and traffic law, and no such certificate of registration, plates or tag shall be issued unless such tax has been paid. The commissioner of motor vehicles shall not issue a registration certificate for any motor vehicle for which the registrant’s address is within any such city, except upon proof, in a form approved by the commissioner of motor vehicles, that such tax, if imposed by such city, has been paid, or is not due, with respect to such motor vehicle.(h)
Notwithstanding the provisions of this article or of any other law, any local law adopted by a city of one million or more, imposing a tax authorized by subdivision (g) of this section may provide that such tax shall be administered and collected by the commissioner of motor vehicles or his agents. In the event that such local law does so provide, such tax shall not be imposed upon an application for the re-registration of a motor vehicle, and further, the commissioner of motor vehicles shall enter into an agreement with the finance administrator or other appropriate fiscal officer of such city, which agreement shall govern the administration and collection of any such tax and which agreement shall have the force and effect of a rule or regulation of the commissioner and shall be filed and published in accordance with any statutory requirements relating thereto. Notwithstanding any other provision of law, such agreement shall provide for the exclusive method of collection, custody and remittal of the proceeds of any such tax; for the payment by such city of the reasonable expenses incurred by the department of motor vehicles in connection with the collection and administration of any such tax; for the finance administrator or other appropriate fiscal officer, or a duly designated representative, upon his request, not more frequently than once in each calendar year at a time agreed upon by the state comptroller, to audit the accuracy of the payments, distributions and remittances to such finance administrator or other appropriate fiscal officer made pursuant to this subdivision; and for such other matters as may be necessary and proper to effectuate the purposes of such agreement.(i)
A tax on admission charges for admission to motion picture exhibitions or live dramatic, choreographic or musical performances, whether at a theatre, opera house, concert hall or other place, at a rate not to exceed three percent. However, such a tax shall not apply to any admission charge to a motion picture exhibition for admission of a person twelve years of age or under.(j)
(1) A tax on the transfer of a taxicab license, or interest therein, at a rate not to exceed eight percent of the consideration given for such transfer.(2)
The tax shall be imposed on the transferee, but any local law imposing the tax authorized by this subdivision may provide that the transferor shall also be liable for the payment of such tax in the event that the amount of tax due is not paid by the transferee.(3)
Notwithstanding any other law to the contrary, no transfer of a taxicab license shall be effective until any tax imposed pursuant to the authority of this subdivision has been paid.(4)
Where there is a transfer of the economic interest in a taxicab license effected by the sale of shares of stock of a corporation which holds the taxicab license, or by the transfer of an interest or interests in a partnership or association which holds the taxicab license, any local law enacted pursuant to the authority of this subdivision may provide that such a transfer shall be treated as a transfer of the taxicab license or interest therein, subject to the tax authorized by this subdivision.(5)
Where there is a transfer of a taxicab or other property in conjunction with the transfer of a taxicab license or interest therein, such local law may provide that the tax shall be computed on the total consideration for the transfer of the license, or interest therein, the taxicab and any other property so transferred less the market value of such taxicab and such other property.(6)
When used in this subdivision, the following terms shall mean:(i)
“Transfer.” Any transfer of interest whether or not such interest constitutes title, or possession, or both, exchange or barter, rental, lease, or license to use, conditional or otherwise, in any manner or by any means whatsoever for a consideration, or any agreement therefor.(ii)
“Taxicab.” A motor vehicle carrying passengers for hire in a city imposing the tax authorized by this subdivision, duly licensed as a taxicab by such city, and permitted to accept hails from passengers in the street.(iii)
“Taxicab license.” A license issued by the taxi and limousine commission in such city, or its successor agency, to operate a taxicab.(k)
Any local law imposing a tax on the gross receipts (or gross income or gross operating income) from sales of electricity, gas or steam, or sales of delivery services for any of the foregoing, to persons within such city enacted pursuant to subdivision (a) of this section may provide for a deduction from gross receipts (or gross income or gross operating income) of all receipts derived from the sale of electricity, gas or steam, or sale of delivery services for any of the foregoing, to non-residential energy users of such electricity, gas or steam, or from the sale of delivery services to a public utility service operated by such city in accordance with a local law adopted pursuant to article fourteen-A of the general muncipal law or from the sale of delivery services to the power authority of the state of New York, in connection with the sale of electricity, gas or steam to non-residential energy users of such electricity, gas or steam, except that no deduction shall be allowed for receipts derived from sales of electricity, or sales of delivery services for electricity, to or by an electricity redistributor, or sales of delivery services for electricity to a public utility service operated by such city in accordance with a local law adopted pursuant to article fourteen-A of the general municipal law or sales of such delivery services to the power authority of the state of New York, in connection with the sale of electricity by such public utility service or such authority to an electricity redistributor, unless such electricity redistributor has obtained a certification of eligibility pursuant to a local law enacted in accordance with the authorization contained in article two-G of the general city law. No such deduction authorized herein shall affect the computation specified in subdivision four of section three contained in section one or subdivision (a) of section one hundred three contained in section two of chapter seven hundred seventy-two of the laws of nineteen hundred sixty-six, as amended, with regard to vendors of utility services. For purposes of this subdivision, the terms “non-residential energy user” and “electricity redistributor” shall have the same meaning as ascribed by article two-G of the general city law.(l)
In addition to any privilege taxes on amusement devices authorized by subdivision (c) of this section, there shall be authorized an additional privilege tax on amusement devices operated by coins, tokens or currency (either generally or upon selected types or classes of such devices) including, but not limited to, juke box, music, skill game, digger, pool or billiard tables, booths providing live entertainment, and moving picture and video devices, at a rate not to exceed one hundred fifty dollars per annum for each such device.(m)
Any city in this state having a population of one million or more, acting through its local legislative body, is hereby authorized to adopt and amend local laws which conform the local law of such city to the provisions of law set forth in part U3 of a chapter of the laws of two thousand three amending the general business law and other laws relating to implementing the state fiscal plan for the 2003-2004 state fiscal year, as proposed in legislative bill numbers S. 1406-B and A. 2106-B, as amended, with such modifications as may be necessary to adapt such provisions to such local law so that such local law is substantially similar to the law of the state.
Source:
Section 1201 — Taxes administered by cities of one million or more, https://www.nysenate.gov/legislation/laws/TAX/1201 (updated May 12, 2023; accessed Oct. 26, 2024).
