N.Y.
Tax Law Section 1449-EE
Exemptions
1.
The following shall be exempt from the payment of the real estate transfer tax:(a)
The state of New York, or any of its agencies, instrumentalities, political subdivisions, or public corporations (including a public corporation created pursuant to an agreement or compact with another state or Dominion of Canada); and(b)
The United Nations, the United States of America or any of its agencies or instrumentalities.2.
The tax shall not apply to any of the following conveyances:(a)
Conveyances to the United Nations, the United States of America, the state of New York, or any of their instrumentalities, agencies or political subdivisions (or any public corporation, including a public corporation created pursuant to agreement or compact with another state or the Dominion of Canada);(b)
Conveyances which are or were used to secure a debt or other obligation;(c)
Conveyances which, without additional consideration, confirm, correct, modify or supplement a deed previously recorded;(d)
Conveyances of real property without consideration and otherwise than in connection with a sale, including deeds conveying realty as bona fide gifts;(e)
Conveyances given in connection with a tax sale;(f)
Conveyances to effectuate a mere change of identity or form of ownership or organization where there is no change in beneficial ownership, other than conveyances to a cooperative housing corporation of the real property comprising the cooperative dwelling or dwellings;(g)
Conveyances which consist of a deed of partition;(h)
Conveyances given pursuant to the federal bankruptcy act;(i)
Conveyances of real property which consist of the execution of a contract to sell real property without the use or occupancy of such property or the granting of an option to purchase real property without the use or occupancy of such property;(j)
Conveyances of real property, where the entire parcel of real property to be conveyed is the subject of one or more of the following development restrictions: (1) agricultural, conservation, scenic, or an open space easement, (2) covenants or restrictions prohibiting development, (3) a purchase of development rights agreement, (4) a transfer of development rights agreement, where the property being conveyed has had its development rights removed, (5) said real property is subject to the development restriction of an agricultural district or individual commitment, pursuant to article twenty-five-AA of the agriculture and markets law, (6) real property subject to any locally adopted land preservation agreement, provided said exemption is included in the local law imposing the tax authorized by this article;(k)
Conveyances of real property, where the property is viable agricultural land as defined in subdivision seven of section three hundred one of the agricultural and markets law and the entire property to be conveyed is to be made subject to one of the development restrictions provided for in subparagraph two of paragraph (j) of this subdivision provided that said development restriction precludes the conversion of the property to a non-agricultural use for at least three years from the date of transfer, and said development restriction is evidenced by an easement, agreement, or other suitable instrument which is to be conveyed to the town simultaneously with the conveyance of the real property; or(l)
Conveyances of real property for open space, parks, or historic preservation purposes to any not-for-profit tax exempt corporation operated for conservation, environmental, or historic preservation purposes.(m)
Conveyances of real property to any tax exempt corporation, incorporated pursuant to the not-for-profit corporation law or the private housing finance law, where such conveyance is for the purposes of providing affordable housing opportunities within the towns and such corporation is incorporated for the purposes of providing housing opportunities. For the purposes of this paragraph, “affordable housing” shall mean housing opportunities exclusively for town residents of the towns whose income is at or below the median income for the town.3.
(a) In the towns of East Hampton, Shelter Island and Southampton, an exemption of four hundred thousand dollars shall be allowed on the consideration of the conveyance of improved real property or an interest therein and an exemption of one hundred thousand dollars shall be allowed on the consideration of the conveyance of unimproved real property.(b)
In the towns of Riverhead and Southold, an exemption of two hundred thousand dollars shall be allowed on the consideration of the conveyance of improved real property or an interest therein and an exemption of seventy-five thousand dollars shall be allowed on the consideration of the conveyance of unimproved real property.(c)
The exemption granted pursuant to the provisions of this subdivision shall only apply to conveyances for residential property where the consideration is two million dollars or less.4.
Primary residential property purchased by one or more persons, each of whom is a first-time homebuyer shall be exempt from the payment of the real estate transfer tax, in the towns of Southampton, East Hampton, Shelter Island and Southold, provided that:(a)
(1) in the towns of Southampton, East Hampton and Shelter Island, the primary residential property is within one hundred fifty percent of the purchase price limits defined by the state of New York mortgage agency low interest rate mortgage program in the non-target one family categories for Suffolk county in effect on the contract date for the sale of such property; (2) in the town of Southold, the primary residential property is within sixty percent of the purchase price limits defined by the state of New York mortgage agency low interest rate mortgage program in the non-target one family categories for Suffolk county in effect on the contract date for the sale of such property; and(b)
the buyer’s household income does not exceed the income limits defined by the state of New York mortgage agency low interest rate mortgage program in the non-target, one and two person household category for Suffolk county in effect on the contract date for the sale of such property.5.
Such exemption shall be granted only upon application by the owner of such building on a form prescribed by the town. The application shall be filed with the town. If satisfied that the applicant is entitled to an exemption pursuant to this section, the town shall approve the application and the conveyance of such primary residential property shall be exempt from the real estate transfer tax imposed by this article. * NB Repealed December 31, 2050
Source:
Section 1449-EE — Exemptions, https://www.nysenate.gov/legislation/laws/TAX/1449-EE (updated Oct. 15, 2021; accessed Oct. 26, 2024).
