S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8334
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             October 20, 2021
                                ___________
 
 Introduced  by M. of A. SALKA -- read once and referred to the Committee
   on Ways and Means
 
 AN ACT to amend the tax law, in relation to authorizing  the  county  of
   Madison to impose a tax on real estate transfers
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The tax law is amended by adding a new article 31-H to read
 as follows:
                               ARTICLE 31-H
           TAX ON REAL ESTATE TRANSFERS IN THE COUNTY OF MADISON
 SECTION 1449-AAAAAA. DEFINITIONS.
         1449-BBBBBB. IMPOSITION OF TAX.
         1449-CCCCCC. PAYMENT OF TAX.
         1449-DDDDDD. LIABILITY FOR TAX.
         1449-EEEEEE. EXEMPTIONS.
         1449-FFFFFF. CREDIT.
         1449-GGGGGG. COOPERATIVE HOUSING CORPORATION TRANSFERS.
         1449-HHHHHH. DESIGNATION OF AGENTS.
         1449-IIIIII. LIABILITY OF RECORDING OFFICER.
         1449-JJJJJJ. REFUNDS.
         1449-KKKKKK. DEPOSIT AND DISPOSITION OF REVENUE.
         1449-LLLLLL. JUDICIAL REVIEW.
         1449-MMMMMM. APPORTIONMENT.
         1449-NNNNNN. MISCELLANEOUS.
         1449-OOOOOO. RETURNS TO BE SECRET.
         1449-PPPPPP. FORECLOSURE.
   § 1449-AAAAAA. DEFINITIONS. WHEN USED IN THIS ARTICLE,  UNLESS  OTHER-
 WISE EXPRESSLY STATED:
   1.  "PERSON"  MEANS  AN INDIVIDUAL, PARTNERSHIP, SOCIETY, ASSOCIATION,
 JOINT STOCK COMPANY, CORPORATION, ESTATE, RECEIVER,  TRUSTEE,  ASSIGNEE,
 REFEREE  OR  ANY  OTHER  PERSON  ACTING IN A FIDUCIARY OR REPRESENTATIVE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13350-01-1
              

 A. 8334                             2
 
 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 BENEFI-
 CIAL 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 HEREDI-
 TAMENTS, INCLUDING BUILDINGS, STRUCTURES AND OTHER IMPROVEMENTS THEREON,
 WHICH ARE LOCATED IN WHOLE OR IN PART WITHIN THE COUNTY OF  MADISON.  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  ENCUM-
 BRANCE,  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, CONSIDER-
 ATION SHALL INCLUDE, BUT NOT BE LIMITED TO, THE VALUE  OF  THE  SUBLEASE
 RENTAL  PAYMENTS ATTRIBUTABLE TO THE USE AND OCCUPANCY OF THE REAL PROP-
 ERTY, 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
 A. 8334                             3
 
 PROPERTY OF THE COOPERATIVE HOUSING CORPORATION COMPRISING  THE  COOPER-
 ATIVE DWELLING OR DWELLINGS. SUCH SHARE SHALL BE DETERMINED BY MULTIPLY-
 ING THE TOTAL UNPAID PRINCIPAL OF THE MORTGAGE BY A FRACTION, THE NUMER-
 ATOR  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 CORPO-
 RATION.
   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 PROPER-
 TY. 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 THE CREATION,  MODIFICATION,  EXTENSION,  SPREADING,  SEVERANCE,
 CONSOLIDATION,  ASSIGNMENT, TRANSFER, RELEASE OR SATISFACTION OF A MORT-
 GAGE; A MORTGAGE SUBORDINATION AGREEMENT, A  MORTGAGE  SEVERANCE  AGREE-
 MENT,  AN INSTRUMENT GIVEN TO PERFECT OR CORRECT A RECORDED MORTGAGE; OR
 A RELEASE OF LIEN OF TAX PURSUANT TO THIS CHAPTER OR THE INTERNAL REVEN-
 UE 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 PROP-
 ERTY  OR  A  SHAREHOLDER  OR  PARTNER  TRANSFERRING STOCK OR PARTNERSHIP
 INTEREST.
   8. "GRANTEE" MEANS THE PERSON WHO OBTAINS REAL  PROPERTY  OR  INTEREST
 THEREIN AS A RESULT OF A CONVEYANCE.
   9.  "RECORDING  OFFICER" MEANS THE COUNTY CLERK OF THE COUNTY OF MADI-
 SON.
   10. "TREASURER" MEANS THE CHIEF FISCAL OFFICER OF THE COUNTY OF  MADI-
 SON.
   § 1449-BBBBBB. IMPOSITION OF TAX. NOTWITHSTANDING ANY OTHER PROVISIONS
 OF  LAW TO THE CONTRARY, THE COUNTY OF MADISON, ACTING THROUGH ITS LOCAL
 LEGISLATIVE BODY, IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT AND  AMEND
 LOCAL  LAWS  IMPOSING  IN  SUCH  COUNTY A TAX ON EACH CONVEYANCE OF REAL
 PROPERTY OR INTEREST THEREIN WHEN THE CONSIDERATION EXCEEDS FIVE HUNDRED
 DOLLARS, AT THE RATE OF TWO DOLLARS FOR EACH  FIVE  HUNDRED  DOLLARS  OR
 FRACTIONAL  PART  THEREOF.  SUCH  LOCAL  LAW MAY APPLY TO ANY CONVEYANCE
 OCCURRING ON OR AFTER THE DATE DESIGNATED BY SUCH LEGISLATIVE BODY,  BUT
 SHALL  NOT  APPLY  TO CONVEYANCES MADE ON OR AFTER SUCH DATE PURSUANT TO
 BINDING WRITTEN CONTRACTS ENTERED INTO PRIOR TO SUCH DATE, PROVIDED THAT
 A. 8334                             4
 
 THE DATE OF EXECUTION OF  SUCH  CONTRACT  IS  CONFIRMED  BY  INDEPENDENT
 EVIDENCE  SUCH AS THE RECORDING OF THE CONTRACT, PAYMENT OF A DEPOSIT OR
 OTHER FACTS AND CIRCUMSTANCES AS DETERMINED BY THE TREASURER.
   § 1449-CCCCCC. PAYMENT OF TAX. 1. THE REAL ESTATE TRANSFER TAX IMPOSED
 PURSUANT TO THIS ARTICLE SHALL BE PAID TO THE TREASURER OR THE RECORDING
 OFFICER  ACTING AS THE AGENT OF THE TREASURER. SUCH TAX SHALL BE PAID AT
 THE SAME TIME AS THE REAL ESTATE TRANSFER TAX IMPOSED BY  ARTICLE  THIR-
 TY-ONE OF THIS CHAPTER IS REQUIRED TO BE PAID. SUCH TREASURER OR RECORD-
 ING  OFFICER  SHALL  ENDORSE  UPON  EACH  DEED OR INSTRUMENT EFFECTING A
 CONVEYANCE A RECEIPT FOR THE AMOUNT OF THE TAX SO PAID.
   2. A RETURN SHALL BE REQUIRED TO  BE  FILED  WITH  SUCH  TREASURER  OR
 RECORDING  OFFICER  FOR PURPOSES OF THE REAL ESTATE TRANSFER TAX IMPOSED
 PURSUANT TO THIS ARTICLE AT THE SAME TIME AS A RETURN IS REQUIRED TO  BE
 FILED  FOR  PURPOSES  OF THE REAL ESTATE TRANSFER TAX IMPOSED BY ARTICLE
 THIRTY-ONE OF THIS CHAPTER. THE RETURN, FOR PURPOSES OF THE REAL  ESTATE
 TRANSFER  TAX  IMPOSED PURSUANT TO THIS ARTICLE, SHALL BE A PHOTOCOPY OR
 CARBON COPY OF THE REAL ESTATE TRANSFER TAX RETURN REQUIRED TO BE  FILED
 PURSUANT TO SECTION FOURTEEN HUNDRED NINE OF THIS CHAPTER. HOWEVER, WHEN
 AN  APPORTIONMENT  IS  REQUIRED  TO BE MADE PURSUANT TO SECTION FOURTEEN
 HUNDRED FORTY-NINE-MMMMMM OF THIS ARTICLE,  A  SUPPLEMENTAL  FORM  SHALL
 ALSO  BE  REQUIRED TO BE FILED. THE REAL ESTATE TRANSFER TAX RETURNS AND
 SUPPLEMENTAL FORMS REQUIRED TO BE FILED PURSUANT TO THIS  SECTION  SHALL
 BE  PRESERVED  FOR  THREE  YEARS  AND THEREAFTER UNTIL SUCH TREASURER OR
 RECORDING OFFICER ORDERS THEM TO BE DESTROYED.
   3. THE RECORDING OFFICER SHALL NOT RECORD AN  INSTRUMENT  EFFECTING  A
 CONVEYANCE UNLESS THE RETURN REQUIRED BY THIS SECTION HAS BEEN FILED AND
 THE  TAX  IMPOSED  PURSUANT  TO  THIS  ARTICLE  SHALL  HAVE BEEN PAID AS
 PROVIDED IN THIS SECTION.
   § 1449-DDDDDD. LIABILITY FOR TAX. 1.  THE  REAL  ESTATE  TRANSFER  TAX
 SHALL  BE  PAID BY THE GRANTOR. IF THE GRANTOR HAS FAILED TO PAY THE TAX
 IMPOSED PURSUANT TO THIS ARTICLE OR IF THE GRANTOR IS EXEMPT  FROM  SUCH
 TAX,  THE  GRANTEE SHALL HAVE THE DUTY TO PAY THE TAX. WHERE THE GRANTEE
 HAS THE DUTY TO PAY THE TAX BECAUSE THE GRANTOR HAS FAILED TO PAY,  SUCH
 TAX  SHALL  BE  THE  JOINT  AND SEVERAL LIABILITY OF THE GRANTOR AND THE
 GRANTEE.
   2. FOR THE PURPOSE OF THE PROPER ADMINISTRATION OF THIS ARTICLE AND TO
 PREVENT EVASION OF THE TAX HEREBY AUTHORIZED, IT SHALL BE PRESUMED  THAT
 ALL  CONVEYANCES  ARE TAXABLE. WHERE THE CONSIDERATION INCLUDES PROPERTY
 OTHER THAN MONEY, IT SHALL BE PRESUMED THAT  THE  CONSIDERATION  IS  THE
 FAIR  MARKET  VALUE  OF  THE  REAL  PROPERTY  OR INTEREST THEREIN. THESE
 PRESUMPTIONS SHALL PREVAIL UNTIL THE CONTRARY IS PROVEN, AND THE  BURDEN
 OF PROVING THE CONTRARY SHALL BE ON THE PERSON LIABLE FOR PAYMENT OF THE
 TAX.
   §  1449-EEEEEE.  EXEMPTIONS.  1.  THE  FOLLOWING  SHALL BE EXEMPT FROM
 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 AGREEMENT OR COMPACT WITH ANOTHER  STATE
 OR THE DOMINION OF CANADA).
   (B)  THE  UNITED  NATIONS, THE UNITED STATES OF AMERICA AND ANY OF ITS
 AGENCIES AND INSTRUMENTALITIES.
   THE EXEMPTION OF SUCH GOVERNMENTAL BODIES OR PERSONS SHALL NOT, HOWEV-
 ER, RELIEVE A GRANTEE FROM THE LIABILITY FOR THE TAX.
   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
 A. 8334                             5
 
 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 OBLI-
 GATION;
   (C)  CONVEYANCES  WHICH,  WITHOUT  ADDITIONAL  CONSIDERATION, CONFIRM,
 CORRECT, MODIFY OR SUPPLEMENT A PRIOR CONVEYANCE;
   (D) CONVEYANCES OF REAL PROPERTY WITHOUT CONSIDERATION  AND  OTHERWISE
 THAN  IN  CONNECTION WITH A SALE, INCLUDING CONVEYANCES 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 OWNER-
 SHIP, 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; AND
   (J)  CONVEYANCES  OF  AN  OPTION OR CONTRACT TO PURCHASE REAL PROPERTY
 WITH THE USE OR OCCUPANCY OF SUCH PROPERTY WHERE  THE  CONSIDERATION  IS
 LESS THAN TWO HUNDRED THOUSAND DOLLARS AND SUCH PROPERTY WAS USED SOLELY
 BY  THE  GRANTOR AS HIS OR HER PERSONAL RESIDENCE AND CONSISTS OF A ONE,
 TWO OR THREE-FAMILY HOUSE, AN INDIVIDUAL RESIDENTIAL CONDOMINIUM UNIT OR
 THE SALE OF STOCK IN A COOPERATIVE  HOUSING  CORPORATION  IN  CONNECTION
 WITH  THE GRANT OR TRANSFER OF A PROPRIETARY LEASEHOLD COVERING AN INDI-
 VIDUAL RESIDENTIAL COOPERATIVE UNIT.
   § 1449-FFFFFF. CREDIT. A GRANTOR SHALL BE ALLOWED A CREDIT AGAINST THE
 TAX DUE ON A CONVEYANCE OF REAL PROPERTY TO THE EXTENT TAX WAS  PAID  BY
 SUCH  GRANTOR  ON A PRIOR CREATION OF A LEASEHOLD OF ALL OR A PORTION OF
 THE SAME REAL PROPERTY OR ON THE GRANTING OF AN OPTION  OR  CONTRACT  TO
 PURCHASE  ALL  OR  A PORTION OF THE SAME REAL PROPERTY, BY SUCH GRANTOR.
 SUCH CREDIT SHALL BE  COMPUTED  BY  MULTIPLYING  THE  TAX  PAID  ON  THE
 CREATION  OF  THE LEASEHOLD OR ON THE GRANTING OF THE OPTION OR CONTRACT
 BY A FRACTION, THE NUMERATOR OF WHICH IS THE VALUE OF THE  CONSIDERATION
 USED  TO  COMPUTE  SUCH TAX PAID WHICH IS NOT YET DUE TO SUCH GRANTOR ON
 THE DATE OF THE SUBSEQUENT CONVEYANCE (AND WHICH SUCH GRANTOR  WILL  NOT
 BE ENTITLED TO RECEIVE AFTER SUCH DATE), AND THE DENOMINATOR OF WHICH IS
 THE TOTAL VALUE OF THE CONSIDERATION USED TO COMPUTE SUCH TAX PAID.
   § 1449-GGGGGG. COOPERATIVE HOUSING CORPORATION TRANSFERS. 1.  NOTWITH-
 STANDING  THE DEFINITION OF "CONTROLLING INTEREST" CONTAINED IN SUBDIVI-
 SION TWO OF SECTION FOURTEEN HUNDRED FORTY-NINE-AAAAAA OF  THIS  ARTICLE
 OR  ANYTHING  TO  THE  CONTRARY CONTAINED IN SUBDIVISION FIVE OF SECTION
 FOURTEEN HUNDRED FORTY-NINE-AAAAAA OF  THIS  ARTICLE,  THE  TAX  IMPOSED
 PURSUANT  TO  THIS ARTICLE SHALL APPLY TO (A) 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 (B) THE SUBSEQUENT  CONVEY-
 ANCE  OF  SUCH  STOCK IN A COOPERATIVE HOUSING CORPORATION IN CONNECTION
 WITH THE GRANT OR TRANSFER OF A PROPRIETARY LEASEHOLD BY THE OWNER THER-
 EOF. WITH RESPECT TO ANY SUCH SUBSEQUENT CONVEYANCE WHERE  THE  PROPERTY
 IS  AN  INDIVIDUAL  RESIDENTIAL UNIT, THE CONSIDERATION FOR THE INTEREST
 CONVEYED SHALL EXCLUDE THE VALUE OF ANY LIENS ON CERTIFICATES  OF  STOCK
 OR  OTHER  EVIDENCES OF AN OWNERSHIP INTEREST IN AND A PROPRIETARY LEASE
 A. 8334                             6
 
 FROM A CORPORATION OR PARTNERSHIP FORMED FOR THE PURPOSE OF  COOPERATIVE
 OWNERSHIP  OF  RESIDENTIAL  INTEREST IN REAL ESTATE REMAINING THEREON AT
 THE TIME OF CONVEYANCE. IN DETERMINING THE TAX ON A CONVEYANCE DESCRIBED
 IN  PARAGRAPH  (A)  OF THIS SUBDIVISION, 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 REAL PROPERTY COMPRISING THE
 COOPERATIVE DWELLING OR DWELLINGS TO THE  EXTENT  THAT  SUCH  CONVEYANCE
 EFFECTUATED A MERE CHANGE OF IDENTITY OR FORM OF OWNERSHIP OF SUCH PROP-
 ERTY  AND NOT A CHANGE IN THE BENEFICIAL OWNERSHIP OF SUCH PROPERTY. THE
 AMOUNT OF THE CREDIT SHALL BE DETERMINED BY MULTIPLYING  THE  AMOUNT  OF
 TAX PAID UPON THE CONVEYANCE TO THE COOPERATIVE HOUSING CORPORATION BY A
 PERCENTAGE  REPRESENTING THE EXTENT TO WHICH SUCH CONVEYANCE EFFECTUATED
 A MERE CHANGE OF IDENTITY OR FORM OF OWNERSHIP AND NOT A CHANGE  IN  THE
 BENEFICIAL  OWNERSHIP OF SUCH PROPERTY, AND THEN MULTIPLYING THE RESULT-
 ING PRODUCT BY A FRACTION, THE NUMERATOR OF WHICH SHALL BE THE NUMBER OF
 SHARES OF STOCK CONVEYED IN A TRANSACTION DESCRIBED IN PARAGRAPH (A)  OF
 THIS  SUBDIVISION AND THE DENOMINATOR OF WHICH SHALL BE THE TOTAL NUMBER
 OF 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  CONVEYANCE  DESCRIBED IN PARAGRAPH (A) OF THIS
 SUBDIVISION, BELOW ZERO, NOR SHALL ANY SUCH CREDIT BE ALLOWED FOR A  TAX
 PAID  MORE THAN TWENTY-FOUR MONTHS PRIOR TO THE DATE ON WHICH OCCURS THE
 FIRST IN A SERIES OF CONVEYANCES OF SHARES OF STOCK IN  AN  OFFERING  OF
 COOPERATIVE  HOUSING  CORPORATION  SHARES  DESCRIBED IN PARAGRAPH (A) OF
 THIS SUBDIVISION.
   2. EVERY COOPERATIVE HOUSING CORPORATION SHALL BE REQUIRED TO FILE  AN
 INFORMATION  RETURN  WITH  THE  TREASURER BY JULY FIFTEENTH OF EACH YEAR
 COVERING THE PRECEDING PERIOD OF JANUARY FIRST  THROUGH  JUNE  THIRTIETH
 AND  BY  JANUARY FIFTEENTH OF EACH YEAR COVERING THE PRECEDING PERIOD OF
 JULY FIRST THROUGH DECEMBER THIRTY-FIRST. THE RETURN SHALL CONTAIN  SUCH
 INFORMATION  REGARDING  THE CONVEYANCE OF SHARES OF STOCK IN THE COOPER-
 ATIVE HOUSING CORPORATION AS THE TREASURER MAY DEEM  NECESSARY,  INCLUD-
 ING,  BUT  NOT LIMITED TO, THE NAMES, ADDRESSES AND EMPLOYEE IDENTIFICA-
 TION NUMBERS OR SOCIAL SECURITY NUMBERS OF THE GRANTOR AND THE  GRANTEE,
 THE  NUMBER  OF  SHARES  CONVEYED,  THE  DATE  OF THE CONVEYANCE AND THE
 CONSIDERATION PAID FOR SUCH CONVEYANCE.
   § 1449-HHHHHH. DESIGNATION OF AGENTS. THE TREASURER IS  AUTHORIZED  TO
 DESIGNATE  THE  RECORDING  OFFICER  TO  ACT AS ITS AGENT FOR PURPOSES OF
 COLLECTING THE TAX AUTHORIZED  BY  THIS  ARTICLE.  THE  TREASURER  SHALL
 PROVIDE  FOR  THE  MANNER  IN WHICH SUCH PERSON MAY BE DESIGNATED AS ITS
 AGENT SUBJECT TO SUCH TERMS AND CONDITIONS AS IT  SHALL  PRESCRIBE.  THE
 REAL  ESTATE  TRANSFER  TAX  SHALL  BE PAID TO SUCH AGENT AS PROVIDED IN
 SECTION FOURTEEN HUNDRED FORTY-NINE-CCCCCC OF THIS ARTICLE.
   § 1449-IIIIII. LIABILITY OF RECORDING  OFFICER.  A  RECORDING  OFFICER
 SHALL  NOT  BE  LIABLE  FOR  ANY INACCURACY IN THE AMOUNT OF TAX IMPOSED
 PURSUANT TO THIS ARTICLE THAT HE OR SHE SHALL COLLECT SO LONG AS  HE  OR
 SHE SHALL COMPUTE AND COLLECT SUCH TAX ON THE AMOUNT OF CONSIDERATION OR
 THE  VALUE  OF THE INTEREST CONVEYED AS SUCH AMOUNTS ARE PROVIDED TO HIM
 OR HER BY THE PERSON PAYING THE TAX.
   § 1449-JJJJJJ. REFUNDS. WHENEVER THE TREASURER  SHALL  DETERMINE  THAT
 ANY MONEYS RECEIVED UNDER THE PROVISIONS OF THE LOCAL LAW ENACTED PURSU-
 ANT  TO  THIS ARTICLE WERE PAID IN ERROR, IT MAY CAUSE SUCH MONEYS TO BE
 REFUNDED PURSUANT TO  SUCH  RULES  AND  REGULATIONS  IT  MAY  PRESCRIBE,
 PROVIDED  ANY  APPLICATION  FOR  SUCH REFUND IS FILED WITH THE TREASURER
 WITHIN TWO YEARS FROM THE DATE THE  ERRONEOUS  PAYMENT  WAS  MADE.  WHEN
 MAKING  ANY  FINDINGS  OR DETERMINATIONS THE TREASURER MAY RELY UPON ANY
 A. 8334                             7

 FINDINGS OR DETERMINATIONS OF THE COMMISSIONER AND ANY RULES  AND  REGU-
 LATIONS PROMULGATED PURSUANT TO ARTICLE THIRTY-ONE OF THIS CHAPTER.
   § 1449-KKKKKK. DEPOSIT AND DISPOSITION OF REVENUE. ALL TAXES COLLECTED
 OR  RECEIVED  BY THE TREASURER OR HIS OR HER DULY AUTHORIZED AGENT UNDER
 THE PROVISIONS OF THE LOCAL LAW ENACTED PURSUANT TO THIS  ARTICLE  SHALL
 BE DEPOSITED IN ACCORDANCE WITH PROVISIONS OF A LOCAL LAW ADOPTED BY THE
 LEGISLATIVE  BODY  OF THE COUNTY OF MADISON WHICH LOCAL LAW SHALL DESIG-
 NATE PROPER OFFICERS TO BE RESPONSIBLE FOR DEPOSIT OF REVENUE  COLLECTED
 OR  RECEIVED  UNDER THIS ARTICLE. SUCH LOCAL LAW SHALL ALSO PROVIDE THAT
 ANY OFFICER DESIGNATED TO COLLECT,  RECEIVE,  OR  DEPOSIT  SUCH  REVENUE
 SHALL  MAINTAIN  A  SYSTEM  OF ACCOUNTS SHOWING THE REVENUE COLLECTED OR
 RECEIVED FROM THE TAX IMPOSED PURSUANT TO THIS ARTICLE. SUCH  LOCAL  LAW
 SHALL  ALSO PROVIDE THAT ALL REVENUE DERIVED FROM THE IMPOSITION OF SUCH
 TAX SHALL BE DEPOSITED INTO THE GENERAL FUND OF THE  COUNTY  OF  MADISON
 AND  SHALL  BE  USED  FOR PURPOSES DEEMED APPROPRIATE BY THE LEGISLATIVE
 BODY OF THE COUNTY OF MADISON.
   § 1449-LLLLLL. JUDICIAL REVIEW. 1.  ANY  FINAL  DETERMINATION  OF  THE
 AMOUNT  OF  ANY  TAX  PAYABLE UNDER SECTION FOURTEEN HUNDRED FORTY-NINE-
 CCCCCC OF THIS ARTICLE SHALL BE  REVIEWABLE  FOR  ERROR,  ILLEGALITY  OR
 UNCONSTITUTIONALITY OR ANY OTHER REASON WHATSOEVER BY A PROCEEDING UNDER
 ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES IF APPLICATION
 THEREFOR  IS  MADE  TO  THE  SUPREME  COURT WITHIN FOUR MONTHS AFTER THE
 GIVING OF THE NOTICE OF SUCH  FINAL  DETERMINATION,  PROVIDED,  HOWEVER,
 THAT  ANY SUCH PROCEEDING UNDER ARTICLE SEVENTY-EIGHT OF THE CIVIL PRAC-
 TICE LAW AND RULES SHALL NOT BE INSTITUTED UNLESS (A) THE AMOUNT OF  ANY
 TAX  SOUGHT  TO BE REVIEWED, WITH SUCH INTEREST AND PENALTIES THEREON AS
 MAY BE PROVIDED FOR BY LOCAL LAW SHALL BE FIRST DEPOSITED AND  THERE  IS
 FILED  AN UNDERTAKING, ISSUED BY A SURETY COMPANY AUTHORIZED TO TRANSACT
 BUSINESS IN THIS STATE AND APPROVED BY THE SUPERINTENDENT  OF  FINANCIAL
 SERVICES OF THIS STATE AS TO SOLVENCY AND RESPONSIBILITY, IN SUCH AMOUNT
 AS  A  JUSTICE  OF THE SUPREME COURT SHALL APPROVE TO THE EFFECT THAT IF
 SUCH PROCEEDING BE DISMISSED OR THE TAX CONFIRMED  THE  PETITIONER  WILL
 PAY  ALL  COSTS  AND CHARGES WHICH MAY ACCRUE IN THE PROSECUTION OF SUCH
 PROCEEDING OR (B) AT THE OPTION OF THE PETITIONER, SUCH UNDERTAKING  MAY
 BE IN A SUM SUFFICIENT TO COVER THE TAXES, INTEREST AND PENALTIES STATED
 IN  SUCH  DETERMINATION,  PLUS  THE  COSTS  AND CHARGES WHICH MAY ACCRUE
 AGAINST IT IN THE PROSECUTION OF THE  PROCEEDING,  IN  WHICH  EVENT  THE
 PETITIONER  SHALL  NOT BE REQUIRED TO PAY SUCH TAXES, INTEREST OR PENAL-
 TIES AS A CONDITION PRECEDENT TO THE APPLICATION.
   2. WHERE ANY TAX IMPOSED HEREUNDER SHALL HAVE BEEN ERRONEOUSLY,  ILLE-
 GALLY  OR  UNCONSTITUTIONALLY  ASSESSED OR COLLECTED AND APPLICATION FOR
 THE REFUND OR REVISION THEREOF DULY MADE TO THE PROPER FISCAL OFFICER OR
 OFFICERS, AND SUCH OFFICER OR OFFICERS SHALL HAVE MADE  A  DETERMINATION
 DENYING  SUCH REFUND OR REVISION, SUCH DETERMINATION SHALL BE REVIEWABLE
 BY A PROCEEDING UNDER ARTICLE SEVENTY-EIGHT OF THE  CIVIL  PRACTICE  LAW
 AND  RULES;  PROVIDED,  HOWEVER,  THAT (A) SUCH PROCEEDING IS INSTITUTED
 WITHIN FOUR MONTHS AFTER THE GIVING OF THE NOTICE OF SUCH DENIAL, (B)  A
 FINAL  DETERMINATION  OF  TAX  DUE  WAS  NOT PREVIOUSLY MADE, AND (C) AN
 UNDERTAKING IS FILED WITH THE PROPER FISCAL OFFICER OR OFFICERS IN  SUCH
 AMOUNT  AND  WITH  SUCH SURETIES AS A JUSTICE OF THE SUPREME COURT SHALL
 APPROVE TO THE EFFECT THAT IF SUCH PROCEEDING BE DISMISSED  OR  THE  TAX
 CONFIRMED,  THE  PETITIONER  WILL  PAY  ALL  COSTS AND CHARGES WHICH MAY
 ACCRUE IN THE PROSECUTION OF SUCH PROCEEDING.
   3. IN ANY PROCEEDINGS INSTITUTED PURSUANT TO THIS  ARTICLE  THE  RULES
 AND REGULATIONS OF THE COMMISSIONER SHALL BE APPLIED WHERE APPLICABLE.
 A. 8334                             8
 
   § 1449-MMMMMM. APPORTIONMENT. THE LOCAL LAW ADOPTED BY THE LEGISLATIVE
 BODY  OF  THE COUNTY OF MADISON SHALL PROVIDE FOR A METHOD OF APPORTION-
 MENT FOR DETERMINING THE AMOUNT OF TAX DUE WHENEVER THE REAL PROPERTY OR
 INTEREST THEREIN IS SITUATED WITHIN AND WITHOUT THE COUNTY OF MADISON.
   § 1449-NNNNNN. MISCELLANEOUS. THE LOCAL LAW ADOPTED BY THE LEGISLATIVE
 BODY  OF THE COUNTY OF MADISON MAY CONTAIN SUCH OTHER PROVISIONS AS SUCH
 LEGISLATIVE BODY DEEMS NECESSARY FOR THE PROPER  ADMINISTRATION  OF  THE
 TAX  IMPOSED  PURSUANT  TO THIS ARTICLE, INCLUDING PROVISIONS CONCERNING
 THE DETERMINATION OF TAX, THE IMPOSITION OF  INTEREST  ON  UNDERPAYMENTS
 AND  OVERPAYMENTS AND THE IMPOSITION OF CIVIL PENALTIES. SUCH PROVISIONS
 SHALL BE IDENTICAL TO THE CORRESPONDING PROVISIONS OF  THE  REAL  ESTATE
 TRANSFER  TAX  IMPOSED  BY ARTICLE THIRTY-ONE OF THIS CHAPTER, SO FAR AS
 SUCH PROVISIONS CAN BE MADE APPLICABLE TO THE TAX  IMPOSED  PURSUANT  TO
 THIS ARTICLE.
   §  1449-OOOOOO.  RETURNS  TO  BE  SECRET. 1. EXCEPT IN ACCORDANCE WITH
 PROPER JUDICIAL ORDER OR AS OTHERWISE  PROVIDED  BY  LAW,  IT  SHALL  BE
 UNLAWFUL  FOR  THE TREASURER OR ANY OFFICER OR EMPLOYEE OF THE COUNTY OF
 MADISON OR ANY PERSON ENGAGED OR RETAINED BY SUCH COUNTY ON AN INDEPEND-
 ENT CONTRACT BASIS TO DIVULGE OR MAKE KNOWN IN ANY  MANNER  THE  PARTIC-
 ULARS  SET  FORTH  OR DISCLOSED IN ANY RETURN REQUIRED UNDER A LOCAL LAW
 ENACTED PURSUANT TO THIS ARTICLE. HOWEVER, THAT NOTHING IN THIS  SECTION
 SHALL  PROHIBIT  THE  RECORDING  OFFICER  FROM  MAKING  A NOTATION ON AN
 INSTRUMENT EFFECTING A CONVEYANCE INDICATING THE AMOUNT OF TAX PAID.  NO
 RECORDED  INSTRUMENT EFFECTING A CONVEYANCE SHALL BE CONSIDERED A RETURN
 FOR PURPOSES OF THIS SECTION.
   2. THE OFFICERS CHARGED WITH THE CUSTODY OF SUCH RETURNS SHALL NOT  BE
 REQUIRED  TO  PRODUCE  ANY  OF THEM OR EVIDENCE OF ANYTHING CONTAINED IN
 THEM IN ANY ACTION OR PROCEEDING IN ANY COURT, EXCEPT ON BEHALF  OF  THE
 COUNTY IN ANY ACTION OR PROCEEDING INVOLVING THE COLLECTION OF A TAX DUE
 UNDER  A LOCAL LAW ENACTED PURSUANT TO THIS ARTICLE TO WHICH SUCH COUNTY
 OR AN OFFICER OR EMPLOYEE OF SUCH COUNTY IS A PARTY OR A CLAIMANT, OR ON
 BEHALF OF ANY PARTY TO ANY ACTION OR PROCEEDING UNDER THE PROVISIONS  OF
 A  LOCAL  LAW ENACTED PURSUANT TO THIS ARTICLE WHEN THE RETURNS OR FACTS
 SHOWN THEREBY ARE DIRECTLY INVOLVED IN SUCH ACTION OR PROCEEDING, IN ANY
 OF WHICH EVENTS THE COURT MAY REQUIRE THE PRODUCTION OF, AND  MAY  ADMIT
 IN  EVIDENCE,  SO MUCH OF SAID RETURNS OR OF THE FACTS SHOWN THEREBY, AS
 ARE PERTINENT TO THE ACTION OR PROCEEDING AND NO MORE.
   3. NOTHING HEREIN SHALL BE CONSTRUED TO PROHIBIT  THE  DELIVERY  TO  A
 GRANTOR  OR  GRANTEE OF AN INSTRUMENT EFFECTING A CONVEYANCE OR THE DULY
 AUTHORIZED REPRESENTATIVE OF A GRANTOR OR GRANTEE OF A CERTIFIED COPY OF
 ANY RETURN FILED IN CONNECTION WITH SUCH INSTRUMENT OR TO  PROHIBIT  THE
 PUBLICATION OF STATISTICS SO CLASSIFIED AS TO PREVENT THE IDENTIFICATION
 OF  PARTICULAR  RETURNS  AND THE ITEMS THEREOF, OR THE INSPECTION BY THE
 LEGAL REPRESENTATIVES OF SUCH COUNTY OF THE RETURN OF ANY  TAXPAYER  WHO
 SHALL BRING ACTION TO SET ASIDE OR REVIEW THE TAX BASED THEREON.
   4.  ANY  OFFICER OR EMPLOYEE OF SUCH COUNTY WHO WILLFULLY VIOLATES THE
 PROVISIONS OF THIS SECTION SHALL BE DISMISSED FROM OFFICE AND BE INCAPA-
 BLE OF HOLDING ANY PUBLIC OFFICE IN THIS STATE  FOR  A  PERIOD  OF  FIVE
 YEARS THEREAFTER.
   §  1449-PPPPPP. FORECLOSURE. WHERE THE CONVEYANCE CONSISTS OF A TRANS-
 FER OF PROPERTY MADE AS A RESULT OF AN ORDER OF THE COURT IN A  FORECLO-
 SURE PROCEEDING ORDERING THE SALE OF SUCH PROPERTY, THE REFEREE OR SHER-
 IFF  EFFECTUATING  SUCH TRANSFER SHALL NOT BE LIABLE FOR ANY INTEREST OR
 PENALTIES THAT ARE AUTHORIZED PURSUANT TO THIS ARTICLE OR ARTICLE  THIR-
 TY-SEVEN OF THIS CHAPTER.
   § 2. This act shall take effect immediately.