S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9838
 
                           I N  A S S E M B L Y
 
                              April 19, 2022
                                ___________
 
 Introduced  by  M.  of  A.  ZEBROWSKI,  ABINANTI,  ENGLEBRIGHT,  THIELE,
   EPSTEIN, GOTTFRIED -- read once and referred to the Committee on  Ways
   and Means
 
 AN  ACT to amend the tax law, in relation to requiring certain joint tax
   returns pertaining to residential real estate cash purchases by limit-
   ed liability companies to disclose the source of funds  used  for  the
   purchase

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph 3 of subdivision (a) of section 1409 of  the  tax
 law,  as  amended  by  section  3 of part O of chapter 59 of the laws of
 2021, is amended to read as follows:
   (3) IN ADDITION TO THE REQUIREMENTS IN PARAGRAPH TWO OF THIS  SUBDIVI-
 SION, WHEN THE GRANTOR OR GRANTEE OF A DEED FOR A BUILDING USED AS RESI-
 DENTIAL  REAL  PROPERTY  CONTAINING  UP  TO  FOUR FAMILY DWELLING UNITS,
 INCLUDING CONDOMINIUMS AND COOPERATIVES, IS A LIMITED LIABILITY  COMPANY
 AND  THE  PURCHASE  IS NOT SECURED BY A MORTGAGE, THE JOINT RETURN SHALL
 NOT BE ACCEPTED FOR FILING UNLESS IT IS ACCOMPANIED BY A DOCUMENT  WHICH
 IDENTIFIES THE SOURCE OR SOURCES OF FUNDS USED FOR THE PURCHASE, INCLUD-
 ING  THE TYPE OF FUNDING USED, THE BANK ACCOUNT INFORMATION OF ANY FUNDS
 USED IN THE PURCHASE AND THE AMOUNT USED BY EACH SOURCE OF  FUNDS.    IF
 ANY SOURCE OF FUNDS FOR SUCH PURCHASE ORIGINATED FROM A FOREIGN NATIONAL
 AS  DEFINED  IN SECTION 30121 OF TITLE 52 OF THE UNITED STATES CODE, THE
 DOCUMENT SHALL IDENTIFY SUCH FOREIGN NATIONAL INCLUDING THEIR  NAME  AND
 ADDRESS AND ANY CORPORATE ENTITY OWNED BY SUCH FOREIGN NATIONAL.
   (4)  The  return  shall be filed with the recording officer before the
 instrument effecting the conveyance may be recorded. However, if the tax
 is paid to the commissioner pursuant to section fourteen hundred ten  of
 this  article,  the  return shall be filed with such commissioner at the
 time the tax is paid. In that instance, a receipt evidencing the  filing
 of  the  return and the payment of tax shall be filed with the recording
 officer before the instrument effecting the conveyance may be  recorded.
 The  recording officer shall handle such receipt in the same manner as a
 return filed with the recording officer.
   § 2. This act shall take effect immediately and shall apply to returns
 filed on and after January 1, 2023.
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15119-01-2