§ 1201. Taxes administered by cities of one million or more.
Notwithstanding any other provisions of law to the contrary, but subject
to the applicable limitations and exemptions in part II of this article,
any city in this state having a population of one million or more,
acting through its local legislative body, is hereby authorized and
empowered to adopt and amend local laws imposing in any such city any or
all of the types of taxes set forth in the following subdivisions of
this section, such taxes to be administered and collected by the fiscal
officers of such city in the manner provided for in subpart A of part
III of this article:

(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 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 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
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 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 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 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.