§ 663. Estimated tax on sale or transfer of real property by
nonresident. (a) Upon the sale of real property within the state by a
nonresident taxpayer, the nonresident shall estimate the personal income
tax liability on the gain, if any, from such sale or transfer. In
addition, upon the sale, conveyance or other disposition of shares of
stock in a cooperative housing corporation in connection with the
transfer of a proprietary leasehold by the owner thereof and subject to
the provisions of article thirty-one of this chapter, the nonresident
shall estimate the personal income tax liability on the gain, if any,
from such sale, conveyance or other disposition.

(b) Such estimation shall be done upon a form prescribed by the
commissioner, utilizing an estimated tax rate equal to the highest rate
of tax for the taxable year set forth in section six hundred one of this
article.

(c) This section shall not apply where:

(1) The real property being sold or transferred is a principal
residence of the seller or transferor within the meaning of section 121
of the Internal Revenue Code;

(2) The seller or transferor is a mortgagor conveying the mortgaged
property to a mortgagee in foreclosure or in a transfer in lieu of
foreclosure with no additional consideration; or

(3) The transferor or transferee is an agency or authority of the
United States of America, an agency or authority of the state of New
York, the Federal National Mortgage Association, the Federal Home Loan
Mortgage Corporation, or the Government National Mortgage Association,
or a private mortgage insurance company; or

(4) The proprietary leasehold being transferred in connection with the
sale, conveyance or other disposition of the shares of stock in a
cooperative housing corporation is a principal residence of the seller
or transferor within the meaning of section 121 of the Internal Revenue
Code;

(d) A recording officer shall not record or accept for recording any
deed unless one of the following conditions is satisfied:

(1) it is accompanied by a receipt issued by the commissioner
indicating that the estimated tax required by this section has been paid
to the commissioner either electronically or as otherwise prescribed by
him or her;

(2) it is accompanied by a form prescribed by the commissioner
pursuant to subsection (b) of this section and the payment of any
estimated tax shown as payable on such form; or

(3) such receipt or form includes a certification by the transferor
that this section is inapplicable to the sale or transfer.

(e) Every recording officer shall act as an agent of the commissioner
for purposes of collecting the estimated personal income tax, if any,
shown to be payable upon the form prescribed pursuant to subsection (b)
of this section. The commissioner, by regulation, shall prescribe one or
more methods for the recording officer's collection of such estimated
tax. Every recording officer shall remit to the commissioner any funds
collected and any returns filed with such recording officer under this
section on such days as the commissioner shall set by regulation
consistent with the provisions of section fourteen hundred ten of this
chapter for the remission of the tax imposed under article thirty-one of
this chapter. Every recording officer also shall follow such procedures
and keep such records in respect to the implementation of this section
as the commissioner may prescribe.

(f) A recording officer shall not be liable under this section for any
inaccuracy in any statement on the form prescribed pursuant to
subsection (b) of this section or in the amount of estimated personal
income tax he or she shall collect under this section so long as he or
she shall collect the estimated personal income tax shown as payable on
such form.

(g) If a deed is recorded notwithstanding an omission or inaccuracy in
the form prescribed pursuant to subsection (b) of this section or in any
certification by the transferor on such form or a deficiency in the
payment of estimated personal income tax required by this section, the
record of such deed shall not be invalidated by reason of such omission,
inaccuracy, erroneous certification or deficiency nor shall the title
founded on such deed be impaired thereby.

(h) The commissioner shall promulgate rules and regulations
implementing this section.

(i) The estimated personal income tax liability on the gain, if any,
from the sale, conveyance or other disposition of shares of stock in a
cooperative housing corporation shall be paid to the commissioner no
later than the fifteenth day after the delivery of the instrument
affecting such sale, conveyance or other disposition. For purposes of
this section, the date of the instrument affecting such sale, conveyance
or other disposition shall be presumed to be the date of delivery of
such instrument.