N.Y. Laws » CHAPTER Tax / ARTICLE Tax On Real Estate Transfers In the Town of Brookhaven
New York Consolidated Laws

N.Y. Tax Law § 1446 (2026)

Cooperative housing corporation transfers

✓ current as of May 2026
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* § 1446. Cooperative housing corporation transfers. 1.
Notwithstanding the definition of "controlling interest" contained in
subdivision two of section fourteen hundred forty of this article or
anything to the contrary contained in subdivision five of section
fourteen hundred forty 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 conveyance of such stock
in a cooperative housing corporation in connection with the grant or
transfer of a proprietary leasehold by the owner thereof. 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 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
property 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 resulting 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
cooperative housing corporation as the treasurer may deem necessary,
including, but not limited to, the names, addresses and employee
identification 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.
  * NB Repealed December 31, 2025
Notes of Decisions
Cited in 4 cases, 1988–1995 · leading case: LT & B Realty Corp. v. New York State Tax Comm'n, 141 A.D.2d 185 (N.Y. App. Div. 1988).
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LT & B Realty Corp. v. New York State Tax Comm'n, 141 A.D.2d 185 (N.Y. App. Div. 1988). “Tax Law § 1446 (2) (a) requires that a 10% penalty plus interest be imposed on taxpayers who fail to timely pay the transfer gains tax or file a transfer gains tax return.”
Auerbach v. State Tax Comm'n, 142 A.D.2d 390 (N.Y. App. Div. 1988). “If respondent determines that the failure to pay the tax was "due to reasonable cause and not due to willful neglect”, it may waive the imposition of penalty and interest (Tax Law § 1446 [2] [a]).”
470 Newport Assocs. v. Tax Appeals Tribunal, 211 A.D.2d 322 (N.Y. App. Div. 1995). “Tax Law § 1446 (2) (b) requires that a penalty be imposed upon a taxpayer who fails to timely pay the transfer gains tax.”
Benacquista, Polsinelli & Serafini Mgmt. Corp. v. Comm'r of Taxation & Fin., 191 A.D.2d 80 (N.Y. App. Div. 1993). “With respect to the assessment of penalties and interest for failure to pay the tax when due, petitioner urges that its reliance on professional advice constituted reasonable cause for such failure and, therefore, that the penalties should be abated (see, Tax Law § 1446 [2]…”
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