As used in this article, unless otherwise expressly
stated, the following words and terms shall have the following meanings:
CONSIDERATION
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 encumbrance,
whether or not the underlying indebtedness is assumed or taken subject
to.
A.
In the case of the 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 the creation of a subleasehold
interest, consideration shall include, but not be limited to, the
value of the sublease rental payments attributable to the use and
occupancy of the real property, 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 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 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 property of the cooperative housing corporation comprising
the cooperative dwelling or dwellings. Such share shall be determined
by multiplying the total unpaid principal of the mortgage by a fraction,
the numerator 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 corporation.
CONTROLLING INTEREST
A.
In the case of a corporation, either 50% or
more of the total combined voting power of all classes of stock of
such corporation, or 50% 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, 50% or more of the capital, profits or beneficial
interest in such partnership, association, trust or other entity.
CONVEYANCE
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 property. Transfer
of an interest in real property shall include the creation of a leasehold
or sublease only where the sum of the term of the lease or sublease
and any options for renewal exceeds 49 years, substantial capital
improvements are or may be made by or for the benefit of the lessee
or sublessee and 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 a conveyance made pursuant
to devise, bequest or inheritance; the creation, modification, extension,
spreading, severance, consolidation, assignment, transfer, release
or satisfaction of a mortgage; a mortgage subordination agreement,
a mortgage severance agreement or an instrument given to perfect or
correct a recorded mortgage; or a release of lien of tax pursuant
to this article or the Internal Revenue Code.
FUND
The Southold Community Preservation Fund created and established by Article
I of this chapter pursuant to § 64-e of the New York Town Law.
GRANTEE
The person who obtains real property or an interest therein
as a result of a conveyance.
GRANTOR
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" shall mean the entity with an interest in real property
or a shareholder or partner transferring stock or partnership interest,
respectively.
INTEREST IN 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.
PERSON
An individual, partnership, limited liability company, society,
association, joint stock company, corporation estate, receiver, trustee,
assignee, referee or any other person acting in a fiduciary or representative
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.
REAL PROPERTY
Every estate or right, legal or equitable, present or future,
vested or contingent, in lands, tenements or hereditaments, including
buildings, structures and other improvements thereon, which are located
in whole or in part within the Town. It shall not include rights to
sepulture.
TOWN
The Town of Southold.
[Amended 10-21-2014 by L.L. No. 11-2014; 12-6-2016 by L.L. No. 12-2016]
A. There shall
be allowed an exemption of $200,000 on the consideration of the conveyance
of improved real property or an interest therein.
[Amended 8-2-2022 by L.L. No. 8-2022]
B. There shall
be an exemption of $75,000 on the consideration of the conveyance
of unimproved real property or an interest therein.
C. The exemption granted pursuant to the provisions of Subsections
A and
B of this subsection shall only apply to conveyances for residential property where the consideration is $2,000,000 or less.
[Amended 6-6-2023 by L.L. No. 13-2023]
A grantee shall be allowed a credit against
the tax due on a conveyance of real property to the extent that tax
was paid by such grantee 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 grantee. 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.
The County Treasurer is authorized by law to designate the Recording Officer to act as his or her agent for the purpose of collecting the tax imposed by this article. The Treasurer shall provide for the manner in which such person may be designated as his or her agent subject to such terms and conditions as the Treasurer shall prescribe. The real estate transfer tax shall be paid to such agent as provided in §
17-22 hereof.
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.
Whenever the Treasurer shall determine that
any moneys received under the provisions of this article were paid
in error, he or she may cause such moneys to be refunded pursuant
to such rules and regulations as he or she may prescribe, provided
that any application for such refund is filed with the Treasurer within
two years from the date the erroneous payment was made.
The Town Board shall be authorized to, by resolution,
enter into any intergovernmental agreement necessary with the County
of Suffolk or any successor County for the effective and efficient
administration and enforcement of this article.
If any clause, sentence, paragraph, section
or part of this article shall be adjudged by any court of competent
jurisdiction to be invalid, such judgment shall not affect, impair
or invalidate the remainder thereof, but shall be confined in its
operation to the clause, sentence, paragraph, section or part thereof
directly involved in the controversy in which such judgment shall
have been rendered.
[Amended 8-27-2002 by L.L. No. 8-2002; 9-5-2006 by L.L. No. 14-2006; 8-23-2016 by L.L.
No. 8-2016]
This article is subject to a mandatory referendum
as set forth in § 1449-bb of Article 31-D of the Tax Law.
This article shall take effect after the approval at the general election
to be held on November 8, 2016, by the affirmative vote of a majority
of the qualified electors of the Town of Southold and filing with
the Secretary of State; and provided further that the real estate
transfer tax imposed by Local Laws No. 8-2002 of 2002 and No. 14-2006
of 2006 shall expire and be deemed repealed as to any conveyance taking
place after December 31, 2050.