§ 23-05.
RCNY § 23-05
(4)A deed delivered pursuant to a contract made prior to May 1, 1959.
(5)A deed delivered by any governmental body or person exempt from payment of the tax pursuant to 19 RCNY § 23-05(a) as a result of a sale at a public auction held in accordance with the provisions of a contract made prior to May 1, 1959.
(6)A deed or instrument given solely as security for, or a transaction the sole purpose of which is to secure, a debt or obligation or a deed or instrument given, or a transaction entered into, solely for the purpose of returning such security.
(7)A deed, instrument, or transaction conveying or transferring real property or an economic interest therein from a mere agent, dummy, straw man or conduit to a principal, or a deed, instrument or transaction conveying or transferring real property or an economic interest therein from the principal to his agent, dummy, straw man or conduit. The following are examples of deeds, instruments and transactions in which this exemption applies: (i) The conveyance of realty by an individual to a corporation solely for the purpose of obtaining mortgage financing, followed by the immediate reconveyance of the realty by the corporation to the individual after such mortgage financing is obtained.
(ii)A deed transferring real property to an existing corporation solely for the purpose of effectuating the terms of a mortgage spreader agreement. The deed returning the mortgaged realty to its true owner is also exempt from the tax.
(iii)A conveyance between a principal and its agent where (A) a written agreement is entered into at the time of the transaction establishing such a relationship with respect to the realty or economic interest therein, (B) the purported agent functions as an agent with respect to the realty or economic interest therein for all purposes, and (C) the purported agent is held out as the agent and not the principal in all dealings with third parties relating to the realty or economic interest therein. Since the tax does not apply to any deed, instrument, or transaction described in 19 RCNY § 23-05(b), neither the grantor nor the grantee is required to pay the tax. However, a return relating to the deed, instrument, or transaction must be filed.
(8)A deed, instrument or transaction conveying or transferring real property or an economic interest in real property to another person or entity, otherwise subject to tax, that effects a mere change of identity or form of ownership or organization to the extent the beneficial ownership of such real property or economic interest remains the same. A sale of real property or an economic interest therein for cash or other valuable consideration will be exempt to the extent the beneficial ownership remains the same, provided the transaction represents a mere change of identity or form of ownership or organization.
(i)Applicable tax rate. Where this exemption applies, the consideration subject to tax is reduced proportionately to the extent the beneficial ownership of the real property or economic interest in the real property remains the same. However, for transfers or transactions occurring on or after January 1, 1999, the determination of the applicable tax rate will be made prior to the application of this exemption. The tax rate applicable to transfers for consideration of more than $500,000 will apply even though the portion of the consideration taxable after applying the exemption provided for in this paragraph is $500,000 or less.
(c)Cross reference. For the rule concerning transfers of interests in housing companies organized and operating pursuant to Article 2, 4, 5 or 11 of the Private Housing Finance Law, see subparagraph (2) of 19 RCNY § 23-03(h).
