New York State Department of Taxation and Finance TP-584 …

1 New york State Department of Taxation and Finance TP-584 -I. Instructions for Form TP-584 (10/96). New york State Combined real Estate Transfer Tax Return and Credit Line Mortgage Certificate General Instructions appointed by a court or otherwise, any combination of individuals, and any other form of unincorporated enterprise owned or conducted by two Purpose of Form TP-584 or more persons. Form TP-584 is required to be used to comply with the filing requirements of the real Estate Transfer Tax (Article 31 of the Tax Law) and the Tax on 2. Controlling interest means (a) in the case of a corporation, either 50% or Mortgages (Article 11 of the Tax Law), as it applies to the Credit Line more of the total combined voting power of all classes of stock of such Mortgage Certificate.

2 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, Who Must File profits or beneficial interest in such partnership, association, trust or Form TP-584 must be filed for each conveyance of real property from a other entity. grantor to a grantee. 3. real property means every estate or right, legal or equitable, present or It may not be necessary to complete all the schedules on Form TP-584 . future, vested or contingent, in lands, tenements or hereditaments, The nature and condition of the conveyance will determine which of the including buildings, structures and other improvements thereon, which schedules you must complete.

3 Please see the specific instructions for are located in whole or in part within the State of New york . It does not completing each schedule. include rights to sepulture. Note: Public Utility Companies, regulated by the Public Service Commission, and governmental agencies that are granted easements and 4. Consideration means the price actually paid or required to be paid for licenses for consideration of less than $500, may use Form , real the real property or interest therein, including payment for an option or Estate Transfer Tax Return for Public Utility Companies' and Governmental contract to purchase real property whether or not expressed in the deed Agencies' Easements and Licenses, to record these conveyances.

4 For and whether paid or required to be paid by money, property, or any purposes of Form , a governmental agency is the United Nations, other thing of value. It shall include the cancellation or discharge of an the United states of America, the State of New york , or any of their indebtedness or obligation. It also includes the amount of any mortgage, instrumentalities, agencies or political subdivisions or any public purchase money mortgage, lien or other encumbrance, whether or not corporation, including a public corporation created pursuant to an the underlying indebtedness is assumed or taken subject to.

5 Agreement or compact with another State or the Dominion of Canada. A conveyance of an easement or license to a public utility company where (a) In the case of a creation of a leasehold interest or the granting of the consideration is $2 or less and is clearly stated as actual consideration an option with use and occupancy of real property, consideration in the instrument of conveyance does not require the filing of Form TP-584 includes, but is not limited to, the value of the rental and other or Form 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 When and Where to File attributable to the exercise of any option to renew.

6 Form TP-584 is to be filed with the recording officer of the county where the real property being conveyed is located no later than the fifteenth day (b) In the case of a creation of subleasehold interest, consideration after the delivery of the instrument effecting the conveyance. However, if includes, but is not limited to, the value of the sublease rental the instrument effecting the conveyance is not to be recorded or is to be payments attributable to the use and occupancy of the real property, recorded later than the time required to file Form TP-584 and to pay any the value of any amount paid for an option to renew and the value real estate transfer tax, file Form TP-584 and pay any real estate transfer of rental or other payments attributable to the exercise of any option tax due no later than the fifteenth day after the delivery of the instrument to renew.

7 Less the value of the remaining prime lease rental effecting the conveyance, directly with: payments required to be made. NYS TAX Department . (c) In the case of a transfer or an acquisition of a controlling interest in TTTB-TRANSFER TAX. any entity that owns real property, consideration means the fair PO BOX 5045. market value of the real property or interest therein, apportioned ALBANY NY 12205-5045. based on the percentage of the ownership interest transferred or acquired in the entity. Schedule B. (d) In the case of an assignment or surrender of a leasehold interest or real Estate Transfer Tax Return the assignment or surrender of an option or contract to purchase Imposition of Tax real property, consideration does not include the value of the remaining rental payments required to be made pursuant to the A real estate transfer tax (Part I of this schedule)

8 Is imposed on each terms of such lease or the amount to be paid for the real property conveyance at the time the instrument effecting the conveyance is pursuant to the terms of the option or contract being assigned or delivered by a grantor to a grantee when the consideration or value of the surrendered. interest conveyed exceeds $500. The tax is computed at a rate of two dollars for each $500 of consideration or fractional part thereof. (e) In the case of (i) the original conveyance of shares of stock in a An additional tax (Part II of this schedule) is imposed on the conveyance cooperative housing corporation in connection with the grant or of residential real property where the consideration for the entire transfer of a proprietary leasehold by the cooperative corporation or conveyance is one million dollars or more.

9 For more information, please cooperative plan sponsor and (ii) the subsequent conveyance by the refer to the section Imposition of Additional Tax on page 3 of these owner thereof of such stock in a cooperative housing corporation in instructions. connection with the grant or transfer of a proprietary leasehold for a cooperative unit other than an individual residential unit, consideration includes a proportionate share of the unpaid principal Definition of Terms of any mortgage(s) on the real property of the cooperative housing 1. Person means an individual, partnership, society, association, joint stock corporation comprising the cooperative dwelling or dwellings.

10 This company, corporation, estate, receiver, trustee, assignee, referee or any amount is determined by multiplying the total unpaid principal of the other person acting in a fiduciary or representative capacity, whether mortgage by a fraction, the numerator of which is the number of Page 2 TP-584 -I (10/96). shares of stock in the cooperative housing corporation being assumed would constitute a continuing lien, in determining the taxable conveyed in connection with the grant or transfer of the proprietary consideration for real estate transfer tax (line 3 of Form TP-584 , leasehold and the denominator of which is the total number of Schedule B) A can deduct the amount of the mortgage assumed shares of stock in the cooperative housing corporation.