A07190 Summary:
BILL NO | A07190 |
  | |
SAME AS | SAME AS S01730 |
  | |
SPONSOR | Zebrowski |
  | |
COSPNSR | Colton, Wright, Davila, Cook |
  | |
MLTSPNSR | |
  | |
Amd §1409, Tax L; amd §11-2105, NYC Ad Cd | |
  | |
Requires the real property transfer tax return relating to residential property sold or purchased by a limited liability company to include information on the ownership of such company. |
A07190 Memo:
Go to topNEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)   BILL NUMBER: A7190 SPONSOR: Zebrowski
  TITLE OF BILL: An act to amend the tax law and the administrative code of the city of New York, in relation to real property transfer tax returns of limited liability companies   PURPOSE OR GENERAL IDEA OF BILL: This bill requires limited liability companies to disclose the individ- ual members of the company when it files a joint tax return for any sale of real residential property that it is named the grantor or grantee in. This only applies to residential property containing one-to four-family dwelling units and requires that the joint tax return be accompanied with a list identifying all the members, managers, and any other author- ized persons of the company. This practice has been successfully imple- mented in New York City as of 2015. This bill seeks to codify the prac- tice in New York City and apply it on a statewide level.   SUMMARY OF PROVISIONS: Section 1 of the bill adds a new subdivision (h) of Section 11-2105 of the administrative code of the city of Now York to require any limited liability company who is the grantor or grantee of a deed for residen- tial real property containing one- to four-family dwelling units to accompany the filing of any joint tax return a list identifying all the members, managers, and any other authorized persons. Sect on 2 of the bill incorporates the same provisions into section 1409 of the tax law into paragraph (a) for statewide application. Section 3 of the bill establishes that this act will take effect imme- diately.   DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (1F APPLICABLE):   JUSTIFICATION: The issue of transparency that this bill addresses is important because when real estate transactions take place involving an LLC, those behind the companies are often unable to be identified. This bill seeks to address the anonymity and related concerns by requiring limited liabil- ity companies that engage in residential property sales to disclose their members when filing a joint property tax return. This practice has been successfully implemented in New York City as of 2015. This bill seeks to codify the practice in the city and apply it on a statewide level.   PRIOR LEGISLATIVE HISTORY: Skoufis: 06/15/16 passed assembly. Carlucci: 6/15/16 referred to Rules Skoufis: 01/03/18 ordered to third reading Carlucci: 1/03/18 referred to Investigations and Government Operations   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.   EFFECTIVE DATE: The bill takes effect immediately.
A07190 Text:
Go to top STATE OF NEW YORK ________________________________________________________________________ 7190 2019-2020 Regular Sessions IN ASSEMBLY April 11, 2019 ___________ Introduced by M. of A. ZEBROWSKI, COLTON, WRIGHT, DAVILA, COOK -- read once and referred to the Committee on Ways and Means AN ACT to amend the tax law and the administrative code of the city of New York, in relation to real property transfer tax returns of limited liability companies The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision (a) of section 1409 of the tax law, as amended 2 by chapter 309 of the laws of 1996, is amended to read as follows: 3 (a) A joint return shall be filed by both the grantor and the grantee 4 for each conveyance whether or not a tax is due thereon other than a 5 conveyance of an easement or license to a public utility as defined in 6 subdivision two of section one hundred eighty-six-a of this chapter or 7 to a public utility which is a provider of telecommunication services as 8 defined in subdivision one of section one hundred eighty-six-e of this 9 chapter, where the consideration is two dollars or less and is clearly 10 stated as actual consideration in the instrument of conveyance. When the 11 grantor or grantee of a deed for residential real property containing 12 one- to four-family dwelling units is a limited liability company, the 13 joint return shall not be accepted for filing unless it is accompanied 14 by a document which identifies the names and business addresses of all 15 members, managers, and any other authorized persons, if any, of such 16 limited liability company and the names and business addresses or, if 17 none, the business addresses of all shareholders, directors, officers, 18 members, managers and partners of any limited liability company or other 19 business entity that are to be the members, managers or authorized 20 persons, if any, of such limited liability company. The identification 21 of such names and addresses shall not be deemed an unwarranted invasion 22 of personal privacy pursuant to article six of the public officers law. 23 If any such member, manager or authorized person of the limited liabil- 24 ity company is itself a limited liability company or other business EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD06386-01-9A. 7190 2 1 entity, the names and addresses of the shareholders, directors, offi- 2 cers, members, managers and partners of the limited liability company or 3 other business entity shall also be disclosed until full disclosure of 4 ultimate ownership by natural persons is achieved. For purposes of this 5 subdivision, the terms "members", "managers", "authorized person", 6 "limited liability company" and "other business entity" shall have the 7 same meaning as those terms are defined in section one hundred two of 8 the limited liability company law. The return shall be filed with the 9 recording officer before the instrument effecting the conveyance may be 10 recorded. However, if the tax is paid to the commissioner pursuant to 11 section fourteen hundred ten of this article, the return shall be filed 12 with such commissioner at the time the tax is paid. In that instance, a 13 receipt evidencing the filing of the return and the payment of tax shall 14 be filed with the recording officer before the instrument effecting the 15 conveyance may be recorded. The recording officer shall handle such 16 receipt in the same manner as a return filed with the recording officer. 17 § 2. Section 11-2105 of the administrative code of the city of New 18 York is amended by adding a new subdivision h to read as follows: 19 h. When the grantor or grantee of a deed for residential real property 20 containing one- to four-family dwelling units is a limited liability 21 company, the joint return shall not be accepted for filing unless it is 22 accompanied by a document which identifies the names and business 23 addresses of all members, managers, and any other authorized persons, if 24 any, of such limited liability company and the names and business 25 addresses or, if none, the business addresses of all shareholders, 26 directors, officers, members, managers and partners of any limited 27 liability company or other business entity that are to be the members, 28 managers or authorized persons, if any, of such limited liability compa- 29 ny. The identification of such names and addresses shall not be deemed 30 an unwarranted invasion of personal privacy pursuant to article six of 31 the public officers law. If any such member, manager or authorized 32 person of the limited liability company is itself a limited liability 33 company or other business entity, the names and addresses of the share- 34 holders, directors, officers, members, managers and partners of the 35 limited liability company or other business entity shall also be 36 disclosed until full disclosure of ultimate ownership by natural persons 37 is achieved. For purposes of this subdivision, the terms "members", 38 "managers", "authorized person", "limited liability company" and "other 39 business entity" shall have the same meaning as those terms are defined 40 in section one hundred two of the limited liability company law. 41 § 3. This act shall take effect immediately.