On April 19, Governor Andrew Cuomo signed into law the New York Budget Bill for the 2021-2022 state fiscal year (Senate Bill S2509C) (the New Budget Bill). The New Budget Bill contains a major change to the liability provisions for New York State’s real estate transfer tax (RETT).
Generally, the RETT is imposed on all conveyances of real property or interests of real property when the consideration exceeds $500. N.Y. Tax Law. § 1402(a). The liability for the RETT is imposed on the grantor, but if the grantor fails to pay or is exempt from the tax, the tax is levied on the grantee. N.Y. Tax Law §1404(a). For purposes of the RETT, the grantor is defined as “the person making the conveyance of real property or interest therein.” N.Y. Tax Law § 1401(g).
The New Budget Bill expanded the definition of “person” to include any individual, corporation, partnership or limited liability company (LLC), or an officer or employee of any corporation (including a dissolved corporation), or a member or employee of any partnership, or a member, manager or employee of an LLC, who as such officer, employee, manager or member is under.
