Redacted Letter Rulings - Real Property Transfer Tax (RPTT)

Written by Finance's Legal Affairs Division, letter rulings are written statements that set forth the applicability of the statutes and rules to a specific set of facts, and are provided in redacted form to protect taxpayer-specific information.


Subsidy amounts by governmental entities on behalf of non-governmental purchasers of property are subject to tax.  #10-4909  6/03/11
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Payments pursuant to an arrangement characterized as a “lease” are not subject to the Commercial Rent Tax when the substance of the arrangement is a financing arrangement and not a true lease. #10-4913  5/18/11
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Purchase of a condominium by a mother a year after purchases of condominiums by her sons in the same building is held to be a purchase of an individual residential unit.  10-4915  5/06/11
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Residential property with a small office is subject to the lower rate.  #10-4914  4/22/11
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A transfer of an economic interest in real property to a charitable organization, and a possible transfer of that interest from that organization, are not collapsed under the step transaction doctrine, where the first transfer was the result of a will executed long before the second transferee was involved, the possible second transfer was the result of unintended defaults on loans, and the second transfer, depending on future events, may never occur.  #10-4906  9/29/10
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The transfer of two adjacent condominium units by a sponsor, in a single transaction, is treated as the transfer of units combined at the time of sale and subject to tax as the sale of an individual residential condominium unit, where the units had never been occupied and the sponsor agreed, as part of the transaction, to undertake construction to physically combine the units before the purchasers’ ocupancy.  #09-4901  6/25/10
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Sale of a cooperative apartment and a supplemental unit are held to be a sale of an individual cooperative apartment subject to the lower rate schedule.  #08-4879  5/13/10
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The reconstitution under the Business Corporation Law of a Mitchell-Lama cooperative corporation that had been formed under the Private Housing Finance Law, results in a conveyance of property that is subject to the New York City Real Property Transfer Tax.  #094898-021  1/14/10
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The tax rate for one, two or three family homes is applicable to the transfer of a building containing two residential units and an eating establishment, where the tax classification reflects that the building is used primarily for residential purposes and there is no information suggesting the classification is incorrect.  #09-4899  1/08/10
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Conveyance of a controlling economic interest in property to a taxpayer that meets the criteria of IRC §501(c)(3) is exempt despite the fact that the taxpayer has not yet received its federal exemption. #09-4895-021.  6/11/09
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A two step conveyance in which property is transferred by a business corporation to its exempt parent and then to a third party is not exempt from tax. #08-4885-021.  2/19/09
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Real property conveyed from two adjoining apartments that the Taxpayer intends to combine immediately after obtaining title. #08-4875.  11/26/08
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Request for an exemption from NYC Real Property Transfer Tax on behalf of a church with respect to the transfer of property. 11/26/08
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Real property conveyed from a not-for-profit to a single-member limited liability company in which the not-for-profit is the sole member may retain its real property tax exemption under RPTL section 420-a and will also be exempt from the RPTT. #07-4873. 11/21/07
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Conveyance of legal title to and reversion of legal title from the Trust for Cultural Resources of the City of New York are exempt from the RPTT. #06-4853.  8/30/07
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Conveyance by a husband and wife of each of their 50% interests in two jointly-owned properties to two revocable trusts is exempt as a mere change of form. #06-4863. 3/29/07
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Conveyance of shares in a cooperative apartment from a 501(c)(3) organization to its occupant and the reconveyance of a deed to the same apartment to the 501(c)(3) organization from the occupant solely for the purpose of facilitating conversion to a condominium is exempt from the RPTT. #07-4864.  7/27/07
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Transfer of 98.99% limited partnership interest in a housing project meeting federal charitable guidelines to a N.Y. not-for-profit corporation is exempt from tax.  2/21/07
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Under the Real Property Transfer Tax, the transfer of a condominium unit that is required to be used as a hotel room will not qualify for the lower rate applicable to individual residential condominiums. #06-4862.  1/04/08
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In the case of a Mitchell-Lama limited profit housing corporation reconstituting as a business corporation, the transfer of the property to a new corporation in exchange for shares in the new corporation is subject to the RPTT.  The exchange of the shares held by tenant-shareholders for shares in the new business corporation is exempt from the RPTT as a mere change of form.  However, the transfer by tenant-shareholders of their shares in exchange for cash is subject to the RPTT. #06-4851.  11/30/06
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A reduced tax rate of 1.425% for one, two or three family homes is applicable to the transfer of a building containing two residential units and a medical office for consideration over $500,000 where the tax classification reflects that the building is used primarily for residential purposes and there is no information suggesting the classification is incorrect. #06-4845. 3/6/2006
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A deed of property to a nonprofit organization exempt under IRC §501(c)(3) is exempt from tax. #05-4840. 11/10/05
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Transfer of three condominium units combined into a single residence taxed as a transfer of an individual residential unit despite lack of revised certificate of occupancy, letter of completion or revised tax lot designation. #05-4831. 6/9/2005
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Nonprofit HDF corporation exempt from transfer tax on transfer to partnership with for profit limited partners formed to build low income housing where nonprofit 501(c)(3) parent corporation retains control over project. #04-4828. 2/22/2005
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Assignment of subscription agreement for cooperative apartment is taxable where the assignor is a shareholder of the cooperative corporation and the closing is simultaneous with and contingent upon the closing of the sale of the apartment and granting of proprietary lease to the assignee by the cooperative corporation. #04-4824. 8/9/2004
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The applicable tax rate for transfer of property by tenants in common is based on the separate consideration for each deed even if a portion of the consideration for each deed is in the form of a single purchase money note. #04-4823. 5/26/2004
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Acquisition of ground lease and buildings from US Army by joint venture between the US Army and private developer taxable to the extent of the interest transferred to private developer. Value of transferred interest is a factual determination not susceptible of a legal determination. #03-4818. 5/4/2004
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Transfer of property to single member LLC, sublease to 3rd party for lump sum, and re-lease of property to owner of LLC for payments equal to debt service on lump sum payment is a financing transaction and not a true lease. Transaction is not subject to RPTT or CRT. #03-4814. 6/10/2004
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Co-ownership arrangement as financing to comply with Islamic law not subject to tax. #03-4811. 1/13/2004
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Transfer to new trust with identical terms except that termination distributions to current beneficiaries are per capita instead of per stirpes qualifies as mere change except to the extent the future interests would be different if trust were terminated immediately. Valuation of interests transferred is not susceptible to ruling. #03-4812. 12/26/2003
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Transfer by bankruptcy trustee for nonprofit entity in Chapter 7 liquidation not exempt from tax. #03-4808. 11/28/2003
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Transfer by tenants-in-common to LLC owned by grantors in same proportions exempt as a mere change of ownership. #03-4806. 10/15/2003
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Applicable RPTT rate for Class One property with a doctor's office. #03-4805. 6/25/2003
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Conveyance / leaseback with government instrumentality exempt as a transfer to dummy / strawman entity. #03-4803. 7/11/2003
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Primary unit and maid's unit sold under separate contracts are treated as bulk sale in the absence of facts indicating that the sales were separate transactions. #03-4801. 5/23/2003
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Transfers to an "accommodation title holder" in deferred like-kind exchanges under the Real Property Transfer Tax. # 02-4795. 3/13/2003
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Purchase and resale financing arrangement under Islamic law treated as a loan, not a taxable transfer. #02-4790. 4/9/2002
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The creation of an off-balance-sheet finance lease is not subject to RPTT and payments under the finance lease are not subject to CRT. #01-4789. 2/5/2002
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Transfer of cooperative apartments from husband and wife holding title jointly to the wife alone pursuant to a divorce is a taxable transfer of 50% of each apartment even though the wife furnished all of the funds for the purchase of the apartments. #01-4779. 8/9/2001
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When two parties exchange co-op apartments pursuant to contracts that are separate but contingent on each other, the consideration for each apartment conveyed is the fair market of the apartment received. #01-4775. 6/26/2001
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The distribution of a condominium unit by a limited liability company to one of its members will be exempt from New York City Real Property Transfer Tax as a transfer from a "mere agent, dummy, straw man or conduit to" its principal where that member will hold title to the unit and will lease the unit to another entity under a finance lease. Because the lease is a financing arrangement and not a true lease, rental payments will not be subject to Commercial Rent Tax. The creation, termination and exercise of a purchase option under the lease will not be subject to the New York City Real Property Transfer Tax where the deed is given solely to secure a debt or to return such security. #00-4773. 4/19/2001
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The distribution of condominium units by a limited liability company to certain of its members will be exempt from New York City Real Property Transfer Tax as a transfer from a "mere agent, dummy, straw man or conduit to" its principal where each of those members of the LLC will be responsible for the financing and construction of its unit. The LLC's transfer of one unit to a nonprofit entity exempt from Federal tax under IRC §501(c)(3) will be exempt as well. #00-4770. 4/19/2001
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Transfer to irrevocable trust of interest in encumbered property in return for fixed annuity payments is subject to tax, however, transfer from trust at the end of its term is not subject. Consideration equals the annuity payments plus the amount of the mortgages on the property. #00-4766. 2/15/2001
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The taxpayer's conveyance of the Property to the LLC is exempt from the RPTT by reason of Code section 11-2106(b)(8). #00-4765. 8/23/2000
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The taxpayers' conveyance of the Property to the LLC is exempt from the RPTT by reason of Code section 11-2106(b)(8). #00-4764. 8/23/2000
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The taxpayer's conveyance of the Property to the LLC is exempt from the RPTT by reason of Code section 11-2106(b)(8). #00-4763. 8/23/2000
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The taxpayer's conveyance of the Leasehold to the LLC is exempt from the RPTT by reason of Code section 11-2106(b)(8). #00-4762. 8/23/2000
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The taxpayers contracted to purchase two residential units (together with two nonresidential units) from the Sponsor as part of a single transaction. Therefore, the purchase of the Primary Unit and the Suite Unit is not the purchase of an individual residential condominium unit and is not eligible for the lower tax rate applicable to the purchase of an individual residential condominium unit. The tax is imposed separately on each deed. #00-4761. 8/23/2000
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When devisees under a will, who are granted half interests in each of several properties, distribute their interests so that each ends up with sole title to specific properties, the transaction is taxable. #00-4757. 7/27/2000
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Transfer of two condominium units that are combined prior to sale is treated as the conveyance of an individual unit. #99-4756. XX/XX/2000
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Not for profit housing Corporation whose project will help to redevelop blighted areas of the city qualities as charitable and is exempt from tax. #99-4753. 7/99
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Conveyance of property to LLC where there is no change of beneficial ownership is exempt as mere change in form. #99-4752. 7/99
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Conveyance of property to LLC where there is no change of beneficial ownership is exempt as mere change in form. #99-4751. 7/99
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Conveyance of property to LLC where there is no change of beneficial ownership is exempt as mere change in form. #99-4750. 7/99
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Conveyance of property to LLC where there is no change of beneficial ownership is exempt as mere change in form. 99-4749. 7/99
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Conveyance of property to LLC where there is no change of beneficial ownership is exempt as mere change in form. #99-4748. 7/99
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Conveyance of property to LLC where there is no change of beneficial ownership is exempt as mere change in form. #99-4747. 7/99
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Transfer of condominium units by conduit is exempt. #99-4745. 6/29/99
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501(c)(2) entity that owns and operates real property for the purpose of paying profits to its exempt parent is not exempt. #99-4744. 3/23/99
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Conveyance to partnership to confirm title that has already vested is exempt. #99-4741. 4/13/99
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Conveyance of property to wholly owned LLC is exempt as mere change of form. #99-4740. 4/19/1999
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Transfers by partnership of two parcels of land to two newly formed LLC's owned in the same percentage by the partners of the partnership re exempt as mere change of form. #98-4737. 12/21/1998
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Transfer of residential condominium and parking space are not aggregated and lower rate schedule is applied to the transfer of the residential condominium. #98-4736. 3/23/1999
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Transfer by joint tenants to wholly owned corporation is exempt as mere change of form. #96-4685. 11/12/1996
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On sale by corporation of two adjacent condominiums by separate deed the rate for individual residential apartments does not apply, but consideration is not aggregated. #96-4682. 10/17/1996
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Transfers by taxpayer to trust acting as receiver are not subject to tax, but transfers by trust to third parties are subject. #96-4675. 10/25/1996
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