What's happening
This bill requires limited liability companies involved in residential real estate transfers to disclose the names and business addresses of all owners and controlling parties.
Why it matters
Increases transparency in property ownership. By requiring LLCs involved in residential real estate transfers to disclose all owners and controlling parties down to the individual (natural person) level, the bill aims to prevent anonymous or shell company ownership, making it harder to hide true ownership of property.
Helps combat illegal activities. Full disclosure of LLC ownership can make it easier for authorities to identify and investigate cases of money laundering, tax evasion, and other illicit uses of real estate transactions.
Addresses loopholes in privacy and public records. The bill explicitly states that this disclosure is not considered an unwarranted invasion of personal privacy, making it clear that public interest in transparency outweighs privacy concerns in these cases.
Impacts buyers, sellers, and the real estate market. Anyone using an LLC to buy or sell small residential properties (1-4 family units) will now have to provide detailed personal and business information, potentially deterring those who preferred LLCs for anonymity, and giving neighbors, municipalities, and regulators more insight into who owns local properties.
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Who cares
Headline styles
Reveal LLC Property Owners
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 39
History
- Signed chap.297
- Delivered to governor
- Returned to senate
- Passed assembly
- Ordered to third reading cal.543
- Substituted for A7190
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 42–20
- Advanced to third reading
- 2nd report cal.
- 1st report cal.132
Show 1 earlier action
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Reveal LLC Property Owners
Assembly Floor Calendar · Sponsor Kenneth Zebrowski
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1730
2019-2020 Regular Sessions
IN SENATE
January 16, 2019
Introduced by Sen. SKOUFIS -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
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 Assembly, do enact as follows:
Section 1. Subdivision (a) of section 1409 of the tax law, as amended by chapter 309 of the laws of 1996, is amended to read as follows:
(a) A joint return shall be filed by both the grantor and the grantee for each conveyance whether or not a tax is due thereon other than a conveyance of an easement or license to a public utility as defined in subdivision two of section one hundred eighty-six-a of this chapter or to a public utility which is a provider of telecommunication services as defined in subdivision one of section one hundred eighty-six-e of this chapter, where the consideration is two dollars or less and is clearly stated as actual consideration in the instrument of conveyance. When the grantor or grantee of a deed for residential real property containing one- to four-family dwelling units is a limited liability company, the joint return shall not be accepted for filing unless it is accompanied by a document which identifies the names and business addresses of all members, managers, and any other authorized persons, if any, of such limited liability company and the names and business addresses or, if none, the business addresses of all shareholders, directors, officers, members, managers and partners of any limited liability company or other business entity that are to be the members, managers or authorized persons, if any, of such limited liability company. The identification of such names and addresses shall not be deemed an unwarranted invasion of personal privacy pursuant to article six of the public officers law. If any such member, manager or authorized person of the limited liabil-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06386-01-9
S. 1730 2
ity company is itself a limited liability company or other business entity, the names and addresses of the shareholders, directors, officers, members, managers and partners of the limited liability company or other business entity shall also be disclosed until full disclosure of ultimate ownership by natural persons is achieved. For purposes of this subdivision, the terms "members", "managers", "authorized person", "limited liability company" and "other business entity" shall have the same meaning as those terms are defined in section one hundred two of the limited liability company law. The return shall be filed with the recording officer before the instrument effecting the conveyance may be recorded. However, if the tax is paid to the commissioner pursuant to section fourteen hundred ten of this article, the return shall be filed with such commissioner at the time the tax is paid. In that instance, a receipt evidencing the filing of the return and the payment of tax shall be filed with the recording officer before the instrument effecting the conveyance may be recorded. The recording officer shall handle such receipt in the same manner as a return filed with the recording officer.
§ 2. Section 11-2105 of the administrative code of the city of New York is amended by adding a new subdivision h to read as follows:
h. When the grantor or grantee of a deed for residential real property containing one- to four-family dwelling units is a limited liability company, the joint return shall not be accepted for filing unless it is accompanied by a document which identifies the names and business addresses of all members, managers, and any other authorized persons, if any, of such limited liability company and the names and business addresses or, if none, the business addresses of all shareholders, directors, officers, members, managers and partners of any limited liability company or other business entity that are to be the members, managers or authorized persons, if any, of such limited liability company. The identification of such names and addresses shall not be deemed an unwarranted invasion of personal privacy pursuant to article six of the public officers law. If any such member, manager or authorized person of the limited liability company is itself a limited liability company or other business entity, the names and addresses of the shareholders, directors, officers, members, managers and partners of the limited liability company or other business entity shall also be disclosed until full disclosure of ultimate ownership by natural persons is achieved. For purposes of this subdivision, the terms "members", "managers", "authorized person", "limited liability company" and "other business entity" shall have the same meaning as those terms are defined in section one hundred two of the limited liability company law.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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: Adds a new subdivision (h) of Section 11-2105 of the adminis- trative code of the city of New York to require any limited liability company who is the grantor or grantee of a deed for residential 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.
Section 2: Incorporates the same provisions into section 1409 of the tax law into paragraph (a) for statewide application.
Section 3: Establishes that this act will take effect immediately.
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
Assembly: Skoufis: 06/15/16 passed assembly. 01/27/17 - Referred to Ways and Means 06/05/17 - Reported referred to Rules 06/14/17 - Reported 06/14/17 - Rules report cal. 284 06/20/17 - Passed Assembly 01/03/18 - Returned to Assembly 01/03/18 - Ordered to third reading cal. 269
Senate: Carlucci: 6/15/16 referred to Rules 01/10/17 - Referred to Investigations and Government Operations 01/03/18 - Referred to Investigations and Government Operations 06/20/17 - Delivered to Senate 06/20/17 - Referred to Rules June, 2017 - Died in Senate
Fiscal implications
None
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.