New York City Finance Department Issues Ruling on Real Property Transfer Tax for Cooperative Unit Shares

The New York City Department of Finance issued a letter ruling on the applicable real property transfer tax rate for the sale of shares associated with two cooperative units. The department ruled that, based on the restrictions on use and transfer of the servants’ room unit, which could only be held by the owner of the residential unit for limited purposes, the sale should be treated as a transfer of an individual cooperative unit subject to the lower 1.425 percent tax rate rather than the higher bulk sale rate. [N.Y. Dep’t of Fin., FLR-25-5035-RPTT, 02/03/26]

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