New York City Tax Appeals Tribunal Reverses Decision on Real Property Transfer Tax Exemption

The New York City Tax Appeals Tribunal issued a decision reversing, in part, an Administrative Law Judge’s determination relating to property conveyance and admission of SPG/Slate (SPG). The dispute involved a conveyance of real property to the taxpayer, followed by the admission of SPG to form a joint venture for developing the property. The Tribunal found that applying the step transaction doctrine, the conveyance and admission of SPG should be treated as a single transaction, resulting in Grantor retaining a 60 percent beneficial interest in the property that qualified for the “mere change” exemption from the Real Property Transfer Tax ...