LLCs and the New York City Real Property Transfer Tax Return

May 7, 2018 | By Charles Botensten

Q: I understand that the New York City Department of Finance is requiring that all members of a multiple member Limited Liability Company must be disclosed on the New York City Real Property Transfer Tax Return.  Will this information be made public?

A: No, the names and taxpayer identification numbers ("TIN") of the members of the Limited Liability Company ("LLC") that appear on the New York City Real Property Transfer Tax Form (the “RPT”) will not be made public.

Effective May 18, 2015, the RPT was revised to require the identities and TIN of all members of an LLC when the grantor (i.e. seller) or grantee (i.e. purchaser) is an LLC that has multiple members.  Additionally, the RPT was revised to require the identities and TIN of all general partners where the grantor or grantee is a Partnership.  Previously, the RPT required only the name and TIN of the LLC or Partnership that was the grantor or grantee without the disclosure of its members or general partners. 

The New York City Department of Finance (the “DOF”), which uses the RPT to track and collect transfer taxes relating to real property transactions in New York City, instituted the change to the RPT to assist the DOF in identifying individuals and entities who own real property in New York City and who might seek to avoid paying New York City income taxes by virtue of ownership through LLCs and Partnerships. The DOF has indicated that the collection of the names and TIN is for internal purposes only, is going to be kept confidential and will not be disclosed publicly.

The Legal Line Question by:
Neil B. Garfinkel
REBNY Broker Counsel

Partner-in-charge of real estate and banking practices at Abrams Garfinkel Margolis Bergson, LLP