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NYS Dept of Taxation, Opinion on Revocable Licenses

NYS Department of Taxation and Finance (DTF) recently took the position that a revocable license granted for a parking space and a revocable license granted for storage space in a Condominium building constituted a conveyance of real property under Article 31 of the Tax law (within the definitions of Tax Law section 1401(e)and (f)); as such they determined that the purchase price for each must be aggregated with the purchase price for the condominium unit and that transfer taxes were due on the aggregate amount.

Neither the storage space nor the parking space had a separate unit no., tax lot and no common elements were allocated to said spaces. Further, neither the storage space nor the parking space were mentioned in the deed; the DTF reviewed the contract of sale upon audit and discovered the grant of the licenses therein.

This ruling is contrary to the concept that license agreements are personal property.

This bulletin is sent courtesy of CB Title Agency of NY, LLC and NYSLTA. This article is for informational purposes only and is not intended to provide legal advice, but rather to provide insight into legal developments and issues that may be useful to our clients and friends. In no circumstance is this article intended to be a full treatment of the above subject matter. Reader is advised to obtain additional information as noted.