New Law Requires Full Disclosure of LLC Members

New Tax Law Section 1409 Requirements for TP-584 and NYC RPT Forms

The New York State Legislature and New York City Council recently adopted provisions to Section 1409 of the New York State Tax Law and Section 11-2105 of The New York City Administrative Code. The provisions apply to all transfers of 1-4 family dwellings with or without consideration within the State of New York where the Grantor and/or Grantee is an LLC. For all such transactions, a separate document must accompany the New York State TP-584 and/or NYC RPT listing the names and business addresses of all shareholders, directors, officers, members and partners of the LLC. If any such member, manager or authorized person of the LLC is itself an LLC or other business entity, the names and business addresses of those entities must also be disclosed until full disclosure of ultimate ownership by natural persons is achieved.

The legislation has gone into effect immediately and will be mandatory for all deeds being submitted for recording on or after September 23, 2019. An official form has not yet been promulgated by the State or City of New York, until such a time that a form is made available to the public we recommend using the attached form.