Regarding revocable license

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.

NOTE - IN RESPONSE TO MR. KAMMA'S COMMENT, PLEASE SEE ATTACHMENT: