Bulletin: NY000218

Dear Associates:

Effective immediately, the New York State Department of Taxation and Finance has modified the procedure for compliance with Section 663 of the Tax Law.

Pursuant to a Memorandum of the Department dated November 4, 2003 (a copy of which is attached for your reference) non resident sellers who are required to file and/or pay estimated personal income tax upon the sale of real property located in New York State are now required to file Form IT-2663 with the recording officer when the deed is presented for recording. The form must be accompanied by a check payable to "NYS Income Tax" for the full amount of the tax due, if any.

Form IT-2663 has been revised and renamed in accordance with the new procedure and is available at the Department website at http://www.tax.state.ny.us/pdf/2003/fillin/inc/it2663_2003_fill_in.pdf or by telephone at 1.800.462.8100.

Stamped certifications that have already been obtained will continue to be accepted by the recording officer for those transactions with a date of conveyance prior to December 31, 2003.

As stated in the Department memorandum, the change is procedural only and applies to only in those cases where the filing of Form IT-2663 is necessary. All other aspects of compliance with Tax Law Section 663 remain unchanged.

If you have any questions regarding the implementation of the new procedure, use of the new form or any other aspect of Tax Law 663, please call company counsel.