Tax Law, § 1415(d)
Example 1:
A conveys to B real property which is situated partly within New York State and partly within Vermont. The consideration attributable to the portion of the property situated within New York State was not specified in the contract of sale or in a written agreement signed by both A and B. B pays A $150,000 consideration for the property. An appraisal of the property, made just prior to the sale, indicates that the total fair market value of the property is $150,000 and that the fair market value of the portion of the property situated within New York State is $120,000. The amount of consideration used to commute the tax is $120,000.
Example 2:
Assume the same facts as example 1 except that the appraisal indicates that the total fair market value of the property is $200,000 and the fair market value of the portion of the property situated within New York State is $160,000. The amount of consideration used to compute the tax is determined by multiplying the amount of consideration paid by B ($150,000) by 80 percent. Eighty percent equals the fair market value of the property situated within New York State ($160,000) divided by the total fair market value of the property ($200,000). The amount of consideration used to compute the tax is $120,000.
Example 3:
Corporation A owns real property which is situated partly within New York State and partly within Vermont. This is the only asset of corporation A. One hundred percent of the stock of corporation A is sold to corporation B for $300,000. Since a controlling interest in corporation A was transferred to corporation B, there was a taxable conveyance of the real property owned by corporation A to corporation B. An appraisal of the real property indicates that the total fair market value of the property is $250,000 and that the fair market value of the property situated within New York State is $200,000. The amount of consideration used to compute the tax is $200,000. The appraised fair market value is used rather than an allocated portion of the amount paid for the stock.
N.Y. Comp. Codes R. & Regs. Tit. 20 § 575.12