''A flip tax cannot be imposed by the board,'' Mr. Saft said. A Covenant In a Deed. Q The deed to my house has an old covenant stating that I must make a $300 yearly contribution to the upkeep of the nearby Presbyterian church.
http://www.nytimes.com/2000/08/20/realestate/q-a-flip-tax-in-the-sale-of-a-co-op.html
He added that in most cases, fees derived from flip taxes are added to the building's reserve fund and used for capital improvements rather than operating expenses. ''The belief is that a building in good condition will produce higher sales prices,'' Mr. Saft said.
http://www.nytimes.com/2000/08/20/realestate/q-a-flip-tax-in-the-sale-of-a-co-op.html
If the proprietary lease does not provide for a flip tax, Mr. Siegler said, it would be necessary to amend the lease. Doing so, he said, typically requires approval by two-thirds or three-quarters of the shareholders.
http://www.nytimes.com/2003/10/05/realestate/q-a-the-amount-of-a-co-op-s-flip-tax.html
A Stuart M. Saft, a Manhattan lawyer who is also chairman of the Council of New York Cooperatives and Condominiums, said that a flip tax is a transfer fee paid to a co-op corporation on the sale of a co-op apartment. The fee is usually calculated as a percentage of the gross sale price.
http://www.nytimes.com/2000/08/20/realestate/q-a-flip-tax-in-the-sale-of-a-co-op.html
Q: What is a Flip Tax. A: A private Transfer Fee. The flip tax is a private transfer fee that many new york coops impose on shareholders. In the late seventies and early 80's when many rental buildings converted, huge profits were being made by former renters who bought their units at inside prices and then resold them. Called flipping.
http://www.nycblogestate.com/2013/05/flip-tax.html
''The percentage is usually between 1 and 3 percent, payable either by the seller or buyer of a co-op apartment.'' It is usually the seller, he said. Mr. Siegler said that other formulations for the flip tax include a flat fee per apartment, a percentage of the seller's profit, or a straight per-share assessment. ''A properly enacted flip tax could provide an exemption or special treatment for some types of shareholders or transfers,'' he said.
http://www.nytimes.com/2003/10/05/realestate/q-a-the-amount-of-a-co-op-s-flip-tax.html
In my history of dealing with flip taxes, there is not one set person who pays the tax, so in other words it can be either the buyer or the seller who pays.
http://nyhouses4sale.typepad.com/ny_houses_4_sale/2007/02/what_is_a_flip_.html
Q In the sale of a co-op apartment, what is the rationale for the substantial flip tax paid by the seller? . . . Sol Milton, Bayside, N.Y.
http://www.nytimes.com/2000/08/20/realestate/q-a-flip-tax-in-the-sale-of-a-co-op.html
Q -- If a co-op adopts a flip tax, which is not really a tax but a fee for the sale of a co-op unit, how is the amount determined? Is it the same for all shareholders or is it determined by the number of shares? Would elderly shareholders who get protection against tax increases get a similar benefit? . . .
http://www.nytimes.com/2003/10/05/realestate/q-a-the-amount-of-a-co-op-s-flip-tax.html
1 A set dollar amount times the amount of shares owned. 2  A percentage of the total sales price. 3  This type tends to be a bit more steep than the first one. 4  A percentage of the PROFIT from the sale.
http://nyhouses4sale.typepad.com/ny_houses_4_sale/2007/02/what_is_a_flip_.html
what is flip tax
A flip tax is a private transfer fee that many New York coops impose on shareholders. Flip tax is a private transfer fee that many New York cops impose on shareholders.