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Thu Apr 1, 2010 12:47

I live in a Coop which is 95% owned and regulated by the Corporation. I would like to know if the sponsor should pay the flip tax, when he sells his units off? I believe that they should pay as we the sellers of the Corporation should. Recently, one of the Shareholders sold his apartment, they charged him 4.50 per share flip tax, when at inseption the flip tax was 2.50. There was never an amendment for the increase, our building has been collecting an illegal amount for years, what should we do about this?

    • ByLaws and Proprietary Lease RLM, Wed Apr 7 10:28
      It is the first, and most important, duty of every Shareholder, and especially those serving on the Board of Directors, to read and understand both of these documents thoroughly. (Kind of like a... more
    • RE Flip Tax DavidG, Thu Apr 1 15:21
      I would review your Prop Lease and By-Laws for clarity. As a board member on a building that went co-op over 25 years ago, the sponsor still owns 60% of outstanding shares we visited this issue with... more
      • Re: RE Flip Tax SaL, Tue Apr 6 08:24
        I had the same thought myself ... but I quickly realized it wouldn't work. The purpose of the flip tax was to tax the shareholders that bought a unit from the sponsor, usually at a discount price,... more
      • Flip Tax BP, Fri Apr 2 10:38
        I agree with DavidG about the coop sponsor and flip tax. I've been on our board a long time, and as I understand it, the sponsor is usually and legally a Holder of Unsold Shares (complicated issue),... more
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