The New York City Tax Appeals Tribunal has reversed an ALJ and held that for purposes of determining whether a transaction qualifies as a “REIT transfer” (for which the New York City real property transfer tax is computed at 50% of the otherwise applicable rate) consideration is not limited to the estimated market value of the underlying real property. Matter of VCP One Park REIT, LLC, et al., TAT (E) 14-26 (RP) (N.Y.C. Tax App. Trib., Feb. 16, 2018). In order to qualify as a REIT transfer, the value of the ownership interests in the REIT received by the grantor as consideration must be equal to at least 40% of the equity interest in the real property conveyed. The Tribunal held that Administrative Code § 11-2102.e(3), which expressly provides that “consideration for a real estate investment trust transfer . . . shall be equal to the estimated market value of the real property,” only applies if the REIT transfer is solely in exchange for REIT shares. Where, in this case, the transfer was in exchange for more than just shares in the REIT, the Tribunal held that it was appropriate to apply the more general definition of “consideration” found in Administrative Code § 11-2101.9. As a result, the Tribunal concluded that the transfer did not qualify as a REIT transfer because it did not meet the 40% test.