The Appellate Division, Third Department, has sustained a decision by the New York State Tax Appeals Tribunal applying the 1% tax surcharge on the sale of residential real property for a price exceeding $1 million (generally referred to as the “mansion tax”) to the sale of two apartments purchased separately by a husband and wife. Michael Sacks v. Tax Appeals Trib., 2012 NY Slip Op. 7160 (3d Dep’t, Oct. 25, 2012). While the units were purchased separately pursuant to different contracts, the court held that the application of the tax “is not dependent upon the form of the underlying transactions, but on the economic reality…” Here, the two units had already been consolidated by the previous owner, were reconfigured to be fully accessible to each other, had a single kitchen and functioned as a single-family residence, and the two transactions occurred simultaneously with payment from the same joint bank account, all leading to a conclusion that the entire conveyance was properly subject to tax.