339EE Exemption - Avoid Mansion, Mortgage taxes in NYC??

Maybe a real lawyer can go over this, but here's the text of the law:

Sec. 339-ee. Effect of other laws.

1. All units of a property which shall be submitted to the
provisions of this article shall be deemed to be cooperative
interests in realty within the meaning of section three
hundred fifty-two-e of the general business law. Article
nine-A of this chapter shall not apply to the property or
any unit. Article eleven of the tax law shall not apply to
declarations or any lien for common charges provided for in
this article. Any provision of the multiple dwelling law,
the multiple residence law, or any state building
construction code as to multiple residences pursuant to the
provisions of article eighteen of the executive law,
requiring registration by the owner or other person having
control of a multiple dwelling shall be deemed satisfied in
the case of a property submitted to the provisions of this
article by registration of the board of managers, such
registration to include the name of each unit owner and the
designation of his or her unit; each unit owner shall be
deemed the person in control of the unit owned by him or
her, and the board of managers shall be deemed the person in
control of the common elements, for purposes of enforcement
of any such law or code, provided, however, that all other
provisions of the multiple dwelling law or multiple
residence law, otherwise applicable, shall be in full force
and effect, and provided further that in a city with a
population of one million or more persons registration
required by a housing maintenance code of such city shall be
deemed satisfied in the case of a property submitted to the
provisions of this article by registration of the board of
managers which need not include the name of each unit owner
and the designation of his or her unit.

2. In the event the proceeds of a construction mortgage were
applied to construction of a unit of a condominium submitted
to the provisions of this article, or in the event that a
unit submitted to the provisions of this act was subject to
a blanket mortgage whose proceeds were applied exclusively
to payment of the construction mortgage or to capital
expenditures or expenses for the development or operation of
the condominium, or to purchase of land or buildings for the
condominium provided that such purchase was no more than two
years prior to the recording of the declaration of
condominium, and a mortgage recording tax was duly paid on
such construction or blanket mortgage in accordance with
article eleven of the tax law, then, as each unit is first
conveyed, there shall be allowed a credit against the
mortgage recording taxes (except the special additional
mortgage recording tax imposed by subdivision one-a of
section two hundred fifty-three of the tax law) that would
otherwise be payable on a purchase money mortgage, said
credit to be in the amount resulting from the product of the
purchaser's pro rata percentage of interest in the common
elements and the mortgage tax already paid on the
construction or blanket mortgage. No credit shall be allowed
under this subdivision (a) on account of the special
additional mortgage recording tax imposed by subdivision one-
a of Section two hundred fifty-three of the tax law or (b)
where the first condominium unit is sold more than two years
after the construction or blanket mortgage was recorded.

Im not sure about mansion tax but you can save on mortgage tax in new construction building. They must have an underlying mortgage on the building and the balance is then split among the common interest. You dont have to pay mortgage tax on your portion of the balance. It isnt likely that the balance and your mortgage amount will always be the same so you will likely have to pay the difference. sunny.hong@bankofamerica.com