Carole,
Just to add some fuel to the flame,here in Manhattan on the UWS, I have been representing a buyer ,who has made an offer on a $900K, 1+ bedroom coop, the flip tax is 33%! I f he has to sell it in a year, for 1 million (probably much more!) he will have to pay the board 330K, out of that!
Needless to say the board has lots of reserve funds...

It is important to know that though a "flip tax" is almost universally imposed on a seller by a co-op, the parties are free to negotiate as they see fit and can allocate (split) the flip tax accordingly.

I am now officially speechless and thankful to you, Mitchell for that research.

1 West 72nd Street, Dakota, The Co-op. There are 2 active listings both 4 Bedroom 3.5 bath one is $19,500,000, maint. $7,438 month the other is $25,500,000 The flip tax on $25 million is $500,000.

I tried to look up the maintenance fees for the Dakota; let's just say okay, if the fees are used in lieu of bldg reserves, then I guess it's okay LOL

Carole, You don't "flip" in The Dakota (lol)
IMHO if a building must impose a "flip tax" I think it should be paid by the buyer not the seller. The buyer wants to live in that building and will at least get to enjoy whatever the building is going to use that money for. They are making a contribution toward their future home. The seller is leaving the building why should they pay for a new lobby long after they are gone.

Interesting as usual! The buyer payment can be justified because then it proves they are cognizant of how much money the sellers are making? Because obviously they can't actually flip it until they own it lol. NYC is fascinating I say.

Carole, Most coops that have a "flip tax" impose it on shareholders when they sell. However, some Manhattan buildings impose it on buyers. The famous coop apartment building The Dakota on the Upper West Side has a 2% "flip tax" paid by the buyer.

A "flip tax" is a transfer tax imposed by a co-op on Sellers, to raise revenue in lieu of assessments or increasing maintenance charges. It is usually a per share fee or % of profit, net or gross.

Flip taxes are rarely, if ever, found in NYC condos. (A condo transfer fee is not what is commonly meant by a flip tax).
It is important to read the co-op corporation documents to determine the calculation.
The reason it is not imposed by condos is due to the legal prohibition against unreasonable restraint on alienation of real property. Co-ops are technically not real property, while condos are.
The power to impose a flip tax must be in the original Offering Plan or amendments, or amendment to the proprietary lease. Some co-ops have tried to impose flip taxes without this prerequisite and they are legally unenforceable. Check with a lawyer on all issues that have legal implications.

The flip tax is a transfer fee that many new york coops and condos impose on shareholders. The original intent was to disuade "flippers". It is now used by many buildings as a revenue source for the building's reserve fund.