The 2020 NY Budget Bill included the following two provisions that will increase the Real Property Transfer Tax in some circumstances:
The Increase of Transfer Tax and Supplemental “Mansion Tax” will only apply to real property located in any city in New York having a population of one million or more. Currently, these changes would only apply to the five boroughs of New York City.
Both the Increase of New York Transfer Tax and the Supplemental Mansion Tax will apply to all closings that take place on or after July 1, 2019.
They WILL NOT apply to conveyances made pursuant to binding written contracts entered into on or before April 1, 2019, even if they close after July 1.
To pay current rates, parties must provide the Commissioner of Taxation and Finance with independent evidence as to the date of execution of the contract, such as the recording of the contract or the payment of the contract deposit.
Increase of New York Transfer Tax
The New York State Transfer Tax rate will remain unchanged at 0.4% of the purchase price for:
The New York State Transfer Tax rate will increase to 0.65% of the purchase price for:
The existing New York City Transfer Tax will stay the same. Increases are reflected in the Supplemental “Mansion Tax” described below.
Supplemental “Mansion Tax”
The existing “Mansion Tax” is calculated as 1% of the purchase price for properties of $1M or more. Under the newly passed budget, the “Mansion Tax” rate will increase along with the purchase price of the property:
Now that it is getting even more expensive to own in an already pricey New York real estate market, your clients might look to purchase in another state. Please let them know that World Wide Land Transfer can handle title all over.
Choose a Service-Oriented NY Title Agency
World Wide Land Transfer is a service-oriented NY title agency with offices in New York, Philadelphia and Washington, D.C. that is trusted to close everything from complex, multi-state commercial transactions to the basic residential refinance or purchase transactions.
If you’re looking for a NY title agency with an unparalleled record of success, look no further than World Wide Land Transfer.
Our value-adding services consistently win us repeat business. We hope to earn yours as well!