Title Insurance News

Pursuant to Article 33-B NY Tax Law and passage of Local Laws after a vote, the Towns of Marbletown and Gardiner will impose an additional transfer tax.  The additional transfer tax must be paid, and a Form filed at the time of recording the deed or other affected instrument.  The effective date in Marbletown is January 1, 2023, and the effective date in Gardiner is February 1, 2023, but not if the Contract was entered into prior to January/February 1, 2023, provided written evidence of such Contract is submitted. The tax in Marbletown is 1 % and in Gardiner, it is 1.25 %.  Below is a summary of each Town’s new transfer tax.

Towns of Marbletown and Gardiner

Conveyance, for purposes of the Local Law, does not include one made pursuant to devise, bequest, or inheritance.

Conveyance, for purposes of the Local Law,  does include deeds, options, contracts, transfer of controlling interest in any entity with an interest in real property, leases, and sub-leases with qualifications stated in the Local Law. See Section Marbletown Section 127-9 and Gardiner Section 101-10 for a complete definition. 

Real Property includes every estate or right in lands, buildings, etc.  (See Marbletown Section 127-9, Gardiner Section 101-10)

Stock in a cooperative housing corporation is included in this tax (See Marbletown Section 127-16, Gardiner Section 101-17)

1 % of the consideration in Marbletown and 1.25 % in Gardiner for all real property; for residential real property, the 1 % or 1.25 % applies only to the consideration amount above the median amount (currently $320,000).  The Local Laws state Residential Real Property within the Towns as determined by the State Commissioner of Tax and Finance, whether improved or unimproved.  For Transfer Tax purposes, NYS Tax and Finance defines residential real property as any premises that IS OR MAY be used in whole or in part as a personal residence and shall include one, two, or three-family house, individual condominium unit, or cooperative apartment unit.

To illustrate:  a vacant parcel with a contract price of $400,000 where a single-family house will be built would be subject to the additional 1 % transfer tax on $80,000, or $800 in Town of Marbletown or 1.25% or $1,000 in Town of Gardiner.

Paid by the Buyer, but if not paid, or if Buyer is exempt, is due from Seller and becomes joint and several liability of Buyer and Seller.  Penalty and Interest will be imposed if not paid.

Certain exemptions apply, including bona fide gifts, Tax Sales, correction / confirmatory deeds to a prior deed without additional consideration, options without use and occupancy, contracts without use and occupancy, and more.  See Section Marbletown Section 127-13 or Gardiner Section 101-14 of the Local Laws for a complete list of exemptions. This is an important list because if the Buyer is exempt, the tax is to be paid by the Seller.

Special reporting requirements apply to cooperative housing corporations and are due twice a year, for reporting sales of shares of stock (Marbletown Section 127-16, Gardiner Section 101-17).

The form is to be signed by both the Seller and the Buyer. Both forms are attached below as well as the full text of Local Law No. 6 of 2022 (Town of Marbletown) and Local Law No. 5 of 2022 (Town of Gardiner).

CPF Tax Rate & Allowance Changes

Pursuant to recent changes in New York Tax Law 1449-BB and local town codes in East Hampton, Shelter Island, Southampton and Southold, several changes will be occurring with regard to the assessment and collection of the Peconic Bay Community Preservation Fund Tax (CPF).

Effective on all conveyances subject to the CPF Tax occurring on or after January 1, 2023, certain allowances have increased and in certain circumstances have been eliminated.

With the exception of Riverhead, which will remain unchanged, all towns within the Peconic Bay Region will increase its allowance for improved properties for conveyances under a certain consideration amount. Allowances for transactions over a certain amount are eliminated as well.

While the new allowances go into effect January 1, 2023, the implementation of the increased .5% tax will take effect April 1, 2023. A new form will be issued prior to April 1, 2023. Updated forms can be found on our website www.suffolkclerk.com. Please forward all questions to Christopher.Como@SuffolkCountyNY.gov

Below is the new allowance breakdown effective 1/1/23:

East Hampton- $400,000.00- Improved $100,000.00 Vacant (Unimproved) No exemption on conveyances $2,000,000 or greater.

Shelter Island- $400,000.00- Improved $100,000.00 Vacant (Unimproved) No exemption on conveyances $2,000,000 or greater.

Southampton- $400,000.00- Improved $100,000.00 Vacant (Unimproved) No exemption on conveyances greater than $2,000,000.00.

Riverhead- $150,000.00- Improved $75,000.00 Vacant (Unimproved)

Southold- $200,000.00- Improved $75,000.00 Vacant (Unimproved)

We have just been advised that the computer systems for the following counties have been hacked:

• Chenango County

• Clinton County

• Onondaga County

• Rockland County

• Tioga County

It appears that all online records relating to real property transactions in these counties may not be accessible, including deeds, mortgages, and other encumbrances; judgments, warrants and other liens; mechanic’s liens; etc.

Title searches and continuations cannot be conducted.

In addition, real property tax records may not be available, and it may not be possible at this time to file and record any real property-related documents, particularly those that are filed and recorded electronically.

 New York State imposes a real estate transfer tax on conveyances of real property or interests therein when the consideration exceeds $500. 

Tax is computed at a rate of two dollars for each $500, or fractional part thereof, of consideration.

An additional tax of 1% of the sale price ("mansion tax") applies to residences where consideration is $1 million or more.

Beginning on July 1, 2019, certain conveyances of real property or interests therein located in New York City (other than conveyances made pursuant to a binding written contract entered into on or before April 1, 2019) are also subject to the following taxes:

• A tax of $1.25 for each $500, or fractional part thereof, when the consideration for the entire conveyance of residential real property is $3 million or more (“additional base tax”);
• An additional base tax of $1.25 for each $500, or fractional part thereof, when the consideration for the entire conveyance of property other than residential real property is $2 million or more; and
• A supplemental tax on the conveyance of residential real property, or interest therein, when the consideration is $2 million or more. The tax rate is an incremental rate between .25% and 2.9% based on the purchase price. The rates are published in Form TP-584-NYC-I, Instructions for Form TP-584-NYC.

 In the November 2020 ballot referendum, residents overwhelmingly voted to approve funding for Clean Water, Working Farms, Natural Areas, and Historic Properties through a Real Estate Transfer Tax (RETT). The tally was 3,648 residents voting yes, 72.15%; 1,408 voting no, 27.85%, a nearly 3:1 margin. 

The 1.5% Real Estate Transfer Tax is to be paid by the buyer of property with an exemption set to the median home value for Ulster County. This funding approach will allow New Paltz to support farmland, open space protection, and historic preservation without increasing taxes for residents. Funds from this tax may be matched for certain projects by state and federal funding. 

The Real Estate Transfer Tax will take effect on any property conveyed on or after Feb. 1, 2021. The tax won't apply to property conveyances made on or after that date if there is a binding written contract that was entered into prior to that date.