Title Insurance News

 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.