As many of you may have heard, the budget bill for New York’s 2020 fiscal year, which begins July 1, 2019, was signed into law and includes an increase to the New York State (NYS) transfer tax and so-called “mansion tax” on transfers of real property where the real property is located in any city within the state having a population of one million or more (i.e. all 5 boroughs). By way
of background, the current rate for the NYS transfer tax is $2 for every S500 (or fraction thereof) of consideration, subject to limited exceptions and exemptions and the current rate for the mansion tax” is 1% on transfers of residential real property where the consideration is in excess of $1 million.
Attached are the new applicable tax rates. It should be noted that, while the new tax will take effect on July 1, 2019, there is a safe harbor provision for transfers made pursuant to a binding agreement entered into on or before April 1, 2019 and that close after July 1, 2019.
In preparation for the new tax rates, our office will be preparing an amendment to all existing offering plans and will address the new tax rates in all pending contracts until such amendment is accepted for filing by the AG. Please give us a call with any questions and to discuss what may need to be done for your project.