2019-20 NYS BUDGET ENACTED, INCLUDING REAL ESTATE TRANSFER TAX INCREASES -
On April 12, 2019, Governor Andrew M. Cuomo signed into law the New York State Budget Bill for the State’s 2019-20 fiscal year, which began on April 1, 2019. (S. 1509-C. A. 2009-C.) The legislation contains several important tax provisions, including increases to the New York State real estate and “mansion” transfer taxes that were not in the Governor’s proposed budget released this past January. The most significant of the new tax provisions are summarized below:
1. Increases tax rates on real estate transfers. The New York State real estate transfer tax, currently imposed at the rate of 0.4% of the consideration for the real property, is increased to 0.65% for conveyances of (i) residential real property located in New York City where the consideration is at least $3 million and (ii) non-residential real property located in the City where the consideration is at least $2 million. In addition, the New York State “mansion tax” – currently imposed on sales of residential real property for a consideration of $1 million or more at the rate of 1% – would be increased for conveyances within New York City at graduated tax rates of between 1.25% (where the consideration is at least $2 million but less than $3 million) up to 3.9% (where the consideration is at least $25 million).
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