Authorizes the city of Peekskill to impose taxes on deeds

BILL NUMBER:A7252

Title of bill

An act to amend the tax law, in relation to taxes on deeds in the city of Peekskill

Purpose or general idea of bill

Amends the Tax Law imposing tax on deeds by which real property is conveyed in the City of Peekskill.

Summary of specific provisions

The Tax Law is amended by adding a new Section 1206: Subdivision (a) states that the local government body of the City of Peekskill, by the adoption and amendment of local laws, ordinances, or resolutions may impose in such city, and provide for the administration and collection of a tax on deeds by which real property is conveyed in the City as detailed in subdivision b of this section. Subdivision (b) states that in the City of Peekskill, a tax shall be imposed on each deed, by which any real property is conveyed, at a rate not to exceed one percent (1%), provided that the City allows deductions for any liens on such interest or property and may also allow an exemption not in excess of one hundred thousand dollars ($100,000.00) on the consideration or value of the interest or property conveyed.

Such taxes shall not apply if the contract for any such conveyance was made prior to September 1, 2007. Such taxes may be imposed on any conveyance or transfer of real property or interest by deed where the real property is located in such city regardless of where transactions, negotiations, transfers of deeds, or other actions in regard to the transfer or conveyance takes place. The payment of the filing of a return relating to any such taxes may be required as a condition precedent to the recording of a deed.

Justification

The City of Peekskill has worked to balance the tax burden on its residents and property owners to pay the cost of capital improvements and operating expenses and to distribute the tax burden in a fair and equitable manner. The increase in real property taxes has placed a financial onus on property owners forcing many to leave. The City of Peekskill Common Council determined that an imposition of a tax on deeds or a "transfer tax" in the City of Peekskill that would take place when a property owner sells his or her property would be the way to raise the revenues needed to satisfy the City's budget requirement with a minimal adverse impact on the real estate market and all City residents. It is an alternative to raising real property taxes.

The tax imposed is at a rate of .2% (two tenths of one percent) of the consideration or value of the interest or property conveyed. The City may allow deductions for any liens of such interest or property conveyed, and may also allow an exemption not in excess of one hundred thousand dollars ($100,000.00) on the consideration or value of the interest or property conveyed. The taxes shall not apply if the contract for any such conveyances was made prior to September 1, 2007. The payment of and the filing of a return relating to any such taxes may be required as a condition precedent to the recording of a deed.

Prior legislative history

This is new legislation.

Fiscal implications

None to New York State, and increased revenues for the City of Peekskill.

Effective date

Immediately.