Relates to the additional tax imposed on certain conveyances of residential real property

Title of bill

An act to amend the tax law, in relation to the tax imposed on certain conveyance of residential real property

Purpose or general idea of bill

This bill raises the threshold before the imposition of the State's mansion tax from $ 1 million to a $ million and a half to enable middle class residents greater opportunity to purchase housing.

Summary of specific provisions

This bill would amend subdivision (a) of section 1402-a of the tax law to increase the level at which additional real estate transfer taxes are imposed from one million dollars to a million and a half dollars.

Justification

The State's "mansion" tax was imposed in 1988 as an additional real estate transfer tax on residences sold and bought for more than $1 million. Since then, the average price of a home in most parts of the State has at least doubled, and in large areas of the State, the average price of a home is approaching or has passed a million dollars.

The mansion tax was never meant to be a burden on the middle class, who is already struggling to come up with the cash to purchase a moderate sized, constructed and furnished family home. Raising the threshold by a half million dollars will save these middle class families at least $10,000.00 at closing.

Prior legislative history

New bill.

Fiscal implications

To be determined

Effective date

This act shall take effect on January 1, 2017.