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A5871Assembly2017-2018 SessionSame asS1768

Raise Tax on Costly Homes

Official title

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

Sponsor Michael CusickAD-63Affects Finance
Status
In Assembly Committee
Ways And Means
Impact
6/10
Moderate
Passage
0%

Bill progress

Step 2 of 7

In committee · Ways And Means

What's happening

This bill raises the threshold for the additional real estate transfer tax on residential property from one million to one and a half million dollars.

Why it matters

  1. Raises the price point at which buyers pay extra taxes. By increasing the threshold from $1 million to $1.5 million, fewer homebuyers—especially in high-cost areas—will have to pay the extra “mansion tax,” making it less likely to affect middle-class or upper-middle-class buyers.

  2. May make high-value homes slightly more accessible. The change could lower closing costs for homes priced between $1 million and $1.5 million, potentially making these properties more affordable or attractive to buyers who were previously just above the old tax threshold.

  3. Could impact local tax revenues. Since fewer transactions will be subject to the higher tax, there may be a reduction in tax revenue collected from residential property transfers, which could affect funding for public projects dependent on this revenue stream.

  4. Reflects changes in real estate market values. The amendment acknowledges home price inflation over the past decades, adjusting tax policy to better align with current market conditions and prevent unintended tax burdens on “ordinary” homes in expensive areas.

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Who cares

Headline styles

Raise Tax on Costly Homes

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Michael Cusick

Assembly Member · Assembly District 63

No co-sponsors yet.

History

  1. Referred to ways and means
  2. Referred to ways and means

Companion bill

The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.

S1768Senate

Increase Mansion Transfer Tax

In Senate Committee · Investigations And Government Operations · Sponsor Martin J. Golden

Impact 6 · Moderate0% to pass

Full text

1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

5871

2017-2018 Regular Sessions

IN ASSEMBLY

February 16, 2017

Introduced by M. of A. CUSICK -- read once and referred to the Committee on Ways and Means

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

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Subdivision (a) of section 1402-a of the tax law, as added by chapter 61 of the laws of 1989, is amended to read as follows:

(a) In addition to the tax imposed by section fourteen hundred two of this article, a tax is hereby imposed on each conveyance of residential real property or interest therein when the consideration for the entire conveyance is one million five hundred thousand dollars or more. For purposes of this section, residential real property shall include any premises that is or may be used in whole or in part as a personal residence, and shall include a one, two, or three-family house, an individual condominium unit, or a cooperative apartment unit. The rate of such tax shall be one percent of the consideration or part thereof attributable to the residential real property. Such tax shall be paid at the same time and in the same manner as the tax imposed by section fourteen hundred two of this article.

§ 2. This act shall take effect January 1, 2018.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD05076-01-7

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.