What's happening
This bill raises the threshold for the additional real estate transfer tax on residential property from $1 million to $1.5 million.
Why it matters
Raises the price threshold for the additional 1% “mansion tax”. on residential property sales, so fewer homebuyers—especially in high-cost areas like New York City—will pay this extra tax when purchasing homes between $1 million and $1.5 million.
Could make homeownership more accessible. for upper-middle-class buyers and families who are increasingly priced into the $1M+ range by rising real estate values, reducing their closing costs.
May decrease tax revenues from real estate transactions. targeted by the current law, potentially impacting public programs or services that rely on transfer tax funding, while shifting more of the tax burden to buyers of even higher-value properties.
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Who cares
Headline styles
Increase Mansion Transfer Tax
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to investigations and government operations
- Referred to investigations and government operations
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.
Raise Tax on Costly Homes
In Assembly Committee · Ways And Means · Sponsor Michael Cusick
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1768
2017-2018 Regular Sessions
IN SENATE
January 10, 2017
Introduced by Sen. GOLDEN -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
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.
Sponsor's memo
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 one million to one million and a half to enable middle class residents greater opportunity to purchase housing.
Summary of provisions
Section one of 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 one million five hundred thousand dollars.
Section two provides that this act shall take effect on January 1, 2018.
Existing law
Currently the State imposes additional real estate transfer taxes on homes that are sold for one million dollars or more.
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 one million dollars. 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 are 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
2016: S.8064 - Passed the Senate
Fiscal implications
To be determined.
Effective date
This act shall take effect on January 1, 2018.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.