What's happening
This bill exempts first-time home buyers from municipal mortgage taxes in New York and directs rulemaking for implementation.
Why it matters
Reduces upfront costs for first-time home buyers. By exempting them from municipal mortgage taxes, the bill directly lowers the financial barrier to homeownership, which can be a significant obstacle, especially in high-cost areas of New York.
Targets primary residences only. The exemption applies only if the home will be the buyer’s principal residence, ensuring the benefit is directed at those seeking stable housing rather than investors or those purchasing second homes.
Requires clear qualification and proof standards. The law tasks the commissioner with defining who qualifies as a first-time home buyer and what documentation is needed, which will affect how accessible and straightforward the exemption process is.
May impact municipal revenue. Since local governments rely on these mortgage taxes, the bill could reduce municipal income, potentially affecting funding for local services or prompting changes in other local tax policies.
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Who cares
First-time home buyers
Buyers mortgaging a home intended as their principal residence would be exempt from municipal mortgage or recording taxes imposed under the tax law.
Municipalities imposing mortgage or recording taxes
These municipalities would have to grant the exemption to qualifying first-time home buyers.
New York State Department of Taxation and Finance
The commissioner would have to establish eligibility, proof and procedural rules for obtaining the exemption.
Headline styles
Waive Tax for First Homes
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
1 Multi-sponsor
History
- Referred to ways and means
- Referred to ways and means
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4219
2019-2020 Regular Sessions
IN ASSEMBLY
February 1, 2019
Introduced by M. of A. WEPRIN, VANEL -- Multi-Sponsored by -- M. of A. SCHIMMINGER -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to an exemption from municipal mortgage tax for first time home buyers
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The tax law is amended by adding a new section 268 to read as follows:
§ 268. Exemption for first time home buyers from municipal mortgage tax. 1. Every municipality which has enacted a local mortgage tax or recording tax pursuant to the provisions of this article shall grant an exemption from such tax where the mortgagor is a first time home buyer and the residence being mortgaged is intended to be said mortgagor's principal place of residence.
2. The commissioner shall promulgate necessary and advisable rules and regulations to establish grounds for qualification, proof and procedure necessary for a mortgagor to obtain such an exemption.
§ 2. This act shall take effect on the first of January next succeeding the date on which it shall have become a law. Effective immediately, the commissioner of taxation and finance shall promulgate necessary and advisable rules and regulations for the implementation of this act.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08438-01-9
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.