What's happening
This bill adjusts the $1 million threshold for the additional real estate transfer tax on residential property to account for inflation annually.
Why it matters
Helps keep the real estate transfer tax fair over time. by ensuring that the $1 million threshold reflects inflation, so more typical homes aren’t unintentionally swept into the higher tax bracket as property values rise.
Prevents “bracket creep”. where, without adjustment, more homeowners would face the additional tax simply due to long-term increases in home prices, not because they’re selling luxury properties.
Adjusts tax policy to economic realities. , meaning that the higher transfer tax will continue to target high-value transactions rather than gradually impacting middle-class and upper-middle-class property sales as the real estate market changes.
Introduces a clear, formula-based adjustment mechanism. using the Consumer Price Index, making future changes automatic and predictable, which provides transparency and stability for buyers, sellers, and the real estate industry.
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Who cares
Headline styles
Raise Tax Threshold for Homes
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
1 Multi-sponsor
History
- Referred to ways and means
- Referred to ways and means
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
56
2019-2020 Regular Sessions
IN ASSEMBLY (Prefiled)
January 9, 2019
Introduced by M. of A. BUCHWALD, ZEBROWSKI, LAVINE, O'DONNELL -- Multi- Sponsored by -- M. of A. WRIGHT -- read once and referred to the Committee on Ways and Means
AN ACT to amend the tax law, in relation to increasing the amount on which additional taxes are imposed for conveyances of 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 dollars (adjusted for inflation) 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. For purposes of this section, the one million dollar amount shall be adjusted for inflation in each calendar year by multiplying the amount by the ratio of (i) the average monthly value of the consumer price index for the twelve month period ending on June thirtieth of the immediately preceding calendar year divided by (ii) the average monthly value of the consumer price index for the twelve month period ending on June thirtieth of the year in which this subdivision became a law, and rounding the amount to the nearest thousand dollars. For purposes of this section, the consumer price index means the consumer price index (for all urban consumers, U.S. city aver-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00579-01-9
A. 56 2
age, all items, not seasonally adjusted) as published by the United States department of labor.
§ 2. This act shall take effect on the first of April next succeeding the date on which it shall have become a law.
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.