Increases the sales price threshold for real property conveyances that will trigger additional sales tax.
TITLE OF BILL: 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 purpose of this bill is to adjust by inflation the sale price threshold that triggers the so-called "Mansion Tax."
SUMMARY OF PROVISIONS:
Section 1 amends Section 1402-a of the Tax Law by adjusting for inflation the sale price threshold for the real property transfer tax referred to as the "mansion tax" so that instead of the threshold being $1 million, it is $1 million adjusted by inflation. The inflation adjustment is based on the Consumer Price Index (CPI) and adjusts once a year based on the inflation that has occurred since the mansion tax was established.
Section 2 sets forth the effective date.
Currently, section 1402-a of the New York State Tax Law imposes a 1% tax on buyers who purchase a one, two of three family home or an individual condominium or cooperative unit for $1 million or more. This tax, paid in addition to the regular real estate transfer tax that all real property sales are subject to is known as the "mansion tax".
The "mansion tax" today is no longer limited to taxing mansions. This additional tax was established in 1989 when the average price of a home in New York State was far less than what it is today. With the average price of homes in parts of New York State, particularly in New York City and surrounding suburban counties now exceeding $1 million, what was meant as a tax on the rich has become a tax on average homebuyers. The runaway real estate values throughout downstate New York caused this tax to be applied to homes that certainly cannot be classified as "mansions." This important change will ensure that the tax which was originally promulgated to address the purchase of large homes still serves that purpose. Moreover, passage of this bill will spur more purchases of homes, which will revitalize communities and encourage economic activity, like the purchasing of furniture and remodeling services, providing sales tax revenue.
2007-08: A10110 - Latimer, Referred to Ways and Means S7425 - Leibell, Referred to Investigations and Government Operations 2011-12: A307 - Latimer, Referred to Ways and Means
To be determined.
Local Fiscal Implications:
To be determined.
This act shall take effect on the first of April next succeeding the date it becomes law.
STATE OF NEW YORK ________________________________________________________________________ 2061--A 2013-2014 Regular Sessions IN SENATE January 10, 2013 ___________Introduced by Sen. LATIMER -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations -- recommitted to the Committee on Investigations and Government Operations in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee 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 ASSEM- BLY, 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 resi- dence, and shall include a one, two, or three-family house, an individ- ual condominium unit, or a cooperative apartment unit. The rate of such tax shall be one percent of the consideration or part thereof attribut- able 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 THOU-EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06261-05-4 S. 2061--A 2
SAND DOLLARS. FOR PURPOSES OF THIS SECTION, THE CONSUMER PRICE INDEX MEANS THE CONSUMER PRICE INDEX (FOR ALL URBAN CONSUMERS, U.S. CITY AVER- AGE, ALL ITEMS, NOT SEASONALLY ADJUSTED) AS PUBLISHED BY THE UNITED STATES DEPARTMENT OF LABOR. S 2. This act shall take effect on the first of April next succeeding the date on which it shall have become a law.