The recently enacted 2019-2020 state budget for FY 2020 included new taxes for both sellers and buyers of certain properties in New York City. The budget is currently awaiting the Governor’s signature.

The increases will affect applicable transactions that occur on or after July 1, 2019.

However, the increased rates will not apply to transactions closing on and after July 1, 2019 IF the conveyance was made pursuant to a binding written contract entered into on or before April 1, 2019, “provided that the date of execution of such contract is confirmed by independent evidence, such as the recording of the contract, payment of a deposit or other facts and circumstances as determined by the Commissioner of Taxation and Finance."

We are providing the following information to alert you and your clients of this development. The NYSLTA is seeking a meeting with the Department of Taxation and Finance to ensure that the title industry will have clear and accurate information.

The relevant section of the budget that describes these taxes is Part OOO of the 2019 Budget. The text of Part OOO can be downloaded from THIS LINK.

As noted, this transfer tax applies only to properties in New York City.

One tax is the Seller's responsibility and one tax is the Buyer's responsibility.

The following chart shows the threshold levels and the rate.

(You can download a PDF of the chart from the NYS Tax & Finance File Library under the RESOURCE tab)