Tax Law Changes affecting NYC

As part of the 2020 budget, the New York State Senate and Assembly enabled new revenue legislation that includes an increase to New York State’s transfer tax and mansion tax of real property.

Transfer Tax Increases Overview

Recently, the New York State’s Budget Bill, enacted as Chapter 59 of the laws of 2019, amended tax laws that directly affect New York City.

The bill amends:

• Tax Law Sections 1402 (“Imposition of tax”) for the state’s Real Estate Transfer Tax
• 1402-a (“Additional tax”) for the Mansion Tax and added to the Tax Law new Section 1402-b (“Supplemental tax in cities having a population of one million or more”), which affects only New York City
• These provisions apply to conveyances made on or after July 1, 2019; they do not affect conveyances made pursuant to binding written contracts entered into on or before April 1, 2019

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Resources 

New York State’s Department of Taxation and Finance has issued as a Technical Memorandum (TSB-M-19(1) R) a “Summary of Amendments to New York State’s Real Estate Transfer Taxes, dated June 11, 2019. This Memorandum is posted to the Department’s website

A new Form TP-584-NYC, the “Combined Real Estate Transfer Tax Return, Credit Line Mortgage Certificate and Certification of Exemption from the Payment of Estimated Personal Income Tax for the Conveyance of Real Property Located in New York City”, referenced in the TSB, is posted to the Department’s website.

Access the instructions for Form TP-584-NYC here

There is also a new Form TP-584.6-NYC. A “Real Estate Transfer Tax Return Schedule of Apportionment” that is to be attached to Form TP-584-NYC “for the conveyance of multiple real properties located in New York City” on and after July 1, 2019.