|SAME AS||No Same As|
|COSPNSR||Zebrowski, Lavine, O'Donnell, Brabenec|
|Amd §1402-a, Tax L|
|Increases the sales price threshold for real property conveyances that will trigger additional sales tax.|
Go to top
NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2194 SPONSOR: Buchwald (MS)
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   PURPOSE: The purpose of this bill is to adjust by inflation the sale price thres- hold 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.   EXISTING LAW: Currently, section 1402-a of the New York State Tax Law imposes a 1% tax on buyers who purchase a one, two or three family homes 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."   JUSTIFICATION: 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 increasing real estate values throughout downstate New York caused this tax to be applied to homes that would never be called "mansions:" This important change will ensure that the tax which was originally promul- gated 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.   LEGISLATIVE HISTORY: 2015/2016 A.79 (Buchwald) - Referred to Ways and Means / S.548 (Latimer) - Referred to Investigations and Government Operations 2013/2014: A.6612A (Buchwald) - Referred to Ways and Means / S. 2016A (Latimer) - Referred to Investigations and Government Operations 2011-12: A.307 (Latimer) - Referred to Ways and Means 2007-08: A.10110 (Latimer) - Referred to Ways and Means   FISCAL IMPLICATIONS: To be determined.   IMPACT ON REGULATION OF BUSINESSES AND INDIVIDUALS: None.   EFFECT ON FINES, TERMS OF IMPRISONMENT OR OTHER PENAL SANCTIONS: None.   EFFECTIVE DATE: This act shall take effect on the first of April next succeeding the date it becomes law.
Go to top
STATE OF NEW YORK ________________________________________________________________________ 2194 2017-2018 Regular Sessions IN ASSEMBLY January 17, 2017 ___________ 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 Assem- bly, do enact as follows: 1 Section 1. Subdivision (a) of section 1402-a of the tax law, as added 2 by chapter 61 of the laws of 1989, is amended to read as follows: 3 (a) In addition to the tax imposed by section fourteen hundred two of 4 this article, a tax is hereby imposed on each conveyance of residential 5 real property or interest therein when the consideration for the entire 6 conveyance is one million dollars (adjusted for inflation) or more. For 7 purposes of this section, residential real property shall include any 8 premises that is or may be used in whole or in part as a personal resi- 9 dence, and shall include a one, two, or three-family house, an individ- 10 ual condominium unit, or a cooperative apartment unit. The rate of such 11 tax shall be one percent of the consideration or part thereof attribut- 12 able to the residential real property. Such tax shall be paid at the 13 same time and in the same manner as the tax imposed by section fourteen 14 hundred two of this article. For purposes of this section, the one 15 million dollar amount shall be adjusted for inflation in each calendar 16 year by multiplying the amount by the ratio of (i) the average monthly 17 value of the consumer price index for the twelve month period ending on 18 June thirtieth of the immediately preceding calendar year divided by 19 (ii) the average monthly value of the consumer price index for the 20 twelve month period ending on June thirtieth of the year in which this 21 subdivision became a law, and rounding the amount to the nearest thou- 22 sand dollars. For purposes of this section, the consumer price index 23 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. LBD00905-01-7A. 2194 2 1 age, all items, not seasonally adjusted) as published by the United 2 States department of labor. 3 § 2. This act shall take effect on the first of April next succeeding 4 the date on which it shall have become a law.