senate Bill S2061

Amended

Increases the sales price threshold for real property conveyances that will trigger additional sales tax

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Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 10 / Jan / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 27 / Feb / 2014
    • AMEND AND RECOMMIT TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 27 / Feb / 2014
    • PRINT NUMBER 2061A

Summary

Increases the sales price threshold for real property conveyances that will trigger additional sales tax.

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Bill Details

Versions:
S2061
S2061A
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd §1402-a, Tax L
Versions Introduced in Previous Legislative Cycles:
2011-2012: A307
2009-2010: A228
2007-2008: A10110

Sponsor Memo

BILL NUMBER:S2061

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 increase to $2 million the
sale price threshold that triggers the so-called "Mansion Tax."
Section 1402-a of the New York State Tax Law currently imposed a 1%
tax from buyers who purchase a one, two of three family home or an
individual condominium or cooperative unit for $1 million or more.

SUMMARY OF PROVISIONS:

Section 1. Amends Section 1402-a of the Tax Law by raising the
triggering of the Mansion Tax to S2 million.

EXISTING LAW:

§ 1402. Imposition of tax. (a) A tax is hereby imposed on each
conveyance of real property or interest therein when the consideration
exceeds five hundred dollars, at the rate of two dollars for each five
hundred dollars or fractional part thereof; provided, however, that
with respect to (A) a conveyance of a one, two or three-family house
and an individual residential condominium unit, or interests therein;
and (B) conveyances where the consideration is less than five hundred
thousand dollars, the consideration for the interest conveyed shall
exclude the value of any lien or encumbrance remaining thereon at the
time of conveyance.

JUSTIFICATION: The "Mansion Tax" as it is popularly known was
promulgated 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 the average homebuyer in our area. 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.

LEGISLATIVE HISTORY: 2007-08: A10110 - (Latimer) Referred to Ways and
Means
S7425 (Leibell) Referred to Investigations and Government Operations
2011-12: A307 - (Latimer) 01/04/12 referred to ways and means

FISCAL IMPLICATIONS: To be determined

LOCAL FISCAL IMPLICATIONS: To be determined

EFFECTIVE DATE: This act shall take effect on the first of April next
succeeding the date it becomes law.


view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2061

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            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

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] TWO million dollars 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 resi-
dential 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.
  S 2. This act shall take effect on the first of April next  succeeding
the date on which it shall have become a law.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06261-01-3

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