Senate Bill S52206

                                 BILL NUMBER:  S52206

 TITLE OF BILL :

An act to amend the tax law, in relation to taxes on deeds in the city
of Peekskill


 PURPOSE OR GENERAL IDEA OF BILL :

This bill would amend the Tax Law imposing tax on deeds by which real
property is conveyed in the City of Peekskill.

 SUMMARY OF SPECIFIC PROVISIONS :

This bill would amend section 1206 of the Tax Law:

1. To authorize that the local government body of the City of
Peekskill, by the adoption and amendment of local laws, ordinances, or
resolutions may impose in such city, may provide for the
administration and collection of a tax on deeds by which real property
is conveyed in the City as detailed in subdivision b of this section;
and

2. Provide that in the City of Peekskill, a tax shall be imposed on
each deed, by which any real property is conveyed, at a rate not to
              

exceed one percent (1%), provided that the City allows deductions for
any liens on such interest or property and may also allow an exemption
not in excess of one hundred thousand dollars ($100,000.00) on the
consideration or value of the interested or property conveyed.  Such
taxes shall not apply if the contract for any such conveyance was made
prior to September 1, 2007.

Such taxes may be imposed on any conveyance or transfer of real
property or interest by deed where the real property is located in
such city regardless of where transactions, negotiations, transfers of
deeds, or other actions in regard to the transfer or conveyance takes
place. The payment of the filing of a return relating to any such
taxes may be required as a condition precedent to the recording of a
deed.

 JUSTIFICATION :

City of Peekskill Common Council seeks the authority to impose a tax
on deeds or a "transfer tax" in the City of Peekskill that would take
place when a property owner sells his or her property would be the way
to raise the revenues needed to satisfy the City's budget requirement.
The tax imposed would be at a rate of.2% (two tenths of one percent)
of the consideration or value of the interest or property conveyed.

The City could allow deductions for any liens of such interest or
property conveyed, and could also allow an exemption not in excess of
one hundred thousand dollars ($100,000.00) on the consideration or
value of the interest or property conveyed.

The taxes would not apply if the contract for any such conveyances was
made prior to September 1, 2007.

The payment of and the filing of a return relating to any such taxes
may be required as a condition precedent to the recording of a deed.

 PRIOR LEGISLATIVE HISTORY :

This is new legislation.

 FISCAL IMPLICATIONS :
None for New York State, but increased taxes and revenues for the City
of Peekskill.

 EFFECTIVE DATE :
Immediately.