senate Bill S2061A

2013-2014 Legislative Session

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

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Archive: Last Bill Status - In Committee


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Feb 27, 2014 print number 2061a
amend and recommit to investigations and government operations
Jan 08, 2014 referred to investigations and government operations
Jan 10, 2013 referred to investigations and government operations

Bill Amendments

Original
A (Active)
Original
A (Active)

S2061 - Bill Details

See Assembly Version of this Bill:
A6612A
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §1402-a, Tax L
Versions Introduced in Previous Legislative Sessions:
2011-2012: A307
2009-2010: A228

S2061 - Bill Texts

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

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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.


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                    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

S2061A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A6612A
Current Committee:
Law Section:
Tax Law
Laws Affected:
Amd §1402-a, Tax L
Versions Introduced in Previous Legislative Sessions:
2011-2012: A307
2009-2010: A228

S2061A (ACTIVE) - Bill Texts

view summary

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

view sponsor memo
BILL NUMBER:S2061A

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
threshold 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 of three family home 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 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. 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:

2007-08: A10110 - Latimer, Referred to Ways and Means
S7425 - Leibell, Referred to Investigations and Government Operations
2011-12: A307 - Latimer, 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.

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

                                 2061--A

                       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 -- recommitted to the Committee on Investigations  and
  Government  Operations  in  accordance  with  Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

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 million dollars (ADJUSTED FOR INFLATION) 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  resi-
dence,  and shall include a one, two, or three-family house, an individ-
ual condominium unit, or a cooperative apartment unit. The rate of  such
tax  shall be one percent of the consideration or part thereof attribut-
able to the residential 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.   FOR PURPOSES OF  THIS  SECTION,  THE  ONE
MILLION  DOLLAR  AMOUNT SHALL BE ADJUSTED FOR INFLATION IN EACH CALENDAR
YEAR BY MULTIPLYING THE AMOUNT BY THE RATIO OF (I) THE  AVERAGE  MONTHLY
VALUE  OF THE CONSUMER PRICE INDEX FOR THE TWELVE MONTH PERIOD ENDING ON
JUNE THIRTIETH OF THE IMMEDIATELY PRECEDING  CALENDAR  YEAR  DIVIDED  BY
(II)  THE  AVERAGE  MONTHLY  VALUE  OF  THE CONSUMER PRICE INDEX FOR THE
TWELVE MONTH PERIOD ENDING ON JUNE THIRTIETH OF THE YEAR IN  WHICH  THIS
SUBDIVISION  BECAME  A LAW, AND ROUNDING THE AMOUNT TO THE NEAREST THOU-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06261-05-4

S. 2061--A                          2

SAND DOLLARS. FOR PURPOSES OF THIS SECTION,  THE  CONSUMER  PRICE  INDEX
MEANS THE CONSUMER PRICE INDEX (FOR ALL URBAN CONSUMERS, U.S. CITY AVER-
AGE,  ALL  ITEMS,  NOT  SEASONALLY  ADJUSTED) AS PUBLISHED BY THE UNITED
STATES DEPARTMENT OF LABOR.
  S  2. This act shall take effect on the first of April next succeeding
the date on which it shall have become a law.

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