Enacts the "middle-class homebuyer protection act" to increase the additional tax imposed on residential real property if the consideration for the conveyance from $1,000,000 to $4,500,000 where the residential structure contains five thousand square feet or more of livable interior space.
S T A T E O F N E W Y O R K
________________________________________________________________________
10812
I N A S S E M B L Y
April 1, 2026
___________
Introduced by M. of A. BLUMENCRANZ -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to redefining the applicability
of the additional real estate transfer tax commonly known as the
"mansion tax", providing protections for middle-class and first-time
homebuyers, and indexing thresholds for inflation
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Short title. This act shall be known and may be cited as
the "middle-class homebuyer protection act".
§ 2. Legislative intent. The legislature hereby finds and declares
that the additional real estate transfer tax imposed pursuant to section
1402-a of the tax law, commonly referred to as the "mansion tax", was
enacted in 1989 to target luxury real estate transactions, but has not
been adjusted for inflation or evolving housing market conditions.
The legislature further finds that, particularly in high-cost regions
such as Long Island and other suburban areas, modest middle-class homes
are routinely subject to this tax solely due to price inflation, despite
lacking any characteristics commonly associated with luxury or mansion-
style residences. It is therefore the intent of the legislature to
protect middle-class and first-time homebuyers, promote fairness and
transparency in taxation, and ensure that taxes intended to apply to
luxury properties are imposed only upon properties that objectively meet
that standard.
§ 3. Section 1402-a of the tax law, as added by chapter 61 of the laws
of 1989, subdivision (b) as amended by section 2 of part OOO of chapter
59 of the laws of 2019, is amended to read as follows:
§ 1402-a. Additional tax. (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] FOUR million FIVE
HUNDRED THOUSAND dollars or more. [For purposes of this section, resi-
dential 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,
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
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