NYC-WTC_000195490

NYC 9/11 Public Portal Document

'i

REAL PROPERTY TRANSFER TAX REAL PROPERTY TRANSFER TAX 1992-2002 The real property transfer tax is 500 prcjected to accourit for 1.8 percent of 450 i j tax revenue in 2002, or $404 million. 400 f Tax Base and Rate: The real p property transfer tax is imposed on §300 each deed at the'time of transfer from <^250 t the seller to the buyer. The tax is 200 ’ payable by the grantor, normally the 150 1' seller. If the grantor is exempt from the 100 tax, it is payable by the grantee. The 1992 1993 1994 1995 1996, 1997 1998 1999 2000 2001 2002 rate is 1.0 percent of the sales price for / , fiscal Year residential properties of $500,000 or less. For residential properties of more ' I. \ than $500, no and for commercial sales of $500,000 or less, the rate* levied is 1.425 percent. For large commercial transactions, the tax is 2.625 percent of the sales price or consideration. These rates went into effect August I, 1989. Of the tax collected from large commercial transactions, 38.1 percent goes to a special fund for the New York City Transit Authority (NYCTA), the City paratransit system and certain private bus operators franchised by the City, This amounts to a rate of one percent of the consideration on these transactions. The State also imposes a real estate transfer lax on deed recordings at a rate of 0.4 percent. Current State and local tax rates on transfers in New York City are presented below.

Real Property Transfer Tax Rates

\ Commercial Sales , Residential of $500,000 or Less and Commercial IS Sales of $500,000 Residential Sales Sales Distribution of Revenue or Less over $500,000 over $500,000

StateThx 11 NYS General Fund* 0.400% 0.400% 0.400%

CityTkx NYC General Fund 1.000 1.425 1.625 NYCTA, Paratransit and Franchised Bus Operators 1.000 Tbtal I 1.400% 1.825% 3.025%

* The State real estate transfer tax includes an additional tax of one percent on residential transfers valued at over $1 million.

Legislative Histoty: The real property transfer tax became effective in 1959. In 1982, the tax was raised from the initial rate of one percent to two percent for trarisfers with a sale price of $500,000 or more, with the ' revenue from the rate increase dedicated to the NYCTA, paratransit and certain private bus operators franchised by the City. At the same time, the base of the tax was expanded to include leasehold transfers and to disallow the deduction for continuing liens. j Ei j

45 I NYC-WTC_000195542