BILL NUMBER:A7252

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: Amends the Tax Law  imposing  tax  on
deeds by which real property is conveyed in the City of Peekskill.

SUMMARY OF SPECIFIC PROVISIONS: The Tax Law is amended by adding a new
Section 1206: Subdivision (a) states 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,  and  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.  Subdivision  (b) states 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  interest 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: The City of Peekskill has worked  to  balance  the  tax
burden on its residents and property owners to pay the cost of capital
improvements  and  operating expenses and to distribute the tax burden
in a fair and equitable manner. The increase in  real  property  taxes
has  placed a financial onus on property owners forcing many to leave.
The City of Peekskill Common Council determined that an imposition  of
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  with  a  minimal adverse impact on the real estate market
and all City residents. It is an alternative to raising real  property
taxes.

The tax imposed is at a rate of .2% (two tenths of one percent) of the
consideration  or value of the interest or property conveyed. The City
may allow deductions for  any  liens  of  such  interest  or  property
conveyed, and may 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  shall  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 to New York State,  and  increased  revenues
for the City of Peekskill.

EFFECTIVE DATE: Immediately.