NY State Senate Bill 2015-S548

Senate Bill S548

2015-2016 Legislative Session

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

download bill text pdf

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 06, 2016	referred to investigations and government operations
Jan 07, 2015	referred to investigations and government operations

2015-S548 (ACTIVE) - Details

See Assembly Version of this Bill:: A79
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §1402-a, Tax L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A228
2011-2012: A307
2013-2014: S2061, A6612
2017-2018: S1962, A2194
2019-2020: A56
2021-2022: A7167
2023-2024: A2914

2015-S548 (ACTIVE) - Summary

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

2015-S548 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S548

 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 :

2009-10: A10110 - (Latimer) Referred to Ways and Means
2009-10 S7425 (Leibell) Referred to Investigations and Government
Operations
2011-12: A307 - (Latimer) 01/04/12
2013-14: A6612-A Buchwald-Referred to Ways and Means
2013-14: S2061-A Latimer Referred to Investigations and Government
Operations

 FISCAL IMPLICATIONS :

None to New York State.

 LOCAL FISCAL IMPLICATIONS :

To be determined.
 EFFECTIVE DATE :
This act shall take effect on the first of April next succeeding the
date on which it shall have become law.

2015-S548 (ACTIVE) - Bill Text download pdf

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

                                   548

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2015
                               ___________

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 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-
SAND  DOLLARS.  FOR  PURPOSES  OF THIS SECTION, THE CONSUMER PRICE INDEX
MEANS THE CONSUMER PRICE INDEX (FOR ALL URBAN CONSUMERS, U.S. CITY AVER-

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

                                                           LBD00068-01-5

S. 548                              2

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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