YONKERS TRANSFER TAX INCREASE
Please be aware that on May 31, 2005 the City
Council of the City of Yonkers adopted its General Ordinance No.
7-2005 amending Section 15-60 of Chapter 15 of the Code of the City
of Yonkers to increase the City Transfer Tax form on percent (1%) to
one and one-half percent (1-1/2%) of the consideration paid for the
transfer of real property and any improvements thereon beginning
July 1, 2005.
The Yonkers Transfer Tax is imposed on each deed upon the delivery
from the grantor to a grantee when the consideration for the real
property conveyed and any improvements thereon exceed $25,000.00.
The increase will be imposed on transfers of real property made on
and after July 1, 2005. The City of Yonkers is creating a new
transfer tax form but it is not yet available.
MORTGAGE TAX INCREASE
The provision of the New York State Budget Bill
(S3671/A6845) Part X (attached
hereto) proposes an increase in that portion of the mortgage
recording tax, from $.25 per $100 to $.30 per $100 of principal
We are now collecting the increase; the
following is an example of the increase:
City of New York
|1 to 3 family & condo units
Mtg less than $500,000.00
|(borrowers portion 1.80%)
|1 to 3 family& condo units
Mtg $500,000.00 and over
|(borrowers portion 1.925%)
|4 family and commercial Mtg
less than $500,000.00
|(borrowers portion 1.80%)
|4 family and commercial Mtg
$500,000.00 and over
|(borrowers portion 2.55%)
In counties where the mortgage rate is currently
1% the increase would bring the rate to 1.05% (borrowers portion
.80%) or if the present rate is 1.25%, the new rate will be 1.30%
(borrowers portion 1.05%) (Yonkers in Westchester County will
increase from 1.75% to 1.80%)(borrowers portion 1.55%)
The increase will apply to counties within the
Metropolitan Transportation District, which are as follows: Bronx,
New York, Queens Kings, Richmond, Suffolk, Nassau, Westchester,
Rockland, Orange, Putnam and Dutchess
We are aware that it is not certain when the
Budget Bill will be passed by the Legislature or signed into law by
the Governor, nor do we know whether the provision as presently
written will be part of the final bill. The effective date of the
increase as set forth in the proposed bill is April 1, 2005.
Combined Real Estate Transfer Tax Return has been Revised
As a result of
recent amendments to the New York Tax Law, the TP-584, The Combined
Real Estate Transfer Tax Return has been revised (11/04) and is now
available for use throughout the State of New York. One of the
changes requires certain non-resident taxpayers to pay estimated
personal income tax on any gain from a sale, conveyance of a
The Revised Form
TP-584 contains an expanded Schedule D (Certification of exemption
from the payment of estimated personal income tax) to reflect the
application of the estimated personal income tax to cooperatives.
please find a memo from the New York State Department of Taxation
and Finance (the Department) dated November 19, 2004 advising of the
recent changes. It indicates that for the sale of cooperative units
on or after
2004, the TP-584 should be sent directly to the Department in
Albany. Furthermore, Form IT -2664, if required, must be filed with
the TP-584 and any estimated personal income tax due on the sale of
the cooperative unit paid in full to the Department within 15 days
of the delivery of the instrument effecting the sale or transfer.
Copies of Form TP-584 and IT -2664 can be found on our web site.
Both can be downloaded from the Department's website at
memo was addressed to County Clerks and Recording Officers and
indicates that they can accept either the Revised Form TP-584 or the
previous version of the Form when recording a deed for the sale
transfer of a fee simple in real property.
DATE: June 3, 2004
ACRIS Phase 2.1 set for
July 5, 2004
DATE: May 24, 2004
Re: For the latest and most updated information on ACRIS e-tax forms
DATE: MARCH 1, 2004
Re: ACRIS -Phase 2.1 -On Line
Transfer Tax Form Update
The New York City Department of Finance
has established a new target date for the rollout of ACRIS Phase
2.1, which requires the on-line preparation of New York City and New
York State Real Property Transfer Tax Returns and ancillary
documents. The program, which had initially been scheduled for
September 2003, is now tentatively set for the end of March 2004.
The Department has scheduled a beta test of Phase 2.1 for March 8,
2004. In addition, it plans to hold educational seminars and
tutorials prior to the commencement of the program to allow title
industry personnel and other users of ACRIS to become familiar with
it. Representatives of the New York City Department of Finance are
also scheduled to give a demonstration of the program at the New
York State Bar Association's Annual Meeting.
Phase 2.1 will require that the following forms
be prepared on line:
1. New York City Real Property Transfer Tax
2. New York State Combined Real Estate Transfer
Tax Return (TP-584),
3. RP-5217 NYC Real Property Transfer Report
4. Smoke Detector Affidavit,
5.Owner's Registration Statement (for Water and
Sewer Rent Charge billing purposes) and
6. The Owner's Property Registration Form,
(collectively, the Tax Forms).
The Tax Forms will be found in and can be
prepared and printed by utilizing ACRIS (Automated City Register
Information System). They would then be brought to closing for
execution by the parties to the transaction. After closing, the Tax
Forms, (except for the Owner's Registration Statement which will be
electronically filed upon its completion) will be delivered to the
recording office with the closing instruments that are to be
The Department has indicated that Phase 2.1 will
result in a number of benefits to users of the ACRIS system. After
entering a USER Identification Number
and Password, the User can prepare the Tax Forms and, by accessing
the Tax Transaction ID number assigned to the transaction, make any
changes that may be required. If changes have to be made at the
actual closing, it would require that the User have access to the
ACRIS system (either by a laptop or by other computer at the place
of closing, or, by contacting his (her) office and having someone
there make the appropriate change and have it faxed to the closing).
Information used in the preparation of the Tax
Forms, which is duplicative in nature, will automatically populate
the ACRIS Cover and Payment Page applications, thereby eliminating
the need for the User to re-enter it a second time.
Phase 2.1 will allow the user to print drafts and
final versions of the Tax Forms. It will also print out a separate,
additional signature page which will be useful where changes ( e.g.,
change in purchase price, the addition or deletion of a name, etc.)
have to be made to the Tax Forms at closing. If the separate
signature page is utilized, the space on the Tax Form that is
normally used for signature must be marked, "See Signature Page", as
per the comments of the Department of Finance.
It is not certain that the City will meet the
Phase 2.1 rollout target of March 2004. It is likely that the actual
rollout will be sometime later. However, you should be aware of the
contemplated changes outlined above.
DATE: February 12, 2004
RE: WESTCHESTER COUNTY MORTGAGE TAX INCREASED BY
1/4% EFFECTIVE 03/01/04
Recent legislation which increases the Mortgage
Recording Tax in Westchester County by one quarter percent is about
to be signed by the Governor. The change will be effective March 1,
2004. The relevant legislation is Assembly Bill 9712-A.
The Increase will bring the aggregate mortgage
tax on a mortgage recorded in Westchester County to
1-1/4% (the increase will bring the mortgage tax
in Yonkers to 1-3/4%).
At this time, the Clerk's Office has informed us
that the increase will be applied to mortgage documents executed
on or after March 1, 2004 or documents executed before
but submitted on or after March 1, 2004.