UPDATES

 

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 indebtedness.

 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  Mtg Tax  2.05% 
(borrowers portion 1.80%)    
1 to 3 family& condo units Mtg $500,000.00 and over Mtg Tax  2.175%
(borrowers portion 1.925%)    
4 family and commercial Mtg less than $500,000.00   Mtg Tax   2.05%
(borrowers portion 1.80%)    
4 family and commercial Mtg $500,000.00 and over   Mtg Tax 2.80%
(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.

Date: December 8, 2004

Re: TP-584 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 cooperative.

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.

Also attached 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

November 18, 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 www.tax.state.ny.us.

The Department 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 click here.

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 Return (RPT),

2. New York State Combined Real Estate Transfer Tax Return (TP-584),

3. RP-5217 NYC Real Property Transfer Report Form,

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 recorded.

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.


 

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