New York Enacts Changes to Liability Provisions of New York Real Estate Transfer Tax
On April 7, 2021, the New York State Legislature passed the New York Budget Bill for fiscal year 2022 which was signed by Governor Andrew Cuomo on April 19, 2021 (the “Budget Bill”). S.B. S2509C, 2021 Leg., 2021 Reg. Sess. (N.Y. 2021). The Budget Bill enacted two notable changes to the liability provisions of the New York State real estate transfer tax.
Real estate transfer tax (“transfer tax”) is generally imposed on every conveyance of New York State real property or interest therein when the consideration exceeds $500. N.Y. Tax Law § 1402(a). The transfer tax is imposed on the grantor, defined as “the person making the conveyance of real property or interest therein” although both the grantor and grantee are jointly liable for the tax. N.Y. Tax Law §§ 1401(g), 1404(a).
To read the full article, please click here.
“New York Enacts Changes to Liability Provisions of New York Real Estate Transfer Tax,” by Kara M. Kraman was published as a LexisNexis Practical Guidance® article in June 2021.
This article was first published in The BR State + Local Tax Spotlight in May 2021.