Please be advised that the Town of New Paltz is now imposing a new real estate transfer tax, effective February 1, 2021.
The law imposing the new tax, enacted pursuant to authorizing legislation located at Article 33-B of the New York Tax Law and Section 6-s of the General Municipal Law, is Local Law No. 5 of 2020, codified as Article III, entitled “Real Estate Transfer Tax” of Chapter 59 of the Town of New Paltz Town Code, entitled “Community Preservation.”
The new law imposes a 1.5% real estate transfer tax on each conveyance of real property interest therein, and it applies to all conveyances in the Town of New Paltz and the Village of New Paltz occurring on or after February 1, 2021, unless a binding written contract was entered into prior to February 1, 2021. The date of execution of each contract must be confirmed by evidence such as recording of the contract, payment of a deposit, or other facts and circumstances acceptable to the County Commissioner of Finance.
The new tax is to be paid by the buyer at the time of closing. If the buyer fails to pay the tax or if the buyer is exempt from the tax, the tax payment is to be made by the seller.
There are certain exemptions from the tax, which are listed at Section 59-13 of the New Paltz Town Code. In addition, there is an exemption equal to the median sales price of residential real property within the town of New Paltz, as determined by the State Commissioner of Taxation and Finance (currently that figure is $245,000). The median sales price is available on the New Paltz County Clerk’s website and is updated annually.
Please note that a Town of New Paltz transfer tax form must be filed, and a five dollar filing fee is required. Click here for the transfer tax form. Click here for the Town of New Paltz’s notice regarding the new tax.
If you have any questions about Title Insurance or if there is anything else we can do to assist you, please contact us at (212) 239-8789.
This bulletin is sent courtesy of CB Title Agency of NY, LLC and Fidelity National Title Insurance Company. This article is for informational purposes only and is not intended to provide legal advice, but rather to provide insight into legal developments and issues that may be useful to our clients and friends. In no circumstance is this article intended to be a full treatment of the above subject matter. Reader is advised to obtain additional information as noted.