Real estate transfer taxes are levied by state and local governments whenever a piece of property changes hands. The income generated by these taxes are often used to fund acquisition or development of greenspace amidst residential and commercial areas or to underwrite low-income housing programs.
These sales or transfers can be between two private parties, a private party and a business, or between two businesses.
The New York state real estate transfer tax is tiered. The rate is set at $2.00 per $500.00 up to $1 million. Properties above that value are assessed an additional 1.0%. Individual counties and municipalities may assess additional amounts. Transfers by a business entity qualifying as a real estate investment trust, REIT, may be assessed at half these rates.
New York state transfer fees are 0.4% for property worth up to $1 million. The rate is 1.4% for those over $1 million. Individual counties and municipalities may assess a higher rate.
For example, in New York City, residential properties are defined as being comprised of one-, two-, three- and four-family homes; individual resident cooperative apartments; and individual resident condominiums. Otherwise, the building is considered to be a commercial property. For residential properties, the real estate transfer tax is set at 1.0% for buildings valued at $550,000 or less. Those buildings valued at more than $550,00 are assessed a tax rate of 1.425%. An additional real estate transfer fee of 1.0% to 2.625% is also assessed. Commercial property valued at $500,000 or less is taxed at 1.425%, while properties valued above that figure are taxed at the rate of 2.625%.
These taxes and fees must be paid within 15 days of the transfer to avoid financial penalties.
So if you are thinking of selling your home please fill out the form below and I will assist you with selling of your home and help explain what is expected as a seller in Fresh Meadows.
Call me at 718.673.9370 or e-mail me here.