THE MANSION TAX
By Robin Shapiro
The New York State mansion tax was created in 1989 by Governor Mario Cuomo to raise funds during a recession. The legislature increased this tax in 2019. The original tax was 1% on home purchases of $1 million or more. The 2019 increase APPLIED ONLY TO NYC residents because it was supposed to raise money for mass transit. It was aimed at expensive Manhattan apartments often bought by foreigners who don’t pay income taxes but utilize city services – but it affects all NYC property.
The new mansion tax scale is graduated: less than $1 million – no tax; $1-2 million has a 1% tax; $2-3 million has a 1.25% tax. There are higher tax rates for higher priced homes. Many people wish that THEY SHOULD HAVE THIS PROBLEM! The mansion tax is paid by the buyer. If a house sells for $1.5 million, then typically the buyer would pay a tax of $15k.
Palm Sunday is this Sunday, March 24. The Jewish holiday of Purim begins Saturday night, March 23 and ends the evening of March 24. Good Friday falls on March 29. Easter Sunday is March 31. NYC public schools close on Friday, March 29 through Monday, April 1 for the Easter weekend. Call me. Love, Robin.
