Breaking News!

REAL PROPERTY TRANSFER REPORT FORMS
FILING FEES INCREASED

As a furtherance to Safe Harbor Title Bulletin #13 (July 2004), a Budget Bill (S6057B/A9557B), providing in part for increases in the filing fee for the State Board of Real Property Services for Real Property Transfer Report (Equalization and Assessment Form), has been passed by the legislature and presented to the Governor for signature. The increased fees will be required for all deeds submitted for recording on and after September 1, 2004.

When the property being transferred is a "Qualifying residential property," or a "Qualifying farm property," the filing fee will increase from $50.00 to $75.00, increasing the total cost of recording a deed by $25.00. The filing fee for the transfer of any other type of property will increase from $50.00 to $165.00, increasing the total cost of recording a deed by $115.00.

"Qualifying residential property" is defined as property that satisfies at least one of the following conditions:

1. The property classification code assigned to the property on the latest final assessment roll, as reported on the transfer report form, indicates that the property is a one, two or three family home or a rural residence, or
2. The transfer report form indicates that the property is a one, two or three family residential property that has been newly constructed on vacant land, or
3. The transfer report form indicates that the property is a residential condominium.

"Qualifying farm property" is defined as property for which the property classification code on the latest final assessment roll, as reported on the transfer report form, is in the agricultural category.

Please take note of this increase and its immediate impact.

REAL PROPERTY TRANSFERS IN
BRONX, BROOKLYN, MANHATTAN & QUEENS
NOW REQUIRE E-TAX FORMS TO BE FILED ON LINE

The New York City's Department of Finance has advised that ACRIS release 2.1 including E-Tax Forms, is scheduled for implementation on July 3, 2004. Accordingly, commencing on July 3, 2004, the City of New York's Real Property Transfer Tax Return ("RPT"), the New York State's Real Estate Transfer Tax Return ("TP-584"), the New York State's Real Property Transfer Report ("RP-5217NYC"), the Affidavit of Compliance with the Smoke Detector Requirement, the Customer Registration Form for Water and Sewer Billing, and the Property Owner's Registration Form will have to be prepared on-line in connection with the transfer of an interest in real property in the Counties of the Bronx, Brooklyn, Manhattan and Queens. An E-Tax Forms tutorial is available on the ACRIS web Site (http://nyc.gov/html/dof/html/acris.html)

The Department of Finance has advised that E-Tax Forms will not be required for transfers prior to July 5, 2004, so long as the usual, hard copy Transfer Tax Forms are submitted to the Register's Office prior to August 2, 2004. Transfers made before July 5 which are submitted to the Register's Office on or after August 2, or resubmitted on or after August 2 if rejected by the recording office, will require ACRIS generated Transfer Forms but they can be submitted with the traditional, hard copy Transfer Forms if the traditional forms are signed.

The Department has also advised that in lieu of amending printed final Transfer Forms on-line ACRIS, typed or handwritten pages can be made

to the final, printed E-Tax Forms provided that new Transfer Forms with a new Tax Transaction Identification Number are generated in ACRIS before submission to the Register. The new Transfer Forms will be submitted together with the final, signed Transfer Forms that were amended.

Further, effective September 7, 2004, the RPT, Cover Pages, and Payment Sheets will be required to be generated in ACRIS for the transfer of a cooperative unit or of a controlling interest in an entity owning real property. Completing Transfer Forms for cooperative unit and controlling interest transfers will be optional in ACRIS as of July 3. The TP-584 can also be completed in ACRIS for these transfers and payment of the State's Transfer Tax will be accepted by the City's Department of Finance in connection with such transfers.

Effective July 5, for the transfer of a cooperative unit or for the transfer of a controlling interest the RPT must be mailed to NYC Department of Finance, Non-Recorded RPT Return Processing, 66 John Street, 13th Floor, New York, New York 10038 or delivered to the Payment Center at that address on the 2nd Floor. Until July 5, filing of the RPT and payment of any City transfer tax due is to be mailed or sent by Overnight delivery to NYC Department of Finance, RPT Unit, 59 Maiden Lane, 19th Floor, New York, NY 10038 attn.: Yolande Pierre.

REAL PROPERTY TRANSFER REPORT FORMS RP-5217 AND RP-5217 NYC (EQUALIZATION FORM) FEES TO BE INCREASED STATEWIDE

A draft New York State Budget Bill provides for increases in the filing fee for the State Board of Real Property Services Real Property Transfer Report, known generally as the Equalization and Assessment Forms. The increased fees will be required for all deeds submitted for recording on and after an effective date to be determined, regardless of the date of transfer. It was understood that July 1, 2004, was to be the effective date, but the New York State Land now indicates that the State Legislature has adjourned without passage of this increase in fees.

The Bill provides that when the property being transferred is a "Qualifying residential property," or "Qualifying farm property," the filing fee will increase from $50.00 to $75.00. The filing fee for the transfer of any other type of property will increase from $50.00 to $165.00.

"Qualifying residential property" includes property classified on the latest final assessment roll as a one-to-three family home, a rural residence, a residential condominium, or a one-to-three family residential property newly constructed on vacant land. A "Qualifying farm property" means property classified on the latest final assessment roll as being in the agricultural category.

The Bill may be amended to provide that the increases will take effect a number of days following its enactment. Accordingly, the increased fees need not be collected at this time pending further information and instructions.

Note that the increased increase amount may apply to documents that are submitted prior to its effective date but are rejected by the recording office and must be re-submitted after that date.

NEW TP-584 and IT-2663 REQUIRED BY NY STATE DEPARTMENT OF TAXATION AND FINANCE
EFFECTIVE 9/2/2003

A provision of the budget bill passed by The New York State Legislature requires non-residents, in certain instances, to file an estimated tax return to pay estimated personal income taxes on the gain from the sale of a fee simple interest in real property before a deed will be accepted for recording. Accordingly, effective for all fee simple sales occurring on and after September 1, 2003, any NYS individual resident, trust or estate, or any non-resident individual, trust or estate who qualifies for an exemption, must complete and sign Schedule D (Certification of Exemption) of the revised TP-584 (copy attached with instructions and websites listed below). Please note that if the transaction is other than a fee simple transfer the new statute does not apply and Schedule D may be left blank. Likewise, if the grantor is other than an individual, a trust or an estate (i.e. a corporation, partnership or limited liability company) the statute is inapplicable and Schedule D may again be left blank.

If the transaction or the taxpayer is exempt under the instructions for the revised TP-584, nothing else need be filed. If, however, a non-resident individual, trust or estate does not quality for one of the limited exemptions noted on the new form TP-584, then he must file Tax Form IT-2663 (copy attached with instructions and websites listed below) with, and pay any taxes due to, the NYS tax Department (either by mail or overnight courier to Albany or by using a walk-in center noted on page 4 of Tax Form IT-2663). Upon receipt of Tax Form IT-2663 and the applicable tax payment, the NYS Tax Department will stamp Part IV of the Tax Form (the Stamped Certification) and will return it to the individual, either by mail, overnight courier or fax (the choice is up to the taxpayer). This Stamped Certification must then be presented to the recording officer at the time the deed is presented for recording. Accordingly, in those instances where such a Stamped Certification is required to accompany the deed for recording, we will require that the Stamped Certification be tendered to us on or before closing.

This new law applies only to transfer made by individuals, estates, or trusts and does not apply to transfers made by any other entities, regardless of their residency status or the residency of their members, partners, or shareholders. It also does not apply to leasehold transfers, including co-op apartments and leasehold condominiums, nor does it apply to transfers of controlling interests in entities. If the subject transfer is one of these exempt categories, the schedule D of the TP584 may be left blank.

We will keep you updated as these new procedures move forward.

Thank you for allowing Safe Harbor Title to be of service.

http://www.tax.state.ny.us/pdf/2003/property/tp584_703.pdf http://www.tax.state.ny.us/pdf/2003/property/tp584i_703.pdf
http://www.tax.state.ny.us/pdf/2003/inc/it2663_2003.pdf http://www.tax.state.ny.us/pdf/2003/inc/it2663i_2003.pdf

 

 

 

---

Next Page

 

weather driving directions Port Jefferson Village Adirondack Chairs