The IT-2663 Instructions can be downloaded from: http://www.tax.state.ny.us/pdf/2006/inc/it2664i_2006.pdf The IT-2663 may be downloaded from: http://www.tax.state.ny.us/pdf/2007/fillin/inc/it2663_2007_fill_in.pdf

The New York State Legislature has approved an increase in the mortgage tax in counties within the Metropolitan Commuter Transportation District (Bronx, New York, Queens, Kings, Richmond, Suffolk, Nassau, Westchester, Rockland, Orange, Putnam and Dutchess). The bill is expected to be signed by the Governor shortly.

The bill proposes a Mortgage Tax increase of five cents per hundred. This increase does not affect the standard lender’s portion of the mortgage tax, which will remain at 25%. The increase is borne solely by the borrower.

In addition, properties improved or to be improved by a one-or-two family dwelling are now entitled to the special credit increase from $25.00 to $30.00 on the first $10,000 of mortgage principal.

Further information to follow as it becomes available.

In November of 2004, the New York State Department of Taxation and Finance TP-584 form was again revised to require the seller(s) of a cooperative unit to complete Section D, “Certification of exemption from the payment of estimated personal income tax.” This section sets forth whether the seller of a cooperative unit is or is not a New York State Resident. All Non-Residents (who are not entitled to an exemption therefrom) must fill our form IT-2664 “Non-Resident Cooperative Unit Estimated Income Tax Payment Form” (for the appropriate tax year) and if applicable, pay the estimated N.Y.S. Income Tax at the time of conveyance.

At the present time, either TP-584 dated 10/03 or TP-584 dated 11/04 may be used for conveyances of Real Property but only TP-584 dated 11/04 can be used for the conveyance of cooperative units.

Please note, all necessary forms are available at our website.

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.

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.