Jennifer is purchasing a $2.8 million penthouse in Manhattan. Her attorney mentions that in addition to the New York State mansion tax, there may be additional NYC transfer taxes. Which statement correctly describes the tax obligations for this transaction?
Correct Answer
B) Jennifer pays the 1% state mansion tax plus NYC's additional mansion tax surcharge
New York State imposes a 1% mansion tax on residential properties $1 million and above, which applies statewide including NYC. While NYC has its own transfer taxes paid by the seller, NYC does not have a separate mansion tax. The buyer pays only the state mansion tax of 1%.
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All of the following property transactions in New York would be subject to the mansion tax EXCEPT:
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A seller transfers a Manhattan condominium for $850,000. Under NYC's Real Property Transfer Tax (RPTT), what is the total NYC RPTT owed at closing (statutorily imposed on the grantor)?