Real Property Transfer Tax (RPTT)

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Real Property Transfer Tax (RPTT)

You must pay the Real Property Transfer Tax (RPTT) on sales, grants, assignments, transfers or surrenders of real property in New York City. You must also pay RPTT for the sale or transfer of at least 50% of ownership in a corporation, partnership, trust, or other entity that owns/leases property and transfers of cooperative housing stock shares.

The Department of Finance may docket a judgment against both the grantor and grantee. Once the judgment is docketed, the Department may enforce the docketed judgment.

Please take note of the new enhanced reporting requirements for certain residential deed transfers occurring on or after September 13, 2019, per Section 2 of Chapter 297 of the Laws of New York of 2019.

Enhanced RPTT Member Documentation for Limited Liability Companies (LLCs)

Please take note of the new enhanced reporting requirements for certain residential deed transfers occurring on or after September 13, 2019, per Section 2 of Chapter 297 of the Laws of New York of 2019.

Enhanced Documentation for Certain Residential Deed Transfers

Effective September 13, 2019, when a limited liability company is the grantor or grantee in a real property deed transfer of a building containing one- to four-family dwelling units, an enhanced member list must be attached to Form NYC-RPT. This new enhanced member list is to be provided as an alternative to the identifying information requested in the instructions for Form NYC-RPT.
The enhanced member list must include the name and business address of all members, managers, and other authorized persons of the LLC. If any member of the LLC is itself an LLC or other business entity, the names and business addresses of the shareholders, directors, officers, members, managers and/or partners of that LLC or other business entity must also be provided until ultimate ownership by natural persons is disclosed. The term “natural person” means a human being who is the beneficial owner of the real property. A natural person cannot be a corporation or partnership, a person or people operating a business under a doing-business-as name, an estate, or a trust.

All Other LLC Transfers

Single-Member LLCs

A grantor or grantee that is a single-member LLC will be required to provide the names and identification numbers of both the LLC and the single member on the first page of Form NYC-RPT. If the name or identification number is not provided, attach an affidavit attesting to the reasons that the information is missing.

Multiple-Member LLCs

A grantor or grantee that is a multiple-member LLC will be required to provide the name and identification numbers (either Social Security or EIN) of each member in an attached document If the Social Security number or EIN is not provided for each grantor and grantee, or for all members of an LLC which is either a grantor or grantee, attach an affidavit attesting to the reasons that the information is missing.

What Property Transfers are Subject to the Tax?

RPTT applies whenever the sale or transfer is more than $25,000. This includes state or federal government-owned property transferred to a non-government entity. The RPTT must also be paid when the land and building(s) that make up a cooperative dwelling(s) are transferred to a cooperative housing corporation.

Who is Exempt from the Tax?

The United States Government and its agencies;

New York State, its agencies and political subdivisions; and

A foreign government, a person acting on behalf of a foreign government, or the head of a foreign government's diplomatic mission. The premises must be used exclusively for diplomatic or consular purposes. Other usage may result in the payment of tax.

If the government entity is transferring the property to a non-government entity, the non-government entity must file a return and pay the tax.

What Property Transfers are Exempt from the Tax, but Must be Reported on a RPTT Return?

A deed, instrument, or transaction:

to or from the United Nations or any other worldwide, international organization where the US is a member;

to or from a non-profit organization formed and operated exclusively for religious, charitable or educational purposes, or for the prevention of cruelty to children or animals;

to any government body exempt from payment of the tax.;

given solely as security for a debt or a deed/instrument given solely to return such security;

from an agent, dummy, straw man, or conduit to his principal, or a deed, instrument, or transaction from the principal to his agency dummy, straw man or conduit;

given by an executor outlined within the terms of a will. However, a deed given by an executor in connection with a sale of an interest in real property is taxable;

that effects a mere change of identity or form of ownership or organization but only to the extent that the beneficial ownership remains the same.

RPTT Rates

The tax rate and amount of tax due depends on the type of sale or transfer of property. The tax is usually paid as part of closing costs at the sale or transfer of property.

Residential Type 1 and 2 transfers:

If the value is $500,000 or less, the rate is 1% of the price.

If the value is more than $500,000 the rate is 1.425%.

#1 Residential - A transfer of an economic interest in:

a one- to three-family house;

an individual residential condominium unit; or

an individual cooperative apartment.

#2 Residential - A grant, assignment, or surrender of, or the transfer of an economic interest in a leasehold interest in:

a one, two, or three family house or

an individual dwelling unit in a home of more than three families living independently of each other.

All other transfers:

If the value is $500,000 or less, the rate is 1.425% of the price.

If the value is more than $500,000 the rate is 2.625%.

In addition to those taxes previously imposed, beginning on July 1, 2019, certain conveyances of real property or interests therein, located in New York City, where the consideration for each conveyance is $2 million or more, are subject to new taxes under the New York State Tax Law. Additionally, another new tax is imposed on the conveyance of residential real property or interest therein where the consideration is $3 million or more. For information regarding these taxes, which are administered by the State, please refer to the New York State Department of Taxation and Finance’s website at https://tax.ny.gov/bus/transfer/rptidx.htm.

Transfers to Real Estate Investment Trusts (REITS)

Taxed at one-half the otherwise applicable rate, if certain conditions are met.

Claiming an RPTT Exemption for Transfers to or from Housing Development Fund Companies (HDFC)

Beginning August 19, 2016, taxpayers may be eligible to claim a full or partial Real Property Transfer Tax exemption for transfers of real property, or economic interests therein, to or from Housing Development Fund Companies, or entities in which a Housing Development Fund Company owns a controlling interest (collectively known as an “HDFC Transfer”) under Section 11-2106(b)(9) of the Administrative Code of the City of New York (the “HDFC Exemption”).

Effective March 24, 2017, the NYC-RPT form has been revised to include:

A new Condition of Transfer w. Transfer to an HDFC or an entity controlled by an HDFC

A new Schedule L – HDFC Exemption

For additional details on how to claim a new Real Property Transfer Tax (“RPTT”) exemption for transfers of real property subject to certain affordable housing restrictions, click here.

Tax Forms and Filing Information

You must create the packet of RPTT forms Online using ACRIS, the Automated City Register Information System.

The NYC-RPTT packet includes:

Real Property Transfer Tax Return;

Instructions;

Registration forms for receiving bills for real estate tax, water, and sewer, and a smoke detector affidavit of compliance.

Cooperative Transfer Summary returns are separate.
The program will ensure all required forms and fields are completed.

Filing Deadlines

You must pay the RPTT tax and file the return within thirty days after the transfer of the property.
Even if the transfer is not subject to tax, or the tax is zero, the return must still be filed within thirty days after the transfer.

Interest and Penalties

Schedule 2 of the NYC-RPT has lines to enter any Interest and Penalties that are due:
LINE 13 - Interest
If the tax is not paid on or before the due date (determined without regard to any extension of time), interest must be paid on the amount of the underpayment from the due date to the date paid. To calculate the interest click here.
LINE 14 - Penalties

a) If you fail to file a return when it is due, add 5% to the tax for each month or partial month the form is late up to 25%, unless the failure to pay is due to reasonable cause.
b) If you fail to pay the tax shown on the return by the prescribed filing date, add to the tax (less any payments made) 0.5% for each month or partial month the payment is late up to 25%, unless the failure to pay is due to reasonable cause.
c) The total of the additional charges in a) and b) may not exceed 5% for any one month.

Filing Fees

There is a $100 fee to file the RPTT for non-deed transfers.

Requesting a 30-Day filing extension

Both the NYC Administrative Code and the Rules of the City of New York (ìRCNYî) permit a taxpayer to request an extension of time to file a Real Property Transfer Tax return. Extensions must be received in advance of the due date of the return, and may not be for more than 30 days.
Taxpayers who wish to apply for an extension of time must do so in writing. Requests should be sent to:
New York City Department of Finance
Land Records Division
66 John Street, 13th Floor
New York, NY 10038
Attn: RPTT Extension Request
Each request for an extension of time to file must include the following:

A detailed statement that explains why additional time to prepare the Real Property Transfer Tax return for the transfer is needed;

The tentative Real Property Transfer Tax return prepared in ACRIS with the required recording and endorsement cover page that shows the estimated Real Property Transfer Tax that will likely be due as a result of the transfer; and

Full payment of the estimated tax due as computed on the tentative Real Property Transfer Tax return.

Legal Authority

Local Law: Title 11, Chapter 21, Administrative Code
Enabling Act: Tax Law Section 1201(b)

Frequently Asked Questions

1. Do the grantor and grantee both have to sign the RPTT return?

Yes, they both have to sign the return. If either the Grantor or Grantee has not signed the return, the party that did not sign it may have to pay penalties as a non-filer.

2. If there are Multiple Grantors or Grantees, Can Only One Grantor and One Grantee Sign the RPTT?

No. All parties have to sign the return. Any Grantor or Grantee that has not signed the return may have to pay penalties as a non-filer.

3. Can an attorney, title company representative, or family member discuss a case with Finance on behalf of a taxpayer?

In order for anyone other than the Grantor or Grantee to discuss a case with Finance, you must file a Power of Attorney with Finance.

4. How has the real property transfer tax filing procedure for Staten Island filers changed?

Section 23-09 of the Rules of the City of New York requires real property transfer tax returns for transfers of real property located in Staten Island to be filed electronically using the Automated City Register Information System (ACRIS) and in paper form which must be filed in the office of the Richmond County Clerk. If a return is not filed at the time of the recording of a deed, or the deed has not yet been recorded, the paper return may instead be filed in any office of the City Register.

Note: Section 23-09 of the Rules of the City of New York requires real property transfer tax returns for transfers of real property located in Staten Island to be filed electronically using the Automated City Register Information System (ACRIS) and in paper form which must be filed in the office of the Richmond County Clerk. If a return is not filed at the time of the recording of a deed, or the deed has not yet been recorded, the paper return may instead be filed in any office of the City Register.

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