Bulletin: NY000171

Dear Associates:

Last week, as part of the state budget process, legislation was passed in Albany authorizing the County of Nassau to impose a real estate transfer tax on conveyances of all real property located in Nassau County, where the consideration exceeds $500.00, at the rate of $5.00 per $500.00 of consideration. (Article 31-E of the NYS Tax Law)

Earlier this week, the Nassau County Legislature passed a measure implementing the tax, effective August 15, 1999.

The tax is payable by the grantor, unless the grantor has failed to pay or is exempt, in which case the tax is payable by the grantee. However, the tax will not apply to conveyances made on or after the August 15th effective date which are pursuant to binding contracts entered into prior to such date, provided that the date of execution of the contract is confirmed by independent evidence.

The County has promulgated a form for an affidavit of exemption that must be signed by the grantors, the grantees, and their attorneys. The contract and proof of the deposit of the down payment are not necessary attachments, but the affidavit indicates that each of the parties will maintain a record of the contract and the deposit information for three years.

The tax is payable when the deed is presented for recording and must be accompanied by a return, Form NC-584.

For those cases where the premises is located partly within and partly without the County, apportionment will be handled in a manner similar to that prescribed under tax law section 260.

Unless extended by further legislative action, the tax is set to expire on January 31, 2001.

It is suggested that, beginning today, Schedule B of all certificates of title issued for affected properties contain a note to the effect that unless sufficient proof of exemption is provided, the transfer tax must be paid.

The following forms are available on the Nassau County website at this URL:
https://www.nassaucountyny.gov/

1. Nassau County Real Estate Transfer Tax Return (Form NC-584)
2. Instructions for Form NC-584 (Form NC-584i)
3. Exemption from Real Estate Transfer Tax Affidavit (Form NC-6-5)

A set of these forms are available through our New York City office.