Bulletin: NY000074

Dear Associates:

On November 14, this office issued a bulletin (NY000072 ) advising that a New York State Sales Tax was about to be imposed upon certain searches of the land records, effective December 1, 1994. The bulletin further indicated that representatives of the title industry were going to Albany to meet with the Counsel to the New York State Department of Taxation & Finance, William Collins. The purpose of the meeting was to delay implementation of the tax and to get clear guidelines as to which searches would be subject to tax.

As a result of the meeting held on Tuesday, November 22, it appears certain that a sales tax will be imposed on some type of searches. On the positive side, however, the implementation of the tax will be delayed until March 1, 1995. As a result, the filing of a registration statement does not have to be made by December 1, and there will not be a requirement to collect any tax until March 1.

The parties have agreed to establish a working committee which will attempt to provide clear guidelines relating to the taxability of various searches. Additional information should be forthcoming very shortly from the New York State Land Title Association.

Should you have any questions, please contact Company Counsel.