Bulletin: NY000312

The Town ofRed Hook, located in Dutchess County, has passed a law implementing a 2% transfer tax on conveyances of real property located within the Town.  The tax is effective for transfers on or after August 1, 2007.

For those deeds executed before August and recorded post August 1, the date of the deed will apply, provided the contract is binding and there is independent evidence of the date of execution.  This evidence can include the filing date of the contract, if recorded, the date of the deposit check, or other evidence the County Treasurer will deem acceptable.

The tax is payable by the grantee, but is payable by the grantor if the grantee is either exempt or fails to pay the tax.  The law as promulgated contains various exemptions to payment.

The form has not yet been promulgated.  It is Stewart's understanding that the form will need to be filed with the deed on all transactions.  The fee for filing the return is $5.00.  This fee, and the tax, if any, should be paid to the Dutchess County Clerk and added to the other taxes and filing fees at the time of recording the deed.

Please click here to view a copy of the law.