Bulletin: NY000654

The Town of New Paltz in Ulster County has imposed a local real estate transfer tax.  This transaction is applicable to all conveyances of residential and commercial real property closing after February 1, 2021 unless the parties entered into a binding contract of sale before February 1, 2021.  If the contract of sale in a particular transaction was executed prior to February 1, 2021, the date of execution of the contract should be confirmed with proofs such as the date upon which the contract deposit was delivered or negotiated, recording of the contract of sale, transmittal letters or e-mails of the fully executed contract of sale, or other probative facts and circumstances acceptable to the County Commissioner of Finance.

The transfer tax is imposed on the purchaser under Article III of Chapter 59 of the Town of New Paltz Town Code and imposes a real estate transfer tax of 1.5% on each conveyance of real property.  If the purchaser either fails to pay the tax, or is exempt from the tax, the tax must be paid by the seller.

Section 59-13 of the Town of New Paltz Town Code sets forth the various exemptions to the transfer tax.  Currently, the first $245,000 of the purchase price (which is the median sales price of residential real property within the Town of New Paltz) is exempt from this tax.  The amount of this exemption is subject to change, at the discretion of the New York State Department of Taxation.  Note that the amount of this exemption is expected to change in April of 2021.  Please check the Ulster County Clerk’s web site for the current median sales price.

A Town of New Paltz Transfer Tax form will need to be completed for any transaction in which a deed is being recorded.  The Ulster County Commissioner of Finance has designated the Ulster County Clerk to act as the collection agent for this tax, and payments should be made to the Ulster County Clerk’s Office.  Please note that in addition to the tax, a $5.00 filing fee is also payable.

In the event you have any questions regarding the above please contact Stewart Title Legal Department at 212-922-0050 and speak with any Underwriting Counsel.

For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.

Attachments: Town of New Paltz Real Estate Transfer Tax Return