New York City Real Estate Attorney Natalia Sishodia Explains the Meaning of Mansion Tax in New York City
April 13, 2022 at 16:06
New York City real estate attorney Natalia Sishodia releases a new article (https://sishodia.com/what-is-the-mansion-tax-in-new-york-city/) that explains the meaning of mansion tax in New York City. The lawyer mentions that the mansion tax is one of the most important closing costs a buyer must pay when buying real estate.
"While the mansion tax may seem like a misnomer in a city where a $1 million dwelling doesn't always feel like a "mansion," it was when the lawmakers imposed this tax three decades ago. When the mansion tax was first proposed by Mario Cuomo back in 1989, the intent was to buffer the state's budget," says the New York City real estate attorney.
The lawyer explains that the mansion tax was created to tax wealthier people who can afford it. However, a $1 million property may no longer be considered a "mansion" because of the changes in real estate markets over the past 30 years.
Attorney Natalia Sishodia mentions that $1 million in 1989 can get you a huge home that can be described as a "mansion." However, these days the $1 million prices may only get someone a relatively small apartment in New York. Despite the situation, a mansion tax is still in effect regardless of how opulent the property is.
In the article, attorney Sishodia also states that the mansion tax used to be a 1% tax, which was paid at closing for real estate sales exceeding $1million. Since then, the sliding scale tax is calculated based on the tiers of real estate prices. In 2019, lawmakers agreed to a revised tax schedule. The lawmakers determined the amount of property that was subject to taxes.
Furthermore, the real estate attorney adds that for anyone trying to estimate the closing costs for a real estate transaction in NYC, the mansion tax will be considered. Regardless of the type of residential property the buyer is purchasing, the corresponding mansion tax will be calculated and paid at the closing of the sale.
Lastly, the lawyer emphasizes that it is very important to seek the help of an experienced NYC real estate attorney when purchasing real estate properties. Having the guidance of a skilled lawyer may be able to help the client understand their rights and obligations as well as make sure that their purchase is worth their money.
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