Last Sunday, New York lawmakers voted to pass the state’s 2019-2020 budget, which would include an increase of the so-called “mansion tax.” This tax has been around for decades, imposing a surcharge of 1 percent on sales of properties statewide worth over $1 million. Effective July 1, 2019, the revised tax will still charge a 1 percent tax on homes valued at $1 to $2 million, but charge <a href="https://ny.curbed.com/2019/4/2/18292011/new-york-mansion-tax-how-much-pay">1.25 percent on homes valued at $2 to $3 million</a>, and rise accordingly based on the price of a property before ultimately topping out at 4.15 percent for homes valued at $25 million or more. These increases, paired with a one-time transfer tax fee on residences over $1 million, is predicted to generate $365 million annually. Proceeds are expected to help fund repairs to MTA infrastructure, including the subway system. When the mansion tax was first enacted, <a href="https://www.elegran.com/">NYC residential properties</a> worth more than $1 million were a much rarer sight than they are today. The increase was proposed in response to <a href="https://www.forbes.com/sites/fredpeters/2019/04/02/what-does-the-new-mansion-tax-mean-for-new-york/#5e57ed78166f">several record-breaking multimillion-dollar deals</a> that have occurred in the city in recent years, including Ken Griffin’s $238 million deal in January at 220 Central Park South. Under the old law, the city collected $6.9 million on that purchase, while the new law would <a href="https://therealdeal.com/2019/04/02/this-calculator-shows-how-the-new-mansion-transfer-taxes-work/">increase that number to $14.3 million</a>. Of course, $238 million properties are extremely rare, so to put things into a different perspective; a New Yorker who purchased a $3 million home under the previous law would pay $84,750 in taxes; they will pay $107,250 under the new framework. Bloomberg recently <a href="https://www.bloomberg.com/news/articles/2019-04-01/nyc-brokers-relieved-as-mansion-tax-replaces-a-pied-a-terre-levy">spoke to several real estate professionals</a> who explained that while they do have some concerns that the increase in the mansion tax may deter buyers, it’s still better than the tax on pied-a-terre dwellings in Gov. Cuomo’s original budget proposal. This tax would have been levied each year based on the value of the home. Now, buyers will only pay a one-time tax versus a recurring one on a yearly basis. What does this mean for people looking to <a href="https://www.elegran.com/nyc/search/sales">purchase a condo in NYC</a>? If you’re on the fence about purchasing a property, the time to act is now - before the increase in taxes costs real money. With only a few months before the new tax goes into effect July 1st, there’s still time to buy a home and pay the current rate. If you’re ready to take advantage of this window and buy an NYC apartment before the tax increases, <a href="https://www.elegran.com/agents">contact an Elegran agent today</a>.&nbsp;