As a Red Hook NY real estate agent I get questions on the Red Hook Transfer Tax. So, I have decided to address the issue using information provided to me by the town and county.
Red Hook adopted this law in 2007 to provide funding for the preservation of open space and restoration of historical sites in the town.
FACT: The law went into effect on August 1st 2007. The 2 percent tax on home sales would be assessed on the amount of the sale that is over the Dutchess County Median Price, which was $330,000 at that time.
FACT: Median Price is computed by the New York Department of Taxation using sales data from the previous year. The new Median price will go into effect on June 1st using sales data from 2007
FACT: Exemption from the tax is given under specific circumstances----(***see details)
FACT: The town has already collected a good sum due to a couple of large sales.
FACT: This is now a further negotiating item for home sellers. Speaking to other real estate agents and lawyers I found out that some buyers do not want to pay the taxes so in some cases the seller is splitting the cost with the buyer.
***The in-depth information on this tax is available on the Town of Red Hook website.
Jennifer Fivelsdal - JFIVE HOMES REALTY LLC - 845-758-6842- firstname.lastname@example.org
Copyright © by Jennifer Fivelsdal, all rights reserved-Red Hook 2 Percent Transfer Tax What Is It And How Does It Affect Your Real Estate Transaction?