Bulletin: NY000312

Date:
June 15, 2007
To:
All New York State Office Counsel, Managers and Agents
RE:
Transfer Tax - Red Hook, NY

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.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
None
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None