Article 12a of the real property law – Article 12-A of the Real Property Law serves as a cornerstone in the realm of real estate transactions, establishing a framework for the calculation, payment, and enforcement of transfer taxes. This comprehensive guide delves into the intricacies of this legal provision, providing a thorough understanding of its key concepts, exemptions, and implications.
From the initial definition and scope of Article 12-A to the intricacies of real estate transfer tax calculations and exemptions, this guide unravels the complexities of this legal landscape. By exploring the nuances of return filing, payment deadlines, and potential penalties, readers gain a comprehensive grasp of the practical aspects of complying with this important law.
1. Definition and Scope of Article 12-A: Article 12a Of The Real Property Law
Article 12-A of the Real Property Law is a comprehensive statute that imposes a real estate transfer tax on certain real property transactions within the state. Its purpose is to generate revenue for the state and to discourage speculative real estate transactions.
The article applies to the transfer of real property, including land, buildings, and other improvements, located within the state. It also applies to the transfer of shares in a cooperative housing corporation or a condominium unit.
Key provisions of the article include the imposition of a transfer tax, exemptions and exclusions from the tax, and the process for filing and paying the transfer tax return.
2. Real Estate Transfer Tax
The real estate transfer tax imposed under Article 12-A is calculated as a percentage of the consideration paid for the property. The tax rate varies depending on the type of property and the amount of consideration paid.
Exemptions and exclusions from the transfer tax are available for certain types of transactions, such as transfers between family members, transfers to a qualified charitable organization, and transfers of property used for certain agricultural purposes.
Examples of real estate transactions subject to the transfer tax include the sale of a house, the purchase of a condominium unit, and the transfer of shares in a cooperative housing corporation.
3. Real Estate Transfer Tax Return and Payment
The process for filing and paying the real estate transfer tax return is Artikeld in Article 12-A. The return must be filed with the New York State Department of Taxation and Finance within 20 days of the date of the transfer.
The return must include information about the property, the consideration paid, and the exemptions or exclusions claimed. The tax due must be paid at the time the return is filed.
Late filing or payment of the transfer tax return may result in penalties.
4. Exemptions and Exclusions
Article 12-A provides several exemptions and exclusions from the real estate transfer tax. These exemptions and exclusions are designed to reduce the burden of the tax on certain types of transactions.
Some of the most common exemptions and exclusions include:
- Transfers between family members
- Transfers to a qualified charitable organization
- Transfers of property used for certain agricultural purposes
- Transfers of property pursuant to a divorce decree
- Transfers of property between spouses
To claim an exemption or exclusion, the taxpayer must provide documentation to support the claim.
5. Enforcement and Penalties
The New York State Department of Taxation and Finance is responsible for enforcing the provisions of Article 12-A. The department has a variety of tools at its disposal to collect unpaid transfer taxes, including liens, levies, and seizures.
Non-compliance with the provisions of Article 12-A can result in significant penalties. These penalties can include interest on unpaid taxes, fines, and imprisonment.
To avoid potential penalties and disputes, it is important to understand the provisions of Article 12-A and to file the transfer tax return accurately and on time.
Question & Answer Hub
What transactions are subject to real estate transfer tax under Article 12-A?
Article 12-A imposes a transfer tax on the conveyance of real property, including the sale, exchange, or gift of land and buildings.
Are there any exemptions from the real estate transfer tax?
Yes, Article 12-A provides for several exemptions, including transfers between spouses, transfers to certain non-profit organizations, and transfers of property valued below a certain threshold.
What are the penalties for non-compliance with Article 12-A?
Failure to file a transfer tax return or pay the tax due can result in penalties, interest charges, and potential legal action.
