Res. No. 717

Resolution calling upon the New York State Legislature to pass and the Governor to sign legislation that eliminates the mortgage recording tax.

By Council Members Cabrera and Holden

Whereas, According to a February 2018 survey conducted by Streeteasy, a real estate listing service, nearly half of New Yorkers think that the city is unaffordable; and

Whereas, One way to make things more affordable for is by repealing the mortgage recording tax; and

Whereas, The current law requires a buyer who purchases a condo in cash to pay a lower tax rate than a buyer who needs to borrow money to purchase a home; and

Whereas, The City and State require homebuyers to pay the real property tax on the value of the transaction, as well as a mortgage recording tax on the value of the mortgage that is used to finance the purchase; and

Whereas, A buyer who can afford to pay a home in cash avoids paying the mortgage recording tax while a buyer with less cash-on-hand has no option but to borrow and pay the mortgage recording tax; and

Whereas, The mortgage recording tax acts as a tax on New Yorkers who need to borrow money in order afford a home in New York’s expensive real estate market; now, therefore, be it

Resolved, That the Council of the City of New York calls upon the New York State Legislature to pass and the Governor to sign legislation that eliminates the mortgage recording tax.

JLC

LS 9236

12/21/18 11:32am