The Town of New Paltz in Ulster County has imposed a local real estate transfer tax for all conveyances in the Town of New Paltz, including the Village of New Paltz, occurring on or after February 1, 2021. The transfer tax is imposed on the purchaser pursuant to Article III of Chapter 59 of the Town of New Paltz Town Code and imposes a real estate transfer tax of 1.5% of the consideration on each conveyance of real property, both residential and commercial. If the purchaser either fails to pay the tax, or is exempt from the tax, the tax must be paid by the seller.
The tax is due for all conveyances occurring on or after February 1, 2021 unless a binding written contract was entered into prior to such date, provided that the date of execution of such contract is confirmed by independent evidence such as the recording of the contract, payment of a deposit, or other facts and circumstances acceptable to the Ulster County Commissioner of Finance.
Section 59-13 of the Town of New Paltz Town Code sets forth the various exemptions from the tax. An additional exemption is set forth in Section 59-14 which allows for an exemption of an amount equal to the median sales price of residential real property within the Town of New Paltz. Currently, the first $245,000 of the purchase price is exempt from this tax. The amount of this exemption is subject to change at the discretion of the New York State Department of Taxation. Note that the amount of this exemption is expected to change in April of 2021. Please check the Ulster County Clerk’s website for the current median sales price.
A Town of New Paltz Transfer Tax form, similar to the TP-584, must be filed with the Ulster County Clerk at the time the TP-584 return is filed. An online fillable version is available on the Town and County websites. The County Clerk’s Office will not record any instrument effecting a conveyance unless the required form is filed and the tax paid. Please note that in addition to the tax, a $5.00 filing fee is also payable.
For further information, please see the Town’s Notice and FAQs.