LEGISLATIVE AFFAIRS: April Legislative Update
Philip Weiden | April 12, 2021
It is April, which means it is the state budget deadline. The budget was already a few days late when it was passed by the state legislature on April 7th. Items that HGAR was opposing appear to have been taken out of the budget. Essentially, real estate did not take a hit in the budget.
The pied-a-terre tax, which HGAR and NYSAR opposed, was removed from the budget and was a huge victory for home owners in New York City. No real estate transfer taxes were included in this year’s budget, which is another victory for real estate. HGAR has consistently opposed any attempt to impose transfer taxes, which serve to impede the transfer of real property.
The budget also rejected estate tax hikes and capital gains tax hikes, which could have been more onerous for real estate interests. The budget legalizes marijuana and mobile sports betting, which is expected to bring in $500 million in revenue over the next several years.
New York will see middle income tax cuts. Here is a breakdown of the tax cuts enacted for middle-class New Yorkers:
• People filing jointly in the $43,000-$161,550 income bracket will see their income tax rates lowered from 6.09% to 5.97%.
• People filing jointly in the $161,550-$323,200 income bracket will see their income tax rates lowered from from 6.41% to 6.33%.
For a comprehensive review of some of the key details of the state budget go to: https://nystateofpolitics.com/state-of-politics/new-york/ny-state-of-politics/2021/04/07/breaking-down-the-state-budget-details.
Many positive items were adopted on the spending side. A $2.4-billion fund was established for rental assistance. Payment for as many as 12 months for back rent was included in the budget along with three potential future months. This is a big relief for those financially strapped. This will also be a big help to landlords who have struggled to make mortgage payments and needed repairs while not receiving anticipated rental income.
Stay tuned for updates on the state budget.