CY 2015 Real Property Transfer Tax Report Commercial Highlights

Department of Finance recently released the New York City Real Property Transfer Tax (RPTT) report for calendar year 2015 showing an all-time high RPTT liability of $2.587 billion. The last newsletter which was sent to our residential brokers and salespeople (located here), highlighted the number of transactions and the total amount of transfer taxes levied on residential property transactions.  This newsletter will feature the commercial property transactions and transfer taxes for calendar year 2015.

 

NYNK_9_12_16-1

The table above highlights the number of transactions and RPTT liability for commercial properties based on the amount of the consideration. The total transfer taxes paid on commercial properties was nearly 75% of the total liability for 2015.

 

NYNK_9_12_16-2

Table two takes a deeper look into the distribution by borough and property type. Manhattan and Queens have seen substantially more transactions compared to the other boroughs. Manhattan surpasses all other boroughs for the total amount of transfer taxes levied, about 74% of the total for all commercial properties.

The RPTT is imposed on transfers in which the consideration exceeds $25,000 and it is usually paid by the seller. The RPTT rate applied to commercial transfers is 1.425 percent of the taxable consideration if $500,000 or less and 1.625 percent if the taxable consideration is more than $500,000. Home sales are taxed at the same threshold but at the rates of 1.0 percent and 1.425 percent respectively.  It should be noted that New York State also imposes a separate transfer tax.

The full report can be downloaded here.