Bill > A5804

This bill modifies the fees and taxes imposed on real property transfers valued over $1 million, specifically targeting residential, farm, cooperative, and commercial properties. The legislation establishes a graduated fee structure where the percentage paid increases with the property's value: 1% for properties between $1-2 million, rising incrementally to 3.5% for properties over $3.5 million. The bill provides several exemptions, including transfers to tax-exempt organizations, transfers incidental to corporate mergers where the real property value is less than 20% of total assets, and intercompany transfers between combined group members. The bill also allows for refunds of fees paid in excess of 1% for property transfers made under contracts executed before July 10, 2025, and recorded on or before November 15, 2025. Additionally, the legislation imposes similar graduated tax rates on transfers of controlling interests in entities possessing classified real property, with comparable exemptions and conditions. The bill aims to generate additional revenue for the state by implementing a progressive taxation approach for high-value property transactions, with the new rates taking effect on July 10, 2025.