Page 3 - Here’s who will pay how much if the transfer tax proposal passes 1.23.24

Credit: Baird & Warner

Equilibrium-priced home

Although increased transfer taxes ostensibly kick in at $1 million in the three-tier system, there’s a space above $1
million where transfer taxes actually go down. That’s because the proposal is incremental: All properties at all
prices get taxed at the lowest rate for their first $1 million in value, it’s a little higher for the next half-million, and so
on.

Thus, some buyers at over $1 million will pay less in transfer taxes if the referendum passes.

This nicely decorated State Parkway condo sold in October for the equilibrium point: At $1.12 million, the new
transfer tax would be the same as the existing amount, $8,400.

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