For 1st Time, Possible Co-op Mortgage Tax in NY State’s Revenue Scope

Governor Paterson has a gift for Mayor Bloomberg in his proposed budget: more than $50 million a year from the under-tapped resource that is the city’s co-op housing market.In the governor’s cross hairs are loans for co-ops, which have long been free of taxation while taxes on equivalent condos and houses run between 2.05 percent and 2.175 percent of any mortgage. The budget seeks to allow the city to slap this mortgage recording tax onto co-ops, swinging the tax lasso around a cash source that has been eyed-but untouched-by city officials since at least the days of Ed Koch.The tax would mark another step in the assimilation of the co-op, an outlier housing type that was once beyond the reaches of many housing rules and laws, and it would bring in, by the mayor’s count, at least $50 million annually in revenue for the city.
By Eliot Brown, Feb. 2, 2010 New York Observer

Link to article