Is SALT Having an Effect?
The State of New York Mortgage Tax Semi-Annual report, prepared by the Westchester County Clerk’s Office, covering the months of October 2018 through March 2019, shows taxes collected for mortgages in the county are down more than half-a-million dollars from the same period the year before. The real estate market overall has seen a dramatic drop in the volume of sales, according to the report.
The winter months of December 2018, and January and February 2019 saw the most significant drops in the amount of tax collected, as compared to the same months the previous year. In December 2017, the county received $1.6 million in mortgage tax. However, in December 2018, only $ 1.2 million was collected – a drop off of $412,507. January and February saw declines of $212,488 and $239,710, respectively.
“We are seeing the effects of the SALT reduction here in Westchester County,” said County Clerk Timothy Idoni, whose office collects mortgage taxes for the county. “Winter months always see a decline in home sales, and the weather was particularly bad this winter, but it is hard to deny that the new tax laws are a significant factor. The drop in the volume of sales was noticeable, as prices were relatively consistent.”
There were some positives in the report, as well. The month of March in 2019 saw an increase from 2018, with a $46,105 increase. “Hopefully it is a sign of good things to come,” said Idoni
