Take Judicial Notice: License Agreement for Condo Parking & Storage

• Aug, 29
• by Judicial Title
• Take Judicial Notice,Latest News

RE: License Agreement for Condo Parking & Storage

A recent NYS Department of Taxation Letter Ruling has determined that parking and storage space licenses are now considered an interest in real property. As a result, pursuant to NYS Tax Law Article 31, if a Condo contract also includes an Agreement for the purchase of a License for a parking space and/or storage unit, the consideration for either must be aggregated and included with the sale price of the Condominium Unit.

Therefore, any license fee paid for the use or occupancy on such storage unit or parking space would be subject to the real estate transfer tax. In addition, if the total consideration paid for the condominium unit, storage unit, and parking space totals $1 million or more, the consideration would be subject to the additional tax (mansion tax).

If you have any questions please feel free to contact us at info@judicialtitle.com

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