The Mansion Tax is an additional amount due upon recordation of the conveyance of real property.
Two states have a mansion tax by name: New York and New Jersey. In New York, this tax is due on property transfers with a conveyance consideration (purchase price) of one million dollars ($1,000,000) or greater. In New Jersey, this tax is due only on property transfers where the consideration exceeds $1,000,000. In both states, the Mansion Tax is an additional 1% of the total consideration.
This means that a property which is purchased for one million dollars ($1,000,000) in NJ will have no Mansion Tax due, but a property which is purchased for one million one dollars ($1,000,001) will have the Mansion Tax due of ten thousand dollars and one cent ($10,000.01).
Additionally, New York City and the surrounding boroughs have a tiered Mansion Tax rate greater than the statewide 1% tax. The counties affected by this increased tiered Mansion Tax rate are New York, Richmond, Kings, Queens, and Bronx.
In LodeStar's system, this tax amount is displayed in Section E - Taxes and Other Government Fees on the buyer side. When exported from LodeStar into your LOS, it will export to the State Mortgage Tax line, and labeled as the State Mortgage Tax.
Questions about how Mansion Tax is mapped in your system? Email support@lssoftwaresolutions.com.