- November 22, 1994
- All Branch Managers, Counsel and Agents
- Update on Imposition of New York Sales Tax
On November 14, this office issued a bulletin (NY000072 ) advising that a New York State Sales Tax was about to be imposed upon certain searches of the land records, effective December 1, 1994. The bulletin further indicated that representatives of the title industry were going to Albany to meet with the Counsel to the New York State Department of Taxation & Finance, William Collins. The purpose of the meeting was to delay implementation of the tax and to get clear guidelines as to which searches would be subject to tax.
As a result of the meeting held on Tuesday, November 22, it appears certain that a sales tax will be imposed on some type of searches. On the positive side, however, the implementation of the tax will be delayed until March 1, 1995. As a result, the filing of a registration statement does not have to be made by December 1, and there will not be a requirement to collect any tax until March 1.
The parties have agreed to establish a working committee which will attempt to provide clear guidelines relating to the taxability of various searches. Additional information should be forthcoming very shortly from the New York State Land Title Association.
Should you have any questions, please contact Company Counsel.
THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.