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Both RPTT and RETT

Definition

Both RPTT and RETT are taxes that apply to real property transfers, when the ownership is more than 50% transferred, granted, assigned or surrendered.

What is an RPTT or RETT?

According to Investopedia, a real property refers to "any property that is attached directly to land, as well as the land itself. Real property not only includes buildings and other structures, but also rights and interests". The main requirement for these taxes to be applied is that the facilities be immovable.

The transfer tax is paid by the seller. If the seller is exempt, the buyer (in case of RPTT) or the heir (in case of RETT) is responsible for paying the tax.

Who is exempt from both RPTT and RETT?

For NYC, the US government, a foreign government using the property for diplomatic purposes, and state agencies are exempt from paying the tax and from filing a RPTT return. Tax rates may vary according to the type of transfers.

Example:

Here's a real-life example from one of the properties researched on PropertyShark:

References:
http://www.investopedia.com/terms/r/real-property.asp
http://www.nyc.gov/html/dof/html/business/rptt_refunds.shtml

Disclaimer:
The glossary is intended to provide real estate professionals and home buyers with a basic understanding of various specialized terms related to legal rights over a property. All terms appear in public records such as ACRIS. We do not take responsibility for the legal accuracy of the definitions provided and ask that use of these explanations in a legal setting be made only after checking with a lawyer or another specialist in the field.