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Landlord Tenant Law Tax

Is A Real Estate Instrument Filing Fee An Unauthorized Tax?

Local governments have significant leeway to charge fees for services they provide their residents. But fee revenue sources can be attractive options for those local governments needing to fill budget gaps without raising taxes.

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Local governments have significant leeway to charge fees for services they provide their residents. But fee revenue sources can be attractive options for those local governments needing to fill budget gaps without raising taxes. State law limits fees that governments charge to the amounts reasonably necessary to cover the cost of the service or regulatory program. Fees designed to generate revenue or offset the costs of other government functions are unauthorized taxes. In New York, for example, litigation pending in the Suffolk County Supreme Court is challenging fees charged for tax map verifications on real estate instruments filed with the county clerk as unauthorized taxes.

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