A09503 Summary:

BILL NO    A09503 

SAME AS    No same as

SPONSOR    Magnarelli

COSPNSR    

MLTSPNSR   

Amd S253, Tax L

Increases the mortgage recording tax in counties outside of the metropolitan
transportation district from twenty-five cents to fifty cents.

A09503 Actions:

BILL NO    A09503 

01/07/2010 referred to ways and means

A09503 Votes:

A09503 Memo:

BILL NUMBER:A9503

TITLE OF BILL:  An act to amend the tax law, in relation to increasing
mortgage recording taxes for certain counties

PURPOSE OR GENERAL IDEA OF BILL: To provide a source of stable funding
for regional transportation authorities outside of the MTA district.

SUMMARY OF SPECIFIC PROVISIONS: Section 1 amends the tax law to increase
the portion of the mortgage recording tax that is dedicated to regional
transportation authorities outside of the MTA district from twenty-five
cents for each hundred dollars to fifty cents for each hundred dollars.
The mortgage recording tax is levied on the total principal debt of a
mortgage over and above the first ten thousand dollars.

Section 2 establishes an effective date.

JUSTIFICATION: As the economy has declined, shrinking State revenues
means that the State is forced to reduce spending on important public
services. Public transportation is a vital public service, particularly
in urban areas. For those with low incomes, public transportation may be
their only method of getting to work. As the State is no longer able to
support public transportation at the same level that it has in the past,
these authorities are exploring other ways to recover the lost revenue
while continuing to provide a necessary service. One such method is to
increase the portion of the mortgage recording tax dedicated to regional
transportation authorities. This relatively small tax levy will trans-
late into significantly improved funding sources for these authorities
and reduce their dependence on grants from the State.

PRIOR LEGISLATIVE HISTORY: None.

FISCAL IMPLICATIONS: None to the state. The additional revenue generated
by this increased levy will go directly to local regional transportation
authorities.

EFFECTIVE DATE: Immediately.