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A08518 Summary:

BILL NOA08518
 
SAME ASSAME AS S06796
 
SPONSORGottfried
 
COSPNSR
 
MLTSPNSR
 
Amd 874, Gen Muni L; amd 1963 & 2326, Pub Auth L; amd 252 & 253, Tax L
 
Exempts from the mortgage tax, mortgages which secure obligations to make payments in lieu of taxes.
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A08518 Actions:

BILL NOA08518
 
06/18/2017referred to local governments
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A08518 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8518
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                      June 18, 2017
                                       ___________
 
        Introduced  by  M.  of  A.  GOTTFRIED  --  read once and referred to the
          Committee on Local Governments
 
        AN ACT to amend the general municipal law, the  public  authorities  law
          and the tax law, in relation to certain recording taxes
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Subdivision 1 of section 874 of the general municipal  law,
     2  as  amended  by  chapter  394 of the laws of 2016, is amended to read as
     3  follows:
     4    (1) It is hereby determined that the creation of the  agency  and  the
     5  carrying  out of its corporate purposes is in all respects for the bene-
     6  fit of the people of the state of New York and is a public purpose,  and
     7  the  agency  shall  be regarded as performing a governmental function in
     8  the exercise of the powers conferred upon it by this title and shall  be
     9  required  to  pay  no  taxes  or  assessments  upon  any of the property
    10  acquired by it or under its jurisdiction or control  or  supervision  or
    11  upon  its activities. Provided, however, if the agency is located within
    12  a transportation district referenced in paragraph (a) of subdivision two
    13  of section two hundred fifty-three of the  tax  law,  it  shall  not  be
    14  exempt  from  the additional tax on each mortgage of real property situ-
    15  ated within the state imposed  by  such  paragraph;  provided,  further,
    16  that, notwithstanding the foregoing, the agency shall be exempt from any
    17  taxes on the execution and/or recordation of a mortgage of real property
    18  situated within the state within a transportation district referenced in
    19  paragraph  (a)  of subdivision two of section two hundred fifty-three of
    20  the tax law that secures an obligation to make payments in lieu of taxes
    21  where the primary purpose of recording the mortgage is for such mortgage
    22  to act as the priority of a real property tax lien.
    23    § 2. Subdivision 1 of section 1963 of the public authorities  law,  as
    24  amended  by  chapter  394  of  the  laws  of 2016, is amended to read as
    25  follows:
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13103-03-7

        A. 8518                             2
 
     1    1. It is hereby determined that the creation of the authority and  the
     2  carrying  out of its corporate purposes is in all respects for the bene-
     3  fit of the people of the city and its environs, and is a public purpose,
     4  and the authority shall be regarded as performing a  governmental  func-
     5  tion  in  the exercise of the powers conferred upon it by this title and
     6  shall be required to pay no taxes or assessments upon any of the proper-
     7  ty acquired by it or under its jurisdiction or control or supervision or
     8  upon its activities. Provided, however,  if  the  authority  is  located
     9  within a transportation district referenced in paragraph (a) of subdivi-
    10  sion two of section two hundred fifty-three of the tax law, it shall not
    11  be  exempt  from  the  additional  tax on each mortgage of real property
    12  situated within the state imposed by such paragraph; provided,  further,
    13  that,  notwithstanding the foregoing, the authority shall be exempt from
    14  the additional tax imposed  by  paragraph  (a)  of  subdivision  two  of
    15  section  two  hundred fifty-three of the tax law on the execution and/or
    16  recordation of a mortgage of real property  situated  within  the  state
    17  within a transportation district referenced in paragraph (a) of subdivi-
    18  sion  two of section two hundred fifty-three of the tax law that secures
    19  an obligation to make payments  in  lieu  of  taxes  where  the  primary
    20  purpose  of  recording  the  mortgage is for such mortgage to act as the
    21  priority of a real property tax lien.
    22    § 3. Subdivision 1 of section 2326 of the public authorities  law,  as
    23  amended  by  chapter  394  of  the  laws  of 2016, is amended to read as
    24  follows:
    25    1. It is hereby determined that the creation of the authority and  the
    26  carrying  out of its corporate purposes is in all respects for the bene-
    27  fit of the people of the city and its environs, and is a public purpose,
    28  and the authority shall be regarded as performing a  governmental  func-
    29  tion  in  the exercise of the powers conferred upon it by this title and
    30  shall be required to pay no taxes or assessments upon any of the proper-
    31  ty acquired by it or under its jurisdiction or control or supervision or
    32  upon its activities. Provided, however,  if  the  authority  is  located
    33  within a transportation district referenced in paragraph (a) of subdivi-
    34  sion two of section two hundred fifty-three of the tax law, it shall not
    35  be  exempt  from  the  additional  tax on each mortgage of real property
    36  situated within the state imposed by such paragraph; provided,  further,
    37  that,  notwithstanding the foregoing, the authority shall be exempt from
    38  the additional tax imposed  by  paragraph  (a)  of  subdivision  two  of
    39  section  two  hundred fifty-three of the tax law on the execution and/or
    40  recordation of a mortgage of real property  situated  within  the  state
    41  within a transportation district referenced in paragraph (a) of subdivi-
    42  sion  two of section two hundred fifty-three of the tax law that secures
    43  an obligation to make payments  in  lieu  of  taxes  where  the  primary
    44  purpose  of  recording  the  mortgage is for such mortgage to act as the
    45  priority of a real property tax lien.
    46    § 4. Subdivision 2 of section 252 of the tax law, as added by  chapter
    47  394 of the laws of 2016, is amended to read as follows:
    48    (2)  Notwithstanding  article  eighteen-A of the general municipal law
    49  and titles eleven and fifteen of article eight of the public authorities
    50  law, but except as set forth in this subdivision, no  mortgage  of  real
    51  property situated within the state in counties located within the metro-
    52  politan commuter transportation district, the Niagara Frontier transpor-
    53  tation  district,  the  Rochester-Genesee  transportation  district, the
    54  capital district transportation  district,  and  the  central  New  York
    55  regional  transportation  district executed, given, made, or transferred
    56  or assigned by or to an agency created under article eighteen-A  of  the

        A. 8518                             3
 
     1  general  municipal  law,  an  authority  created  under  title eleven or
     2  fifteen of article eight of the public  authorities  law,  an  agent  or
     3  agent  of  such  agent  of  such agency or authority, a project operator
     4  receiving  financial assistance from such agency or authority, a project
     5  occupant of such agency or authority, or an owner of a project receiving
     6  financial assistance from such agency or authority shall be exempt  from
     7  the  additional  tax  imposed  by  paragraph  (a)  of subdivision two of
     8  section two  hundred  fifty-three  of  this  article,  except  when  the
     9  execution  and/or  recordation  of  a mortgage of real property situated
    10  within the state within a transportation district  referenced  in  para-
    11  graph  (a)  of subdivision two of section two hundred fifty-three of the
    12  tax law that secures an obligation to make payments  in  lieu  of  taxes
    13  where the primary purpose of recording the mortgage is for such mortgage
    14  to act as the priority of a real property tax lien.  For the purposes of
    15  this  subdivision  the  term  "financial assistance" shall have the same
    16  meaning as defined in section eight hundred fifty-four  of  the  general
    17  municipal law.
    18    §  5. Paragraph (a) of subdivision 2 of section 253 of the tax law, as
    19  amended by chapter 394 of the laws  of  2016,  is  amended  to  read  as
    20  follows:
    21    (a)  In addition to the taxes imposed by subdivisions one and one-a of
    22  this section, there shall be imposed on each mortgage of  real  property
    23  situated  within  the  state recorded on or after the first day of July,
    24  nineteen hundred sixty-nine, an additional tax of twenty-five cents  for
    25  counties  outside  of the metropolitan commuter transportation district,
    26  as defined pursuant to section twelve hundred sixty-two  of  the  public
    27  authorities  law, and thirty cents for counties within such metropolitan
    28  commuter transportation district for each one hundred dollars  and  each
    29  remaining  major  fraction thereof of principal debt or obligation which
    30  is, or under any contingency may be secured at  the  date  of  execution
    31  thereof or at any time thereafter by such mortgage, saving and excepting
    32  the  first  ten thousand dollars of such principal debt or obligation in
    33  any case in which the related mortgage is of real  property  principally
    34  improved or to be improved by a one or two family residence or dwelling.
    35  All the provisions of this article shall apply with respect to the addi-
    36  tional  tax imposed by this subdivision to the same extent as if it were
    37  imposed by the said subdivision one of this section, except as otherwise
    38  expressly provided in this article. Notwithstanding  article  eighteen-A
    39  of  the  general  municipal law and titles eleven and fifteen of article
    40  eight of the public authorities law, but except as  set  forth  in  this
    41  paragraph,  no  mortgage  of  real property situated within the state in
    42  counties  located  within  the  metropolitan   commuter   transportation
    43  district,  the  Niagara Frontier transportation district, the Rochester-
    44  Genesee transportation district,  the  capital  district  transportation
    45  district,  and  the  central  New  York regional transportation district
    46  executed, given, made, or transferred or assigned by  or  to  an  agency
    47  created  under  article  eighteen-A  of  the  general  municipal law, an
    48  authority created under title eleven or fifteen of article eight of  the
    49  public  authorities  law, an agent or agent of such agent of such agency
    50  or authority, a project operator  receiving  financial  assistance  from
    51  such  agency or authority, a project occupant of such agency or authori-
    52  ty, or an owner of a project receiving financial  assistance  from  such
    53  agency  or  authority shall be exempt from the additional tax imposed by
    54  this subdivision, except when the  execution  and/or  recordation  of  a
    55  mortgage of real property situated within the state within a transporta-
    56  tion  district referenced in paragraph (a) of subdivision two of section

        A. 8518                             4
 
     1  two hundred fifty-three of tax law that secures an  obligation  to  make
     2  payments  in  lieu  of  taxes where the primary purpose of recording the
     3  mortgage is for such mortgage to act as the priority of a real  property
     4  tax  lien.    For  the purposes of this [subdivision] paragraph the term
     5  "financial assistance" shall have the same meaning as defined in section
     6  eight hundred fifty-four of the general municipal law. The imposition of
     7  this additional tax on mortgages recorded in a county outside  the  city
     8  of New York, other than one of the counties from time to time comprising
     9  the  metropolitan commuter transportation district, the Niagara Frontier
    10  transportation district, the Rochester-Genesee transportation  district,
    11  the  capital  district  transportation  district or the central New York
    12  regional transportation district may be suspended for a specified period
    13  of time or without limitation as to time by a local  law,  ordinance  or
    14  resolution duly adopted by the local legislative body of such county.
    15    §  6.  This  act  shall  take  effect on the same date and in the same
    16  manner as chapter 394 of the laws of 2016, takes effect.
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