STATE OF NEW YORK
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5536
2015-2016 Regular Sessions
IN SENATE
May 14, 2015
___________
Introduced by Sen. DeFRANCISCO -- read twice and ordered printed, and
when printed to be committed to the Committee on Investigations and
Government Operations
AN ACT to amend the tax law, in relation to facilitating mortgage refi-
nancing
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (c) of subdivision 1 of section 255 of the tax
2 law is relettered paragraph (d) and a new paragraph (c) is added to read
3 as follows:
4 (c) Notwithstanding any other provision of this subdivision if the
5 debt evidenced or secured by an instrument or mortgage is refinanced,
6 upon which all recording taxes due and payable have been paid, and upon
7 the payoff of the existing debt a satisfaction is intended to be
8 recorded; then, upon the recording of a new mortgage to the same obliger
9 or obligers, such new instrument or mortgage may be recorded without the
10 payment of any new or additional taxation under this article up to an
11 amount equal to the unpaid principal balance of the existing debt being
12 satisfied simultaneously therewith, and a tax under section two hundred
13 fifty-three of this article will only be imposed upon any amount in
14 excess of the unpaid principal balance of the existing debt.
15 § 2. Subdivision 2 of section 255 of the tax law, as amended by chap-
16 ter 409 of the laws of 1986, is amended to read as follows:
17 2. (a) (i) If, at the time of recording such instrument or additional
18 mortgage, any exemption is claimed under this section, there shall be
19 filed with the recording officer and preserved in his office a statement
20 under oath of the facts on which such claim for exemption is based. The
21 determination of the recording officer upon the question of exemption
22 shall be reviewable by the [tax commission] department.
23 (ii) If at the time of recording a new instrument or mortgage as
24 provided for in paragraph (c) of subdivision one of this section, any
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11161-01-5
S. 5536 2
1 exemption is claimed under such subdivision, there shall be filed with
2 the recording officer and presented in his or her office a statement
3 under oath of the facts on which such claim for exemption is based
4 accompanied by a true copy of the payoff statement issued by the exist-
5 ing mortgage lender setting forth the outstanding unpaid principal
6 balance of the existing debt showing the identity of the obligor or
7 obligors. The determination of the recording officer upon the question
8 of exemption shall be reviewable by the department.
9 (b) If an exemption is claimed under this section, at any time after
10 such instrument or additional mortgage is recorded and tax paid, there
11 shall be filed with the [tax commission] department, as part of the
12 application for refund a statement under oath of the facts on which such
13 claim for exemption is based. A copy of the order of refund of the [tax
14 commission] department shall likewise be filed with the recording offi-
15 cer and preserved in his office.
16 (c) Any statement under oath described in this section shall be
17 recorded with the new note and mortgage and shall be subject to the same
18 recordation fees as those collected for the assignment of a mortgage.
19 § 3. This act shall take effect on the ninetieth day after it shall
20 have become a law.
