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S07442 Summary:

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S07442 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          7442
 
                    IN SENATE
 
                                       May 2, 2016
                                       ___________
 
        Introduced  by  Sen.  DeFRANCISCO -- read twice and ordered printed, and
          when printed to be committed to the Committee on Local Government
 
        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  added  by  chapter  1030  of the laws of 1969, 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.
    16    § 2. Subdivision 1 of section 1963 of the public authorities  law,  as
    17  added by chapter 759 of the laws of 1967, is amended to read as follows:
    18    1.  It is hereby determined that the creation of the authority and the
    19  carrying out of its corporate purposes is in all respects for the  bene-
    20  fit of the people of the city and its environs, and is a public purpose,
    21  and  the  authority shall be regarded as performing a governmental func-
    22  tion in the exercise of the powers conferred upon it by this  title  and
    23  shall be required to pay no taxes or assessments upon any of the proper-
    24  ty acquired by it or under its jurisdiction or control or supervision or
    25  upon  its  activities.  Provided,  however,  if the authority is located
    26  within a transportation district referenced in paragraph (a) of subdivi-
    27  sion two of section two hundred fifty-three of the tax law, it shall not
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14353-02-6
        S. 7442                             2
 
     1  be exempt from the additional tax on  each  mortgage  of  real  property
     2  situated within the state imposed by such paragraph.
     3    §  3.  Subdivision 1 of section 2326 of the public authorities law, as
     4  added by chapter 915 of the laws of 1969, is amended to read as follows:
     5    1. It is hereby determined that the creation of the authority and  the
     6  carrying  out of its corporate purposes is in all respects for the bene-
     7  fit of the people of the city and its environs, and is a public purpose,
     8  and the authority shall be regarded as performing a  governmental  func-
     9  tion  in  the exercise of the powers conferred upon it by this title and
    10  shall be required to pay no taxes or assessments upon any of the proper-
    11  ty acquired by it or under its jurisdiction or control or supervision or
    12  upon its activities. Provided, however,  if  the  authority  is  located
    13  within a transportation district referenced in paragraph (a) of subdivi-
    14  sion two of section two hundred fifty-three of the tax law, it shall not
    15  be  exempt  from  the  additional  tax on each mortgage of real property
    16  situated within the state imposed by such paragraph.
    17    § 4. Section 252 of the tax law, as amended by chapter 671 of the laws
    18  of 1989, is amended to read as follows:
    19    § 252.  Exemptions. (1) No mortgage of real property  situated  within
    20  this state shall be exempt, and no person or corporation owning any debt
    21  or  obligation secured by mortgage of real property situated within this
    22  state shall be exempt, from the taxes imposed by this article by  reason
    23  of  anything  contained  in  any  other  statute,  except as provided in
    24  section three hundred thirty-nine-ee of the real  property  law,  or  by
    25  reason  of  any provision in any private act or charter which is subject
    26  to amendment or repeal by the legislature, or by reason of non-residence
    27  within this state or for any other cause, except that mortgages of  real
    28  property  situated  within  this  state transferred, assigned or made to
    29  Home Owners' Loan Corporation, a corporation created  under  an  act  of
    30  congress,  known  as home owners' loan act of nineteen hundred and thir-
    31  ty-three, or to a agricultural credit association or federal  home  loan
    32  bank,  shall  be  exempt, and said corporation or institution owning any
    33  debt or obligation secured by mortgage of real property situated  within
    34  this  state,  shall be exempt from the taxes imposed by this article and
    35  except that mortgages  of  real  property  situated  within  this  state
    36  executed,  given  or  made prior to June first, nineteen hundred thirty-
    37  four by any public benefit corporation created under the  laws  of  this
    38  state  for  the  purpose  of maintaining and operating a public park and
    39  public recreation center shall be exempt, and any person or  corporation
    40  owning  any  debt  or  obligation of any such public benefit corporation
    41  secured by such a mortgage of its real  property  situated  within  this
    42  state,  shall  be  exempt  from  the  taxes imposed by this article, and
    43  except that mortgages of real property situated within this state  which
    44  are executed, given or made subsequent to June seventh, nineteen hundred
    45  thirty-four  and  which are substituted for other mortgages as a part of
    46  and in  compliance  with  a  plan  of  reorganization  pursuant  to  the
    47  provisions of section seventy-seven-b of the federal bankruptcy act, are
    48  and  shall be exempt from taxes imposed by this article to an amount not
    49  exceeding the amount of such mortgage indebtedness  outstanding  at  the
    50  time  of  the  consummation  of  such  reorganization, and any person or
    51  corporation owning any debt or obligation secured by such a mortgage  of
    52  real property situated within this state is and shall be exempt from the
    53  taxes imposed by this article, and except that mortgages of real proper-
    54  ty  situated  within  this  state which are executed, given or made by a
    55  railroad redevelopment corporation during the first nine  years  of  its
    56  existence as such are and shall be exempt from the taxes imposed by this
        S. 7442                             3
 
     1  article  and  any  person  or  corporation owning any debt or obligation
     2  secured by such a mortgage of real property situated within  this  state
     3  is and shall be exempt from the taxes imposed by this article.
     4    (2)  Notwithstanding  article  eighteen-A of the general municipal law
     5  and titles eleven and fifteen of article eight of the public authorities
     6  law, no mortgage of real property situated within the state in  counties
     7  located  within  the  metropolitan commuter transportation district, the
     8  Niagara Frontier transportation district, the  Rochester-Genesee  trans-
     9  portation  district,  the  capital district transportation district, and
    10  the central New York regional transportation district  executed,  given,
    11  made,  or transferred or assigned by or to an agency created under arti-
    12  cle eighteen-A of the general municipal law, an authority created  under
    13  title  eleven or fifteen of article eight of the public authorities law,
    14  an agent or agent of such agent of such agency or authority,  a  project
    15  operator receiving financial assistance from such agency or authority, a
    16  project  occupant  of such agency or authority, or an owner of a project
    17  receiving financial assistance from such agency or  authority  shall  be
    18  exempt  from  the additional tax imposed by paragraph (a) of subdivision
    19  two of section two hundred fifty-three of this article. For the purposes
    20  of this subdivision the term "financial assistance" shall have the  same
    21  meaning  as  defined  in section eight hundred fifty-four of the general
    22  municipal law.
    23    § 5. Paragraph (a) of subdivision 2 of section 253 of the tax law,  as
    24  amended  by  section  2  of part A of chapter 63 of the laws of 2005, is
    25  amended to read as follows:
    26    (a) In addition to the taxes imposed by subdivisions one and one-a  of
    27  this  section,  there shall be imposed on each mortgage of real property
    28  situated within the state recorded on or after the first  day  of  July,
    29  nineteen  hundred sixty-nine, an additional tax of twenty-five cents for
    30  counties outside of the metropolitan commuter  transportation  district,
    31  as  defined  pursuant  to section twelve hundred sixty-two of the public
    32  authorities law, and thirty cents for counties within such  metropolitan
    33  commuter  transportation  district for each one hundred dollars and each
    34  remaining major fraction thereof of principal debt or  obligation  which
    35  is,  or  under  any  contingency may be secured at the date of execution
    36  thereof or at any time thereafter by such mortgage, saving and excepting
    37  the first ten thousand dollars of such principal debt or  obligation  in
    38  any  case  in which the related mortgage is of real property principally
    39  improved or to be improved by a one or two family residence or dwelling.
    40  All the provisions of this article shall apply with respect to the addi-
    41  tional tax imposed by this subdivision to the same extent as if it  were
    42  imposed by the said subdivision one of this section, except as otherwise
    43  expressly  provided  in this article. Notwithstanding article eighteen-A
    44  of the general municipal law and titles eleven and  fifteen  of  article
    45  eight  of the public authorities law, no mortgage of real property situ-
    46  ated within the state in counties located within the metropolitan commu-
    47  ter  transportation  district,  the  Niagara   Frontier   transportation
    48  district,  the  Rochester-Genesee  transportation  district, the capital
    49  district transportation district, and  the  central  New  York  regional
    50  transportation   district  executed,  given,  made,  or  transferred  or
    51  assigned by or to an agency created  under  article  eighteen-A  of  the
    52  general  municipal  law,  an  authority  created  under  title eleven or
    53  fifteen of article eight of the public authorities law,    an  agent  or
    54  agent  of  such  agent  of  such agency or authority, a project operator
    55  receiving financial assistance from such agency or authority, a  project
    56  occupant of such agency or authority, or an owner of a project receiving
        S. 7442                             4
 
     1  financial  assistance from such agency or authority shall be exempt from
     2  the additional tax imposed by this subdivision. For the purposes of this
     3  subdivision the term "financial assistance" shall have the same  meaning
     4  as  defined in section eight hundred fifty-four of the general municipal
     5  law. The imposition of this additional tax on mortgages  recorded  in  a
     6  county outside the city of New York, other than one of the counties from
     7  time   to  time  comprising  the  metropolitan  commuter  transportation
     8  district, the Niagara Frontier transportation district,  the  Rochester-
     9  Genesee  transportation  district,  the  capital district transportation
    10  district or the central New York regional transportation district may be
    11  suspended for a specified period of time or  without  limitation  as  to
    12  time  by  a local law, ordinance or resolution duly adopted by the local
    13  legislative body of such county.
    14    § 6. This act shall take effect immediately.