S T A T E O F N E W Y O R K
________________________________________________________________________
3261
2013-2014 Regular Sessions
I N A S S E M B L Y
January 24, 2013
___________
Introduced by M. of A. RABBITT, FINCH -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to determination and apportion-
ment by the commissioner of taxation and finance
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Section 260 of the tax law, as amended by chapter 372 of
2 the laws of 1930, is amended to read as follows:
3 S 260. Determination and apportionment by the [state tax commission]
4 COMMISSIONER. When the real property covered by a mortgage is situated
5 in more than one tax district, the [state tax commission] COMMISSIONER
6 shall apportion the tax paid on such mortgage between the respective tax
7 districts upon the basis of the relative assessments of such real prop-
8 erty as the same appear on the last assessment-rolls, AS ADJUSTED TO
9 REFLECT THE APPLICABLE STATE EQUALIZATION RATE ESTABLISHED PURSUANT TO
10 THE REAL PROPERTY TAX LAW, FOR EACH SUCH RESPECTIVE TAX DISTRICT, WHICH
11 WAS IN EFFECT AT THE TIME SUCH MORTGAGE WAS RECORDED. If, however, the
12 whole or any part of the property covered by such a mortgage is not
13 assessed upon the last assessment-roll or rolls of the tax district or
14 districts in which it is situated, or is so assessed, as a part of a
15 larger tract, that the assessed value cannot be determined, or if
16 improvements have been made to such an extent as materially to change
17 the value of the property so assessed, the [tax commission] COMMISSIONER
18 may require the local assessors in the respective tax districts, or the
19 mortgagor, or mortgagee, to furnish sworn appraisals of the property in
20 each tax district, and upon such appraisals shall determine the appor-
21 tionment. If such mortgage covers real property in two or more coun-
22 ties, the [tax commission] COMMISSIONER shall determine the proportion
23 of the tax which shall be paid by the recording officer who has received
24 the same to the recording officers of the other counties in which are
25 situated the tax districts entitled to share therein. When any record-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05257-01-3
A. 3261 2
1 ing officer shall pay any portion of a tax to the recording officer of
2 another county, he OR SHE shall forward with such tax a description
3 sufficient to identify the mortgage on which the tax has been paid, and
4 the recording officer receiving such tax shall note on the margin of the
5 record of such mortgage the fact of such payment, attested by his OR HER
6 signature. The [tax commission] COMMISSIONER shall make an order of
7 determination and apportionment in respect to each such mortgage and
8 file a certified copy thereof with the recording officer of each county
9 in which a part of the mortgaged real property is situated.
10 When the real property covered by a mortgage is partly within the
11 state and partly without the state, it shall be the duty of the [tax
12 commission] COMMISSIONER to determine what portion of the mortgage or of
13 advancements thereon shall be taxable under this article. Such determi-
14 nation shall be made in the following manner: First: Determine the
15 respective values of the property within and without the state, and
16 deduct therefrom the amount of any prior existing mortgage liens,
17 excepting such liens as are to be replaced by prior advancements and the
18 advancement under consideration. Second: Find the ratio that the net
19 value of the mortgaged property within the state bears to the net value
20 of the entire mortgaged property. Third: Make the determination of the
21 portion of the mortgage or of the advancements thereon which shall be
22 taxable under this article by applying the ratio so found. If a mortgage
23 covering property partly within and partly without the state is
24 presented for record before such determination has been made, or at the
25 time when an advance is made on a corporate trust mortgage or on a prior
26 advance mortgage, there may be presented to the recording officer a
27 statement in duplicate, verified by the mortgagor or an officer or duly
28 authorized agent of the mortgagor, in which shall be specified the net
29 value of the property within the state and the net value of the property
30 without the state covered by such mortgage. One of such statements shall
31 be filed by the recording officer and the other shall be forthwith tran-
32 smitted by him OR HER to the [state tax commission] COMMISSIONER. The
33 tax payable under this article before the determination by the [tax
34 commission] COMMISSIONER shall be computed upon such portion of the
35 principal indebtedness secured by the mortgage, or of the sum advanced
36 thereon, as the net value of the mortgaged property within the state
37 bears to the net value of the entire mortgaged property as set forth in
38 such statement. The [tax commission] COMMISSIONER shall on receipt of
39 the statement from the recording officer and on not less than ten days'
40 notice served personally or by mail upon the mortgagor, the mortgagee,
41 and the state comptroller, proceed to make the required determination.
42 In determining the separate values of the property within and without
43 the state, the [tax commission] COMMISSIONER shall consider only the
44 tangible property, real and personal, except that leases of real proper-
45 ty shall be deemed tangible property. For the purpose of determining
46 such value, the [tax commission] COMMISSIONER may require the mortgagor
47 or mortgagee to furnish by affidavit or verified report such information
48 or data as [it] HE OR SHE may deem necessary, and may require and take
49 the testimony of the mortgagor, mortgagee, or any other person. A
50 certified copy of the order of determination and apportionment shall be
51 delivered personally or by mail to the mortgagor, the mortgagee, and the
52 state comptroller, and any tax under such determination which has not
53 been paid shall be paid within ten days after service of such certified
54 copy; if, however, the tax paid at the time of filing the statement
55 hereinbefore specified with the recording officer is in excess of the
56 tax determined to be payable, the certificate of determination and
A. 3261 3
1 apportionment shall direct the recording officer to refund to the person
2 paying such tax the amount of such excess; provided that no refund shall
3 be made of any taxes paid pursuant to a previous determination.
4 The [tax commission] COMMISSIONER shall adopt rules to govern the
5 procedure and the manner of taking evidence in all the matters provided
6 for by this section and may require verified statements to be furnished
7 either by boards of assessors, recording officers, or other persons
8 having knowledge in relation to such matters. Failure on the part of any
9 person or officer to furnish a statement or other data when required so
10 to do pursuant to the provisions of this section shall render such
11 person or officer liable to a penalty of one hundred dollars, to be
12 recovered by the attorney-general in an action brought in the name of
13 the people of the state of New York.
14 In making determination and apportionment under this section, the [tax
15 commission] COMMISSIONER shall consider each advancement made upon a
16 mortgage after July first, nineteen hundred [and] six, as a new mort-
17 gage. In all cases under this section where the provisions for distrib-
18 ution of the tax among tax districts are inapplicable or inadequate, the
19 [tax commission] COMMISSIONER shall establish a basis of apportionment
20 that will be equitable and fair.
21 S 2. This act shall take effect on the one hundred eightieth day after
22 it shall have become a law.