Bill Text: NY A08518 | 2017-2018 | General Assembly | Introduced
Bill Title: Exempts from the mortgage tax, mortgages which secure obligations to make payments in lieu of taxes.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-01-03 - referred to local governments [A08518 Detail]
Download: New_York-2017-A08518-Introduced.html
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. LBD13103-03-7A. 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 theA. 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 sectionA. 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.
