senate Bill S2456

Provides exemption for first time home buyer from a mortgage or recording tax imposed by a municipality

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 17 / Jan / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • 08 / Jan / 2014
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Summary

Provides exemption for first time home buyer from a mortgage or recording tax imposed by a municipality pursuant to article 11 of the tax law; directs commissioner of taxation and finance to establish qualifications and procedures for obtaining such exemption.

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Bill Details

See Assembly Version of this Bill:
A907
Versions:
S2456
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Add ยง268, Tax L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S4370, A2005
2009-2010: A7062, A7062
2007-2008: A7752, A7752

Sponsor Memo

BILL NUMBER:S2456

TITLE OF BILL:
An act
to amend the tax law, in relation to an exemption from municipal
mortgage tax for first time home buyers

PURPOSE:
To assist first time home buyers in purchasing a home by exempting
them from the burden for the state mortgage recording tax imposed
upon home purchases.

SUMMARY OF PROVISIONS:
The bill would add a new section 268 to the Tax Law to exempt first
time home buyers from the state mortgage recording tax, where the
residential property being mortgaged is the mortgagor's principal
place of residence.

EXISTING LAW:
Article 11 of the Tax Law, "Tax on Mortgages", includes a state
mortgage recording tax as well as several additional recording taxes
imposed by political subdivisions within the state.

JUSTIFICATION:
One way of increasing access to first-time home ownership for families
in New York State is to remove the added expense of state mortgage
recording taxes. Exemption from these taxes will ease the entry of
many New Yorkers into their first home. Increasing homeownership and
home sales will not only strengthen New York's economy, but also
strengthen and stabilize our communities.

LEGISLATIVE HISTORY:
2012: S.4370- Referred to Investigations and Government Operations/
A.2005 Held for Consideration in Ways and Means.
2011: S.4370 - Referred to Investigations and Government Operations/
A.2005 Referred to ways and means
2009: A.7062 - Held for Consideration in Ways & Means.

EFFECTIVE DATE:
January 1, next succeeding the date it becomes law, with provisions.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2456

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 17, 2013
                               ___________

Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation to an exemption from  municipal
  mortgage tax for first time home buyers

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The tax law is amended by adding a new section 268 to  read
as follows:
  S  268.  EXEMPTION  FOR FIRST TIME HOME BUYERS FROM MUNICIPAL MORTGAGE
TAX. 1. EVERY MUNICIPALITY WHICH HAS ENACTED A  LOCAL  MORTGAGE  TAX  OR
RECORDING  TAX PURSUANT TO THE PROVISIONS OF THIS ARTICLE SHALL GRANT AN
EXEMPTION FROM SUCH TAX WHERE THE MORTGAGOR IS A FIRST TIME  HOME  BUYER
AND  THE  RESIDENCE  BEING  MORTGAGED IS INTENDED TO BE SAID MORTGAGOR'S
PRINCIPAL PLACE OF RESIDENCE.
  2. THE COMMISSIONER SHALL PROMULGATE NECESSARY AND ADVISABLE RULES AND
REGULATIONS TO ESTABLISH GROUNDS FOR QUALIFICATION, PROOF AND  PROCEDURE
NECESSARY FOR A MORTGAGOR TO OBTAIN SUCH AN EXEMPTION.
  S  2. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.  Effective  immediate-
ly,  the commissioner of taxation and finance shall promulgate necessary
and advisable rules and regulations for the implementation of this act.




 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02916-01-3

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