senate Bill S3479A

Prevents referees from being held liable for interest or penalties on transfer taxes to be paid on deeds filed in their capacity as referee

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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

  • 04 / Feb / 2013
    • REFERRED TO JUDICIARY
  • 20 / Sep / 2013
    • AMEND (T) AND RECOMMIT TO JUDICIARY
  • 20 / Sep / 2013
    • PRINT NUMBER 3479A
  • 08 / Jan / 2014
    • REFERRED TO JUDICIARY
  • 06 / May / 2014
    • 1ST REPORT CAL.520
  • 07 / May / 2014
    • 2ND REPORT CAL.
  • 12 / May / 2014
    • ADVANCED TO THIRD READING
  • 11 / Jun / 2014
    • SUBSTITUTED BY A1582A

Summary

Prevents referees from being held liable for interest or penalties on transfer taxes to be paid on deeds filed in their capacity as referee pursuant to a judgment of foreclosure and sale.

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Bill Details

See Assembly Version of this Bill:
A1582A
Versions:
S3479
S3479A
Legislative Cycle:
2013-2014
Law Section:
Tax Law
Laws Affected:
Amd Tax L, generally; add ยง11-2119, NYC Ad Cd
Versions Introduced in 2011-2012 Legislative Cycle:
S6467A, A9220A

Sponsor Memo

BILL NUMBER:S3479A

TITLE OF BILL: An act to amend the tax law and the administrative
code of the city of New York, in relation to the liability of referees
for interest and penalties in connection with transfer taxes on deeds

PURPOSE:

Prevents referees from. being held liable for interest or penalties on
deeds filed in their capacity as referee.

SUMMARY OF PROVISIONS:

Sections 1 through 14 amend Tax Law articles 31, 31-A, 31-B, 31-C,
31-D, 31-E, 31-F, and 31-G by adding a new section to each respective
article providing that when real property is transferred by a referee
or sheriff pursuant to a court order in a foreclosure proceeding
ordering the sale of the property, the referee or sheriff effectuating
such transfer shall not be liable for any interest or penalties
authorized pursuant to the Tax Law article being amended or Article 37
of the Tax Law.

Section 15 amends section 1240 of the Tax Law to provide that the
authorization for the City of New York to impose a tax upon the
transfer of real property that is granted by Tax Law section 1201(b)
shall not include the authorization to impose a civil or criminal
penalty upon a referee or sheriff who conveyed property as a result of
a court order in a foreclosure proceeding ordering the sale of the
property.

Section 16 amends the Administrative Code of the City of New York by
adding a new section 11-2119, which provides that when real Property
is transferred by a referee or sheriff pursuant to a court order in a
foreclosure proceeding ordering the sale of the Property, the referee
or sheriff effectuating such transfer shall not be liable for any
interest or penalties authorized by the City's real property transfer
tax or Chapter 40 of the Administrative Code.

Section 17 provides that this act shall take effect immediately.

JUSTIFICATION:

By law, referees selling properties at foreclosure are treated as
grantors. As grantors, these referees are subject to the provisions of
the Real Estate Transfer Tax ("RETT"). While the statutes do not
specifically address the liability of a referee that conveys property
pursuant to a court order that orders the sale of the property in a
foreclosure proceeding, 19 RCNY section 23-03 (d)(2) includes deeds
given by referees, receivers, sheriffs, etc., for realty sold under
foreclosure or execution regardless of whether the purchaser is the
mortgagee, judgment creditor or other person in its examples of
situations to which the RETT applies.

Currently, there is no provision off law or regulation that exempts a
referee, acting as a grantor, from the penalty and interest provisions
otherwise imposed under the RETT. In foreclosure sales, a referee's
authority is limited to the terms of the court order. Therefore, this


legislation is necessary to prevent referees from being held liable
for interest or penalties on deeds filed in their capacity as
referee/arbiter.

LEGISLATIVE HISTORY:

2012: S.6467-A - Referred to Judiciary Committee

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

This act shall take effect immediately.

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

                                 3479--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            February 4, 2013
                               ___________

Introduced  by  Sen.  GOLDEN -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Judiciary  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT  to amend the tax law and the administrative code of the city of
  New York, in relation to the liability of referees  for  interest  and
  penalties in connection with transfer taxes on deeds

  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 1422 to read
as follows:
  S 1422. FORECLOSURE PROCEEDINGS. WHERE THE CONVEYANCE  CONSISTS  OF  A
TRANSFER  OF  PROPERTY  MADE  AS  A RESULT OF AN ORDER OF THE COURT IN A
FORECLOSURE PROCEEDING ORDERING THE SALE OF SUCH PROPERTY,  THE  REFEREE
OR SHERIFF EFFECTUATING SUCH TRANSFER SHALL NOT BE LIABLE FOR ANY INTER-
EST OR PENALTIES THAT ARE AUTHORIZED PURSUANT TO THIS ARTICLE OR ARTICLE
THIRTY-SEVEN OF THIS CHAPTER.
  S  2.  The  tax law is amended by adding a new section 1437 to read as
follows:
  S 1437. FORECLOSURE PROCEEDINGS. WHERE THE CONVEYANCE  CONSISTS  OF  A
TRANSFER  OF  PROPERTY  MADE  AS  A RESULT OF AN ORDER OF THE COURT IN A
FORECLOSURE PROCEEDING ORDERING THE SALE OF SUCH PROPERTY,  THE  REFEREE
OR SHERIFF EFFECTUATING SUCH TRANSFER SHALL NOT BE LIABLE FOR ANY INTER-
EST OR PENALTIES THAT ARE AUTHORIZED PURSUANT TO THIS ARTICLE OR ARTICLE
THIRTY-SEVEN OF THIS CHAPTER.
  S  3. The tax law is amended by adding a new section 1438-p to read as
follows:
  S 1438-P. FORECLOSURE PROCEEDINGS. WHERE THE CONVEYANCE CONSISTS OF  A
TRANSFER  OF  PROPERTY  MADE  AS  A RESULT OF AN ORDER OF THE COURT IN A
FORECLOSURE PROCEEDING ORDERING THE SALE OF SUCH PROPERTY,  THE  REFEREE
OR SHERIFF EFFECTUATING SUCH TRANSFER SHALL NOT BE LIABLE FOR ANY INTER-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04799-04-3

S. 3479--A                          2

EST OR PENALTIES THAT ARE AUTHORIZED PURSUANT TO THIS ARTICLE OR ARTICLE
THIRTY-SEVEN OF THIS CHAPTER.
  S  4.  Article  31-A-2  of the tax law, as added by chapter 556 of the
laws of 2007, is amended by adding a  new  section  1439-p  to  read  as
follows:
  S  1439-P. FORECLOSURE PROCEEDINGS. WHERE THE CONVEYANCE CONSISTS OF A
TRANSFER OF PROPERTY MADE AS A RESULT OF AN ORDER  OF  THE  COURT  IN  A
FORECLOSURE  PROCEEDING  ORDERING THE SALE OF SUCH PROPERTY, THE REFEREE
OR SHERIFF EFFECTUATING SUCH TRANSFER SHALL NOT BE LIABLE FOR ANY INTER-
EST OR PENALTIES THAT ARE AUTHORIZED PURSUANT TO THIS ARTICLE OR ARTICLE
THIRTY-SEVEN OF THIS CHAPTER.
  S 5. Article 31-A-2 of the tax law, as added by  chapter  543  of  the
laws  of  2007,  is  amended  by  adding a new section 1439-p to read as
follows:
  S 1439-P. FORECLOSURE PROCEEDINGS. WHERE THE CONVEYANCE CONSISTS OF  A
TRANSFER  OF  PROPERTY  MADE  AS  A RESULT OF AN ORDER OF THE COURT IN A
FORECLOSURE PROCEEDING ORDERING THE SALE OF SUCH PROPERTY,  THE  REFEREE
OR SHERIFF EFFECTUATING SUCH TRANSFER SHALL NOT BE LIABLE FOR ANY INTER-
EST OR PENALTIES THAT ARE AUTHORIZED PURSUANT TO THIS ARTICLE OR ARTICLE
THIRTY-SEVEN OF THIS CHAPTER.
  S  6.  Article  31-A-2  of the tax law, as added by chapter 544 of the
laws of 2007, is amended by adding a  new  section  1439-p  to  read  as
follows:
  S  1439-P. FORECLOSURE PROCEEDINGS. WHERE THE CONVEYANCE CONSISTS OF A
TRANSFER OF PROPERTY MADE AS A RESULT OF AN ORDER  OF  THE  COURT  IN  A
FORECLOSURE  PROCEEDING  ORDERING THE SALE OF SUCH PROPERTY, THE REFEREE
OR SHERIFF EFFECTUATING SUCH TRANSFER SHALL NOT BE LIABLE FOR ANY INTER-
EST OR PENALTIES THAT ARE AUTHORIZED PURSUANT TO THIS ARTICLE OR ARTICLE
THIRTY-SEVEN OF THIS CHAPTER.
  S 7. The tax law is amended by adding a new section 1439-pp to read as
follows:
  S 1439-PP. FORECLOSURE PROCEEDINGS. WHERE THE CONVEYANCE CONSISTS OF A
TRANSFER OF PROPERTY MADE AS A RESULT OF AN ORDER  OF  THE  COURT  IN  A
FORECLOSURE  PROCEEDING  ORDERING THE SALE OF SUCH PROPERTY, THE REFEREE
OR SHERIFF EFFECTUATING SUCH TRANSFER SHALL NOT BE LIABLE FOR ANY INTER-
EST OR PENALTIES THAT ARE AUTHORIZED PURSUANT TO THIS ARTICLE OR ARTICLE
THIRTY-SEVEN OF THIS CHAPTER.
  S 8. The tax law is amended by adding a new section 1447-a to read  as
follows:
  S  1447-A. FORECLOSURE PROCEEDINGS. WHERE THE CONVEYANCE CONSISTS OF A
TRANSFER OF PROPERTY MADE AS A RESULT OF AN ORDER  OF  THE  COURT  IN  A
FORECLOSURE  PROCEEDING  ORDERING THE SALE OF SUCH PROPERTY, THE REFEREE
OR SHERIFF EFFECTUATING SUCH TRANSFER SHALL NOT BE LIABLE FOR ANY INTER-
EST OR PENALTIES THAT ARE AUTHORIZED PURSUANT TO THIS ARTICLE OR ARTICLE
THIRTY-SEVEN OF THIS CHAPTER.
  S 9. The tax law is amended by adding a new section 1448-v to read  as
follows:
  S  1448-V. FORECLOSURE PROCEEDINGS. WHERE THE CONVEYANCE CONSISTS OF A
TRANSFER OF PROPERTY MADE AS A RESULT OF AN ORDER  OF  THE  COURT  IN  A
FORECLOSURE  PROCEEDING  ORDERING THE SALE OF SUCH PROPERTY, THE REFEREE
OR SHERIFF EFFECTUATING SUCH TRANSFER SHALL NOT BE LIABLE FOR ANY INTER-
EST OR PENALTIES THAT ARE AUTHORIZED PURSUANT TO THIS ARTICLE OR ARTICLE
THIRTY-SEVEN OF THIS CHAPTER.
  S 10. The tax law is amended by adding a new section 1449-u to read as
follows:

S. 3479--A                          3

  S 1449-U. FORECLOSURE PROCEEDINGS. WHERE THE CONVEYANCE CONSISTS OF  A
TRANSFER  OF  PROPERTY  MADE  AS  A RESULT OF AN ORDER OF THE COURT IN A
FORECLOSURE PROCEEDING ORDERING THE SALE OF SUCH PROPERTY,  THE  REFEREE
OR SHERIFF EFFECTUATING SUCH TRANSFER SHALL NOT BE LIABLE FOR ANY INTER-
EST OR PENALTIES THAT ARE AUTHORIZED PURSUANT TO THIS ARTICLE OR ARTICLE
THIRTY-SEVEN OF THIS CHAPTER.
  S  11.  The tax law is amended by adding a new section 1449-pp to read
as follows:
  S 1449-PP. FORECLOSURE PROCEEDINGS. WHERE THE CONVEYANCE CONSISTS OF A
TRANSFER OF PROPERTY MADE AS A RESULT OF AN ORDER  OF  THE  COURT  IN  A
FORECLOSURE  PROCEEDING  ORDERING THE SALE OF SUCH PROPERTY, THE REFEREE
OR SHERIFF EFFECTUATING SUCH TRANSFER SHALL NOT BE LIABLE FOR ANY INTER-
EST OR PENALTIES THAT ARE AUTHORIZED PURSUANT TO THIS ARTICLE OR ARTICLE
THIRTY-SEVEN OF THIS CHAPTER.
  S 12. The tax law is amended by adding a new section 1449-ppp to  read
as follows:
  S  1449-PPP. FORECLOSURE PROCEEDINGS. WHERE THE CONVEYANCE CONSISTS OF
A TRANSFER OF PROPERTY MADE AS A RESULT OF AN ORDER OF THE  COURT  IN  A
FORECLOSURE  PROCEEDING  ORDERING THE SALE OF SUCH PROPERTY, THE REFEREE
OR SHERIFF EFFECTUATING SUCH TRANSFER SHALL NOT BE LIABLE FOR ANY INTER-
EST OR PENALTIES THAT ARE AUTHORIZED PURSUANT TO THIS ARTICLE OR ARTICLE
THIRTY-SEVEN OF THIS CHAPTER.
  S 13. The tax law is amended by adding a new section 1449-pppp to read
as follows:
  S 1449-PPPP. FORECLOSURE PROCEEDINGS. WHERE THE CONVEYANCE CONSISTS OF
A TRANSFER OF PROPERTY MADE AS A RESULT OF AN ORDER OF THE  COURT  IN  A
FORECLOSURE  PROCEEDING  ORDERING THE SALE OF SUCH PROPERTY, THE REFEREE
OR SHERIFF EFFECTUATING SUCH TRANSFER SHALL NOT BE LIABLE FOR ANY INTER-
EST OR PENALTIES THAT ARE AUTHORIZED PURSUANT TO THIS ARTICLE OR ARTICLE
THIRTY-SEVEN OF THIS CHAPTER.
  S 14. The tax law is amended by adding a  new  section  1449-ppppp  to
read as follows:
  S  1449-PPPPP.  FORECLOSURE PROCEEDINGS. WHERE THE CONVEYANCE CONSISTS
OF A TRANSFER OF PROPERTY MADE AS A RESULT OF AN ORDER OF THE COURT IN A
FORECLOSURE PROCEEDING ORDERING THE SALE OF SUCH PROPERTY,  THE  REFEREE
OR SHERIFF EFFECTUATING SUCH TRANSFER SHALL NOT BE LIABLE FOR ANY INTER-
EST OR PENALTIES THAT ARE AUTHORIZED PURSUANT TO THIS ARTICLE OR ARTICLE
THIRTY-SEVEN OF THIS CHAPTER.
  S  15. Section 1240 of the tax law, as added by chapter 93 of the laws
of 1965, is amended to read as follows:
  S 1240. Administration and  collection.  The  taxes  authorized  under
sections  twelve hundred one through twelve hundred four OF THIS ARTICLE
which are now imposed shall continue to be administered and collected by
the fiscal or other officers of the city, county or school  district  in
the  same  manner  as such taxes have been administered and collected by
such officers immediately prior to the enactment  of  this  article,  in
accordance with the applicable provisions of the charter, administrative
code, local law, ordinance or resolution then in force, with such amend-
ments  in  respect  to  administration and collection as may be enacted.
Taxes authorized  under  sections  twelve  hundred  one  through  twelve
hundred  four  OF THIS ARTICLE which may hereafter be imposed by a city,
county or school district shall be administered and  collected  in  such
manner  as  may  be  provided in its charter, administrative code, local
laws, ordinances or resolutions, with  such  amendments  in  respect  to
administration  and  collection  as may be enacted.  NOTWITHSTANDING ANY
OTHER PROVISION OF LAW TO THE CONTRARY, THE AUTHORIZATION TO IMPOSE  TAX

S. 3479--A                          4

UPON  THE  TRANSFER  OF  REAL  PROPERTY  PURSUANT  TO SUBDIVISION (B) OF
SECTION TWELVE HUNDRED ONE OF THIS ARTICLE, SHALL NOT, WHEN THE  CONVEY-
ANCE  CONSISTS OF A TRANSFER OF PROPERTY MADE AS A RESULT OF AN ORDER OF
THE  COURT IN A FORECLOSURE PROCEEDING ORDERING THE SALE OF SUCH PROPER-
TY, INCLUDE THE AUTHORIZATION TO IMPOSE  CIVIL  OR  CRIMINAL  PENALTIES,
INTEREST,  OR  OTHER  LIABILITY UPON THE REFEREE OR SHERIFF EFFECTUATING
THE TRANSFER.
  S 16. The administrative code of the city of New York  is  amended  by
adding a new section 11-2119 to read as follows:
  S  11-2119 FORECLOSURE PROCEEDINGS. WHERE THE CONVEYANCE CONSISTS OF A
TRANSFER OF PROPERTY MADE AS A RESULT OF AN ORDER  OF  THE  COURT  IN  A
FORECLOSURE  PROCEEDING  ORDERING THE SALE OF SUCH PROPERTY, THE REFEREE
OR SHERIFF EFFECTUATING THE TRANSFER SHALL NOT BE LIABLE FOR ANY  INTER-
EST  OR  PENALTIES  AUTHORIZED  BY THIS CHAPTER OR CHAPTER FORTY OF THIS
TITLE.
  S 17. This act shall take effect immediately; provided, however,  that
the  amendment to article 31-A-1 of the tax law made by section three of
this act shall not affect the repeal of such article and shall be deemed
to repeal therewith; that the amendment to article  31-A-2  of  the  tax
law,  as  added by chapter 556 of the laws of 2007, made by section four
of this act shall not affect the repeal of such  article  and  shall  be
deemed  to repeal therewith; that the amendment to article 31-A-2 of the
tax law, as added by chapter 543 of the laws of 2007,  made  by  section
five  of  this act shall not affect the repeal of such article and shall
be deemed to repeal therewith; that the amendment to article  31-A-2  of
the  tax  law,  as  added  by  chapter  544 of the laws of 2007, made by
section six of this act shall not affect the repeal of such article  and
shall  be  deemed repeal therewith; that the amendment to article 31-A-3
of the tax law made by section seven of this act shall  not  affect  the
repeal of such article and shall be deemed to repeal therewith; that the
amendment  to  article 31-B of the tax law made by section eight of this
act shall not affect the repeal of such article and shall be  deemed  to
repeal therewith; that the amendment to article 31-D of the tax law made
by  section eleven of this act shall not affect the repeal of such arti-
cle and shall be deemed to repeal therewith; that the amendment to arti-
cle 31-F of the tax law made by section thirteen of this act  shall  not
affect  the  repeal of such article and shall be deemed to repeal there-
with.

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