S T A T E O F N E W Y O R K
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3066
2009-2010 Regular Sessions
I N A S S E M B L Y
January 22, 2009
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Introduced by M. of A. BENJAMIN -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the tax law, in relation to supplemental mortgages; and
to repeal certain provisions of such law relating thereto
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph (a) of subdivision 2 of section 255 of the tax
law is REPEALED and a new paragraph (a) is added to read as follows:
(A)(I) IF, AT THE TIME OF RECORDING SUCH INSTRUMENT OR ADDITIONAL
MORTGAGE, ANY EXEMPTION IS CLAIMED FOR A MORTGAGE WHICH (1) COVERS LAND
IMPROVED AT THE TIME THE MORTGAGE IS SUBMITTED FOR RECORDING BY A ONE,
TWO OR THREE-FAMILY HOUSE OR AN INDIVIDUAL RESIDENTIAL CONDOMINIUM UNIT
OR COOPERATIVE APARTMENT; (2) IS EXECUTED IN CONNECTION WITH A REFINANCE
OF EXISTING INDEBTEDNESS ON WHICH MORTGAGE RECORDING TAX HAS BEEN PAID;
(3) THE FULL AMOUNT OF PRINCIPAL AND INTEREST DUE ON THE EXISTING MORT-
GAGE HAS BEEN PAID AND A CERTIFICATE OF DISCHARGE OF MORTGAGE WILL BE
REQUIRED UNDER SECTION TWO HUNDRED SEVENTY-FIVE OF THE REAL PROPERTY
LAW; AND (4) THE PERSON(S) OR ENTITY WHO EXECUTED THE EXISTING MORTGAGE,
OR PERSON(S) OR ENTITY WHO HAS SUCCEEDED TO THE TITLE TO THE PROPERTY BY
OPERATION OF LAW, OR PERSON(S) OR ENTITY WHO HAS SUCCEEDED TO THE TITLE
TO THE PROPERTY BY A CORRECTION TO THE ORIGINAL RECORDATION, IS EXECUT-
ING THE NEW MORTGAGE, THERE SHALL BE FILED WITH THE RECORDING OFFICER
AND PRESERVED IN HIS OFFICE A STATEMENT UNDER OATH OF (1) THE RELATION-
SHIP BETWEEN THE PERSON(S) OR ENTITY WHO EXECUTED THE EXISTING MORTGAGE
AND THE PERSON(S) OR ENTITY WHO IS EXECUTING THE NEW MORTGAGE; (2) THE
AMOUNT OF OUTSTANDING MORTGAGE DEBT ON THE DATE THE NEW MORTGAGE WAS
FULLY EXECUTED; (3) THE FULL AMOUNT OF MORTGAGE DEBT SECURED BY THE NEW
MORTGAGE; (4) WHETHER THE NEW MORTGAGE DEBT IS OF A GREATER AMOUNT THAN
THE OUTSTANDING MORTGAGE DEBT ON THE EXISTING MORTGAGE; (5) THE AMOUNT
OF ANY SUCH DIFFERENCE; AND (6) THE AMOUNT OF MORTGAGE RECORDING TAX DUE
PAYABLE ON THAT DIFFERENCE. SUBMITTED TOGETHER WITH THE STATEMENT UNDER
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD05787-01-9
A. 3066 2
OATH, AND ANY ADDITIONAL MORTGAGE TAX PAYABLE, SHALL BE PROOF OF THE
OUTSTANDING MORTGAGE DEBT ON THE DATE ON WHICH THE NEW MORTGAGE WAS
FULLY EXECUTED IN THE FORM OF AN OFFICIAL PAYOFF STATEMENT ISSUED BY THE
MORTGAGE HOLDER OR SERVICER, OR A SIGNED STATEMENT OF A REPRESENTATIVE
OF THE MORTGAGE HOLDER WITH KNOWLEDGE AND AUTHORITY, OR OTHER SUCH
SUFFICIENT PROOF WHICH THE RECORDING OFFICER DEEMS SUFFICIENT;
(II) IF, AT THE TIME OF RECORDING SUCH INSTRUMENT OR ADDITIONAL MORT-
GAGE, ANY OTHER EXEMPTION IS CLAIMED UNDER THIS SECTION, THERE SHALL BE
FILED WITH THE RECORDING OFFICER AND PRESERVED IN HIS OFFICE A STATEMENT
UNDER OATH OF THE FACTS ON WHICH SUCH CLAIM FOR EXEMPTION IS BASED. THE
DETERMINATION OF THE RECORDING OFFICER UPON THE QUESTION OF EXEMPTION
SHALL BE REVIEWABLE BY THE TAX COMMISSION.
S 2. This act shall take effect immediately.