S T A T E O F N E W Y O R K
________________________________________________________________________
9490
I N A S S E M B L Y
March 10, 2016
___________
Introduced by M. of A. MAGNARELLI -- 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:
Section 1. Subdivision 1 of section 874 of the general municipal law,
as added by chapter 1030 of the laws of 1969, is amended to read as
follows:
(1) It is hereby determined that the creation of the agency and the
carrying out of its corporate purposes is in all respects for the bene-
fit of the people of the state of New York and is a public purpose, and
the agency shall be regarded as performing a governmental function in
the exercise of the powers conferred upon it by this title and shall be
required to pay no taxes or assessments upon any of the property
acquired by it or under its jurisdiction or control or supervision or
upon its activities. PROVIDED, HOWEVER, IF THE AGENCY IS LOCATED WITHIN
A TRANSPORTATION DISTRICT REFERENCED IN PARAGRAPH (A) OF SUBDIVISION TWO
OF SECTION TWO HUNDRED FIFTY-THREE OF THE TAX LAW, IT SHALL NOT BE
EXEMPT FROM THE ADDITIONAL TAX ON EACH MORTGAGE OF REAL PROPERTY SITU-
ATED WITHIN THE STATE IMPOSED BY SUCH PARAGRAPH.
S 2. Subdivision 1 of section 1963 of the public authorities law, as
added by chapter 759 of the laws of 1967, is amended to read as follows:
1. It is hereby determined that the creation of the authority and the
carrying out of its corporate purposes is in all respects for the bene-
fit of the people of the city and its environs, and is a public purpose,
and the authority shall be regarded as performing a governmental func-
tion in the exercise of the powers conferred upon it by this title and
shall be required to pay no taxes or assessments upon any of the proper-
ty acquired by it or under its jurisdiction or control or supervision or
upon its activities. PROVIDED, HOWEVER, IF THE AUTHORITY IS LOCATED
WITHIN A TRANSPORTATION DISTRICT REFERENCED IN PARAGRAPH (A) OF SUBDIVI-
SION TWO OF SECTION TWO HUNDRED FIFTY-THREE OF THE TAX LAW, IT SHALL NOT
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14353-02-6
A. 9490 2
BE EXEMPT FROM THE ADDITIONAL TAX ON EACH MORTGAGE OF REAL PROPERTY
SITUATED WITHIN THE STATE IMPOSED BY SUCH PARAGRAPH.
S 3. Subdivision 1 of section 2326 of the public authorities law, as
added by chapter 915 of the laws of 1969, is amended to read as follows:
1. It is hereby determined that the creation of the authority and the
carrying out of its corporate purposes is in all respects for the bene-
fit of the people of the city and its environs, and is a public purpose,
and the authority shall be regarded as performing a governmental func-
tion in the exercise of the powers conferred upon it by this title and
shall be required to pay no taxes or assessments upon any of the proper-
ty acquired by it or under its jurisdiction or control or supervision or
upon its activities. PROVIDED, HOWEVER, IF THE AUTHORITY IS LOCATED
WITHIN A TRANSPORTATION DISTRICT REFERENCED IN PARAGRAPH (A) OF SUBDIVI-
SION TWO OF SECTION TWO HUNDRED FIFTY-THREE OF THE TAX LAW, IT SHALL NOT
BE EXEMPT FROM THE ADDITIONAL TAX ON EACH MORTGAGE OF REAL PROPERTY
SITUATED WITHIN THE STATE IMPOSED BY SUCH PARAGRAPH.
S 4. Section 252 of the tax law, as amended by chapter 671 of the laws
of 1989, is amended to read as follows:
S 252. Exemptions. (1) No mortgage of real property situated within
this state shall be exempt, and no person or corporation owning any debt
or obligation secured by mortgage of real property situated within this
state shall be exempt, from the taxes imposed by this article by reason
of anything contained in any other statute, except as provided in
section three hundred thirty-nine-ee of the real property law, or by
reason of any provision in any private act or charter which is subject
to amendment or repeal by the legislature, or by reason of non-residence
within this state or for any other cause, except that mortgages of real
property situated within this state transferred, assigned or made to
Home Owners' Loan Corporation, a corporation created under an act of
congress, known as home owners' loan act of nineteen hundred and thir-
ty-three, or to a agricultural credit association or federal home loan
bank, shall be exempt, and said corporation or institution owning any
debt or obligation secured by mortgage of real property situated within
this state, shall be exempt from the taxes imposed by this article and
except that mortgages of real property situated within this state
executed, given or made prior to June first, nineteen hundred thirty-
four by any public benefit corporation created under the laws of this
state for the purpose of maintaining and operating a public park and
public recreation center shall be exempt, and any person or corporation
owning any debt or obligation of any such public benefit corporation
secured by such a mortgage of its real property situated within this
state, shall be exempt from the taxes imposed by this article, and
except that mortgages of real property situated within this state which
are executed, given or made subsequent to June seventh, nineteen hundred
thirty-four and which are substituted for other mortgages as a part of
and in compliance with a plan of reorganization pursuant to the
provisions of section seventy-seven-b of the federal bankruptcy act, are
and shall be exempt from taxes imposed by this article to an amount not
exceeding the amount of such mortgage indebtedness outstanding at the
time of the consummation of such reorganization, and any person or
corporation owning any debt or obligation secured by such a mortgage of
real property situated within this state is and shall be exempt from the
taxes imposed by this article, and except that mortgages of real proper-
ty situated within this state which are executed, given or made by a
railroad redevelopment corporation during the first nine years of its
existence as such are and shall be exempt from the taxes imposed by this
A. 9490 3
article and any person or corporation owning any debt or obligation
secured by such a mortgage of real property situated within this state
is and shall be exempt from the taxes imposed by this article.
(2) NOTWITHSTANDING ARTICLE EIGHTEEN-A OF THE GENERAL MUNICIPAL LAW
AND TITLES ELEVEN AND FIFTEEN OF ARTICLE EIGHT OF THE PUBLIC AUTHORITIES
LAW, NO MORTGAGE OF REAL PROPERTY SITUATED WITHIN THE STATE IN COUNTIES
LOCATED WITHIN THE METROPOLITAN COMMUTER TRANSPORTATION DISTRICT, THE
NIAGARA FRONTIER TRANSPORTATION DISTRICT, THE ROCHESTER-GENESEE TRANS-
PORTATION DISTRICT, THE CAPITAL DISTRICT TRANSPORTATION DISTRICT, AND
THE CENTRAL NEW YORK REGIONAL TRANSPORTATION DISTRICT EXECUTED, GIVEN,
MADE, OR TRANSFERRED OR ASSIGNED BY OR TO AN AGENCY CREATED UNDER ARTI-
CLE EIGHTEEN-A OF THE GENERAL MUNICIPAL LAW, AN AUTHORITY CREATED UNDER
TITLE ELEVEN OR FIFTEEN OF ARTICLE EIGHT OF THE PUBLIC AUTHORITIES LAW,
AN AGENT OR AGENT OF SUCH AGENT OF SUCH AGENCY OR AUTHORITY, A PROJECT
OPERATOR RECEIVING FINANCIAL ASSISTANCE FROM SUCH AGENCY OR AUTHORITY, A
PROJECT OCCUPANT OF SUCH AGENCY OR AUTHORITY, OR AN OWNER OF A PROJECT
RECEIVING FINANCIAL ASSISTANCE FROM SUCH AGENCY OR AUTHORITY SHALL BE
EXEMPT FROM THE ADDITIONAL TAX IMPOSED BY PARAGRAPH (A) OF SUBDIVISION
TWO OF SECTION TWO HUNDRED FIFTY-THREE OF THIS ARTICLE. FOR THE PURPOSES
OF THIS SUBDIVISION THE TERM "FINANCIAL ASSISTANCE" SHALL HAVE THE SAME
MEANING AS DEFINED IN SECTION EIGHT HUNDRED FIFTY-FOUR OF THE GENERAL
MUNICIPAL LAW.
S 5. Paragraph (a) of subdivision 2 of section 253 of the tax law, as
amended by section 2 of part A of chapter 63 of the laws of 2005, is
amended to read as follows:
(a) In addition to the taxes imposed by subdivisions one and one-a of
this section, there shall be imposed on each mortgage of real property
situated within the state recorded on or after the first day of July,
nineteen hundred sixty-nine, an additional tax of twenty-five cents for
counties outside of the metropolitan commuter transportation district,
as defined pursuant to section twelve hundred sixty-two of the public
authorities law, and thirty cents for counties within such metropolitan
commuter transportation district for each one hundred dollars and each
remaining major fraction thereof of principal debt or obligation which
is, or under any contingency may be secured at the date of execution
thereof or at any time thereafter by such mortgage, saving and excepting
the first ten thousand dollars of such principal debt or obligation in
any case in which the related mortgage is of real property principally
improved or to be improved by a one or two family residence or dwelling.
All the provisions of this article shall apply with respect to the addi-
tional tax imposed by this subdivision to the same extent as if it were
imposed by the said subdivision one of this section, except as otherwise
expressly provided in this article. NOTWITHSTANDING ARTICLE EIGHTEEN-A
OF THE GENERAL MUNICIPAL LAW AND TITLES ELEVEN AND FIFTEEN OF ARTICLE
EIGHT OF THE PUBLIC AUTHORITIES LAW, NO MORTGAGE OF REAL PROPERTY SITU-
ATED WITHIN THE STATE IN COUNTIES LOCATED WITHIN THE METROPOLITAN COMMU-
TER TRANSPORTATION DISTRICT, THE NIAGARA FRONTIER TRANSPORTATION
DISTRICT, THE ROCHESTER-GENESEE TRANSPORTATION DISTRICT, THE CAPITAL
DISTRICT TRANSPORTATION DISTRICT, AND THE CENTRAL NEW YORK REGIONAL
TRANSPORTATION DISTRICT EXECUTED, GIVEN, MADE, OR TRANSFERRED OR
ASSIGNED BY OR TO AN AGENCY CREATED UNDER ARTICLE EIGHTEEN-A OF THE
GENERAL MUNICIPAL LAW, AN AUTHORITY CREATED UNDER TITLE ELEVEN OR
FIFTEEN OF ARTICLE EIGHT OF THE PUBLIC AUTHORITIES LAW, AN AGENT OR
AGENT OF SUCH AGENT OF SUCH AGENCY OR AUTHORITY, A PROJECT OPERATOR
RECEIVING FINANCIAL ASSISTANCE FROM SUCH AGENCY OR AUTHORITY, A PROJECT
OCCUPANT OF SUCH AGENCY OR AUTHORITY, OR AN OWNER OF A PROJECT RECEIVING
A. 9490 4
FINANCIAL ASSISTANCE FROM SUCH AGENCY OR AUTHORITY SHALL BE EXEMPT FROM
THE ADDITIONAL TAX IMPOSED BY THIS SUBDIVISION. FOR THE PURPOSES OF THIS
SUBDIVISION THE TERM "FINANCIAL ASSISTANCE" SHALL HAVE THE SAME MEANING
AS DEFINED IN SECTION EIGHT HUNDRED FIFTY-FOUR OF THE GENERAL MUNICIPAL
LAW. The imposition of this additional tax on mortgages recorded in a
county outside the city of New York, other than one of the counties from
time to time comprising the metropolitan commuter transportation
district, the Niagara Frontier transportation district, the Rochester-
Genesee transportation district, the capital district transportation
district or the central New York regional transportation district may be
suspended for a specified period of time or without limitation as to
time by a local law, ordinance or resolution duly adopted by the local
legislative body of such county.
S 6. This act shall take effect immediately.