S T A T E   O F   N E W   Y O R K
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                                  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

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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.