S T A T E O F N E W Y O R K
________________________________________________________________________
6796
2017-2018 Regular Sessions
I N S E N A T E
June 18, 2017
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Introduced by COMMITTEE ON RULES -- read twice and ordered printed, and
when printed to be committed to the Committee on Rules
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 amended by chapter 394 of the laws of 2016, 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; PROVIDED, FURTHER,
THAT, NOTWITHSTANDING THE FOREGOING, THE AGENCY SHALL BE EXEMPT FROM ANY
TAXES ON THE EXECUTION AND/OR RECORDATION OF A MORTGAGE OF REAL PROPERTY
SITUATED WITHIN THE STATE WITHIN A TRANSPORTATION DISTRICT REFERENCED IN
PARAGRAPH (A) OF SUBDIVISION TWO OF SECTION TWO HUNDRED FIFTY-THREE OF
THE TAX LAW THAT SECURES AN OBLIGATION TO MAKE PAYMENTS IN LIEU OF TAXES
WHERE THE PRIMARY PURPOSE OF RECORDING THE MORTGAGE IS FOR SUCH MORTGAGE
TO ACT AS THE PRIORITY OF A REAL PROPERTY TAX LIEN.
§ 2. Subdivision 1 of section 1963 of the public authorities law, as
amended by chapter 394 of the laws of 2016, is amended to read as
follows:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13103-03-7
S. 6796 2
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; PROVIDED, FURTHER,
THAT, NOTWITHSTANDING THE FOREGOING, THE AUTHORITY SHALL BE EXEMPT FROM
THE ADDITIONAL TAX IMPOSED BY PARAGRAPH (A) OF SUBDIVISION TWO OF
SECTION TWO HUNDRED FIFTY-THREE OF THE TAX LAW ON THE EXECUTION AND/OR
RECORDATION OF A MORTGAGE OF REAL PROPERTY SITUATED WITHIN THE STATE
WITHIN A TRANSPORTATION DISTRICT REFERENCED IN PARAGRAPH (A) OF SUBDIVI-
SION TWO OF SECTION TWO HUNDRED FIFTY-THREE OF THE TAX LAW THAT SECURES
AN OBLIGATION TO MAKE PAYMENTS IN LIEU OF TAXES WHERE THE PRIMARY
PURPOSE OF RECORDING THE MORTGAGE IS FOR SUCH MORTGAGE TO ACT AS THE
PRIORITY OF A REAL PROPERTY TAX LIEN.
§ 3. Subdivision 1 of section 2326 of the public authorities law, as
amended by chapter 394 of the laws of 2016, 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; PROVIDED, FURTHER,
THAT, NOTWITHSTANDING THE FOREGOING, THE AUTHORITY SHALL BE EXEMPT FROM
THE ADDITIONAL TAX IMPOSED BY PARAGRAPH (A) OF SUBDIVISION TWO OF
SECTION TWO HUNDRED FIFTY-THREE OF THE TAX LAW ON THE EXECUTION AND/OR
RECORDATION OF A MORTGAGE OF REAL PROPERTY SITUATED WITHIN THE STATE
WITHIN A TRANSPORTATION DISTRICT REFERENCED IN PARAGRAPH (A) OF SUBDIVI-
SION TWO OF SECTION TWO HUNDRED FIFTY-THREE OF THE TAX LAW THAT SECURES
AN OBLIGATION TO MAKE PAYMENTS IN LIEU OF TAXES WHERE THE PRIMARY
PURPOSE OF RECORDING THE MORTGAGE IS FOR SUCH MORTGAGE TO ACT AS THE
PRIORITY OF A REAL PROPERTY TAX LIEN.
§ 4. Subdivision 2 of section 252 of the tax law, as added by chapter
394 of the laws of 2016, is amended to read as follows:
(2) Notwithstanding article eighteen-A of the general municipal law
and titles eleven and fifteen of article eight of the public authorities
law, BUT EXCEPT AS SET FORTH IN THIS SUBDIVISION, no mortgage of real
property situated within the state in counties located within the metro-
politan commuter transportation district, the Niagara Frontier transpor-
tation 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
S. 6796 3
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, EXCEPT WHEN THE
EXECUTION AND/OR RECORDATION OF A MORTGAGE OF REAL PROPERTY SITUATED
WITHIN THE STATE WITHIN A TRANSPORTATION DISTRICT REFERENCED IN PARA-
GRAPH (A) OF SUBDIVISION TWO OF SECTION TWO HUNDRED FIFTY-THREE OF THE
TAX LAW THAT SECURES AN OBLIGATION TO MAKE PAYMENTS IN LIEU OF TAXES
WHERE THE PRIMARY PURPOSE OF RECORDING THE MORTGAGE IS FOR SUCH MORTGAGE
TO ACT AS THE PRIORITY OF A REAL PROPERTY TAX LIEN. 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.
§ 5. Paragraph (a) of subdivision 2 of section 253 of the tax law, as
amended by chapter 394 of the laws of 2016, 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, BUT EXCEPT AS SET FORTH IN THIS
PARAGRAPH, 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 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 authori-
ty, or an owner of a project receiving financial assistance from such
agency or authority shall be exempt from the additional tax imposed by
this subdivision, EXCEPT WHEN THE EXECUTION AND/OR RECORDATION OF A
MORTGAGE OF REAL PROPERTY SITUATED WITHIN THE STATE WITHIN A TRANSPORTA-
TION DISTRICT REFERENCED IN PARAGRAPH (A) OF SUBDIVISION TWO OF SECTION
S. 6796 4
TWO HUNDRED FIFTY-THREE OF TAX LAW THAT SECURES AN OBLIGATION TO MAKE
PAYMENTS IN LIEU OF TAXES WHERE THE PRIMARY PURPOSE OF RECORDING THE
MORTGAGE IS FOR SUCH MORTGAGE TO ACT AS THE PRIORITY OF A REAL PROPERTY
TAX LIEN. For the purposes of this [subdivision] PARAGRAPH 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.
§ 6. This act shall take effect on the same date and in the same
manner as chapter 394 of the laws of 2016, takes effect.