S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4533
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 4, 2019
                                ___________
 
 Introduced  by  M.  of  A.  B. MILLER  --  read once and referred to the
   Committee on Ways and Means
 
 AN ACT to amend the tax law, in relation to  apportionment  of  mortgage
   taxes for property situated in more than one tax district
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 260 of the tax law, as amended by  chapter  372  of
 the laws of 1930, is amended to read as follows:
   §  260.   Determination and apportionment by the state tax commission.
 When the real property covered by a mortgage is situated  in  more  than
 one  tax district, the state tax commission shall apportion the tax paid
 on such mortgage between the respective tax districts upon the basis  of
 the  [relative  assessments]  FULL MARKET VALUE of such real property as
 the same appear on the last assessment-rolls.  If, however, the whole or
 any part of the property covered by such a mortgage is not assessed upon
 the last assessment-roll or rolls of the tax district  or  districts  in
 which  it  is  situated, or is so assessed, as a part of a larger tract,
 that the assessed value cannot be determined, or  if  improvements  have
 been  made  to  such  an extent as materially to change the value of the
 property so assessed, the tax commission may require the local assessors
 in the respective tax districts, or  the  mortgagor,  or  mortgagee,  to
 furnish  sworn appraisals of the property in each tax district, and upon
 such appraisals shall determine the apportionment.    If  such  mortgage
 covers  real  property in two or more counties, the tax commission shall
 determine the proportion of the tax which shall be paid by the recording
 officer who has received the same to the recording officers of the other
 counties in which are situated the tax districts entitled to share ther-
 ein.  When any recording officer shall pay any portion of a tax  to  the
 recording  officer  of  another county, he shall forward with such tax a
 description sufficient to identify the mortgage on  which  the  tax  has
 been  paid,  and  the recording officer receiving such tax shall note on
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06607-01-9

 A. 4533                             2
 
 the margin of the record of such mortgage  the  fact  of  such  payment,
 attested  by  his signature.   The tax commission shall make an order of
 determination and apportionment in respect to  each  such  mortgage  and
 file  a certified copy thereof with the recording officer of each county
 in which a part of the mortgaged real property is situated.
   When the real property covered by a  mortgage  is  partly  within  the
 state  and  partly  without  the  state  it shall be the duty of the tax
 commission to determine what portion of the mortgage or of  advancements
 thereon  shall  be taxable under this article.  Such determination shall
 be made in the following manner:    First:    Determine  the  respective
 values  of  the property within and without the state, and deduct there-
 from the amount of any prior existing  mortgage  liens,  excepting  such
 liens  as  are  to be replaced by prior advancements and the advancement
 under consideration.  Second:  Find the ratio that the net value of  the
 mortgaged property within the state bears to the net value of the entire
 mortgaged  property.   Third:   Make the determination of the portion of
 the mortgage or of the advancements thereon which shall be taxable under
 this article by applying the ratio so found.   If  a  mortgage  covering
 property  partly  within  and  partly without the state is presented for
 record before such determination has been made, or at the time  when  an
 advance  is  made  on  a  corporate trust mortgage or on a prior advance
 mortgage, there may be presented to the recording officer a statement in
 duplicate verified by the mortgagor or an  officer  or  duly  authorized
 agent of the mortgagor, in which shall be specified the net value of the
 property  within the state and the net value of the property without the
 state covered by such mortgage.  One of such statements shall  be  filed
 by the recording officer and the other shall be forthwith transmitted by
 him  to  the  state tax commission.   The tax payable under this article
 before the determination by the tax commission shall  be  computed  upon
 such  portion  of the principal indebtedness secured by the mortgage, or
 of the sum advanced thereon, as the net value of the mortgaged  property
 within the state bears to the net value of the entire mortgaged property
 as  set forth in such statement.  The tax commission shall on receipt of
 the statement from the recording officer and on not less than ten  days'
 notice  served  personally  or by mail upon the mortgagor, the mortgagee
 and the state comptroller, proceed to make the  required  determination.
 In  determining  the  separate values of the property within and without
 the state the tax commission shall consider only the tangible  property,
 real  and  personal, except that leases of real property shall be deemed
 tangible property.  For the purpose of determining such  value  the  tax
 commission  may require the mortgagor or mortgagee to furnish by affida-
 vit or verified report such information or data as it  may  deem  neces-
 sary, and may require and take the testimony of the mortgagor, mortgagee
 or any other person.  A certified copy of the order of determination and
 apportionment shall be delivered personally or by mail to the mortgagor,
 the mortgagee and the state comptroller, and any tax under such determi-
 nation  which  has  not  been  paid  shall be paid within ten days after
 service of such certified copy; if, however, the tax paid at the time of
 filing the statement hereinbefore specified with the  recording  officer
 is  in  excess  of  the tax determined to be payable, the certificate of
 determination and apportionment shall direct the  recording  officer  to
 refund to the person paying such tax the amount of such excess; provided
 that  no  refund  shall be made of any taxes paid pursuant to a previous
 determination.
   The tax commission shall adopt rules to govern the procedure  and  the
 manner  of  taking  evidence  in  all  the  matters provided for by this

 A. 4533                             3
 
 section and may require verified statements to be  furnished  either  by
 boards  of  assessors,  recording officers or other persons having know-
 ledge in relation to such matters.  Failure on the part of any person or
 officer  to  furnish  a  statement  or other data when required so to do
 pursuant to the provisions of this section shall render such  person  or
 officer  liable  to a penalty of one hundred dollars, to be recovered by
 the attorney-general in an action brought in the name of the  people  of
 the state of New York.
   In  making  determination and apportionment under this section the tax
 commission shall consider each advancement made upon  a  mortgage  after
 July  first,  nineteen hundred and six, as a new mortgage.  In all cases
 under this section where the provisions  for  distribution  of  the  tax
 among  tax  districts are inapplicable or inadequate, the tax commission
 shall establish a basis of apportionment  that  will  be  equitable  and
 fair.
   § 2. This act shall take effect immediately.