S T A T E O F N E W Y O R K
________________________________________________________________________
4821--A
2021-2022 Regular Sessions
I N A S S E M B L Y
February 8, 2021
___________
Introduced by M. of A. B. MILLER, SALKA -- read once and referred to the
Committee on Ways and Means -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
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 ESTIMATE of such real prop-
erty 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 therein. 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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08826-02-1
A. 4821--A 2
on which the tax has been paid, and the recording officer receiving such
tax shall note on 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.
A. 4821--A 3
The tax commission shall adopt rules to govern the procedure and the
manner of taking evidence in all the matters provided for by this
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.