S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7138
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               June 2, 2021
                                ___________
 
 Introduced  by Sen. MARTUCCI -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 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
 on which the tax has been paid, and the recording officer receiving such
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD08826-03-1

 S. 7138                             2
 
 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.
   The  tax  commission shall adopt rules to govern the procedure and the
 manner of taking evidence in  all  the  matters  provided  for  by  this

 S. 7138                             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.