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This entry was published on 2014-09-22
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SECTION 260
Determination and apportionment by the state tax commission
Tax (TAX) CHAPTER 60, ARTICLE 11
§ 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 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
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 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
therefrom 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 affidavit or verified report such information or
data as it may deem necessary, 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 determination 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
section and may require verified statements to be furnished either by
boards of assessors, recording officers or other persons having
knowledge 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.