Bill Text: NY A10750 | 2017-2018 | General Assembly | Introduced
Bill Title: Provides that the apportionment of mortgage taxes for property situated in more than one tax district shall be based upon the full market value of the property covered by such mortgage.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2018-05-16 - referred to ways and means [A10750 Detail]
Download: New_York-2017-A10750-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 10750 IN ASSEMBLY May 16, 2018 ___________ 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: 1 Section 1. Section 260 of the tax law, as amended by chapter 372 of 2 the laws of 1930, is amended to read as follows: 3 § 260. Determination and apportionment by the state tax commission. 4 When the real property covered by a mortgage is situated in more than 5 one tax district, the state tax commission shall apportion the tax paid 6 on such mortgage between the respective tax districts upon the basis of 7 the [relative assessments] full market value of such real property as 8 the same appear on the last assessment-rolls. If, however, the whole or 9 any part of the property covered by such a mortgage is not assessed upon 10 the last assessment-roll or rolls of the tax district or districts in 11 which it is situated, or is so assessed, as a part of a larger tract, 12 that the assessed value cannot be determined, or if improvements have 13 been made to such an extent as materially to change the value of the 14 property so assessed, the tax commission may require the local assessors 15 in the respective tax districts, or the mortgagor, or mortgagee, to 16 furnish sworn appraisals of the property in each tax district, and upon 17 such appraisals shall determine the apportionment. If such mortgage 18 covers real property in two or more counties, the tax commission shall 19 determine the proportion of the tax which shall be paid by the recording 20 officer who has received the same to the recording officers of the other 21 counties in which are situated the tax districts entitled to share ther- 22 ein. When any recording officer shall pay any portion of a tax to the 23 recording officer of another county, he shall forward with such tax a 24 description sufficient to identify the mortgage on which the tax has 25 been paid, and the recording officer receiving such tax shall note on 26 the margin of the record of such mortgage the fact of such payment, 27 attested by his signature. The tax commission shall make an order of 28 determination and apportionment in respect to each such mortgage and EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD15450-01-8A. 10750 2 1 file a certified copy thereof with the recording officer of each county 2 in which a part of the mortgaged real property is situated. 3 When the real property covered by a mortgage is partly within the 4 state and partly without the state it shall be the duty of the tax 5 commission to determine what portion of the mortgage or of advancements 6 thereon shall be taxable under this article. Such determination shall 7 be made in the following manner: First: Determine the respective 8 values of the property within and without the state, and deduct there- 9 from the amount of any prior existing mortgage liens, excepting such 10 liens as are to be replaced by prior advancements and the advancement 11 under consideration. Second: Find the ratio that the net value of the 12 mortgaged property within the state bears to the net value of the entire 13 mortgaged property. Third: Make the determination of the portion of 14 the mortgage or of the advancements thereon which shall be taxable under 15 this article by applying the ratio so found. If a mortgage covering 16 property partly within and partly without the state is presented for 17 record before such determination has been made, or at the time when an 18 advance is made on a corporate trust mortgage or on a prior advance 19 mortgage, there may be presented to the recording officer a statement in 20 duplicate verified by the mortgagor or an officer or duly authorized 21 agent of the mortgagor, in which shall be specified the net value of the 22 property within the state and the net value of the property without the 23 state covered by such mortgage. One of such statements shall be filed 24 by the recording officer and the other shall be forthwith transmitted by 25 him to the state tax commission. The tax payable under this article 26 before the determination by the tax commission shall be computed upon 27 such portion of the principal indebtedness secured by the mortgage, or 28 of the sum advanced thereon, as the net value of the mortgaged property 29 within the state bears to the net value of the entire mortgaged property 30 as set forth in such statement. The tax commission shall on receipt of 31 the statement from the recording officer and on not less than ten days' 32 notice served personally or by mail upon the mortgagor, the mortgagee 33 and the state comptroller, proceed to make the required determination. 34 In determining the separate values of the property within and without 35 the state the tax commission shall consider only the tangible property, 36 real and personal, except that leases of real property shall be deemed 37 tangible property. For the purpose of determining such value the tax 38 commission may require the mortgagor or mortgagee to furnish by affida- 39 vit or verified report such information or data as it may deem neces- 40 sary, and may require and take the testimony of the mortgagor, mortgagee 41 or any other person. A certified copy of the order of determination and 42 apportionment shall be delivered personally or by mail to the mortgagor, 43 the mortgagee and the state comptroller, and any tax under such determi- 44 nation which has not been paid shall be paid within ten days after 45 service of such certified copy; if, however, the tax paid at the time of 46 filing the statement hereinbefore specified with the recording officer 47 is in excess of the tax determined to be payable, the certificate of 48 determination and apportionment shall direct the recording officer to 49 refund to the person paying such tax the amount of such excess; provided 50 that no refund shall be made of any taxes paid pursuant to a previous 51 determination. 52 The tax commission shall adopt rules to govern the procedure and the 53 manner of taking evidence in all the matters provided for by this 54 section and may require verified statements to be furnished either by 55 boards of assessors, recording officers or other persons having know- 56 ledge in relation to such matters. Failure on the part of any person orA. 10750 3 1 officer to furnish a statement or other data when required so to do 2 pursuant to the provisions of this section shall render such person or 3 officer liable to a penalty of one hundred dollars, to be recovered by 4 the attorney-general in an action brought in the name of the people of 5 the state of New York. 6 In making determination and apportionment under this section the tax 7 commission shall consider each advancement made upon a mortgage after 8 July first, nineteen hundred and six, as a new mortgage. In all cases 9 under this section where the provisions for distribution of the tax 10 among tax districts are inapplicable or inadequate, the tax commission 11 shall establish a basis of apportionment that will be equitable and 12 fair. 13 § 2. This act shall take effect immediately.
