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.