BILL NUMBER: S4488

SPONSOR: HARCKHAM
 
TITLE OF BILL:

An act to amend the tax law, in relation to exempting first-time home-
buyers from the mortgage recording tax

 
SUMMARY OF PROVISIONS:

Section 1 establishes: Notwithstanding any other provision of law to the
contrary, the mortgage recording tax shall not be imposed upon any mort-
gage where the mortgagee is a first-time homebuyer. An individual who is
a first-time homebuyer, will not have to pay the mortgage recording tax
when they take out a mortgage upon purchasing.

 
JUSTIFICATION:

This legislation is vital in addressing significant financial impacts on
first-time homebuyers. According to the Office of New York State Comp-
troller "National homeownership rates declined steadily from 69.1
percent in the first quarter of 2005 to a low of 62.9 percent in the
              

second quarter of 2016. In New York, quarterly homeownership rates show
greater volatility, but declined from 56.6 percent in the first quarter
of 2005 to a low of 50.2 in the second quarter of 2018." New York
currently has the lowest rate of homeownership in the country.'

An additional mortgage tax is applied upon purchasing a residence,
increasing costs impacting affordability. The bill proposes to exempt
first-time homebuyers from the mortgage recording tax. This will help to
mitigate one of the current challenges first-time homebuyers experience.
By passing this legislation, we can help ensure the success for first-
time individuals wishing to purchase a home.

 
LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which it shall have become a law and shall apply to mortgages
executed on and after such effective date.
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