§ 1801. Small claims defined.

The term "small claim" or "small claims" as used in this act shall
mean and include any cause of action for money only not in excess of
three thousand dollars exclusive of interest and costs, provided that
the defendant either resides, or has an office for the transaction of
business or a regular employment within the municipality where the court
is located, or where claimant is or was a tenant or lessee of real
property owned by the defendant and the claim relates to such tenancy or
lease, and such real property is situated within the municipality where
the court is located. However, where a judge of the county court,
pursuant to subdivision (g) of section three hundred twenty-five of the
civil practice law and rules, transfers a small claim from the town or
village court having jurisdiction over the matter to another town or
village court within the same county, the court to which it is
transferred shall have jurisdiction to determine the claim.