NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5167A
SPONSOR: Tague TITLE OF BILL:
An act to amend the tax law, in relation to authorizing the county of
Otsego to impose an additional mortgage recording tax; and providing for
the repeal of such provisions upon expiration thereof
PURPOSE OR GENERAL IDEA OF BILL:
This bill will authorize Otsego County to levy an additional mortgage
recording tax of twenty-five cents (.25) for each one hundred dollars
($100) of mortgage value for a two-year period.
SUMMARY OF SPECIFIC PROVISIONS:
Section one of this bill adds a new section, 253-z, to the tax law,
authorizing Otsego County to impose an additional mortgage recording tax
of twenty-five cents (25) for each one hundred dollars ($100) of mort-
gage value through December 31, 2025. This section also outlines the
terms, conditions, and-manner under which the additional tax shall be
imposed and collected.
Section two provides the effective date.
JUSTIFICATION:
In 1971, Otsego County suspended its collection of the additional one-
quarter percent (.25%) mortgage recording tax authorized under the law.
It is now one of the few counties in New York State that is lacking such
authority. Most recently, the Otsego County Board of Representatives has
adopted a resolution (No. 107-20230201) requesting that the state legis-
lature introduce and pass legislation to authorize the county to impose
an additional mortgage recording tax. This Measure is a home rule
request and requires subsequent action by the county board.
PRIOR LEGISLATIVE HISTORY:
New bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None to the State.
EFFECTIVE DATE:
This act shall take effect immediately and shall expire December 31,
2025 when upon such date the provisions of this act shall be deemed
repealed.
STATE OF NEW YORK
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5167--A
2023-2024 Regular Sessions
IN ASSEMBLY
March 3, 2023
___________
Introduced by M. of A. TAGUE -- 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 authorizing the county of
Otsego to impose an additional mortgage recording tax; and providing
for the repeal of such provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The tax law is amended by adding a new section 253-z to
2 read as follows:
3 § 253-z. Recording tax imposed by the county of Otsego. 1. Otsego
4 county, acting through its local legislative body, is hereby authorized
5 and empowered to adopt and amend local laws imposing in such county a
6 tax of twenty-five cents for each one hundred dollars and each remaining
7 major fraction thereof of principal debt or obligation which is or under
8 any contingency may be secured at the date of execution thereof, or at
9 any time thereafter, by a mortgage on real property situated within such
10 county and recorded on or after the date upon which such tax takes
11 effect and a tax of twenty-five cents on such mortgage if the principal
12 debt or obligation which is or by any contingency may be secured by such
13 mortgage is less than one hundred dollars.
14 2. The taxes imposed under the authority of this section shall be
15 administered and collected in the same manner as the taxes imposed under
16 subdivision one of section two hundred fifty-three and paragraph (b) of
17 subdivision one of section two hundred fifty-five of this article.
18 Except as otherwise provided in this section, all the provisions of this
19 article relating to or applicable to the administration and collection
20 of the taxes imposed by such subdivisions shall apply to the taxes
21 imposed under the authority of this section with such modifications as
22 may be necessary to adapt such language to the tax so authorized. Such
23 provisions shall apply with the same force and effect as if those
24 provisions had been set forth in full in this section except to the
25 extent that any provision is either inconsistent with a provision of
26 this section or not relevant to the tax authorized by this section. For
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03488-03-3
A. 5167--A 2
1 purposes of this section, any reference in this article to the tax or
2 taxes imposed by this article shall be deemed to refer to a tax imposed
3 pursuant to this section, and any reference to the phrase "within this
4 state" shall be read as "within Otsego county", unless a different mean-
5 ing is clearly required.
6 3. Where the real property covered by the mortgage subject to the tax
7 imposed pursuant to the authority of this section is situated in this
8 state but within and without the county imposing such tax, the amount of
9 such tax due and payable to such county shall be determined in a manner
10 similar to that prescribed in the first undesignated paragraph of
11 section two hundred sixty of this article which concerns real property
12 situated in two or more counties. Where such property is situated both
13 within such county and without the state, the amount due and payable to
14 such county shall be determined in the manner prescribed in the second
15 undesignated paragraph of such section two hundred sixty which concerns
16 property situated within and without the state. Where real property is
17 situated within and without the county imposing such tax, the recording
18 officer of the jurisdiction in which the mortgage is first recorded
19 shall be required to collect the taxes imposed pursuant to this section.
20 4. A tax imposed pursuant to the authority of this section shall be in
21 addition to the taxes imposed by section two hundred fifty-three of this
22 article.
23 5. Notwithstanding any provision of this article to the contrary, the
24 balance of all moneys paid to the recording officer of the county of
25 Otsego during each month upon account of the tax imposed pursuant to the
26 authority of this section, after deducting the necessary expenses of his
27 or her office as provided in section two hundred sixty-two of this arti-
28 cle, except taxes paid upon mortgages which under the provisions of this
29 section or section two hundred sixty of this article are first to be
30 apportioned by the commissioner, shall be paid over by such officer on
31 or before the tenth day of each succeeding month to the treasurer of
32 Otsego county and, after the deduction by such treasurer of the neces-
33 sary expenses of his or her office provided in section two hundred
34 sixty-two of this article shall be deposited in the general fund of the
35 county of Otsego for expenditure on any county purpose. Notwithstanding
36 the provisions of the preceding sentence, the tax so imposed and paid
37 upon mortgages covering real property situated in two or more counties,
38 which under the provisions of this section or section two hundred sixty
39 of this article are first to be apportioned by the commissioner, shall
40 be paid over by the recording officer receiving the same as provided by
41 the determination of the commissioner.
42 6. Any local law imposing a tax pursuant to the authority of this
43 section or repealing or suspending such a tax shall take effect only on
44 the first day of a calendar month. Such a local law shall not be effec-
45 tive unless a certified copy thereof is mailed by registered or certi-
46 fied mail to the commissioner at the commissioner's office in Albany at
47 least thirty days prior to the date the local law shall take effect.
48 7. Certified copies of any local law described in this section shall
49 also be filed with the county clerk of the county of Otsego, the secre-
50 tary of state and the state comptroller within five days after the date
51 it is duly enacted.
52 § 2. This act shall take effect immediately and shall expire December
53 31, 2025 when upon such date the provisions of this act shall be deemed
54 repealed.
