Case ID: ny_241/html/0524-01.html
Source: Caselaw Access Project
Author: {"author": "", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

The People of the State of New York ex rel. Jewelers Building Corporation, Respondent, v. State Tax Commission, Appellant.
    
      Tax — mortgage tax — agreement consolidating two mortgages •— recording tax paid on entire amount — improper to impose separate recording tax upon one of consolidated mortgages.
    
    
      People ex rel. Jewelers Building Corpn. v. State Tax Commission, 214 App. Div. 99, affirmed.
    (Argued October 7, 1925;
    decided October 27, 1925.)
    Appeal from an order of the Appellate Division of the Supreme Court in the third judicial department, entered June 10, 1925, which annulled so much of a determination of the State Tax Commission as held that a certain instrument executed by the relator to the Equitable Trust Company was subject to a recording tax under article 11 of the Tax Law. Relator had mortgaged its real property for $750,000, the mortgage had been recorded and the recording tax paid. Thereafter the mortgage was assigned to the Equitable Trust Company. On the same day relator executed and delivered to that company an additional bond and mortgage for $250,000 on the same property and the Equitable Trust Company and relator executed an agreement consolidating the two bonds and mortgages. The $250,000 mortgage and the consolidation agreement was thereafter recorded. The State Tax Commission determined that the consolidation agreement was a mortgage and that a recording tax was payable thereon. It also determined that a separate recording tax was payable upon the $250,000 mortgage. The Appellate Division annulled the latter determination.
    
      Albert Ottinger, Attorney-General (Henry S. Manley of counsel), for appellant.
    
      Max Miller and Jacob Feld for respondent.
   Order affirmed, with costs; no opinion.

Concur: His cock, Ch. J., McLaughlin, Crane, Andrews and Lehman, JJ. Dissenting: Cardozo and Pound, JJ.