2023 New York Laws › TAX - Tax › Article 11 - Tax on Mortgages › 260 - Determination and Apportionment by the State Tax Commission.

§  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 of such real property 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 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
  therefrom 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 affidavit or verified report such information or
  data as it may deem necessary, 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 determination 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.
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
  knowledge 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.