New York Codes, Rules and Regulations › Title 20 - DEPARTMENT OF TAXATION AND FINANCE › Chapter IV - Sales And Use And Other Miscellaneous Taxes › Subchapter D - Mortgage Recording Taxes › Part 642 - Imposition Of Taxes › Section 642.2 - Imposition of the additional tax

Current through Register Vol. 46, No. 28, July 10, 2024
Tax Law, § 253(2)
(a) In addition to the tax imposed by
				  subdivision 1 of section 253  of
				  the tax law imposes the additional tax upon the recording of each mortgage on
				  real property located in this State, recorded on or after July 1, 1969, at a
				  rate of 25 cents for each $100 and each remaining major fraction thereof of
				  principal debt or obligation which is, or under any contingency may be secured
				  at the date of execution of the mortgage or at any time thereafter.
(b)
Residential property
				  deduction.
(1) In any case where a
				  mortgage subject to the additional tax is of real property which is principally
				  improved or is to be principally improved by a one- or two-family residence or
				  dwelling, the first $10,000 of principal debt to obligation secured by such
				  mortgage shall be deducted from the total principal debt to obligation secured
				  by such mortgage and the additional tax shall be computed on the amount
				  remaining. Such deduction shall apply notwithstanding that part of the
				  mortgaged property is located in one or more counties which have suspended the
				  tax as provided in paragraph (c)(1) of this section.
(2) Proof of deduction.
(i) For purposes of claiming the deduction
				  provided in paragraph (1) of this subdivision, there shall be submitted to the
				  recording officer of the county where the mortgage is first recorded, either in
				  the mortgage instrument or by separate affidavit by the mortgagor, the
				  mortgagee or any other person who has knowledge of the facts, a statement that
				  the real property covered by the mortgage is improved or will be improved by a
				  one- or two-family residence or dwelling and that there are or will be no other
				  improvements, the cost of fair market value of which exceeds or will exceed the
				  cost of fair market value of the one- or two- family residence or dwelling. In
				  addition to the statement submitted to the recording officer, the commissioner
				  may require the mortgagor, the mortgagee or any other person who has knowledge
				  of the facts to furnish by affidavit such other information or data as deemed
				  necessary for purposes of claiming such deduction.
(ii) Where the real property covered by the
				  mortgage contains or will contain other improvements, the cost or fair market
				  value of which is in excess of the cost or fair market value of the one- or
				  two-family residence or dwelling, the real property shall not be deemed to be
				  principally improved by such one- or two-family residence or dwelling and the
				  deduction shall not apply.
(iii)
				  The cost of each improvement may be used to determine whether the deduction may
				  be taken, except where the cost of any improvement is not known, then the fair
				  market value of such improvement shall be used.