Bill Text: NY S05536 | 2015-2016 | General Assembly | Introduced
Bill Title: Relates to the facilitation of mortgage refinancing.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2016-01-06 - REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS [S05536 Detail]
Download: New_York-2015-S05536-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 5536 2015-2016 Regular Sessions I N S E N A T E May 14, 2015 ___________ Introduced by Sen. DeFRANCISCO -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations AN ACT to amend the tax law, in relation to facilitating mortgage refi- nancing THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Paragraph (c) of subdivision 1 of section 255 of the tax 2 law is relettered paragraph (d) and a new paragraph (c) is added to read 3 as follows: 4 (C) NOTWITHSTANDING ANY OTHER PROVISION OF THIS SUBDIVISION IF THE 5 DEBT EVIDENCED OR SECURED BY AN INSTRUMENT OR MORTGAGE IS REFINANCED, 6 UPON WHICH ALL RECORDING TAXES DUE AND PAYABLE HAVE BEEN PAID, AND UPON 7 THE PAYOFF OF THE EXISTING DEBT A SATISFACTION IS INTENDED TO BE 8 RECORDED; THEN, UPON THE RECORDING OF A NEW MORTGAGE TO THE SAME OBLIGER 9 OR OBLIGERS, SUCH NEW INSTRUMENT OR MORTGAGE MAY BE RECORDED WITHOUT THE 10 PAYMENT OF ANY NEW OR ADDITIONAL TAXATION UNDER THIS ARTICLE UP TO AN 11 AMOUNT EQUAL TO THE UNPAID PRINCIPAL BALANCE OF THE EXISTING DEBT BEING 12 SATISFIED SIMULTANEOUSLY THEREWITH, AND A TAX UNDER SECTION TWO HUNDRED 13 FIFTY-THREE OF THIS ARTICLE WILL ONLY BE IMPOSED UPON ANY AMOUNT IN 14 EXCESS OF THE UNPAID PRINCIPAL BALANCE OF THE EXISTING DEBT. 15 S 2. Subdivision 2 of section 255 of the tax law, as amended by chap- 16 ter 409 of the laws of 1986, is amended to read as follows: 17 2. (a) (I) If, at the time of recording such instrument or additional 18 mortgage, any exemption is claimed under this section, there shall be 19 filed with the recording officer and preserved in his office a statement 20 under oath of the facts on which such claim for exemption is based. The 21 determination of the recording officer upon the question of exemption 22 shall be reviewable by the [tax commission] DEPARTMENT. 23 (II) IF AT THE TIME OF RECORDING A NEW INSTRUMENT OR MORTGAGE AS 24 PROVIDED FOR IN PARAGRAPH (C) OF SUBDIVISION ONE OF THIS SECTION, ANY EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11161-01-5 S. 5536 2 1 EXEMPTION IS CLAIMED UNDER SUCH SUBDIVISION, THERE SHALL BE FILED WITH 2 THE RECORDING OFFICER AND PRESENTED IN HIS OR HER OFFICE A STATEMENT 3 UNDER OATH OF THE FACTS ON WHICH SUCH CLAIM FOR EXEMPTION IS BASED 4 ACCOMPANIED BY A TRUE COPY OF THE PAYOFF STATEMENT ISSUED BY THE EXIST- 5 ING MORTGAGE LENDER SETTING FORTH THE OUTSTANDING UNPAID PRINCIPAL 6 BALANCE OF THE EXISTING DEBT SHOWING THE IDENTITY OF THE OBLIGOR OR 7 OBLIGORS. THE DETERMINATION OF THE RECORDING OFFICER UPON THE QUESTION 8 OF EXEMPTION SHALL BE REVIEWABLE BY THE DEPARTMENT. 9 (b) If an exemption is claimed under this section, at any time after 10 such instrument or additional mortgage is recorded and tax paid, there 11 shall be filed with the [tax commission] DEPARTMENT, as part of the 12 application for refund a statement under oath of the facts on which such 13 claim for exemption is based. A copy of the order of refund of the [tax 14 commission] DEPARTMENT shall likewise be filed with the recording offi- 15 cer and preserved in his office. 16 (C) ANY STATEMENT UNDER OATH DESCRIBED IN THIS SECTION SHALL BE 17 RECORDED WITH THE NEW NOTE AND MORTGAGE AND SHALL BE SUBJECT TO THE SAME 18 RECORDATION FEES AS THOSE COLLECTED FOR THE ASSIGNMENT OF A MORTGAGE. 19 S 3. This act shall take effect on the ninetieth day after it shall 20 have become a law.