Section 11-2601
§ 11-2601 Imposition of tax. a. A tax of fifty cents for each one
hundred dollars 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 thereof or at any time thereafter by a mortgage on
real property situated within the city and recorded on or after August
first, nineteen hundred seventy-one and prior to February first,
nineteen hundred eighty-two, is hereby imposed on each such mortgage and
shall be collected and paid as provided in this chapter. If the
principal debt or obligation which is or by any contingency may be
secured by such mortgage is less than one hundred dollars, a tax of
fifty cents is hereby imposed on such mortgage, and shall be collected
and paid as provided in this chapter.
b. With respect to: (1) one, two or three-family houses, individual
cooperative apartments and individual residential condominium units, and
(2) real property securing a principal debt or obligation of less than
five hundred thousand dollars, a tax of fifty cents, and with respect to
all other real property a tax of one dollar and twelve and one-half
cents, for each one hundred dollars 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 thereof or at any
time thereafter by a mortgage on such real property situated within the
city and recorded on or after February first, nineteen hundred
eighty-two and before July first, nineteen hundred eighty-two, is hereby
imposed on each such mortgage and shall be collected and paid as
provided in this chapter. If the principal debt or obligation which is
or by any contingency may be secured by such mortgage is less than one
hundred dollars, a tax of one dollar is hereby imposed on such mortgage,
and shall be collected and paid as provided in this chapter.
c. With respect to: (1) real property securing a principal debt or
obligation of less than five hundred thousand dollars, a tax of fifty
cents, (2) with respect to one, two or three-family houses, individual
cooperative apartments and individual residential condominium units
securing a principal debt or obligation of five hundred thousand dollars
or more, a tax of sixty-two and one-half cents, and (3) with respect to
all other real property, a tax of one dollar and twenty-five cents, for
each one hundred dollars 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 thereof or at any time thereafter by a
mortgage on such real property situated within the city and recorded on
or after July first, nineteen hundred eighty-two and before August
first, nineteen hundred ninety, is hereby imposed on each such mortgage
and shall be collected and paid as provided in this chapter. If the
principal debt or obligation which is or by any contingency may be
secured by such mortgage is less than one hundred dollars, a tax of one
dollar is hereby imposed on such mortgage and shall be collected and
paid as provided in this chapter.
d. With respect to: (1) real property securing a principal debt or
obligation of less than five hundred thousand dollars, a tax of one
dollar, (2) with respect to one, two or three-family houses and
individual residential condominium units securing a principal debt or
obligation of five hundred thousand dollars or more, a tax of one dollar
and twelve and one-half cents, and (3) with respect to all other real
property, a tax of one dollar and seventy-five cents, for each one
hundred dollars 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 thereof, or at anytime thereafterby a mortgage on
such real property situated within the city and recorded on or after
August first, nineteen hundred ninety, is hereby imposed on each such
mortgage and shall be collected and paid as provided in this chapter. If
the principal debt or obligation which is or by any contingency may be
secured by such mortgage is less than one hundred dollars, a tax of one
dollar is hereby imposed on such mortgage and shall be collected and
paid as provided in this chapter.
e. (1) For the purpose of determining whether a mortgage is subject to
the tax imposed by subdivision b or c of this section at a rate in
excess of fifty cents, or by subdivision d of this section at a rate in
excess of one dollar, for each one hundred dollars and each remaining
major fraction thereof of principal debt or obligation, the principal
debt or obligation which is or under any contingency may be secured at
the date of execution thereof, or at any time thereafter, by such
mortgage shall be aggregated with the principal debt or obligation which
is or under any contingency may be secured at the date of execution
thereof, or at any time thereafter, by any other mortgage, where such
mortgages form part of the same or related transactions and have the
same or related mortgagors. If the commissioner of taxation and finance
finds that a mortgage transaction or mortgage transactions have been
formulated for the purpose of avoiding or evading a rate of tax imposed
under this section in excess of the lowest such rate, rather than solely
for an independent business or financial purpose, such commissioner
shall treat all of the mortgages forming part of such transaction or
transactions as a single mortgage for the purpose of determining the
applicable rate of tax. For the purposes of this subdivision, all
mortgages having the same or related mortgagors offered for recording
within a period of twelve consecutive months shall be presumed to form
part of a related transaction, unless clear and convincing evidence is
offered to the contrary. The commissioner of taxation and finance may
require such affidavits and forms, and may prescribe such rules and
regulations, as he determines to be necessary to enforce the provisions
of this subdivision.
(2) The term "related", when used in this subdivision with reference
to mortgagors, shall include, but shall not be limited to, the following
relationships:
(i) members of a family, including spouses, ancestors, lineal
descendants, and brothers and sisters (whether by the whole or half
blood);
(ii) a shareholder and a corporation more than fifty percent of the
value of the outstanding stock of which is owned or controlled directly
or indirectly by such shareholder;
(iii) a partner and a partnership more than fifty percent of the
capital or profits interest in which is owned or controlled directly or
indirectly by such partner;
(iv) a beneficiary and a trust more than fifty percent of the
beneficial interest in which is owned or controlled directly or
indirectly by such beneficiary;
(v) two or more corporations, partnerships, associations, or trusts,
or any combination thereof, which are owned or controlled, either
directly or indirectly, by the same person, corporation or other entity,
or interests; and
(vi) a grantor of a trust and such trust.
f. Notwithstanding any provision to the contrary in paragraph (a) of
subdivision one of section two hundred fifty-five of the tax law, the
taxes imposed by subdivision c or d of this section shall also apply to
principal indebtedness or obligation secured by or which under any
contingency may be secured by a supplemental instrument or additional
mortgage, whether or not there is any new or further indebtedness or
obligation other than the principal indebtedness or obligation secured
by a recorded primary mortgage, where (1) the supplemental instrument or
additional mortgage imposes the lien of a recorded mortgage upon real
property situated within the city not previously subject to the mortgage
or where an additional mortgage upon such additional property is
recorded as additional or substitute security for indebtedness or
obligation already secured by a recorded mortgage and (2) the recorded
primary mortgage was on real property outside the city and recorded
without payment of the city tax.
Section 11-2602
§ 11-2602 Payment and payment over of taxes. The taxes imposed by this
chapter shall be payable on the recording of each mortgage of real
property subject to taxes thereunder. Such taxes shall be paid to the
recording officer of the county in which the real property or any part
thereof is situated, except where real property is situated within and
without the city, the recording officer of the county in which the
mortgage is first recorded shall collect the tax imposed by this
chapter, as required by subdivision three of section two hundred
fifty-three-a of the tax law. It shall be the duty of such recording
officer to indorse upon each mortgage a receipt for the amount of the
tax so paid. Any mortgage so endorsed may thereupon or thereafter be
recorded by any recording officer and the receipt for such tax indorsed
upon each mortgage shall be recorded therewith. The record of such
receipt shall be conclusive proof that the amount of tax stated therein
has been paid upon such mortgage. Upon the first day of each month the
city register and the recording officer of Richmond county shall pay
over to the commissioner of finance of the city for credit to the
general fund of such city, the balance of the moneys received during the
preceding month upon account of taxes paid to him or her as herein
prescribed, after deducting the necessary expenses of his or her office
as provided in section two hundred sixty-two of the tax law, except
taxes paid upon mortgages which are first to be apportioned by the
commissioner of taxation and finance, which taxes and money shall be
paid over by him or her as provided by the determination of the said
commissioner of taxation and finance. Notwithstanding the foregoing
provision, in each instance where the tax imposed pursuant to section
11-2601 of this chapter is one dollar and twenty-five cents for each one
hundred dollars and each remaining major fraction thereof of such
principal debt or obligation, fifty percent of the total amount of such
tax, including fifty percent of any interest or penalties thereon, shall
be set aside in a special account by the commissioner of finance, and in
each instance where the tax imposed pursuant to that section is one
dollar and seventy-five cents for each one hundred dollars and each
remaining major fraction thereof of such principal debt or obligation,
thirty-five and seven-tenths percent of the total amount of such tax,
including thirty-five and seven-tenths percent of any interest or
penalties thereon, shall also be set aside in such special account.
Moneys in such account shall be used for payment by such commissioner to
the state comptroller for deposit in the urban mass transit operating
assistance account of the mass transportation operating assistance fund
of any amount of insufficiency certified by the state comptroller
pursuant to the provisions of subdivision six of section eighty-eight-a
of the state finance law, and on the fifteenth day of each month, such
commissioner shall transmit all funds in such account at the end of the
preceding month, except the amount required for the payment of any
amount of insufficiency certified by the state comptroller and such
amount as he or she deems necessary for refunds and such other amounts
necessary to finance the New York city transportation disabled committee
and the New York city paratransit system as established by section
fifteen-b of the transportation law, provided, however, that such
amounts shall not exceed six percent of the total funds in the account
but in no event be less than two hundred twenty-five thousand dollars
beginning April first, nineteen hundred eighty-six, and further that
beginning November fifteenth, nineteen hundred eighty-four and during
the entire period prior to operation of such system, the total of such
amounts shall not exceed three hundred seventy-five thousand dollars for
the administrative expenses of such committee and fifty thousand dollars
for the expenses of the agency designated pursuant to paragraph b of
subdivision five of such section, and other amounts necessary to finance
the operating needs of the private bus companies franchised by the city
of New York and eligible to receive state operating assistance under
section eighteen-b of the transportation law, provided, however, that
such amounts shall not exceed four percent of the total funds in the
account, to the New York city transit authority for mass transit within
the city.
Section 11-2603
§ 11-2603 Manner of administration and collection. The taxes imposed
under this chapter shall be administered and collected in the same
manner as the taxes imposed under subdivision one of section two hundred
fifty-three and subdivision one of section two hundred fifty-five of the
tax law. All the provisions of article eleven of the tax law relating to
or applicable to the administration and collection of the taxes imposed
by subdivision one of section two hundred fifty-three and subdivision
one of section two hundred fifty-five of the tax law shall apply to the
taxes imposed under this chapter with the same force and effect as if
those provisions had been set forth in full in this chapter except to
the extent that any such provision is either inconsistent with a
provision of this chapter or not relevant to the tax imposed by this
chapter. For purposes of this chapter any reference in article eleven of
the tax law to the tax or taxes imposed by such article shall be deemed
to refer to a tax imposed by this chapter, and any reference to the
phrase "within this state" shall be read as "within this city" unless a
different meaning is clearly required. Whenever real property covered by
the mortgage is partly within and partly without the city of New York,
the portion of the mortgage taxable under this chapter shall be
determined in the manner prescribed in the first paragraph of section
two hundred sixty of the tax law where the property without the city is
located within the state and, in the manner prescribed in the second
paragraph of such section of the tax law, where the property without the
city is located without the state.
Section 11-2604
§ 11-2604 Tax additional. The tax imposed by this chapter shall be in
addition to any taxes imposed by section two hundred fifty-three of the
tax law.
To the extent possible under law, Friends of Devin Balkind for Public Advocate has waived all copyright and related or neighboring rights to New York City Administrative Code. This work is published from: United States.
Special thanks to Benjarmin Kallos and Thom Neale who made this content publicly available as a bulk download.