Amends the tax law in relation to the timing of distribution of mortgage recording tax revenues by counties.

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S1858-2011 Actions

• Jun 11, 2012: referred to ways and means
• Jun 11, 2012: DELIVERED TO ASSEMBLY
• Jun 11, 2012: PASSED SENATE
• May 30, 2012: ADVANCED TO THIRD READING
• May 23, 2012: 2ND REPORT CAL.
• May 22, 2012: 1ST REPORT CAL.853
• Jan 4, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
• Jan 13, 2011: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S1858-2011 Meetings

Investigations and Government Operations: May 15, 2012, Investigations and Government Operations: May 22, 2012

S1858-2011 Calendars

Active List: Jun 11, 2012 , Floor Calendar: May 23, 2012 , Floor Calendar: May 30, 2012 , Floor Calendar: May 31, 2012 , Floor Calendar: Jun 4, 2012 , Floor Calendar: Jun 5, 2012 , Floor Calendar: Jun 6, 2012 , Floor Calendar: Jun 11, 2012

S1858-2011 Votes

S1858-2011 Memo

BILL NUMBER:S1858

TITLE OF BILL:

An act
to amend the tax law, in relation to the timing of distribution of
mortgage recording tax revenues by counties

PURPOSE OR GENERAL IDEA OF BILL:

This legislation amends the tax law in relation to the timing of
distribution of mortgage recording tax revenues by counties.

SUMMARY OF SPECIFIC PROVISIONS:

Subdivision 3 of section 261 of the tax law is amended to allow for
the more timely distribution of recording mortgage tax revenues by
counties.

JUSTIFICATION:

Local governments throughout the State rely on budgeted mortgage tax
revenues to support their respective general fund operations. Due to
an economic downturn over the past two years, mortgage tax revenues
have declined dramatically back to levels not seen in over a decade.
This has resulted in local governments experiencing increased
pressure on the property tax base as well as severe cash flow
constraints.

Current law allows the governing boards of certain counties the option
of distributing payments of the mortgage tax revenue payments to its
respective tax districts on a monthly, quarterly or biannual basis.
Counties such as Suffolk choose to administer the distribution of
mortgage recording tax revenue on a six month basis. However, many
municipalities across the State are now finding that monthly or
quarterly distribution is necessary. The East End Supervisors and
Mayors Association adopted a memorializing resolution requesting
Suffolk County to distribute mortgage tax revenues to its towns and
villages on a monthly or quarterly basis.

PRIOR LEGISLATIVE HISTORY:

2010: A.9765/S.6756 - Remained in Committee

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

This act shall take effect immediately.

S1858-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

      S. 1858                                                  A. 2085

                         2011-2012 Regular Sessions

                        SENATE - ASSEMBLY

                              January 13, 2011
                                 ___________

  IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print-
    ed,  and  when  printed  to  be committed to the Committee on Investi-
    gations and Government Operations

  IN ASSEMBLY -- Introduced by M. of A. THIELE -- read once  and  referred
    to the Committee on Ways and Means

  AN  ACT  to amend the tax law, in relation to the timing of distribution
    of mortgage recording tax revenues by counties

    THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section  1. Subdivision 3 of section 261 of the tax law, as amended by
  chapter 287 of the laws of 2006, is amended to read as follows:

    3. On or before the tenth day of each month the recording  officer  of
  each  county  shall pay over to the county treasurer of said county, and
  in the counties of New York, Kings, Queens, Richmond and  Bronx  to  the
  commissioner of finance of the city of New York for credit to the gener-
  al  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  this  article,  except
  taxes  paid  upon  mortgages  which  under the provisions of section two
  hundred sixty of this article are first to be apportioned by the commis-
  sioner, which taxes and money shall be paid over by the commissioner  of
  finance  of the city of New York as provided by the determination of the
  commissioner. In each county not within the city of New York, the  whole
  of  the  net  amount  of such balance, after the deduction by the county
  treasurer of the necessary expenses of his or  her  office  provided  in
  section  two  hundred sixty-two of this article, shall be held by him or
  her and shall be allocated to the tax districts of the county  according
  to the location of the real property covered by the respective mortgages
  upon  which  the  tax  was  collected. [The recording officer and county

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD03852-01-1

 S. 1858                             2                            A. 2085

  treasurer shall prepare a joint semi-annual  report  on  or  before  May
  fifteenth  and  on or before November fifteenth in each year showing the
  amounts to be credited to each tax district of the county of the  moneys
  collected  under this article during the preceding periods of six months
  each which ended respectively on March thirty-first and September  thir-
  tieth.  Such  report  shall  be made in duplicate in accordance with the
  rules and regulations of the commissioner and filed with  the  clerk  of
  the board of supervisors and the commissioner. The board of supervisors,
  on  or  before  the fifteenth day of June and on or before the fifteenth
  day of December in each year, shall issue its warrant for the payment to
  the respective tax districts  of  the  amounts  so  credited,  provided,
  however, that in] IN a county in which a town contains within its limits
  an  incorporated  village,  or portion thereof, the board of supervisors
  shall apportion to such village so much of the  share  credited  to  the
  town  as  the assessed value of said village or portion thereof bears to
  twice the total assessed valuation of the town[, and provided,  further,
  that,  at  the  option  of the]. THE governing board of the county[, the
  county may instead] SHALL prepare and file [such]  a  joint  report  and
  make  such  payments  on  EITHER a monthly or quarterly basis. Where the
  county elects to make monthly payments, the recording officer and county
  treasurer shall prepare a joint report on or before the fifteenth day of
  each month showing the amounts to be credited to each  tax  district  of
  the  county  and  the  moneys collected under this article for the month
  preceding the most recently concluded month, and the board  of  supervi-
  sors  shall issue its warrant for payment on or before the fifteenth day
  of the following month.  Where  the  county  elects  to  make  quarterly
  payments,  the recording officer and county treasurer shall prepare such
  a joint report on or before the fifteenth day of May, August,  November,
  and February, showing the amounts to be credited to each tax district of
  the  county  of  moneys  collected  under this article for the preceding
  three-month period ending March thirty-first, June thirtieth,  September
  thirtieth,  and  December  thirty-first,  respectively  and the board of
  supervisors shall issue  its  warrant  for  payment  on  or  before  the
  fifteenth day of June, September, December, and March, respectively. The
  warrant shall direct payment to the city treasurer of the amount due the
  city,  to  the  town  supervisor  of the amount due the town, and to the
  village treasurer of the amount to which the village shall be  entitled.
  Mortgage  tax  moneys  allotted  to  cities, towns and villages shall be
  applied to the payment of the general expenses thereof. The commissioner
  shall prescribe the method of adjustment and correction of errors  here-
  tofore  or  hereafter made in the distribution of moneys collected under
  this article.
    S 2. This act shall take effect immediately.