This bill has been amended

Bill S3479-2013

Prevents referees from being held liable for interest or penalties on transfer taxes to be paid on deeds filed in their capacity as referee

Prevents referees from being held liable for interest or penalties on transfer taxes to be paid on deeds filed in their capacity as referee pursuant to a judgment of foreclosure and sale.

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  • Feb 4, 2013: REFERRED TO JUDICIARY

Memo

BILL NUMBER:S3479

TITLE OF BILL: An act to amend the civil practice law and rules, in relation to the liability of referees for interest and penalties in connection with transfer taxes on deeds

PURPOSE: Prevents referees from being held liable for interest or penalties on deeds filed in their capacity as referee.

SUMMARY OF PROVISIONS: Subdivision (c) of section 8003 of the civil practice law and rules is relettered subdivision (d) and a new subdivision (c) is added. This new subdivision provides that a referee shall not be liable for certain transfer taxes imposed upon a referee delivering a deed in a foreclosure sale.

JUSTIFICATION: By law, referees selling properties at foreclosure are treated as grantors subject co the Real Property Transfer Tax ("RPTT"). Specifically, 19 RCNY S 2303 (d)(2) provides that the RPTT will apply to deeds given by referees, receivers, sheriffs, etc., for realty sold under liens not canceled, by the sale, and advertising expenses, taxes and other costs paid by the purchaser, whether the purchaser is the mortgagee, judgment creditor or other person.

There is no provision of law or regulation that exempts a referee, acting as a grantor, from the penalty and interest provisions otherwise imposed under the RPTT. However, as of January 1, 2012, referees will be responsible for the payment of any penalties and interest that will be imposed for late filing of the RPTT return. Therefore, this legislation is necessary to prevent referees from being held liable for interest or penalties on deeds filed in their capacity as referee/arbiter.

LEGISLATIVE HISTORY: S.6467A of 2012 - Referred to Judiciary Committee

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 3479 2013-2014 Regular Sessions IN SENATE February 4, 2013 ___________
Introduced by Sen. GOLDEN -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary AN ACT to amend the civil practice law and rules, in relation to the liability of referees for interest and penalties in connection with transfer taxes on deeds THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision (c) of section 8003 of the civil practice law and rules is relettered subdivision (d) and a new subdivision (c) is added to read as follows: (C) REFEREE NOT LIABLE FOR INTEREST OR PENALTY. A REFEREE SHALL NOT BE LIABLE FOR ANY INTEREST OR PENALTY IN CONNECTION WITH ANY STATE OR LOCAL TRANSFER TAXES IMPOSED UPON A DEED DELIVERED BY A REFEREE TRANS- FERRING A PROPERTY PURSUANT TO A JUDGMENT OF FORECLOSURE AND SALE. S 2. This act shall take effect immediately.

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