Bill S3479A-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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Actions

  • Jun 11, 2014: SUBSTITUTED BY A1582A
  • May 12, 2014: ADVANCED TO THIRD READING
  • May 7, 2014: 2ND REPORT CAL.
  • May 6, 2014: 1ST REPORT CAL.520
  • Jan 8, 2014: REFERRED TO JUDICIARY
  • Sep 20, 2013: PRINT NUMBER 3479A
  • Sep 20, 2013: AMEND (T) AND RECOMMIT TO JUDICIARY
  • Feb 4, 2013: REFERRED TO JUDICIARY

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BILL NUMBER:S3479A

TITLE OF BILL: An act to amend the tax law and the administrative code of the city of New York, 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:

Sections 1 through 14 amend Tax Law articles 31, 31-A, 31-B, 31-C, 31-D, 31-E, 31-F, and 31-G by adding a new section to each respective article providing that when real property is transferred by a referee or sheriff pursuant to a court order in a foreclosure proceeding ordering the sale of the property, the referee or sheriff effectuating such transfer shall not be liable for any interest or penalties authorized pursuant to the Tax Law article being amended or Article 37 of the Tax Law.

Section 15 amends section 1240 of the Tax Law to provide that the authorization for the City of New York to impose a tax upon the transfer of real property that is granted by Tax Law section 1201(b) shall not include the authorization to impose a civil or criminal penalty upon a referee or sheriff who conveyed property as a result of a court order in a foreclosure proceeding ordering the sale of the property.

Section 16 amends the Administrative Code of the City of New York by adding a new section 11-2119, which provides that when real Property is transferred by a referee or sheriff pursuant to a court order in a foreclosure proceeding ordering the sale of the Property, the referee or sheriff effectuating such transfer shall not be liable for any interest or penalties authorized by the City's real property transfer tax or Chapter 40 of the Administrative Code.

Section 17 provides that this act shall take effect immediately.

JUSTIFICATION:

By law, referees selling properties at foreclosure are treated as grantors. As grantors, these referees are subject to the provisions of the Real Estate Transfer Tax ("RETT"). While the statutes do not specifically address the liability of a referee that conveys property pursuant to a court order that orders the sale of the property in a foreclosure proceeding, 19 RCNY section 23-03 (d)(2) includes deeds given by referees, receivers, sheriffs, etc., for realty sold under foreclosure or execution regardless of whether the purchaser is the mortgagee, judgment creditor or other person in its examples of situations to which the RETT applies.

Currently, there is no provision off law or regulation that exempts a referee, acting as a grantor, from the penalty and interest provisions otherwise imposed under the RETT. In foreclosure sales, a referee's authority is limited to the terms of the court order. 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:

2012: S.6467-A - Referred to Judiciary Committee

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:

This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 3479--A 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 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the tax law and the administrative code of the city of New York, 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. The tax law is amended by adding a new section 1422 to read as follows: S 1422. FORECLOSURE PROCEEDINGS. WHERE THE CONVEYANCE CONSISTS OF A TRANSFER OF PROPERTY MADE AS A RESULT OF AN ORDER OF THE COURT IN A FORECLOSURE PROCEEDING ORDERING THE SALE OF SUCH PROPERTY, THE REFEREE OR SHERIFF EFFECTUATING SUCH TRANSFER SHALL NOT BE LIABLE FOR ANY INTER- EST OR PENALTIES THAT ARE AUTHORIZED PURSUANT TO THIS ARTICLE OR ARTICLE THIRTY-SEVEN OF THIS CHAPTER. S 2. The tax law is amended by adding a new section 1437 to read as follows: S 1437. FORECLOSURE PROCEEDINGS. WHERE THE CONVEYANCE CONSISTS OF A TRANSFER OF PROPERTY MADE AS A RESULT OF AN ORDER OF THE COURT IN A FORECLOSURE PROCEEDING ORDERING THE SALE OF SUCH PROPERTY, THE REFEREE OR SHERIFF EFFECTUATING SUCH TRANSFER SHALL NOT BE LIABLE FOR ANY INTER- EST OR PENALTIES THAT ARE AUTHORIZED PURSUANT TO THIS ARTICLE OR ARTICLE THIRTY-SEVEN OF THIS CHAPTER. S 3. The tax law is amended by adding a new section 1438-p to read as follows: S 1438-P. FORECLOSURE PROCEEDINGS. WHERE THE CONVEYANCE CONSISTS OF A TRANSFER OF PROPERTY MADE AS A RESULT OF AN ORDER OF THE COURT IN A FORECLOSURE PROCEEDING ORDERING THE SALE OF SUCH PROPERTY, THE REFEREE OR SHERIFF EFFECTUATING SUCH TRANSFER SHALL NOT BE LIABLE FOR ANY INTER-
EST OR PENALTIES THAT ARE AUTHORIZED PURSUANT TO THIS ARTICLE OR ARTICLE THIRTY-SEVEN OF THIS CHAPTER. S 4. Article 31-A-2 of the tax law, as added by chapter 556 of the laws of 2007, is amended by adding a new section 1439-p to read as follows: S 1439-P. FORECLOSURE PROCEEDINGS. WHERE THE CONVEYANCE CONSISTS OF A TRANSFER OF PROPERTY MADE AS A RESULT OF AN ORDER OF THE COURT IN A FORECLOSURE PROCEEDING ORDERING THE SALE OF SUCH PROPERTY, THE REFEREE OR SHERIFF EFFECTUATING SUCH TRANSFER SHALL NOT BE LIABLE FOR ANY INTER- EST OR PENALTIES THAT ARE AUTHORIZED PURSUANT TO THIS ARTICLE OR ARTICLE THIRTY-SEVEN OF THIS CHAPTER. S 5. Article 31-A-2 of the tax law, as added by chapter 543 of the laws of 2007, is amended by adding a new section 1439-p to read as follows: S 1439-P. FORECLOSURE PROCEEDINGS. WHERE THE CONVEYANCE CONSISTS OF A TRANSFER OF PROPERTY MADE AS A RESULT OF AN ORDER OF THE COURT IN A FORECLOSURE PROCEEDING ORDERING THE SALE OF SUCH PROPERTY, THE REFEREE OR SHERIFF EFFECTUATING SUCH TRANSFER SHALL NOT BE LIABLE FOR ANY INTER- EST OR PENALTIES THAT ARE AUTHORIZED PURSUANT TO THIS ARTICLE OR ARTICLE THIRTY-SEVEN OF THIS CHAPTER. S 6. Article 31-A-2 of the tax law, as added by chapter 544 of the laws of 2007, is amended by adding a new section 1439-p to read as follows: S 1439-P. FORECLOSURE PROCEEDINGS. WHERE THE CONVEYANCE CONSISTS OF A TRANSFER OF PROPERTY MADE AS A RESULT OF AN ORDER OF THE COURT IN A FORECLOSURE PROCEEDING ORDERING THE SALE OF SUCH PROPERTY, THE REFEREE OR SHERIFF EFFECTUATING SUCH TRANSFER SHALL NOT BE LIABLE FOR ANY INTER- EST OR PENALTIES THAT ARE AUTHORIZED PURSUANT TO THIS ARTICLE OR ARTICLE THIRTY-SEVEN OF THIS CHAPTER. S 7. The tax law is amended by adding a new section 1439-pp to read as follows: S 1439-PP. FORECLOSURE PROCEEDINGS. WHERE THE CONVEYANCE CONSISTS OF A TRANSFER OF PROPERTY MADE AS A RESULT OF AN ORDER OF THE COURT IN A FORECLOSURE PROCEEDING ORDERING THE SALE OF SUCH PROPERTY, THE REFEREE OR SHERIFF EFFECTUATING SUCH TRANSFER SHALL NOT BE LIABLE FOR ANY INTER- EST OR PENALTIES THAT ARE AUTHORIZED PURSUANT TO THIS ARTICLE OR ARTICLE THIRTY-SEVEN OF THIS CHAPTER. S 8. The tax law is amended by adding a new section 1447-a to read as follows: S 1447-A. FORECLOSURE PROCEEDINGS. WHERE THE CONVEYANCE CONSISTS OF A TRANSFER OF PROPERTY MADE AS A RESULT OF AN ORDER OF THE COURT IN A FORECLOSURE PROCEEDING ORDERING THE SALE OF SUCH PROPERTY, THE REFEREE OR SHERIFF EFFECTUATING SUCH TRANSFER SHALL NOT BE LIABLE FOR ANY INTER- EST OR PENALTIES THAT ARE AUTHORIZED PURSUANT TO THIS ARTICLE OR ARTICLE THIRTY-SEVEN OF THIS CHAPTER. S 9. The tax law is amended by adding a new section 1448-v to read as follows: S 1448-V. FORECLOSURE PROCEEDINGS. WHERE THE CONVEYANCE CONSISTS OF A TRANSFER OF PROPERTY MADE AS A RESULT OF AN ORDER OF THE COURT IN A FORECLOSURE PROCEEDING ORDERING THE SALE OF SUCH PROPERTY, THE REFEREE OR SHERIFF EFFECTUATING SUCH TRANSFER SHALL NOT BE LIABLE FOR ANY INTER- EST OR PENALTIES THAT ARE AUTHORIZED PURSUANT TO THIS ARTICLE OR ARTICLE THIRTY-SEVEN OF THIS CHAPTER. S 10. The tax law is amended by adding a new section 1449-u to read as follows:
S 1449-U. FORECLOSURE PROCEEDINGS. WHERE THE CONVEYANCE CONSISTS OF A TRANSFER OF PROPERTY MADE AS A RESULT OF AN ORDER OF THE COURT IN A FORECLOSURE PROCEEDING ORDERING THE SALE OF SUCH PROPERTY, THE REFEREE OR SHERIFF EFFECTUATING SUCH TRANSFER SHALL NOT BE LIABLE FOR ANY INTER- EST OR PENALTIES THAT ARE AUTHORIZED PURSUANT TO THIS ARTICLE OR ARTICLE THIRTY-SEVEN OF THIS CHAPTER. S 11. The tax law is amended by adding a new section 1449-pp to read as follows: S 1449-PP. FORECLOSURE PROCEEDINGS. WHERE THE CONVEYANCE CONSISTS OF A TRANSFER OF PROPERTY MADE AS A RESULT OF AN ORDER OF THE COURT IN A FORECLOSURE PROCEEDING ORDERING THE SALE OF SUCH PROPERTY, THE REFEREE OR SHERIFF EFFECTUATING SUCH TRANSFER SHALL NOT BE LIABLE FOR ANY INTER- EST OR PENALTIES THAT ARE AUTHORIZED PURSUANT TO THIS ARTICLE OR ARTICLE THIRTY-SEVEN OF THIS CHAPTER. S 12. The tax law is amended by adding a new section 1449-ppp to read as follows: S 1449-PPP. FORECLOSURE PROCEEDINGS. WHERE THE CONVEYANCE CONSISTS OF A TRANSFER OF PROPERTY MADE AS A RESULT OF AN ORDER OF THE COURT IN A FORECLOSURE PROCEEDING ORDERING THE SALE OF SUCH PROPERTY, THE REFEREE OR SHERIFF EFFECTUATING SUCH TRANSFER SHALL NOT BE LIABLE FOR ANY INTER- EST OR PENALTIES THAT ARE AUTHORIZED PURSUANT TO THIS ARTICLE OR ARTICLE THIRTY-SEVEN OF THIS CHAPTER. S 13. The tax law is amended by adding a new section 1449-pppp to read as follows: S 1449-PPPP. FORECLOSURE PROCEEDINGS. WHERE THE CONVEYANCE CONSISTS OF A TRANSFER OF PROPERTY MADE AS A RESULT OF AN ORDER OF THE COURT IN A FORECLOSURE PROCEEDING ORDERING THE SALE OF SUCH PROPERTY, THE REFEREE OR SHERIFF EFFECTUATING SUCH TRANSFER SHALL NOT BE LIABLE FOR ANY INTER- EST OR PENALTIES THAT ARE AUTHORIZED PURSUANT TO THIS ARTICLE OR ARTICLE THIRTY-SEVEN OF THIS CHAPTER. S 14. The tax law is amended by adding a new section 1449-ppppp to read as follows: S 1449-PPPPP. FORECLOSURE PROCEEDINGS. WHERE THE CONVEYANCE CONSISTS OF A TRANSFER OF PROPERTY MADE AS A RESULT OF AN ORDER OF THE COURT IN A FORECLOSURE PROCEEDING ORDERING THE SALE OF SUCH PROPERTY, THE REFEREE OR SHERIFF EFFECTUATING SUCH TRANSFER SHALL NOT BE LIABLE FOR ANY INTER- EST OR PENALTIES THAT ARE AUTHORIZED PURSUANT TO THIS ARTICLE OR ARTICLE THIRTY-SEVEN OF THIS CHAPTER. S 15. Section 1240 of the tax law, as added by chapter 93 of the laws of 1965, is amended to read as follows: S 1240. Administration and collection. The taxes authorized under sections twelve hundred one through twelve hundred four OF THIS ARTICLE which are now imposed shall continue to be administered and collected by the fiscal or other officers of the city, county or school district in the same manner as such taxes have been administered and collected by such officers immediately prior to the enactment of this article, in accordance with the applicable provisions of the charter, administrative code, local law, ordinance or resolution then in force, with such amend- ments in respect to administration and collection as may be enacted. Taxes authorized under sections twelve hundred one through twelve hundred four OF THIS ARTICLE which may hereafter be imposed by a city, county or school district shall be administered and collected in such manner as may be provided in its charter, administrative code, local laws, ordinances or resolutions, with such amendments in respect to administration and collection as may be enacted. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, THE AUTHORIZATION TO IMPOSE TAX
UPON THE TRANSFER OF REAL PROPERTY PURSUANT TO SUBDIVISION (B) OF SECTION TWELVE HUNDRED ONE OF THIS ARTICLE, SHALL NOT, WHEN THE CONVEY- ANCE CONSISTS OF A TRANSFER OF PROPERTY MADE AS A RESULT OF AN ORDER OF THE COURT IN A FORECLOSURE PROCEEDING ORDERING THE SALE OF SUCH PROPER- TY, INCLUDE THE AUTHORIZATION TO IMPOSE CIVIL OR CRIMINAL PENALTIES, INTEREST, OR OTHER LIABILITY UPON THE REFEREE OR SHERIFF EFFECTUATING THE TRANSFER. S 16. The administrative code of the city of New York is amended by adding a new section 11-2119 to read as follows: S 11-2119 FORECLOSURE PROCEEDINGS. WHERE THE CONVEYANCE CONSISTS OF A TRANSFER OF PROPERTY MADE AS A RESULT OF AN ORDER OF THE COURT IN A FORECLOSURE PROCEEDING ORDERING THE SALE OF SUCH PROPERTY, THE REFEREE OR SHERIFF EFFECTUATING THE TRANSFER SHALL NOT BE LIABLE FOR ANY INTER- EST OR PENALTIES AUTHORIZED BY THIS CHAPTER OR CHAPTER FORTY OF THIS TITLE. S 17. This act shall take effect immediately; provided, however, that the amendment to article 31-A-1 of the tax law made by section three of this act shall not affect the repeal of such article and shall be deemed to repeal therewith; that the amendment to article 31-A-2 of the tax law, as added by chapter 556 of the laws of 2007, made by section four of this act shall not affect the repeal of such article and shall be deemed to repeal therewith; that the amendment to article 31-A-2 of the tax law, as added by chapter 543 of the laws of 2007, made by section five of this act shall not affect the repeal of such article and shall be deemed to repeal therewith; that the amendment to article 31-A-2 of the tax law, as added by chapter 544 of the laws of 2007, made by section six of this act shall not affect the repeal of such article and shall be deemed repeal therewith; that the amendment to article 31-A-3 of the tax law made by section seven of this act shall not affect the repeal of such article and shall be deemed to repeal therewith; that the amendment to article 31-B of the tax law made by section eight of this act shall not affect the repeal of such article and shall be deemed to repeal therewith; that the amendment to article 31-D of the tax law made by section eleven of this act shall not affect the repeal of such arti- cle and shall be deemed to repeal therewith; that the amendment to arti- cle 31-F of the tax law made by section thirteen of this act shall not affect the repeal of such article and shall be deemed to repeal there- with.

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