Enacts the "homeowner mortgage refinance relief act"; exempts from a local mortgage tax or recording tax mortgagors who are refinancing real property; provides that the commissioner shall promulgate rules and regulations to establish grounds for qualifications, proof and procedure necessary for a mortgagor to obtain such an exemption.
TITLE OF BILL:
An act to amend the tax law, in relation to enacting the "homeowner mortgage refinance relief act"
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to eliminate the double taxation which occurs when the mortgage recording tax is applied to refinancings so that homeowners who need to refinance a home loan which they can no longer afford in order to avoid foreclosure are not required to pay a second mortgage recording tax usually amounting to thousands of dollars.
SUMMARY OF PROVISIONS:
This bill amends the Tax Law by adding a new section 253-y, which would exempt refinancings from the mortgage recording tax, up to the amount of the original loan.
Since the financial crisis of 2002, homeowners have been faced with extreme financial hardship on various fronts including significant decline in the value of their homes, increased costs of living across the board and in the most severe circumstances the loss of income from job layoffs. In an effort to ease some of the economic hardship that people are facing it is only reasonable that this small effort be taken to remove the double taxation that occurs during the home refinancing process.
PRIOR LEGISLATIVE HISTORY:
Same As A.202 (Lancman)/2010: A.1256 (Lancman)
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Not determined at this time.
This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 3869 2011-2012 Regular Sessions IN SENATE March 8, 2011 ___________Introduced by Sen. AVELLA -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations AN ACT to amend the tax law, in relation to enacting the "homeowner mortgage refinance relief act" THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Short title. This act shall be known and may be cited as the "homeowner mortgage refinance relief act". S 2. The tax law is amended by adding a new section 253-y to read as follows: S 253-Y. EXEMPT MUNICIPAL MORTGAGE TAX FOR REFINANCES. 1. EVERY MUNI- CIPALITY WHICH HAS ENACTED A LOCAL MORTGAGE TAX OR RECORDING TAX PURSU- ANT TO THE PROVISIONS OF THIS ARTICLE SHALL GRANT AN EXEMPTION UP TO THE AMOUNT OF THE ORIGINAL MORTGAGE FROM SUCH TAX WHERE THE MORTGAGOR IS REFINANCING HIS OR HER REAL PROPERTY. 2. THE COMMISSIONER SHALL PROMULGATE NECESSARY AND ADVISABLE RULES AND REGULATIONS TO ESTABLISH GROUNDS FOR QUALIFICATIONS, PROOF AND PROCEDURE NECESSARY FOR A MORTGAGOR TO OBTAIN SUCH EXEMPTION. S 3. This act shall take effect immediately; provided, however, that effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effec- tive date are authorized and directed to be made and completed on or before such effective date.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01236-03-1