Bill S5970-2013

Exempts mortgages of residential real property from taxation when property is purchased by owners receiving state or federal buyout of prior residence destroyed in hurricane Sandy

Exempts mortgages of residential real property from taxation when property is purchased by owners receiving state or federal buyout of their prior residence destroyed in hurricane Sandy.

Details

Actions

  • Jun 12, 2014: referred to ways and means
  • Jun 12, 2014: DELIVERED TO ASSEMBLY
  • Jun 12, 2014: PASSED SENATE
  • Jun 2, 2014: ADVANCED TO THIRD READING
  • May 29, 2014: 2ND REPORT CAL.
  • May 28, 2014: 1ST REPORT CAL.972
  • Jan 8, 2014: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS
  • Oct 25, 2013: REFERRED TO RULES

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Investigations and Government Operations - May 28, 2014
Ayes (9): Marcellino, Carlucci, Golden, Nozzolio, O'Mara, Zeldin, Hoylman, Diaz, Squadron

Memo

BILL NUMBER:S5970

TITLE OF BILL: An act to amend the tax law, in relation to granting an exemption from the tax on mortgages for residential real property purchased by persons receiving federal and/or state buyouts of their residence as a result of damage caused by hurricane Sandy in October of 2012; and providing for the repeal of such provisions upon expiration thereof

PURPOSE: Exempts mortgages of residential real property from taxation when property is purchased by owners receiving state or federal buyout of prior residence destroyed in hurricane Sandy

SUMMARY OF PROVISIONS:

Section 1 amends the opening paragraph of section 252 of the tax law is designated subdivision 1 and a new subdivision 2 is added. Section 2 is the effective date.

JUSTIFICATION: In the wake of Hurricane Sandy, an effort has been undertaken to ensure that shoreline protections are implemented. In some cases it has been determined, in consultation with residents, that certain homes and communities will be eligible for a buyout of their property, with the intent of providing for better storm protections and a more resilient housing stock in the future. In many cases where a homeowner does make the difficult decision to leave the home and community they have known for years, they will then seek to purchase a new home. In these cases, the fees assessed through the state and local mortgage recording taxes should be waived when securing a mortgage for a new home. In some instances, homeowners have secured a new home, with a mortgage, while waiting for the buyout process to proceed. These residents currently are mandated to pay the mortgage recording tax. This measure allows an exemption for mortgages of residential real property from taxation when property is purchased by owners receiving state or federal buyout of prior residence destroyed in Hurricane Sandy.

LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS: Undetermined.

EFFECTIVE, DATE: Immediately; provided, however, that the provisions of this act and all local laws and ordinances adopted pursuant to its authority shall expire and be deemed repealed on and after January 1, 2016.


Text

STATE OF NEW YORK ________________________________________________________________________ 5970 2013-2014 Regular Sessions IN SENATE October 25, 2013 ___________
Introduced by Sens. LANZA, AVELLA, KLEIN, SAVINO, SMITH -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the tax law, in relation to granting an exemption from the tax on mortgages for residential real property purchased by persons receiving federal and/or state buyouts of their residence as a result of damage caused by hurricane Sandy in October of 2012; and providing for the repeal of such provisions upon expiration thereof THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The opening paragraph of section 252 of the tax law is designated subdivision 1 and a new subdivision 2 is added to read as follows: 2. (A) NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION ONE OF THIS SECTION, THE GOVERNING BODY OF ANY MUNICIPALITY ACTING THROUGH ITS LOCAL LEGISLATIVE BODY OR OTHER GOVERNING AGENCY, IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS OR ORDINANCES TO EXEMPT FROM THE TAXES IMPOSED BY THIS ARTICLE THE MORTGAGE OF RESIDENTIAL REAL PROPERTY, WHEN SUCH REAL PROPERTY IS PURCHASED AND IS TO BE OCCUPIED BY AN OWNER OR OWNERS WHO HAVE RECEIVED, OR FOR WHOM A FINAL DETERMINATION HAS BEEN MADE AND WILL RECEIVE, FEDERALLY AND/OR STATE FUNDED BUYOUTS OF SUCH OWNER OR OWNERS' PREVIOUS RESIDENTIAL REAL PROPERTY WHICH WAS DAMAGED OR DESTROYED AS A RESULT OF HURRICANE SANDY DURING OCTOBER OF TWO THOUSAND TWELVE. (B) ANY PERSON WHO AFTER OCTOBER TWENTY-SECOND, TWO THOUSAND TWELVE AND BEFORE THE EFFECTIVE DATE OF THIS SUBDIVISION, WHO WOULD OTHERWISE QUALIFY UNDER PARAGRAPH (A) OF THIS SUBDIVISION, AND WHO HAS PAID ANY TAXES IMPOSED BY THIS ARTICLE, SHALL BE ENTITLED TO RECEIVE A REIMBURSE- MENT OF ALL SUCH TAXES PAID FROM THE COUNTY CLERK OR COUNTY TREASURER OF THE RESPECTIVE COUNTY WHERE SUCH TAXES WERE PAID IN THE SAME MANNER AS PROVIDED IN SECTION TWO HUNDRED FIFTY-SEVEN-A OF THIS ARTICLE.
S 2. This act shall take effect immediately; provided, however, that the provisions of this act and all local laws and ordinances adopted pursuant to its authority shall expire and be deemed repealed on and after January 1, 2016.

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