New York Codes, Rules and Regulations
Title 20 - DEPARTMENT OF TAXATION AND FINANCE
Chapter IV - Sales And Use And Other Miscellaneous Taxes
Subchapter D - Mortgage Recording Taxes
Part 644 - Exemptions
Section 644.1 - Exemptions
Universal Citation: 20 NY Comp Codes Rules and Regs ยง 644.1
Current through Register Vol. 46, No. 12, March 20, 2024
Tax Law, §§ 252, 252-a, 253.3, Public Health Law, Private Housing Finance Law, Not-For-Profit Corporation Law, Banking Law, Real Property Law, Arts and Cultural Affairs Law, Mental Hygiene Law
(a) The recording of the following mortgages involving the State or the Federal Government is exempt from the taxes described in Part 642 of this Title:
(1)
mortgages where the mortgagor or mortgagee in New York State or any of its
agencies, instrumentalities or political subdivisions, to the extent immune
from such taxation (Matter of City of New York v. Tully,
88AD2d 701, lv to app den 57 NY 2d 606); and
(2) mortgages where the mortgagor or
mortgagee is the United States of America or any of its agencies or
instrumentalities, to the extent immune from such taxes (Pittman v.
Home Owners Loan Corporation, 308 US 21) .
(b) The recording of the following mortgages is exempt from the taxes described in Part 642 of this Title by reason of express statutory provision relating to such taxes:
(1) mortgages where the mortgage is an
agricultural credit association within the Farm Credit system (section
252 of the
Tax Law);
(2) mortgages where the
mortgagee is a federal home loan bank (section
252 of the
Tax Law);
(3) mortgages made
pursuant to a confirmed plan under section 1129 of chapter XI of the Bankruptcy
Code (section
252 of the
Tax Law and section1146[c] of the Bankruptcy Code);
(4) mortgages where the mortgagor is a
railroad redevelopment corporation, and such mortgage is created during the
first nine years of such corporation's existence as such (section
252 of the
Tax Law);
(5) mortgages given to
secure an obligation incurred and given pursuant to the provisions of section
6-a of the Banking Law, which provides that
banking institutions may make certain types of loans to persons 65 years of age
or older, with such loans being secured by first or second mortgages on the
property of such persons (section
252-a of the Tax Law);
(6) any declarations or any lien for common
charges, as such common charges are defined at section 339-ee of the Real
Property Law (section 339-ee[1] of the Real Property Law);
(7) mortgages executed by a voluntary
non-profit hospital corporation. For the purpose of this paragraph a voluntary
non-profit hospital corporation is a hospital as such term is defined in
section
2801(1) of the Public
Health Law which operates as a corporation as such term is defined in section
102(5) of the
Not-For-Profit Corporation Law (section
253[3] of the Tax
Law);
(8) mortgages of a limited
dividend housing company, created pursuant to article 4 of the Private Housing
Finance Law (section
93[1] of the Private Housing
Finance Law);
(9) mortgages of
housing development fund companies formed pursuant to article 11 of the Private
Housing Finance Law (section
577[2] of the Private
Housing Finance Law);
(10)
mortgages of a limited-profit housing company created pursuant to article 2 of
the Private Housing Finance Law (section
33[5] of the Private Housing
Finance Law);
(11) mortgages of a
redevelopment company created pursuant to article 5 of the Private housing
Finance Law, issued to the Federal Government or any instrumentality thereof,
or to any municipal housing authority or other public housing agency or
instrumentality thereof whose obligations are determined to be exempt from
Federal taxation by the Federal Government (section
125[2] of the Private
Housing Finance Law);
(12)
mortgages of community senior citizens centers and service companies created
pursuant to article 7-A of the Private Housing Finance Law (section
357[3] of the Private
Housing Finance Law);
(13)
mortgages given to secure the payment of a loan made pursuant to the provisions
of article 8-B of the Private housing Finance Law (section
476 of the Private Housing Finance
Law);
(14) mortgages executed by a
fund formed for the purpose of insuring deposits and/or depositors created
pursuant to article 6-B of the Banking Law (section
286 of the Banking Law);
(15) mortgages of a trust created pursuant to
article 20 of the Arts and Cultural Affairs Law (section
20.33[2] of the Arts and
Cultural Affairs Law);
(16)
mortgages of a community mental health services company or community mental
retardation services company created pursuant to article 75 of the Mental
Hygiene Law (section
75.17[c] of the Mental
Hygiene Law); and
(17) reverse
mortgages recorded on or after December 2, 1993, which conform to the
provisions of section 280 or section
280-a of the Real Property Law.
(c) Documentation required to claim an exemption.
(1) Whenever an
exemption is claimed pursuant to the provisions of paragraphs (a)(1) and (2) or
(b)(1) through (16) of this section or for any other reason except the
exemption described in paragraph (b)(17) of this section, at the time that the
mortgage is presented for recording an affidavit made in duplicate must be
filed, signed by the mortgagor or mortgagee or any other person who has
knowledge of the facts, describing the mortgage and setting forth the basis for
claiming the exemption. (See paragraph [2] of this subdivision for information
on the documentation required whenever the exemption described in paragraph
[b][17] of this section is claimed.)
(2) Whenever an exemption is claimed pursuant
to the provisions of paragraph (b)(17) of this section, at the time the
mortgage is presented for recording, the following documentation must be
submitted to the recording officer:
(i) for a
reverse mortgage made pursuant to the provisions of section
280 of the Real Property Law, an affidavit,
made in duplicate, signed by the mortgagee, setting forth the following:
(a) the mortgage is a reverse mortgage given
by a mortgagor who is or mortgagors all of whom are at least 60 years of
age;
(b) the reverse mortgage is of
real property improved by a one- to four-family residence or condominium unit
that is the residence of the mortgagor or mortgagors; and
(c) the reverse mortgage conforms to all
other provisions of section
280 of the Real Property Law; and
(ii) for a reverse mortgage made
pursuant to the provisions of section
280-a of the Real Property Law, an
affidavit, made in duplicate, signed by the mortgagee, setting forth the
following:
(a) the mortgage is a reverse
mortgage given by a mortgagor who is or mortgagors all of whom are at least 70
years of age;
(b) the reverse
mortgage is of real property improved by a one- to four-family residence or
condominium unit that is the residence of the mortgagor or mortgagors;
and
(c) the reverse mortgage
conforms to all other provisions of section
280-a of the Real Property Law.
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