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 647 - Credit Line Mortgage
Section 647.5 - Sale or transfer of real property subject to the lien of a credit line mortgage

Universal Citation: 20 NY Comp Codes Rules and Regs § 647.5

Current through Register Vol. 46, No. 12, March 20, 2024

Tax Law, § 253-b

(a)

(1) Except as otherwise provided in paragraph (2) of this subdivision, when real property encumbered by the lien of a credit line mortgage described in section 647.4 of this Part is sold or transferred and the lien of the credit line mortgage remains outstanding and is not to be satisfied as a result of the sale or transfer, the taxes described in Part 642 of this Title are imposed upon the recording of an instrument evidencing such a sale or transfer. The measure of the tax is the maximum principal amount specified in the credit line mortgage on the date when the instrument evidencing the sale or transfer is recorded, as such amount may have been increased or decreased by any instrument recorded evidencing such increase or decrease in the maximum principal amount specified in the credit line mortgage.

(2) The taxes described in paragraph (1) of this subdivision are not imposed upon the recording of an instrument evidencing any of the following transfers:

(i) a transfer of other than a fee simple interest;

(ii) a transfer of a fee simple interest to a person or persons who held a fee simple interest in the real property immediately prior to the transfer;

(iii) a transfer of a fee simple interest to a person or persons related by blood, marriage or adoption to the original obligor or to one or more of the original obligors (hereinafter "a related person"); or to any person or entity where 50 percent or more of the beneficial interest in such real property after the transfer is held by the transferor or such related person or persons (as in the case of a transfer to a trustee for the benefit of a minor or the transfer to a trust for the benefit of the transferor); and

(iv) a transfer to a trustee in bankruptcy, a receiver, assignee or other officer of a court; provided, however, that a subsequent transfer of real property subject to a credit line mortgage by any individual specified in this subparagraph is subject to tax as described in paragraph (1) of this subdivision upon the recording of the instrument evidencing the transfer unless such subsequent transfer is exempt under some other paragraph of this subdivision or such recording is exempt under some other provision of article 11 of the Tax Law or these regulations.

(b) When a claim for exemption from the taxes is made pursuant to subparagraph (a)(2)(ii), (iii), or (iv) of this section, a statement of the facts supporting such claim shall be made pursuant to procedures and on a form prescribed by the commissioner.

(1) the tax described in subdivision (a) of this section arising from such sale or transfer is paid; or

(2) the appropriate statement required by subdivision (b) of this section is made.

(d)

(1) The recording officer shall indorse upon the deed or other instrument evidencing the sale or transfer of the real property which causes the taxes described in subdivision (a) of this section to be imposed a receipt for the amount of taxes so paid or note the payment in some other manner which provides a public record of such payment.

(2) All procedures for the collection of unpaid mortgage recording taxes, interest and penalties for nonpayment of the taxes, apply in the case of taxes imposed with respect to a credit line mortgage described in this section.

(e) Payment of taxes described in this section shall apply to each sale or transfer of real property subject to a credit line mortgage, except as provided in paragraph (a)(2) of this section, regardless of whether such taxes had been paid on a previous sale or transfer of such real property.

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