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 652 - Effect Of Nonpayment Of Taxes And Enforcement Procedures
Section 652.3 - Enforcement

Universal Citation: 20 NY Comp Codes Rules and Regs ยง 652.3

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

Tax Law, §§ 266, 267

(a) In the case of a mortgage of real property upon which the taxes described in Part 642 of this Title have not been paid the Attorney General of the State of New York may enforce the payment of such taxes by following the procedures described in subdivision (b) or (c) of this section.

(b)

(1) The Attorney General of the State of New York may maintain an action in the appropriate court to have the mortgage upon which such taxes are due sold.
(i) The court shall, in addition to authorizing the sale of the mortgage, prescribe the time, place and manner of the sale and the notice to be given of such sale.

(ii) The court may also direct that the sale be made by or under the direction of the State Comptroller or the recording officer of the county in which the mortgage upon which the taxes have not been paid was first recorded.

(2) All money recovered as a result of the sale of a mortgage shall be paid by the Attorney General to the proper recording officer in satisfaction of the taxes owed and all costs recovered as a result of the sale shall be paid into the state treasury.

(c)

(1) In lieu of or in addition to the sale of the mortgage as described in subdivision (b) of this section, in the case of a mortgage of real property upon which the taxes described in Part 642 of this Title have not been paid, the Attorney General may maintain an action in the appropriate court against the mortgagee or his assignee or successor in interest personally to recover such taxes.

(2)
(i) The Attorney General may also in the case of trust mortgages maintain an action against the trust mortgage personally.

(ii) In cases where recovery is had personally against a trust mortgagee and such trust mortgagee pays the taxes due, or where a trust mortgagee has voluntarily paid such taxes, such trust mortgagee shall be deemed to have and possess and to have become subrogated to all the rights and interests in and to the tax lien described in section 652.2 of this Part.

(iii) The trust mortgagee may enforce the repayment of any taxes paid by him plus interest by maintaining an action in his own name in any court in the State having jurisdiction, against any person, association or corporation liable to pay such taxes, or for the sale of such mortgage and the debt secured thereby to which such lien attaches.

(3) The Attorney General may also maintain an action in the appropriate court against the mortgagor or his successor in interest personally if the mortgagor is liable for the taxes or where it is stipulated in the mortgage that the mortgagor shall pay the taxes.

(d) The actions instituted by the Attorney General shall be brought in the appropriate court in Albany County if such actions involve amounts of $50 or more.

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