Provides exemption for first time home buyers from a mortgage or recording tax imposed by a municipality pursuant to article 11 of the tax law; directs commissioner of taxation and finance to establish qualifications and procedures for obtaining such exemption.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2375
SPONSOR: Weprin TITLE OF BILL:
An act to amend the tax law, in relation to an exemption from municipal
mortgage tax for first time home buyers
PURPOSE:
To assist first time home buyers in purchasing a home by exempting them
from the burden for the state mortgage recording tax imposed upon home
purchases.
SUMMARY OF PROVISIONS:
The bill would add a new Subdivision 4 to § 253 to the Tax Law to exempt
first time home buyers from the state mortgage recording tax, where the
residential property being mortgaged is the mortgagor's principal place
of residence.
EXISTING LAW:
Article II of the Tax Law, "Tax on Mortgages", includes a state mortgage
recording tax as well as several additional recording taxes imposed by
political subdivisions within the state.
JUSTIFICATION:
One way of increasing access to first-time home ownership for families
in New York State is to remove the added expense of state mortgage
recording taxes. Exemption from these taxes will ease the entry of many
New Yorkers into their first home. Increasing homeownership and home
sales will not only strengthen New York's economy, but also strengthen
and stabilize our communities.
LEGISLATIVE HISTORY:
02/09/17 referred to ways and means
01/03/18 referred to ways and means
EFFECTIVE DATE:
January 1 after enactment
STATE OF NEW YORK
________________________________________________________________________
2375
2023-2024 Regular Sessions
IN ASSEMBLY
January 25, 2023
___________
Introduced by M. of A. WEPRIN, VANEL -- read once and referred to the
Committee on Ways and Means
AN ACT to amend the tax law, in relation to an exemption from municipal
mortgage tax for first time home buyers
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The tax law is amended by adding a new section 268 to read
2 as follows:
3 § 268. Exemption for first time home buyers from municipal mortgage
4 tax. 1. Every municipality which has enacted a local mortgage tax or
5 recording tax pursuant to the provisions of this article shall grant an
6 exemption from such tax where the mortgagor is a first time home buyer
7 and the residence being mortgaged is intended to be said mortgagor's
8 principal place of residence.
9 2. The commissioner shall promulgate necessary and advisable rules and
10 regulations to establish grounds for qualification, proof and procedure
11 necessary for a mortgagor to obtain such an exemption.
12 § 2. This act shall take effect on the first of January next succeed-
13 ing the date on which it shall have become a law. Effective immediate-
14 ly, the commissioner of taxation and finance shall promulgate necessary
15 and advisable rules and regulations for the implementation of this act.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD01448-01-3
