2006 New York Code - Imposition Of Tax.

 
    §  11-2601  Imposition  of  tax.  a. A tax of fifty cents for each one
  hundred dollars and each remaining major fraction thereof  of  principal
  debt  or obligation which is, or under any contingency may be secured at
  the date of execution thereof or at any time thereafter by a mortgage on
  real property situated within the city and recorded on or  after  August
  first,  nineteen  hundred  seventy-one  and  prior  to  February  first,
  nineteen hundred eighty-two, is hereby imposed on each such mortgage and
  shall be collected  and  paid  as  provided  in  this  chapter.  If  the
  principal  debt  or  obligation  which  is  or by any contingency may be
  secured by such mortgage is less than one  hundred  dollars,  a  tax  of
  fifty  cents  is hereby imposed on such mortgage, and shall be collected
  and paid as provided in this chapter.
    b. With respect to: (1) one, two or  three-family  houses,  individual
  cooperative apartments and individual residential condominium units, and
  (2)  real  property securing a principal debt or obligation of less than
  five hundred thousand dollars, a tax of fifty cents, and with respect to
  all other real property a tax of one  dollar  and  twelve  and  one-half
  cents,  for  each  one hundred dollars and each remaining major fraction
  thereof  of  principal  debt  or  obligation  which  is,  or  under  any
  contingency  may  be  secured at the date of execution thereof or at any
  time thereafter by a mortgage on such real property situated within  the
  city   and  recorded  on  or  after  February  first,  nineteen  hundred
  eighty-two and before July first, nineteen hundred eighty-two, is hereby
  imposed on each such  mortgage  and  shall  be  collected  and  paid  as
  provided  in  this chapter. If the principal debt or obligation which is
  or by any contingency may be secured by such mortgage is less  than  one
  hundred dollars, a tax of one dollar is hereby imposed on such mortgage,
  and shall be collected and paid as provided in this chapter.
    c.  With  respect  to:  (1) real property securing a principal debt or
  obligation of less than five hundred thousand dollars, a  tax  of  fifty
  cents,  (2)  with respect to one, two or three-family houses, individual
  cooperative apartments  and  individual  residential  condominium  units
  securing a principal debt or obligation of five hundred thousand dollars
  or  more, a tax of sixty-two and one-half cents, and (3) with respect to
  all other real property, a tax of one dollar and twenty-five cents,  for
  each  one  hundred  dollars and each remaining major fraction thereof of
  principal debt or obligation which is, or under any contingency  may  be
  secured  at the date of execution thereof or at any time thereafter by a
  mortgage on such real property situated within the city and recorded  on
  or  after  July  first,  nineteen  hundred  eighty-two and before August
  first, nineteen hundred ninety, is hereby imposed on each such  mortgage
  and  shall  be  collected  and  paid as provided in this chapter. If the
  principal debt or obligation which is  or  by  any  contingency  may  be
  secured  by such mortgage is less than one hundred dollars, a tax of one
  dollar is hereby imposed on such mortgage and  shall  be  collected  and
  paid as provided in this chapter.
    d.  With  respect  to:  (1) real property securing a principal debt or
  obligation of less than five hundred thousand  dollars,  a  tax  of  one
  dollar,  (2)  with  respect  to  one,  two  or  three-family  houses and
  individual residential condominium units securing a  principal  debt  or
  obligation of five hundred thousand dollars or more, a tax of one dollar
  and  twelve  and  one-half cents, and (3) with respect to all other real
  property, a tax of one dollar  and  seventy-five  cents,  for  each  one
  hundred  dollars  and each remaining major fraction thereof of principal
  debt or obligation which is, or under any contingency may be secured  at
  the  date of execution thereof, or at anytime thereafterby a mortgage on
  such real property situated within the city and  recorded  on  or  after
  August  first,  nineteen  hundred ninety, is hereby imposed on each such


  mortgage and shall be collected and paid as provided in this chapter. If
  the principal debt or obligation which is or by any contingency  may  be
  secured  by such mortgage is less than one hundred dollars, a tax of one
  dollar  is  hereby  imposed  on such mortgage and shall be collected and
  paid as provided in this chapter.
    e. (1) For the purpose of determining whether a mortgage is subject to
  the tax imposed by subdivision b or c of  this  section  at  a  rate  in
  excess  of fifty cents, or by subdivision d of this section at a rate in
  excess of one dollar, for each one hundred dollars  and  each  remaining
  major  fraction  thereof  of principal debt or obligation, the principal
  debt or obligation which is or under any contingency may be  secured  at
  the  date  of  execution  thereof,  or  at  any time thereafter, by such
  mortgage shall be aggregated with the principal debt or obligation which
  is or under any contingency may be secured  at  the  date  of  execution
  thereof,  or  at  any time thereafter, by any other mortgage, where such
  mortgages form part of the same or related  transactions  and  have  the
  same  or related mortgagors. If the commissioner of taxation and finance
  finds that a mortgage transaction or  mortgage  transactions  have  been
  formulated  for the purpose of avoiding or evading a rate of tax imposed
  under this section in excess of the lowest such rate, rather than solely
  for an independent business  or  financial  purpose,  such  commissioner
  shall  treat  all  of  the mortgages forming part of such transaction or
  transactions as a single mortgage for the  purpose  of  determining  the
  applicable  rate  of  tax.  For  the  purposes  of this subdivision, all
  mortgages having the same or related mortgagors  offered  for  recording
  within  a  period of twelve consecutive months shall be presumed to form
  part of a related transaction, unless clear and convincing  evidence  is
  offered  to  the  contrary. The commissioner of taxation and finance may
  require such affidavits and forms, and  may  prescribe  such  rules  and
  regulations,  as he determines to be necessary to enforce the provisions
  of this subdivision.
    (2) The term "related", when used in this subdivision  with  reference
  to mortgagors, shall include, but shall not be limited to, the following
  relationships:
    (i)   members  of  a  family,  including  spouses,  ancestors,  lineal
  descendants, and brothers and sisters (whether  by  the  whole  or  half
  blood);
    (ii)  a  shareholder  and a corporation more than fifty percent of the
  value of the outstanding stock of which is owned or controlled  directly
  or indirectly by such shareholder;
    (iii)  a  partner  and  a  partnership  more than fifty percent of the
  capital or profits interest in which is owned or controlled directly  or
  indirectly by such partner;
    (iv)  a  beneficiary  and  a  trust  more  than  fifty  percent of the
  beneficial  interest  in  which  is  owned  or  controlled  directly  or
  indirectly by such beneficiary;
    (v)  two  or more corporations, partnerships, associations, or trusts,
  or any combination  thereof,  which  are  owned  or  controlled,  either
  directly or indirectly, by the same person, corporation or other entity,
  or interests; and
    (vi) a grantor of a trust and such trust.
    f.  Notwithstanding  any provision to the contrary in paragraph (a) of
  subdivision one of section two hundred fifty-five of the  tax  law,  the
  taxes  imposed by subdivision c or d of this section shall also apply to
  principal indebtedness or obligation  secured  by  or  which  under  any
  contingency  may  be  secured by a supplemental instrument or additional
  mortgage, whether or not there is any new  or  further  indebtedness  or
  obligation  other  than the principal indebtedness or obligation secured


  by a recorded primary mortgage, where (1) the supplemental instrument or
  additional mortgage imposes the lien of a recorded  mortgage  upon  real
  property situated within the city not previously subject to the mortgage
  or  where  an  additional  mortgage  upon  such  additional  property is
  recorded as  additional  or  substitute  security  for  indebtedness  or
  obligation  already  secured by a recorded mortgage and (2) the recorded
  primary mortgage was on real property  outside  the  city  and  recorded
  without payment of the city tax.