Update: New York State And The IDA Mortgage Tax Refund

By | February 3, 2017

Hallmark Abstract Service New York title insurance

On February 1, Governor Cuomo signed a bill (A374 / S979) that reset the expiration date of a portion of the IDA mortgage tax exemption to June 30, 2017. As you may recall, the bill removing a portion of the mortgage tax exemption initially went into effect for mortgages recorded on and after September 30, 2016, as a result of the bill signed yesterday IDA’s will be entitled to a full mortgage tax exemption until June 30, 2016.

Under the new law, EFFECTIVE for mortgages recorded on and after JULY 1, 2017 a mortgage of real property executed, given, made, transferred, or assigned by or to an IDA, an agent of an IDA, or an entity receiving financial assistance from an IDA, is not exempt from the additional mortgage recording tax imposed by Tax Law section 253(2) when the real property that is subject to the mortgage is located in a county that is part of a transportation district. For further information below is a link to a memo from the New York State Department of Taxation and Finance issued in November: .

https://www.tax.ny.gov/pdf/memos/mortgage/m16_1r.pdf

We anticipate a new memo from the Department of Taxation and Finance changing the effective date to July 1, 2017 and with instructions for applying for a refund for mortgages recorded between September 30, 2016 and February 1, 2017 where the full exemption was not permitted. We will post that as soon as possible.

To be clear, the FULL IDA Mortgage Tax exemption is in effect as of February 2, 2017 and will expire on June 30, 2017.

H/T NYSLTA
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