NYC-WTC_000195490

NYC 9/11 Public Portal Document

da mortgage RECORDING TAX MORTGAGE RECORDING TAX 1992-2002 the I ate The mortgage recording tax is 450 /to projected to account for 1.4 percent of 400 ars tax revenue in 2002, or $325 million. 350 ind , Tax Basie and Rate: The mortgage 3 300 recording tax is imposed on the recording I 250 of real estate mortgages in New York F City. The tax rate ranges from 1.0 *>200 ien percent for; mortgages securing a debt of 150 :’to f. under $500,006 to 1.75 percent for 100 (e'' commercial mortgages securing a debt of 50 ing $500,000 or more. In addition, the State 1992 199? 1994 1995 1996/1997 1998 1999 2000 2001 2002 imposes a 1.0 percent tax, half of which I fiscal Year is dedicated to the Metropolitan y jne Transportation Authority (MTA) and the I ion State of New York Mortgage Agency ind (SONYMA). J , : ; Mortgage Recording Tax Rates on, b Mortgages of md $500,000 Commercial lifer All Mortgages or More on 1,2 Mortgages of igh Distribution of Revenue Under $500,000 & 3 Family Homes $500,000 or More

State Ta^ces NYC General Fund 0.500%\ 0.500% 0.500% MTA/SONYMA 0.500 0,500 0.500

City Tastes NYp General Fund , 1.000 1.125 1.125 NYpTA, Paratransit and Franchised Bus Operators 0.625 Ibtal 2.000% 2.125% 2.750% I Ke'

, Legislative History: The City’s mortgage recording tax revenue is composed of two separate taxes, one levied by the State and the other a City tax established by local law under State authority. The State mortgage I recording tax wasl established in 1906 at a rate of 0.5 percent on the amount of the mortgage. The tax was I imposed statewidfe, with the law calling for the proceeds to be paid to county treasurers ip counties outside of New York City, and in the case of New York City, to the general fund,

In 1969, a surcharge of 0.25 percent of the amount of the mortgage was added to the statewide tax. Inside the MTA region, the proceeds from the tax were required to be paid to the MTA. Counties outside the MTA region were given the option to suspend the surcharge by local law. I' ' \ J ; .... ; In 1979, another 0.25 percent surcharge was imposed, with the funds dedicated to SONYMA. Taxpayers, however, were allowed to credit payments of this surcharge against their liability for the State general corporation tax, personal income tax or banking corporation tax. In 1987, the State Legislature amended this second surcharge so that the MTA receives tax revenue from mortgages made on one- to six-family homes I i It 43

NYC-WTC_000195540