N.Y. Laws » CHAPTER Tax / ARTICLE Tax On Mortgages

N.Y. Tax Law § 253

Recording tax

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§ 253. Recording tax. 1. 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 the execution thereof or at any time thereafter by a mortgage on real
property situated within the state recorded on or after the first day of
July, nineteen hundred and six, is hereby imposed on each such mortgage,
and shall be collected and paid as provided in this article. If the
principal debt or obligation which is or by any contingency may be
secured by such mortgage recorded on or after the first day of July,
nineteen hundred and seven, 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 article.
  1-a. (a) In addition to the tax imposed by subdivision one of this
section, there shall be imposed on each mortgage of real property
situated within the state, except mortgages wherein the mortgagee is a
natural person or persons, or is a credit union as defined in section
two of the banking law, and in either case the mortgaged premises
consist of real property improved by a structure containing six
residential dwelling units or less, each with separate cooking
facilities, a special additional tax of 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 anytime thereafter by such mortgage.
The tax, if any, imposed by this subdivision shall in cases of real
property principally improved or to be improved by one or more
structures containing in the aggregate not more than six residential
dwelling units, each dwelling unit having its own separate cooking
facilities, be paid by the mortgagee, and such tax shall not be paid or
payable, directly or indirectly, by the mortgagor except as otherwise
provided in sections two hundred fifty-eight and two hundred fifty-nine
of this article and except such tax shall be paid in such cases by the
mortgagor where the mortgagee is an exempt organization described in
paragraph (b) of this subdivision. In all other cases, such tax shall be
paid by the mortgagor except that the tax shall be paid by the mortgagee
where the mortgagor is an exempt organization described in paragraph (b)
of this subdivision. All of the provisions of this article shall apply
with respect to the special additional tax imposed by this subdivision
to the same extent as if it were imposed by said subdivision one of this
section, except as otherwise expressly provided in this article.
  (b) An organization organized other than for profit which is operated
on a nonprofit basis no part of the net earnings of which inures to the
benefit of any officer, director or member and which is exempt from
federal income taxation pursuant to subsection (a) of section five
hundred one of the internal revenue code shall be exempt from the
special additional tax imposed by this subdivision.
  2. (a) In addition to the taxes imposed by subdivisions one and one-a
of this section, there shall be imposed on each mortgage of real
property situated within the state recorded on or after the first day of
July, nineteen hundred sixty-nine, an additional tax of twenty-five
cents for counties outside of the metropolitan commuter transportation
district, as defined pursuant to section twelve hundred sixty-two of the
public authorities law, and thirty cents for counties within such
metropolitan commuter transportation district 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 such mortgage, saving
and excepting the first ten thousand dollars of such principal debt or
obligation in any case in which the related mortgage is of real property
principally improved or to be improved by a one or two family residence
or dwelling.  All the provisions of this article shall apply with
respect to the additional tax imposed by this subdivision to the same
extent as if it were imposed by the said subdivision one of this
section, except as otherwise expressly provided in this article.
Notwithstanding article eighteen-A of the general municipal law and
titles eleven and fifteen of article eight of the public authorities
law, no mortgage of real property situated within the state in counties
located within the metropolitan commuter transportation district, the
Niagara Frontier transportation district, the Rochester-Genesee
transportation district, the capital district transportation district,
and the central New York regional transportation district executed,
given, made, or transferred or assigned by or to an agency created under
article eighteen-A of the general municipal law, an authority created
under title eleven or fifteen of article eight of the public authorities
law, an agent or agent of such agent of such agency or authority, a
project operator receiving financial assistance from such agency or
authority, a project occupant of such agency or authority, or an owner
of a project receiving financial assistance from such agency or
authority shall be exempt from the additional tax imposed by this
subdivision. For the purposes of this subdivision the term "financial
assistance" shall have the same meaning as defined in section eight
hundred fifty-four of the general municipal law. The imposition of this
additional tax on mortgages recorded in a county outside the city of New
York, other than one of the counties from time to time comprising the
metropolitan commuter transportation district, the Niagara Frontier
transportation district, the Rochester-Genesee transportation district,
the capital district transportation district or the central New York
regional transportation district may be suspended for a specified period
of time or without limitation as to time by a local law, ordinance or
resolution duly adopted by the local legislative body of such county.
  (b) Any local law, ordinance or resolution suspending the imposition
of this additional tax as provided in paragraph (a) of this subdivision,
or amending or repealing such local law, ordinance or resolution, shall
take effect only on the first day of the third month succeeding the
month in which such local law, ordinance or resolution is duly adopted.
Such a local law, ordinance or resolution shall not be effective unless
a certified copy thereof is mailed by registered or certified mail to
the state tax commission at its office in Albany at least sixty days
prior to the date the local law, ordinance or resolution shall take
effect. However, the tax commission may waive and reduce such sixty-day
notice requirement to a requirement that such certified copy be mailed
by registered or certified mail within a period of not less than thirty
days prior to such effective date if it deems such action to be
consistent with its duties under this article. A certified copy of any
local law, ordinance or resolution adopted pursuant to this subdivision
shall also be filed with the state comptroller within five days after
the date it is duly adopted.
  3. Notwithstanding any other provision of law to the contrary, the
mortgage recording tax shall not be imposed upon any mortgage executed
by a voluntary nonprofit hospital corporation, fire company or voluntary
ambulance service as defined in section one hundred of the general
municipal law, or upon any mortgage executed by or granted to the
dormitory authority.
Notes of Decisions
Cited in 18 cases (1 in the last 5 years), 1980–2021 · leading case: Dime Savings Bank of New York v. State
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Dime Savings Bank of New York v. State (1992) nyappdiv · cites it 10× “Accordingly, we hold that Tax Law § 253 (1-a) (a), insofar as it imposes a mortgage recording tax which may not be passed on to the borrower, is preempted by Federal regulation and is unenforceable as against Federal savings and loan associations.”
Friar v. Vanguard Holding Corp. (1980) nyappdiv “order of Special Term defines the class as comprised of: “all sellers of property, subsequent to January 1, 1979, who attended at a closing pursuant to a mortgage commitment issued by defendant, wherein the seller sold real property containing six residential units or less,…”
In Re Amsterdam Avenue Development Associates (1989) nysb · cites it 2× “Tax Law § 1201 (McKinney 1988) (collectively the “Deed Taxes”), and exempting the purchaser of the Debtor’s property from the payment of New York State and City Mortgage Taxes, N.Y. Tax Law §§ 253 and 253-a (McKinney 1988) (the “Mortgage Taxes”).”
Hudson Valley Federal Credit Union v. New York State Department of Taxation & Finance (2012) ny · cites it 3× “1 Payment of the tax is a condition precedent to the proper recording of a mortgage (see Tax Law § 258 [1]). Although the Tax Law does not specify whether the lender or the borrower is obligated to pay the MRT, the Attorney General is authorized to commence an action for…”
Trenton Bus. Assistance Corp. v. O'Connell (2021) nyappdiv · cites it 7× “plaintiff failed to demonstrate that there is no "rational basis" for the New York Legislature's determination to limit the availability of the tax exemption under Not-For-Profit Corporation Law § 1411 to those entities incorporated or reincorporated under that section, and to…”
Friar v. Vanguard Holding Corp. (1986) nyappdiv “This action was commenced in 1979 to recover from the defendant, a mortgage lender, amounts which it had collected from the sellers of real property as additional mortgage recording taxes in violation of the statutory requirement that the tax was to be paid by the lender (Tax…”
Capital Financial Corp. v. Commissioner of Taxation & Finance (1996) nyappdiv “connection with its business of obtaining mortgages, petitioner incurs liability as a corporate mortgagee for payment of the "special additional mortgage recording tax” in cases where the mortgaged premises consist of "real property principally improved or to be improved by one…”
Suddin v. Lynbrook Gardens Co. (1985) nysupct “Tax Law §§ 253, 253-a.) Defendant, however, has another string to his bow, claiming that CPLR 507 is not limited to actions involving title, but applicable where the judgment demanded would affect “the possession, use or enjoyment of, real property”.”
In Re Beulah Chruch of God in Chirst Jesus, Inc. (2004) nysb “See N.Y. Tax Law § 253 (McKinney 2004). 3 . Section 1146(c) of the Bankruptcy Code states, The issuance, transfer, or exchange of a security, or the making or delivery of an instrument of transfer under a plan confirmed under section 1129 of this title, may not be taxed under…”
Harris v. Crossland Mortgage Corp. (1994) nydistctnassau “(Tax Law § 253.) At the very best, were plaintiffs successful in their quest for reimbursement of the mortgage recording tax on the refinance of their mortgage, the amount of their damages would be calculated: $50 on the first $10,000; $1,739.”
Pechinski v. Astoria Federal Savings & Loan Ass'n (2003) ca2 “See N.Y. Tax Law § 253 ; N.Y. City Admin. Code § 11-2601 .”
Long Island Lighting Co. v. Commissioner of Taxation & Finance (1997) nyappdiv “When this mortgage was recorded on March 31, 1986, petitioner paid the full amount of the mortgage recording tax as required by Tax Law § 253. Petitioner also granted NiMo pari passu rights in a third mortgage held by Citibank.”
Show all 18 citing cases →
— N.Y. Tax Law § 253(1) — 1 case
Trenton Bus. Assistance Corp. v. O'Connell (2021) nyappdiv “plaintiff failed to demonstrate that there is no "rational basis" for the New York Legislature's determination to limit the availability of the tax exemption under Not-For-Profit Corporation Law § 1411 to those entities incorporated or reincorporated under that section, and to…”
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