Enacts the "homeowner mortgage refinance relief act"

BILL NUMBER:S457

Title of bill

An act to amend the tax law, in relation to enacting the "homeowner mortgage refinance relief act"

Purpose or general idea of bill

The purpose of this bill is to eliminate the double taxation which occurs when the mortgage recording tax is applied to refinancings so that homeowners who need to refinance a home loan which they can no longer afford in order to avoid foreclosure are not required to pay a second mortgage recording tax usually amounting to thousands of dollars.

Summary of provisions

This bill amends the Tax Law by adding a new section 253-y, which would exempt refinancings from the mortgage recording tax, up to the amount of the original loan.

Justification

Since the financial crisis of 2002, homeowners have been faced with extreme financial hardship on various fronts including significant decline in the value of their homes, increased costs of living across the board and in the most severe circumstances the loss of income from job layoffs. In an effort to ease some of the economic hardship that people are facing it is only reasonable that this small effort be taken to remove the double taxation that occurs during the home refinancing process.

Prior legislative history

2011-12: S.3869/A.202A (Lancman) 2009-10: A.1256 (Lancman) 2007-08: A.8969 (Lancman)

Fiscal implications for state and local governments

Not determined at this time.

Effective date

This act shall take effect immediately.