What's happening
This bill exempts homeowners from local mortgage taxes when refinancing up to the original mortgage amount.
Why it matters
Reduces costs for homeowners. By removing the local mortgage tax on the refinanced portion up to the original loan amount, homeowners can refinance without facing extra local tax burdens, potentially saving thousands of dollars.
Encourages financial flexibility. The exemption makes it easier and more affordable for homeowners to refinance, which can help them secure lower interest rates, adjust loan terms, or access equity—all without being penalized by local taxes.
May increase refinancing activity. The change could lead to more homeowners seeking to refinance, possibly boosting local economies through increased demand for related services (e.g., attorneys, appraisers, lenders).
Requires clear qualification rules. The bill directs the tax commissioner to set guidelines for who qualifies and the procedures for claiming the exemption, which means homeowners will need to follow new processes to benefit from the law.
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Who cares
Headline styles
Cut Mortgage Tax on Refinances
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 14
No co-sponsors yet.
History
- Referred to investigations and government operations
- Returned to senate
- Died in assembly
- Referred to ways and means
- Delivered to assembly
- Passed senateVote 55–7
- Advanced to third reading
- 2nd report cal.
- 1st report cal.177
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Cut Mortgage Tax on Refinancing
In Assembly Committee · Ways And Means · Sponsor Ron Kim
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3238
2019-2020 Regular Sessions
IN SENATE
February 5, 2019
Introduced by Sen. COMRIE -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the tax law, in relation to enacting the "homeowner mortgage refinance relief act"
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Short title. This act shall be known and may be cited as the "homeowner mortgage refinance relief act".
§ 2. The tax law is amended by adding a new section 253-y to read as follows:
§ 253-y. Exempt municipal mortgage tax for refinances. 1. Every municipality which has enacted a local mortgage tax or recording tax pursuant to the provisions of this article shall grant an exemption up to the amount of the original mortgage from such tax where the mortgagor is refinancing his or her real property.
2. The commissioner shall promulgate necessary and advisable rules and regulations to establish grounds for qualifications, proof and procedure necessary for a mortgagor to obtain such exemption.
§ 3. This act shall take effect immediately. Effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made and completed on or before such effective date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06294-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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 refinancing 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 refinancing 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
Senate 1582 of 2017-18.
Fiscal implications for state and local governments
Not determined at this time.
Effective date
This act shall take effect immediately, provided, however, that effec- tive immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized and directed to be made and completed on or before such effective date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.