N.Y. Tax Law § 260 — Determination and apportionment by the state tax commission

§ 260. Determination and apportionment by the state tax commission.\nWhen the real property covered by a mortgage is situated in more than\none tax district, the state tax commission shall apportion the tax paid\non such mortgage between the respective tax districts upon the basis of\nthe relative assessments of such real property as the same appear on the\nlast assessment-rolls. If, however, the whole or any part of the\nproperty covered by such a mortgage is not assessed upon the last\nassessment-roll or rolls of the tax district or districts in which it is\nsituated, or is so assessed, as a part of a larger tract, that the\nassessed value cannot be determined, or if improvements have been made\nto such an extent as materially to change the value of the property so\nassessed, the tax commission may require the local assessors in the\nrespective tax districts, or the mortgagor, or mortgagee, to furnish\nsworn appraisals of the property in each tax district, and upon such\nappraisals shall determine the apportionment. If such mortgage covers\nreal property in two or more counties, the tax commission shall\ndetermine the proportion of the tax which shall be paid by the recording\nofficer who has received the same to the recording officers of the other\ncounties in which are situated the tax districts entitled to share\ntherein. When any recording officer shall pay any portion of a tax to\nthe recording officer of another county, he shall forward with such tax\na description sufficient to identify the mortgage on which the tax has\nbeen paid, and the recording officer receiving such tax shall note on\nthe margin of the record of such mortgage the fact of such payment,\nattested by his signature. The tax commission shall make an order of\ndetermination and apportionment in respect to each such mortgage and\nfile a certified copy thereof with the recording officer of each county\nin which a part of the mortgaged real property is situated.\n When the real property covered by a mortgage is partly within the\nstate and partly without the state it shall be the duty of the tax\ncommission to determine what portion of the mortgage or of advancements\nthereon shall be taxable under this article. Such determination shall\nbe made in the following manner: First: Determine the respective\nvalues of the property within and without the state, and deduct\ntherefrom the amount of any prior existing mortgage liens, excepting\nsuch liens as are to be replaced by prior advancements and the\nadvancement under consideration. Second: Find the ratio that the net\nvalue of the mortgaged property within the state bears to the net value\nof the entire mortgaged property. Third: Make the determination of the\nportion of the mortgage or of the advancements thereon which shall be\ntaxable under this article by applying the ratio so found. If a\nmortgage covering property partly within and partly without the state is\npresented for record before such determination has been made, or at the\ntime when an advance is made on a corporate trust mortgage or on a prior\nadvance mortgage, there may be presented to the recording officer a\nstatement in duplicate verified by the mortgagor or an officer or duly\nauthorized agent of the mortgagor, in which shall be specified the net\nvalue of the property within the state and the net value of the property\nwithout the state covered by such mortgage. One of such statements\nshall be filed by the recording officer and the other shall be forthwith\ntransmitted by him to the state tax commission. The tax payable under\nthis article before the determination by the tax commission shall be\ncomputed upon such portion of the principal indebtedness secured by the\nmortgage, or of the sum advanced thereon, as the net value of the\nmortgaged property within the state bears to the net value of the entire\nmortgaged property as set forth in such statement. The tax commission\nshall on receipt of the statement from the recording officer and on not\nless than ten days' notice served personally or by mail upon the\nmortgagor, the mortgagee and the state comptroller, proceed to make the\nrequired determination. In determining the separate values of the\nproperty within and without the state the tax commission shall consider\nonly the tangible property, real and personal, except that leases of\nreal property shall be deemed tangible property. For the purpose of\ndetermining such value the tax commission may require the mortgagor or\nmortgagee to furnish by affidavit or verified report such information or\ndata as it may deem necessary, and may require and take the testimony of\nthe mortgagor, mortgagee or any other person. A certified copy of the\norder of determination and apportionment shall be delivered personally\nor by mail to the mortgagor, the mortgagee and the state comptroller,\nand any tax under such determination which has not been paid shall be\npaid within ten days after service of such certified copy; if, however,\nthe tax paid at the time of filing the statement hereinbefore specified\nwith the recording officer is in excess of the tax determined to be\npayable, the certificate of determination and apportionment shall direct\nthe recording officer to refund to the person paying such tax the amount\nof such excess; provided that no refund shall be made of any taxes paid\npursuant to a previous determination.\n The tax commission shall adopt rules to govern the procedure and the\nmanner of taking evidence in all the matters provided for by this\nsection and may require verified statements to be furnished either by\nboards of assessors, recording officers or other persons having\nknowledge in relation to such matters. Failure on the part of any\nperson or officer to furnish a statement or other data when required so\nto do pursuant to the provisions of this section shall render such\nperson or officer liable to a penalty of one hundred dollars, to be\nrecovered by the attorney-general in an action brought in the name of\nthe people of the state of New York.\n In making determination and apportionment under this section the tax\ncommission shall consider each advancement made upon a mortgage after\nJuly first, nineteen hundred and six, as a new mortgage. In all cases\nunder this section where the provisions for distribution of the tax\namong tax districts are inapplicable or inadequate, the tax commission\nshall establish a basis of apportionment that will be equitable and\nfair.\n