Two weeks ago, NYSLTA Members received an email alert to an important change in the exemption to the IDA mortgage tax.  Here is the alert we distributed on November 10, 2016.  Note - there has been some confusion about this change. We believe the information posted below to be complete and accurate.

A bill was passed by the State legislature and signed by Governor Cuomo.

This  bill currently in effect:

"prohibits Industrial Development Agencies (IDAs) from exempting the additional mortgage recording tax  imposed  on  properties 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".

Attached is a link to Technical Memorandum, TSB-M-16(1)R, Industrial Development Agencies and Authorities in Transportation Districts No Longer Exempt from the Additional Mortgage Recording Tax. 

The bill was signed into law on September 30, 2016, and, as drafted, has an immediate effective date.    The approval memo signed by Governor Cuomo indicated that to allow for the completion of several projects, the governor and the Legislature agreed to a chapter amendment extending the effective date until July 1, 2017.   

However, until this chapter amendment is enacted, mortgages executed, given, made, transferred, or assigned by or to an IDA, an agent of the IDA, or an entity receiving financial assistance from an IDA are not exempt from the additional mortgage recording tax imposed by Tax Law section 253(2) when the real property that is subject to the mortgage is located in a county that is part of a transportation district.

https://www.tax.ny.gov/pdf/memos/mortgage/m16_1r.pdf