The Financial Crimes Enforcement Network has extended its Geographical Targeting Order to July 2017.

You can read the announcement here: 

https://www.fincen.gov/news/news-releases/fincen-renews-real-estate-geographic-targeting-orders-identify-high-end-cash

You can find a sample Form 8300 on this web site in the Government Regulations File Library:

http://nyslta.site-ym.com/?page=FilesandDocs

Yesterday, February 1, Governor Cuomo signed a bill (A374 / S979) that reset the expiration date of a portion of the IDA mortgage tax exemption to June 30, 2017.  As you may recall, the bill removing a portion of the mortgage tax exemption initially went into effect for mortgages recorded on and after September 30, 2017, as a result of the bill signed yesterday IDA’s will be entitled to a full mortgage tax exemption until June 30, 2017.  

Under the new law, EFFECTIVE for mortgages recorded on and after JULY 1, 2017 a mortgage of real property executed, given, made, transferred, or assigned by or to an IDA, an agent of an IDA, or an entity receiving financial assistance from an IDA, is 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. For further information below is a link to a memo from the New York State Department of Taxation and Finance issued in November: .

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

We anticipate a new memo from the Department of Taxation and Finance changing the effective date to July 1, 2017 and with instructions for applying for a refund for mortgages recorded between September 30, 2016 and February 1, 2017 where the full exemption was not permitted. We will post that as soon as possible.

To be clear, the FULL IDA Mortgage Tax exemption is in effect as of February 2, 2017 and will expire on June 30, 2017.

[Thanks to Jean Partridge and Matt Cahill for their assistance with this]

 

New York State Land Title Association’s Charitable Works Committee recently held its 3^rd annual auction, which raised $37,960 for HorseAbility, a center for equine-facilitated therapy for people with special needs. HorseAbility serves more than 825 families a year.

“Each year the Charitable Works Committee selects a New York state charity that exemplifies our values and is an organization we can rally behind and make a considerable difference,” said Kathy Roper, Charitable Works Committee chairwoman and director of operations for AIS/Data Trace. “HorseAbility was a perfect fit because it touched all of the populations committee members hoped to provide for. Located at SUNY Old Westbury, it has programs for children and adults with special needs, seniors, and also assists military veterans through its HorseAbility for Heroes program.”

The proceeds raised by the committee will go toward the HorseAbility Scholarship Fund for therapy lessons and for refurbishing their large outdoor ring and two horse stalls.  The auction took place during NYSLTA’s annual conference, which was held in Montauk.

From left: New York State Land Title Association (NYSLTA) Charitable Works Committee members Lorraine Malone, Rina Barbaccia, Nancy Piccirillo, John Piccirillo, HorseAbility Founder Katie McGowan, Committee Chairwoman Kathy Roper, and Committee Vice Chairwoman Monica Malagon.  The group was photographed at NYSLTA’s recent auction, which raised $37,960 for HorseAbility, a center for equine-facilitated therapy for people with special needs. The proceeds go toward the HorseAbility Scholarship Fund for therapy lessons and for refurbishing their large outdoor ring and two horse stalls.

HorseAbility is located at SUNY Old Westbury. It has programs for children and adults with special needs, seniors, and it assists military veterans through its HorseAbility for Heroes program.

On November 14, 2016 I signed and sent a letter to DFS Deputy Superintendent Cassandra Lentchner.

In September, the DFS issued a proposed regulation for all "covered entities" under DFS purview, which includes all underwriters and licensed title agents. The regulation, designed for the enormous global financial institutions regulated by DFS, imposed drastic changes to security procedures, compliance, business operations, reporting and company governance.

The general assessment is this regulation is a positive development for both consumer and financial services protection. The specifics of the regulation proved in some instances to be overly burdensome and ill suited for the kind of business title companies conduct.

The letter was the result of more than a month of work by a specially appointed joint working group of volunteers drawn from the Government Regulations Committee and the Technology Committee.  This project was headed by Jean Partridge, who also was the primary author of the document. She was advised and supported by Bill Collins, Victor Pajonas, Chris Davis and Vincent Danzi.

The letter is attached to this blog post and it resides in the Government Regulations File Library, on this web site [RESOURCES>DOCUMENT & FILE LIBRARIES].

The joint working group worked cooperatively with counterparts at FNTG, Old Republic, Stewart Title, First American, and ALTA. There was cross-industry collaboration with trade associations representing property & casualty agents in NY and DC- based financial institution trade associations. As always, our Albany lobbyists, Scott Wexler and Kate Corkery provided advice and perspective.

For a regulation that has the potential for profound impact on title agents - and by profound I mean expensive - the awareness and engagement from the membership was imperceptible.I announced this regulation and posted the proposed in an email blast.  I provided an email address for comments. One member commented. NYSLTA is fortunate to have such skilled and dedicated members, such as the handful of people who produced this letter.

This Association will continue to seek engagement with DFS on your behalf. The challenges ahead are countless. Your contribution of time and your expertise are much needed and always welcome.

RGT

Municipal Liaison Committee Vice-chair James Scaturro has created a FAQ on NasSau County's Disputed Assessment Fund.  You can find that document in the County and Municipal File Library on this site. Go to RESOURCES in the top navigation and select DOCUMENTS & FILE LIBRARIES. 

Here is an except from a recent Newsday article, announcing the fund.

Nassau County Executive Edward Mangano speaks about the disputed assessment fund on Monday, April 18, 2016, in Mineola. (Credit: Howard Schnapp)

Nassau will begin informing 14,000 area business owners this week of a new state law that officials say will result in tax hikes for all commercial properties but will end the county’s need to borrow about $80 million annually for commercial property tax refunds.

The law, which was passed by the state legislature in 2014 and goes into effect with the 2016/17 tax roll, requires business owners who contest their assessments to place up to 10 percent of the assessed value of their property in an escrow account. Funds from that account will be used to pay commercial property tax refunds if the business wins its challenge.

County Executive Edward Mangano said the Disputed Assessment Fund would create “incentives” for commercial businesses to quickly resolve their property tax claims.

“Practically speaking, they are not harmed,” Mangano says of the commercial property owner. “If they are correct they will pay their fair share of taxes ... and they will get their money back rapidly.”

To compensate for the money held in escrow, all commercial properties would see a tax rate increase, officials said.

Donald Leistman, head of the tax challenge division of the Nassau County Bar Association, said businesses will have “sticker shock” when they see their bills.

“The burden is shifting from the county as a whole to solely on the commercial property owners,” Leistman said.

For decades, Nassau paid out about $100 million annually for residential and commercial property tax refunds, Mangano said.

In 2011, Mangano instituted a residential settlement program to decide challenges before tax bills are issued. The program largely eliminated residential refunds, which averaged between $20 and $30 million per year, county officials said.

The new commercial program, Mangano said, would “significantly” reduce the county’s remaining liability.

If the court were to grant a commercial business owner a property tax refund exceeding 10 percent, Nassau would pay that additional amount from its operating budget, Mangano said.

The deadline for filing tax protests for the 2016/17 tax roll is May 2. Commercial property owners have until July 22 to reach a settlement with the Department of Assessment before the county imposes its escrow charge.

The county can grant assessment reductions while challenges continue. In rare circumstances, such as when a property has significant environmental problems, the amount in escrow could exceed 10 percent, Mangano said.

That assessment roll would be used by schools, towns and other taxing jurisdictions to set tax rates. School tax bills go out in October and county, town and general tax bills go out in January.

At that point, the county will bill commercial property owners for the difference in taxes calculated by using the old disputed assessment multiplied by the new tax rates.

That money will be put in escrow. If the property owner wins an assessment reduction, the escrow fund will be tapped to pay the refund. If the business owner loses, the money paid into the fund would go to the taxing districts.