- September 22, 1995
- New York State Counsel, Managers and Agents
- City of Yonkers Mortgage Recording Tax Revived!
We have just received bulletin TSB-M-93 (3.1)-R from the Technical Services Bureau of the Department of Taxation and Finance, pursuant to which we have been advised that the City of Yonkers has enacted legislation extending the Yonkers mortgage recording tax to mortgages recorded prior to August 31, 1997.
We previously advised you in Underwriting Bulletin NY000094 that the statutory authority for the additional tax had expired. This advice has not changed. As far as we can tell from our research, the state legislature has never amended Tax Law §253-D, which is the enabling act for the Yonkers mortgage tax imposition, to permit the extension of the tax by local law. Until this matter is resolved, you are advised to continue to collect and remit the mortgage recording tax for property in the City of Yonkers, at the combined total rate of $1.50 for each $100.00.
Your customers should be made aware of the apparent lack of authority. Although there may not be statutory authority for the extension of the local law under Tax Law §253-D, we must still collect and remit the tax in order to record a mortgage encumbering Yonkers property. The Company has no objection to having the check for the payment of the Yonkers portion of the tax being marked "paid under protect", and application being made by the customer for a refund, or other challenge being made by the customer to the imposition of the tax.
THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.