- February 27, 2007
- All New York State Office Counsel, Managers and Agents
- Mortgage Tax Exemption in Suffolk County
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.
Two Rector Street, Suite 901
New York, NY 10006-1819
MEMO BY BROADCAST FAX
To: All Members
From Sharon Sobol
Date: February 22, 2007
Subject: Suffolk County
The Association was just notified by the NYS Department of Taxation and Finance that several counties and title companies have received a copy of a memorandum issued by the county of Suffolk on February 13, 2007, regarding the "residential property exemption on mortgages". Please disregard this memorandum. The memorandum was issued without the knowledge of the NYS Tax Department. In general questions pertaining to the residential property exclusion on mortgage under section 253.2(a) of the Tax Law should be handled on case by case basis.
To clarify this matter, as provided by section 253.2(a) of the Tax Law, the exclusion for first $10,000 of principal debt or obligation applies to mortgages of real property principally improved or to be improved by a one or two family residence. However, such exclusion is applied only once to each mortgage. Accordingly, the exclusion would NOT apply to any instrument modifying a previously recorded mortgage which originally secured an indebtedness or obligation of $10,00 or more.
If you have any questions or need further information, please contact the NYS Department of Taxation and Finance at 518-457-0556.