- May 17, 2005
- All Issuing Offices in New York
- Mortgage Tax Increase in MCTD Counties
Effective June 1, 2005, any mortgage presented for recording in the Metropolitan Commuter Transportation District will be subject to an increase in the additional mortgage tax component of $.05 per $100 of principal debt or mortgage obligation.
All policy issuing offices are cautioned to be aware of the effective date of the increase and, in consideration of the timing of the routine process from closing to presentation of mortgages for recording in each, to ensure that closing personnel collect the appropriate amount of tax. Extra care should also be taken to ensure the accuracy of mortgages presented for recording to avoid the unhappy circumstance of a mortgage, once rejected for recording prior to June 1, being taxed at a higher rate upon resubmission after that date.
The counties affected are:
Suffolk, Nassau, New York, Kings, Queens, Richmond, The Bronx, Westchester, Rockland, Orange, Putnam and Dutchess
The NYS Dept. of Taxation and Finance has issued a Technical Services Bulletin that is available at:
http://www.tax.state.ny.us/pdf/memos/mortgage/m05_4r.pdf (please note the underscore between the numerals 5 and 4 in the address)
This bulletin is well written, and gives the actual mortgage tax in dollars. It should be printed and distributed to all readers, counsel and closers. If you are unable to access theDepartment's bulletin, please call and request a copy be faxed to your office.
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.