N.Y. Tax Law § 1423: Modernization of real property transfer reporting

§ 1423. Modernization of real property transfer reporting. (a)

Notwithstanding any provision of law to the contrary, the commissioner

is hereby authorized to implement a system for the electronic collection

of data relating to transfers of real property. In connection therewith,

the commissioner may combine the two forms referred to in paragraph one

of this subdivision into a consolidated real property transfer form to

be filed with him or her electronically; provided:

(1) The two forms that may be so combined are the real estate transfer

tax return required by section fourteen hundred nine of this article,

and the real property transfer report required by subdivision one-e of

section three hundred thirty-three of the real property law. However,

the commissioner shall continue to maintain both such return and such

report as separate forms, so that a party who prefers not to file a

consolidated real property transfer form with the commissioner

electronically shall have the option of filing both such return and such

report with the recording officer, as otherwise provided by law. Under

no circumstances shall a consolidated real property transfer form be

filed with, or accepted by, the recording officer.

(2) Notwithstanding the provisions of section fourteen hundred

eighteen of this article, any information appearing on a consolidated

real property transfer form that is required to be included on the real

property transfer report required by subdivision one-e of section three

hundred thirty-three of the real property law shall be subject to public

disclosure.

(3) When a consolidated real property transfer form is electronically

submitted to the department by either the grantor or grantee or a duly

authorized agent thereof, the act of submitting such form shall be

deemed to be the signing of the return as required by paragraph (v) of

subdivision one-e of the real property law or subdivision (b) of section

fourteen hundred nine of this article, and the requirement that all the

grantors and grantees shall sign the return shall not apply. However,

the fact that a grantor or grantee has not electronically submitted the

form shall not relieve that grantor or grantee of any liability for the

tax imposed by this article.

(b) When a consolidated real property transfer form is filed with the

commissioner electronically pursuant to this section, the real estate

transfer tax imposed under this article, and the fee that would

otherwise be retained by the recording officer pursuant to subdivision

three of section three hundred thirty-three of the real property law,

shall be paid to the commissioner therewith. The commissioner shall

retain on behalf of the recording officer the portion of such tax that

would otherwise have been retained by the recording officer pursuant to

subdivision (c) of section fourteen hundred seven of this article, and

the portion of such fee that would otherwise have been retained by the

recording officer pursuant to subdivision three of section three hundred

thirty-three of the real property law. The moneys so retained by the

commissioner on behalf of the recording officer, hereinafter referred to

as the recording officer's fees, shall be deposited daily with such

responsible banks, banking houses, or trust companies as may be

designated by the state comptroller. Of the recording officer's fees so

deposited, the comptroller shall retain in the comptroller's hands such

amount as the commissioner may determine to be necessary for refunds or

reimbursements of such fees collected or received pursuant to this

section, out of which the comptroller shall pay any refunds or

reimbursements of such fees to which persons shall be entitled under the

provisions of this section. The comptroller, after reserving such refund

and reimbursement fund shall, on or before the twelfth day of each

month, pay to the appropriate recording officers an amount equal to the

recording officer's fees reserved on their behalf. Provided, however,

that the commissioner is authorized to request that the comptroller

refrain from making such a payment of such fees to a recording officer

until the commissioner has certified to the comptroller that the

recording officer has supplied the commissioner with the liber and page

numbers of the recorded instruments that gave rise to such fees.

(c) The system for the electronic submission of consolidated real

property transfer forms shall be designed so that upon the successful

electronic filing of such a form and the payment of the associated taxes

and fees, the party submitting the same shall be provided with an

electronic receipt in a form prescribed by the commissioner that

confirms such filing and payment. Such party may file a printed copy of

such receipt with the recording officer when offering the associated

instrument for recording, in lieu of submitting to the recording officer

the return, report, tax and fee that would otherwise have been required

under this article and subdivisions one-e and three of section three

hundred thirty-three of the real property law. The recording officer

shall retain such receipt for a minimum of three years, unless otherwise

directed by the commissioner, and shall provide a copy thereof to the

commissioner for inspection upon his or her request.

(d) Upon recording the instrument to which the consolidated real

property transfer form pertains, the recording officer shall provide the

commissioner with the liber and page thereof at such time and in such

manner as the commissioner shall prescribe.

(e) The provisions of this section shall not be applicable within a

city or county that has implemented its own electronic system for the

recording of deeds, the filing of the real estate transfer tax returns

and the real property transfer reports prescribed by the commissioner,

and the payment of the associated taxes and fees, unless such city or

county shall notify the commissioner that such jurisdiction will follow

the system authorized pursuant to this section to be used therein, in

writing.