N.Y. Tax Law § 257-a: Refund of mortgage taxes after rescission of certain credit transactions

§ 257-a. Refund of mortgage taxes after rescission of certain credit

transactions. 1. As used in this section, a "statutory right of

rescission" means the right of an obligor to rescind a consumer credit

transaction in which a security interest, including a real property

mortgage, is retained or acquired in any real property which is used or

expected to be used as a residence of the obligor provided for in

section one hundred twenty-five of title one, the "Truth in Lending

Act," of the federal Consumer Credit Protection Act (Public Law 90-321;

82 Stat. 146 et seq.) and in the regulations issued by the Board of

Governors of the Federal Reserve System pursuant to said title of said

act.

2. A person who has paid the taxes imposed by this article on the

recording of a mortgage of real property has a right to a refund of the

mortgage taxes so paid if a mortgagor upon the mortgage exercises the

statutory right of rescission with respect thereto and a discharge of

the mortgage has been recorded.

3. The State Tax Commission shall provide by regulation how a person

having a right to a refund of mortgage taxes pursuant to subsection two

may obtain the refund and the cities, towns, villages or officers to

which or to whom the mortgage tax moneys have been paid, paid over,

distributed, or allotted shall refund such mortgage tax moneys to a

person having a right to the refund thereof.