Sec. 5-7.3. Residential mortgages

Tax Law, § 210(17)

(a) No credit will be allowed with respect to a residential mortgage where such mortgage is recorded on or after May 1, 1987:

(1) where the real property is located in one or more of the counties comprising the Metropolitan Commuter Transportation District (counties of New York, Bronx, Queens, Kings, Richmond, Dutchess, Nassau, Orange, Putnam, Rockland, Suffolk and Westchester); or

(2) where the real property is located in the county of Erie.

(b) In no event may a credit or carryover of a credit attributable to the special additional mortgage recording tax, with respect to a residential mortgage, which is due and paid by the taxpayer in any taxable year beginning before January 1, 1986 pursuant to the provisions of subdivision 1-a of section 253 of the Tax Law, be carried over to taxable years beginning on or after January 1, 1986.

(c) For taxable years beginning on or after January 1, 1986 and before January 1, 1990, and for taxable years beginning on or after January 1, 1994, a taxpayer which has an excess credit for the special additional mortgage recording tax, which is due and paid in any of such taxable years, with respect to a residential mortgage, after reducing the tax due to the higher of the taxes computed on the minimum taxable income base or the fixed dollar minimum tax, may, in lieu of carrying over such excess credit, elect to treat the amount of such credit carryover as an overpayment of tax to be credited or refunded without interest. A taxpayer must submit a “Claim for Refund of Unused Special Additional Mortgage Recording Tax Credit” (form CT-43.1) when claiming the refund of the credit for the special additional mortgage recording tax.

(d) For purposes of this section, the term residential mortgage means a mortgage of real property principally improved or to be improved by one or more structures containing in the aggregate not more than six residential dwelling units, each dwelling unit having its own separate cooking facilities.