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(Copyright, 1917, by The Record and Oulde Co.)
NEW YORK, JUNE 16, 1917
ACTION! OF STATE LEGISLATURE SUMMARIZED
Legislation and Taxation Committee of the Real
Estate Board Enumerates Important Measures
THE Real Estate Board of New
York has issued a summary of the
work of its Legislation and Taxation
Committee during the 1917 session of
the Legislature, and a brief enumeration
of important new laws of interest to
real estate owners.
The work of the Board's committee
was confined to bills of this nature. Out
of all bills introduced 573 were selected
for serious consideration. Of these, 175
were opposed and 97 were approved. Of
the 175 bills opposed, 163 failed to be¬
come law and 12 became law. Of thei
97 bills which were approved, 43 became
law, 7 passed the Legislature but were
vetoed by the Governor, 1 passed thei
Legislature but was not accepted by the
Mayor, 9 passed one house but failed of
passage in the other, and 37 died in
The Real F.state Board devoted its
attention particularly to bills amending
the Labor Law. the Tax Law, the Bank¬
ing Law, the latter in relation to lending
on Torrens titles, and the bill amending
the Tenement House Law so as to per¬
mit three-story dwellings to be convert¬
ed into tenements.
Of the Labor Law bills the most im¬
portant to become law was Assembly¬
man Bewley's bill redefining a factory
so as to relieve factories and factory
buildings from structural changes where
in the one case less than six persons are
employed at manufacturing and in the
other, twenty-five persons, or one-tenth
of all the persons employed in the build¬
The Board this year has had its larg¬
est success in the net results of the
work of its committee, as most of the
bills opposed were defeated and SO per
cent, of those approved became law.
The work of analyzing these bills was
done by a joint sub-committee of the
Legislation and Taxation Committee and
the Real Estate Laws Committee, con¬
sisting of the following: Robert E.
Dowling, John P. Leo, Carlisle Nor¬
wood, Stanley M. Isaacs, Henry O. Chit¬
tick. Harrv Percv David, Samuel P.
Goldman, George W. Olvany, B. E. Mar¬
tin, D. A. Clarkson, Wm. J. Tully and
Wm. B. Ellison.
The following is a summary, by chap¬
ter numbers, of important laws affecting
CHAPTER 6.'?, amending section 1032. Greater
New York Charter, by providing that the inter¬
est due the purchaser ot a tax lien may be
paid either directly to tbe holder of the tax
lien or to tbe collector of assesments and ar¬
rears. It paid to the collector of assessments
and arrears, it goes into the redemption fund
for the benefit of the bolder of the tax lien and
tbe colle'^tor must notify tbe holder by mail.
CHAPTER 2."!), amending sections n!1.5, 1441,
Greater New York Charter, by providing tbat
appeals to the Appellate Division from tho final
decree in condemnation proceedings must be
taken within thirty days after notice of filing
of final decree.
CHAPTE'R 30S, adding new section 77 to the
Public Lands Law. requiring the Secretary of
State within sixty days after the passage of
tbe act (May .31 and on or before .Tanuarv 10.
annually thereafter, to examine the records of
all grants of lands under water for which pa¬
tents have been issued containing conditions to
be complied with and for wliich a period for
performance bas expired, and certify the same
to tbe State Engineer and Surveyor who Is to
Investigate immediately whether compliance bas
been had and report to tbe Atforney-Ceneral.
In proper cases the Attorney-General Is to
THE accompanying report on
bills introduced at Albany is
furnished by the Real Estate Board
of New York. It is prepared by
a sub-committee of the Legislation
and Taxation Committee and a
sub-committee of the Real Estate
Laws Committee, acting jointly.
The Committee consists of the fol¬
Robert E. Dowling, Chairman
Legislation and Taxation Commit¬
tee; Samuel P. Goldman, Chairman
Real Estate Laws Committee;
John P. Leo and David A. Clark¬
son, Vice-Chairmen Legislation
and Taxation Committee; Carlisle
Norwood, B. E. Martin, William
T. Tully, George W. Olvanv, Stan-
lev M. Isaacs, Henry R. Chittick,
William B. Ellison and Harry
CHAPTER S24. amending paragraph d, subd.
2, section 268, Banking Law, by providing that
a trustee of a savings bank shall forfeit his
office if he directs or requires a borrower from
tbe bank or mortgagor to negotiate any policy
of insurance on the mortgaged property through
any particular broker or brokers or attempts
to divert the patronage ot borrowers from the
bank to a particular broker or brokers.
CHAPTER 385, amending subd. 7, section 188,
providing that investments in bond and mortgage
by a trust company as executor or in other
fiduciary capacity may be made by apportion¬
ing to any estate or fund a part interest In a
bond or mortgage beld by the company in¬
dividually or in a representative capacity.
CHAPTER 467, addine new sections .3332-c
and 3.3.32-d to Code of Civil Procedure, provid¬
ing a new schedule of fees to be charged by tbe
registers ot New York, Kings and Bronx coun¬
ties, and by the county clerks in Queens and
Richmond counties when acting as recording
CHAPTER 527. amending sections 1.38, 139.
Tax Law, In relation to lien of mortgage and
redemption by mortgagee from tax sale.
The purchaser at a tax sale must give the
mortgagee written notice ot sucb sale withtii
two years from the expiration of the year al¬
lowed to redeem, requiring him to pay tbe
amount of purchase money with interest within
six months after giving the notice.
Redemption by tbe mortgagee may be made
hy filing with the Comptroller a written descrip¬
tion of tbe mortgage and by paying to the State
Treasurer. If such redemption Is made within
one year from the last day of tbe sale, the sum
mentioned in tbe certificate, with interest at the
rate allowed by law in case of redemption by
occupants from the date of the tax sale certifi¬
cate, and If such redemption la made after tbe
expiration of such year ttie said sura, with 37Ms
per centum thereon, and the amount paid for
the deed, together with anv taxes which tbe
purchaser or his assigns shall have paid thereon
subsenuent to the tax sale.
CHAPTER 612, amending section 35. chapter
4. Laws of 1891, New York City Rapid Transit
Act. bv providing tbat appeals to the Appellate
Division from final decree in condemnation pro¬
ceedings must be taken within thirty days after
notice of filing of final decree.
CHAPTER 681, amending section 258 Real
Propertv Law, bv prescribine various short
forms of deeds and mortgages of real property.
CHAPTER. 682, amending section 254, Real
Propertv Law, by making various changes regu¬
lating the construction of recitals and cove¬
nants in mortgages and bonds, and agreements
to extend or modify the terms thereof.
CHAPTER 187. amending section 241 and
subd. 7, section 3,86, Banking Law, permitting
savines banks and savings and loan associations
to make mortgage loans on property registered
under tbe Land Title Registration Law.
CHAPTER 405, amending section 193, Bank¬
ing Law. providing that tbe loans on real prop¬
erty made by trust companies shall be evidenced
bv an abstract of title and certificate of counsel
or a certificate of title issued by the registrar
of the county where tbe property Is situated,
under article 12. Real Property Law, or guaran¬
teed under a policy of title Insurance,
CHAPTER 80, amending subd. 1, section 192,
Tax Law, by providing that corporations and
associations liable for franchise tax under sec¬
tion 182. shall make their report to the Tax
Commission between November 1st and Decem¬
ber lath. The Tax Commission may, upon
written application, extend the time, but not
beyond February 15th.
CHAPTER 410, amending section 207, Tax
Law, in relation to the lien of corporation tax,
by providing that all taxes and penalties which
became due prior to April 1, 1917, and have
not been referred to the Attorney-General, shall
cease to be a lien on the real estate as against
purchasers or holders in good faith after the
expiration of ten years from the time when the
tax became due.
CHAPTER 489, amending section 36-a, Tax
Law, by providing that application for a hear¬
ing and review of assessment by a non-resi¬
dent owner or by a corporation having real
property In more than one tax district in tile
county, must be made on or before the third
Tuesday of August.
CHAPTER 493, amending section 180, Tax
Law, by increasing tbe minimum amount of
organization tax on corporations from $5.00 to
CHAPTER 573, amending section 259, Tax
Law, by providing that failure to file a state¬
ment In relation to advance on trust mortgages
within the specified time shall subject the cor¬
poration or other person required to file such
statement, to a penalty of not less tlian $1 nor
more tban .$100 for each $1,000 of the maximum
ainount of principal indebtedness secured by the
mortgage, such penalty not to exceed $5,000 in
CHAPTER 623, amending the Liquor Tax Law
generally. The tax Is Increased generally and
the maximum number of licenses is decreased.
Fees vary in various localities In proportion to
the population. A special schedule of fees ap¬
ply to Queens, Richmond and parts of The
Bronx in New York City, increasing annually
until a certain maximum is readied. The
Board of Estimate in New York City Is em¬
powered to set aside certain parts of tbe city
within which additional licenses are prohibited.
After July 1. 1018, one-fourth of the revenue
goes to tbe State and the remainder to the lo¬
cality. Before June 30, 1918, one-half goes
to the State.
CHAPTER 700, amending sections 330 to 340,
renumbering section 221-b to be section 221-c
and adding new section 221-b, Tax Law, by
abolishing the secured debts tax and imposing
a tax on investments.
Investments include "any bond, note, debt,
debenture, equipment bond or note, or written
or printed obligation, forming part of a series
of similar bonds, notes, debts, debentures, writ¬
ten or printed obligations, which by their terms
are payable one year or more from their date
of issue and which are either secured by a
mortgage, pledge, deposit or deed of trust, of
real or personal property, or both, or which are
not secured at all : excepting bonds of this
State or any civil division thereof and sucTi
bonds, notes, debts, debentures, written or print¬
ed obligations, which are secured by a deed of
trust or mortgage recorded in the State of New
York on real nroperty situated wholly within
tbe State of New York; excepting also such
bonds, notes, debts, debentures, written or print¬
ed obligations held as collateral to secure tbe
payment of investments taxable under this ar¬
ticle or of bonds taxable under article eleven
of tbis chapter (tax on mortgages) : and ex¬
cepting also such proportion of a bond, note,
debt, debenture or written or printed obligation,
secured by deed of trust or mortgage recorded
in tbe State of New York of property or prop¬
erties situated partly within and partly without
the State of New York as the value of that pa^t
of the mortgaged property or properties situ¬
ated within tbe State of New York shall bear
to the value of the entire mortgaged property or
The tax is 20c per year on each $100 ot face
value of the investment and may be oaid for one
year or more years not exceeding five.
Such investments are exempt from all other
State and local taxation for the years for which
the investment tax is paid except bank taxes,
franchise tax on insurance companies, trust
companies and savings banks, Inheritance tax
and stock transfer tax.
Secured debts on which tbe secured debts tax
was paid prior to May 1. 1915, or prior to April
1, 1917, under article eleven (tax on mortgages)
are exempt from taxation.
Secured debts on which the secured debts tax
was paid between May 1, 1915, and Dec. 31.
1916, are exempt from taxation for flve years
trom the date of payment.