Erie County Clerk Chris Jacobs advises Cheektowaga of expected mortgage tax revenue
BY: Metro Source Staff | November 09, 2012
Erie County Clerk Chris Jacobs announced today his office notified the Town of Cheektowaga it will soon be receiving their share of the Erie County mortgage tax based off of real estate transactions.
In a letter sent to Supervisor Mary Holtz, County Clerk Jacobs informed her that the Town of Cheektowaga will be distributed approximately $595,307.39 for the period of April 1 through Sept. 30, 2012.
“In these uncertain financial times it is important to make the amount known to the town immediately,” said Jacobs. “It is essential to assist the municipalities with their budgetary and cash flow planning.”
Mortgage tax is collected by the Erie County Clerk’s Office in accordance with specific state law formulas, and the collected tax is held in trust by the comptroller’s office for final reconciliation, reporting to the NYS Comptroller, and distribution of applicable amounts to the county’s cities, towns and villages.
Each month, the county retains $37,500 of mortgage tax revenue as a fee for processing mortgage tax transactions. On a biennial basis (i.e., each June for the prior six-month period Oct. through March and each Dec. for the prior six-month period April through Sept.), the county distributes mortgage tax receipts to the three cities, 25 towns and 16 villages located in the county.
The distributions are determined by the amount of total mortgages entered into for each municipality during the applicable period. These distributions provide a good albeit not precise indication of the real property market for each municipality, and in total, for the county.