County staff detail mortgage-tax administration cost, suggest options to close $137,000 shortfall

A county staff member explained how the county currently retains $4,395 per month to cover personnel and operating costs for processing mortgage-tax documents, indexing and reconciliations. Staff said the methodology (salary and benefits prorated to time spent on mortgage-tax work plus a share of software costs) yields an annual processing cost of about $189,775 and that the county currently retains roughly $52,740—leaving an estimated annual shortfall of about $137,000.

Committee members asked whether the county could raise the mortgage-tax rate and whether New York State approval would be required. Staff said changing the county’s retained amount or increasing the supplement (for example, from 1% to 1.25% or 1.5%) would require submission to and approval by state authorities; staff noted other counties have different practices and recommended legal review. The committee asked staff to prepare options and a legal assessment, noting a potential effective date of April 1, 2027 if the committee pursues any change.