WPCNR MAIN STREET JOURNAL. October 30. 2006: WPCNR has learned  from the Mayor's Office and an independent audit effort, that the city stands to collect $4.6 Million in mortgage taxes from Westchester County, adding to the city coffers, perhaps as early as December. An independent inquiry by a private citizen at the request of the City of White Plains has revealed that over the last 9-1/2 months the county has collected $4.6 Million in mortgage taxes on closings of real estate sales in the cities.

The audit came about as a result of a city finance and budget committee in which Mayor Joseph Delfino and Commissioner of Finance, Gina Cuneo-Harwood reported to the members of the committee that previously the County Clerk Office which collects and records the mortgage tax has lagged behind in recording the taxes, and sat onthe money, enjoying the "float" of interest the money belonging to the city has earned. Harwood said the county pays the city once a year, apparently earing a year of interest on what Harwood called was city money. Harwood at the time revealed she did not have an exact idea of how much mortgage tax the city was owed.

An independent audit conducted by Don Hughes with the County Clerk's office, at city request, has revealed that over the last nine months, the county clerk's office calculates $4.6 Million is owed the city as follows:

                                                                2006 Mortgage Taxes Due City

                                     Source: County Clerk Office, as Reported to Don Hughes

January: $202,000

February: $347,000

March:    $282,000

April:      $284,000

May:      $593,000

June:      $429,000

July:       $938,000

August:  $411,000

September:  $424,000

October (through the 19th): $684,000

TOTAL MORTGAGE TAXES OWED CITY OF WHITE PLAINS, 2006: $4,594,000

Ms. Harwood said at the last Budget and Finance Committee meeting that the city had asked the County to pay the mortgage taxes twice a year, not once, so the city could get its money sooner. However, Harwood was informed that the county preferred to keep it to once a year, because, according to Harwood, they wanted to keep the interest they earn from the "float."

Harwood said that legislation from the state signed by Governor Pataki recently freed up the counties to pay back mortgage taxes more than once a year, but the decision to speed up payments was left to the individual county.

The County Clerk office, according to Don Hughes, who compiled this data on the mortgage tax, has "caught up" with the White Plains mortgage tax pace, but it is unclear when the $4.6 Million plus in funds will be delivered to the city. 

The County Clerk office was contacted by WPCNR to confirm these figures Monday morning and the latest additonal monies in White Plains mortgage taxes owed, and WPCNR awaits their response, and County Clerk Idoni's policy in regard to whether future mortgage tax payments to White Plains (and the rest of Westchester County cities) will be issued on a more frequent basis.

Leslie Alpert, the media spokesperson for County Clerk Timothy Idoni said the Clerk was out of the office today but would comment on the matter Tuesday.

Paul Wood, City Hall Executive Officer, categorically denied the city had requested Don Hughes to find out the information for the city, and said he did not believe the figures were accurate. Hughes said he had suggested he could go to the County Clerk's office and find out for the city and Hughes said Wood agreed that would be a good idea.

The windfall in mortgage taxes should help the city's 2006-07 budget pattern.