1. (1) A mortgagor or mortgagee may claim a refund of any of the mortgage recording taxes paid by them where:

   1. (i) taxes were erroneously paid; or
   2. (ii) a statutory right of rescission, as defined in section 641.11 of this Title, is exercised.

2. (2) A refund can be claimed by filing an application for refund with the appropriate documentation attached to such refund claim as described in section 654.2 of this Part. Such application for refund must be filed within the times set forth below:

   1. (i) where a refund is claimed for taxes erroneously paid, within two years of the date the erroneous payment was received by the recording officer; or

   2. (ii) where a refund is claimed on account of the mortgagor's exercise of the statutory right of rescission, the later of the following:

      1. (a) two years from the time of the payment of the taxes; or
      2. (b) one year from the date the mortgage was discharged.

Tax Law, §§ 263, 257-a

(a)