Section 1801. Small claims defined

The  term  "small  claim"  or "small claims" as used in this act shall
  mean and include any cause of action for money only  not  in  excess  of
  three  thousand  dollars  exclusive of interest and costs, provided that
  the defendant either resides, or has an office for  the  transaction  of
  business  or  a  regular  employment,  within the municipality where the
  court is located. However, where a judge of the county  court,  pursuant
  to  subdivision  (g)  of  section three hundred twenty-five of the civil
  practice law and rules, transfers a small claim from the town or village
  court having jurisdiction over the matter to  another  town  or  village
  court within the same county, the court to which it is transferred shall
  have jurisdiction to determine the claim.