Bill Text: NY S02845 | 2021-2022 | General Assembly | Introduced

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Bill Title: Relates to authorizing counties to set interest rates imposed on late payment of property taxes and delinquencies and redemption of property subject to more than one tax lien.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2022-01-05 - REFERRED TO LOCAL GOVERNMENT [S02845 Detail]

Download: New_York-2021-S02845-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          2845

                               2021-2022 Regular Sessions

                    IN SENATE

                                    January 26, 2021
                                       ___________

        Introduced  by Sens. KAVANAGH, HARCKHAM -- read twice and ordered print-
          ed, and when printed to be committed to the Committee on Local Govern-
          ment

        AN ACT to amend the real property tax law, in relation to certain inter-
          est rates imposed on late  payment  of  taxes  and  delinquencies  and
          redemption of certain property subject to more than one tax lien

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Subdivision 1 of section 924-a of  the  real  property  tax
     2  law, as amended by chapter 26 of the laws of 2003, is amended to read as
     3  follows:
     4    1.  The amount of interest to be added on all taxes received after the
     5  interest free period and all delinquent taxes shall be  one-twelfth  the
     6  rate  of  interest as determined pursuant to subdivision two or two-a of
     7  this section rounded to the nearest one-hundredth of a percentage point,
     8  except as otherwise provided by a general or special law, or a local law
     9  adopted by a city pursuant to the municipal home rule law or any special
    10  law or by a local law adopted by a county.  Such interest shall be added
    11  for each month or fraction thereof until such taxes are paid.
    12    § 2. Section 936 of the real property tax law, as amended  by  chapter
    13  237  of the laws of 1995, subdivision 1 as amended by chapter 355 of the
    14  laws of 1997, is amended to read as follows:
    15    § 936. Return of unpaid delinquent taxes.  1. Upon the  expiration  of
    16  his warrant, each collecting officer shall make and deliver to the coun-
    17  ty  treasurer  an  account, subscribed and affirmed by him as true under
    18  the penalties of perjury, of all taxes listed  on  the  tax  roll  which
    19  remain  unpaid, except that such collecting officer shall not include in
    20  such account the amount of the installments  of  taxes  returned  unpaid
    21  pursuant  to [section nine hundred twenty-eight-b or] subdivision one of
    22  section nine hundred seventy-six of this chapter. The  county  treasurer
    23  shall,  if  satisfied  that such account is correct, credit him with the

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06381-01-1
        S. 2845                             2

     1  amount of such unpaid delinquent taxes. Such return  shall  be  endorsed
     2  upon or attached to the tax roll.
     3    2.  In making the return of unpaid taxes, the collecting officer shall
     4  add five per centum to the amount of each tax as levied.  In  the  event
     5  that  the  collecting officer fails to do so, the county treasurer shall
     6  make such addition. In a county in which there is a local law in  effect
     7  pursuant  to  [section  nine  hundred  twenty-eight-b  or]  section nine
     8  hundred seventy-two of this chapter  providing  for  the  collection  of
     9  taxes  in installments, the five per centum provided by this subdivision
    10  shall not be added to the taxes which a real property owner has  elected
    11  to  pay in installments pursuant to [section nine hundred twenty-eight-b
    12  or] section nine hundred seventy-five of this  chapter.  Such  five  per
    13  centum  shall  be  added  by  the county treasurer to the amount of such
    14  taxes as shall have remained unpaid after the date upon which  the  last
    15  installment  was due as provided in such local law. Such five per centum
    16  shall not be added where the  taxable  real  property  upon  which  such
    17  unpaid  tax  was  levied  is  an  owner occupied residential property as
    18  defined by section eleven hundred eleven of this chapter. The amount  of
    19  such  added  per centum shall thereafter be deemed part of the amount of
    20  the unpaid tax.
    21    § 3. Subdivision 1 and paragraph (a) of subdivision 2 of section  1112
    22  of  the  real property tax law, as amended by chapter 532 of the laws of
    23  1994, are amended to read as follows:
    24    1. (a) When a tax district holds more than  one  tax  lien  against  a
    25  parcel,  the  liens  need  not  be redeemed simultaneously. However, the
    26  liens must be redeemed in reverse chronological order, so that the  lien
    27  with  the most recent lien date is redeemed first, and the lien with the
    28  earliest lien date is redeemed last. Notwithstanding the  redemption  of
    29  one  or  more  of  the  liens  against  a parcel as provided herein, the
    30  enforcement process shall proceed according to the  provisions  of  this
    31  article as long as the earliest lien remains unredeemed.
    32    (b)  Notwithstanding  the provisions of paragraph (a) of this subdivi-
    33  sion, when a tax district holds more than one tax lien against a  parcel
    34  and  such parcel is an owner occupied residential property as defined by
    35  section eleven hundred eleven of this  title,  the  liens  need  not  be
    36  redeemed simultaneously.  However, the liens shall be redeemed in chron-
    37  ological order, so that the lien with the earliest lien date is redeemed
    38  first,  and  the  lien  with the most recent lien date is redeemed last.
    39  Notwithstanding the redemption of one or more of  the  liens  against  a
    40  parcel as provided herein, the enforcement process shall proceed accord-
    41  ing  to the provisions of this article as long as any lien remains unre-
    42  deemed for a period of three years or more from the date of  delinquency
    43  of such lien.
    44    (a)  (i)  When  one  or  more  liens  against a parcel are redeemed as
    45  provided herein, but the earliest lien remains unredeemed,  the  receipt
    46  issued to the person redeeming shall include a statement in substantial-
    47  ly  the  following  form:    "This parcel remains subject to one or more
    48  delinquent tax liens. The payment you have made will  not  postpone  the
    49  enforcement  of  the outstanding lien or liens. Continued failure to pay
    50  the entire amount owed will result in the loss of the property."
    51    (ii) Notwithstanding the provisions of subparagraph (i) of this  para-
    52  graph,  when one or more liens against a parcel are redeemed as provided
    53  herein and such parcel is an  owner  occupied  residential  property  as
    54  defined  by  section  eleven  hundred eleven of this title, but any lien
    55  remains unredeemed for a period of three years or more from the date  of
    56  delinquency  of  such  lien,  the receipt issued to the person redeeming
        S. 2845                             3

     1  shall include a statement in substantially  the  following  form:  "This
     2  parcel  remains subject to one or more delinquent tax liens. The payment
     3  you have made will not postpone the enforcement of the outstanding  lien
     4  or  liens.   Continued failure to pay the entire amount owed will result
     5  in the loss of the property."
     6    § 4. Subdivision 2 of section 924-a of the real property tax  law,  as
     7  amended  by  chapter  355  of the laws of 2003 and as further amended by
     8  subdivision (b) of section 1 of part W of chapter  56  of  the  laws  of
     9  2010, is amended to read as follows:
    10    2.  The  rate  of interest applicable to the third calendar quarter of
    11  each year, as set by the commissioner of taxation and  finance  pursuant
    12  to  subparagraph  (A)  of paragraph two of subsection (j) of section six
    13  hundred ninety-seven of the tax law,  shall  be  the  rate  of  interest
    14  applicable  to  unpaid real property taxes for purposes of this section.
    15  Such commissioner shall set such rate on or before the fifteenth day  of
    16  July  in each year. Such rate shall be effective for all warrants issued
    17  for a collection period commencing on or after the first day of  Septem-
    18  ber  next  succeeding  the  date the rate of interest is set.  Provided,
    19  however, the rate of interest prescribed by this subdivision shall in no
    20  event be less than twelve per centum per annum unless the  taxable  real
    21  property upon which such tax was levied is an owner occupied residential
    22  property  as  defined  in section eleven hundred eleven of this chapter.
    23  The commissioner shall inform each affected municipality of  any  change
    24  in the rate established pursuant to this subdivision.
    25    §  5.  This  act shall take effect on the ninetieth day after it shall
    26  have become a law.