Bill Text: NY S03748 | 2019-2020 | General Assembly | Introduced

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Bill Title: Provides for the return of surplus proceeds from tax lien foreclosures to a former owner.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2020-08-11 - RECOMMIT, ENACTING CLAUSE STRICKEN [S03748 Detail]

Download: New_York-2019-S03748-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          3748
                               2019-2020 Regular Sessions
                    IN SENATE
                                    February 13, 2019
                                       ___________
        Introduced  by  Sen.  JACOBS -- read twice and ordered printed, and when
          printed to be committed to the Committee on Local Government
        AN ACT to amend the real  property  tax  law,  in  relation  to  surplus
          proceeds from tax lien foreclosures
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Section 1166 of the real property tax  law  is  amended  by
     2  adding a new subdivision 3 to read as follows:
     3    3.  (a)  A former owner of residential or farm property, as defined in
     4  this article, shall be entitled to any  surplus  proceeds  which  result
     5  from the sale of such real property acquired by a tax entity through tax
     6  foreclosure  proceedings.  The term "surplus" shall mean the amount that
     7  is left after the property has been auctioned and all outstanding taxes,
     8  issues, payments for county tax   and utility liens  and  administrative
     9  and other fees have been paid.
    10    (b)  In  the  event  that  a  sale authorized under this section shall
    11  result in a surplus as to any piece or parcel of land  offered  at  such
    12  sale, the enforcing officer shall report the fact of such surplus to the
    13  court  which  shall direct the enforcing officer to deposit such surplus
    14  in trust with  the county treasurer or commissioner of finance  for  the
    15  benefit  of  whomsoever may be entitled to such surplus pursuant to this
    16  subdivision.  Such surplus shall be retained for a period  of  at  least
    17  three years.
    18    (c)  A  municipality  shall  notify  a property owner when the owner's
    19  property netted a surplus at a tax foreclosure auction that was held  on
    20  or  after the effective date of this subdivision. The notification shall
    21  be made as directed by the court and shall state the possible  existence
    22  of a surplus, how to obtain the surplus and the steps the homeowner must
    23  take to obtain the surplus.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05811-01-9
        S. 3748                             2
     1    (d)  Notwithstanding subdivision two of section eleven hundred four of
     2  this article, the provisions of this  subdivision  shall  apply  to  all
     3  counties, cities, towns and villages in this state.
     4    § 2. This act shall take effect immediately.