Bill Text: NY A04863 | 2019-2020 | General Assembly | Amended


Bill Title: Authorizes 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 4-0)

Status: (Introduced) 2019-09-09 - print number 4863b [A04863 Detail]

Download: New_York-2019-A04863-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         4863--B

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                    February 5, 2019
                                       ___________

        Introduced  by M. of A. WOERNER, D'URSO, SAYEGH, ARROYO -- read once and
          referred to the Committee  on  Real  Property  Taxation  --  committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to  said  committee  -- again reported from said committee with amend-
          ments, ordered reprinted as amended and recommitted to said committee

        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

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01239-08-9

        A. 4863--B                          2

     1  section nine hundred seventy-six of this chapter. The  county  treasurer
     2  shall,  if  satisfied  that such account is correct, credit him with the
     3  amount of such unpaid delinquent taxes. Such return  shall  be  endorsed
     4  upon or attached to the tax roll.
     5    2.  In making the return of unpaid taxes, the collecting officer shall
     6  add five per centum to the amount of each tax as levied.  In  the  event
     7  that  the  collecting officer fails to do so, the county treasurer shall
     8  make such addition. In a county in which there is a local law in  effect
     9  pursuant  to  [section  nine  hundred  twenty-eight-b  or]  section nine
    10  hundred seventy-two of this chapter  providing  for  the  collection  of
    11  taxes  in installments, the five per centum provided by this subdivision
    12  shall not be added to the taxes which a real property owner has  elected
    13  to  pay in installments pursuant to [section nine hundred twenty-eight-b
    14  or] section nine hundred seventy-five of this  chapter.  Such  five  per
    15  centum  shall  be  added  by  the county treasurer to the amount of such
    16  taxes as shall have remained unpaid after the date upon which  the  last
    17  installment  was due as provided in such local law. Such five per centum
    18  shall not be added where the  taxable  real  property  upon  which  such
    19  unpaid  tax  was levied is an owner occupied single family dwelling. The
    20  amount of such added per centum shall thereafter be deemed part  of  the
    21  amount of the unpaid tax.
    22    §  3. Subdivision 1 and paragraph (a) of subdivision 2 of section 1112
    23  of the real property tax law, as amended by chapter 532 of the  laws  of
    24  1994, are amended to read as follows:
    25    1.  (a)  When  a  tax  district holds more than one tax lien against a
    26  parcel, the liens need not  be  redeemed  simultaneously.  However,  the
    27  liens  must be redeemed in reverse chronological order, so that the lien
    28  with the most recent lien date is redeemed first, and the lien with  the
    29  earliest  lien  date is redeemed last. Notwithstanding the redemption of
    30  one or more of the liens  against  a  parcel  as  provided  herein,  the
    31  enforcement  process  shall  proceed according to the provisions of this
    32  article as long as the earliest lien remains unredeemed.
    33    (b) Notwithstanding the provisions of paragraph (a) of  this  subdivi-
    34  sion,  when a tax district holds more than one tax lien against a parcel
    35  and such parcel is an owner occupied single family dwelling,  the  liens
    36  need  not  be  redeemed  simultaneously.    However,  the liens shall be
    37  redeemed in chronological order, so that the lien with the earliest lien
    38  date is redeemed first, and the lien with the most recent lien  date  is
    39  redeemed  last.    Notwithstanding  the redemption of one or more of the
    40  liens against a parcel as provided herein, the enforcement process shall
    41  proceed according to the provisions of this article as long as the  most
    42  recent  lien remains unredeemed for a period of three years or more from
    43  the date of delinquency 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 single family dwelling, but
    54  the most recent lien remains unredeemed for a period of three  years  or
    55  more  from  the  date of delinquency of such lien, the receipt issued to
    56  the person redeeming shall include  a  statement  in  substantially  the

        A. 4863--B                          3

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