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

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

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 - Dead) 2020-01-08 - referred to real property taxation [A04863 Detail]

Download: New_York-2019-A04863-Introduced.html

---

                STATE OF NEW YORK
        ________________________________________________________________________
                                          4863
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 5, 2019
                                       ___________
        Introduced  by M. of A. WOERNER -- read once and referred to the Commit-
          tee on Real Property Taxation
        AN ACT to amend the real property tax law, in relation to interest rates
          imposed on late payment of taxes and delinquencies and  redemption  of
          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.
                                                                   LBD01239-02-9
        A. 4863                             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  hundred
     8  seventy-two  of  this  chapter  providing for the collection of taxes in
     9  installments, the five per centum provided by this subdivision shall not
    10  be added to the taxes which a real property owner has elected to pay  in
    11  installments  pursuant to section nine hundred twenty-eight-b or section
    12  nine hundred seventy-five of this chapter. Such five per centum shall be
    13  added by the county treasurer to the amount of such taxes as shall  have
    14  remained  unpaid  after the date upon which the last installment was due
    15  as provided in such local law. The amount of such added per centum shall
    16  thereafter be deemed part of the amount of the unpaid tax.]
    17    § 3. Subdivision 1 and paragraph (a) of subdivision 2 of section  1112
    18  of  the  real property tax law, as amended by chapter 532 of the laws of
    19  1994, are amended to read as follows:
    20    1. When a tax district holds more than one tax lien against a  parcel,
    21  the  liens  need not be redeemed simultaneously. However, the liens must
    22  be redeemed in [reverse] chronological order, so that the lien with  the
    23  [most  recent]  earliest  lien date is redeemed first, and the lien with
    24  the [earliest] most recent lien date is redeemed  last.  Notwithstanding
    25  the  redemption of one or more of the liens against a parcel as provided
    26  herein,  the  enforcement  process  shall  proceed  according   to   the
    27  provisions  of  this  article as long as the [earliest] most recent lien
    28  remains unredeemed for a period of two years or more from  the  date  of
    29  delinquency of such lien.
    30    (a)  When  one or more liens against a parcel are redeemed as provided
    31  herein, but the [earliest] most recent lien  remains  unredeemed  for  a
    32  period  of  two years or more from the date of delinquency of such lien,
    33  the receipt issued to the person redeeming shall include a statement  in
    34  substantially  the  following form:  "This parcel remains subject to one
    35  or more delinquent tax liens. The payment you have made will  not  post-
    36  pone the enforcement of the outstanding lien or liens. Continued failure
    37  to pay the entire amount owed will result in the loss of the property."
    38    §  4.  Subdivision 2 of section 924-a of the real property tax law, as
    39  amended by chapter 355 of the laws of 2003 and  as  further  amended  by
    40  subdivision  (b)  of  section  1  of part W of chapter 56 of the laws of
    41  2010, is amended to read as follows:
    42    2. The rate of interest applicable to the third  calendar  quarter  of
    43  each  year,  as set by the commissioner of taxation and finance pursuant
    44  to subparagraph (A) of paragraph two of subsection (j)  of  section  six
    45  hundred  ninety-seven  of  the  tax  law,  shall be the rate of interest
    46  applicable to unpaid real property taxes for purposes of  this  section.
    47  Such  commissioner shall set such rate on or before the fifteenth day of
    48  July in each year. Such rate shall be effective for all warrants  issued
    49  for  a collection period commencing on or after the first day of Septem-
    50  ber next succeeding the date the rate of interest  is  set.    Provided,
    51  however, the rate of interest prescribed by this subdivision shall in no
    52  event  be [less] more than twelve per centum per annum. The commissioner
    53  shall inform each affected municipality of any change in the rate estab-
    54  lished pursuant to this subdivision.
    55    § 5. This act shall take effect on the ninetieth day  after  it  shall
    56  have become a law.