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

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

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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-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         4863--A

                               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

        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
    24  amount of such unpaid delinquent taxes. Such return  shall  be  endorsed
    25  upon or attached to the tax roll.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD01239-06-9
        A. 4863--A                          2

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