Bill Text: NY S00967 | 2023-2024 | General Assembly | Amended


Bill Title: Relates to setting a minimum and maximum delinquent tax interest rate for payments due on residential real property.

Spectrum: Slight Partisan Bill (Democrat 2-1)

Status: (Engrossed) 2024-03-11 - AMENDED ON THIRD READING 967A [S00967 Detail]

Download: New_York-2023-S00967-Amended.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                         967--A
            Cal. No. 85

                               2023-2024 Regular Sessions

                    IN SENATE

                                     January 9, 2023
                                       ___________

        Introduced  by  Sen.  RYAN  --  read twice and ordered printed, and when
          printed to be committed to the Committee on Local Government -- recom-
          mitted to the Committee on Local Government in accordance with  Senate
          Rule  6,  sec. 8 -- reported favorably from said committee, ordered to
          first and second report, ordered  to  a  third  reading,  amended  and
          ordered reprinted, retaining its place in the order of third reading

        AN ACT to amend the real property tax law, in relation to delinquent tax
          interest rates

          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. Such interest shall be added for each  month  or  fraction  thereof
    11  until  such  taxes  are paid; provided however, that notwithstanding any
    12  provision of general, special, or local law or resolution to the contra-
    13  ry, beginning in all local fiscal years commencing in calendar year  two
    14  thousand  twenty-five and thereafter, in no case shall the interest rate
    15  of delinquent tax payments due on residential real property  exceed  the
    16  prime interest rate, as determined by the commissioner, provided that in
    17  no  instance shall the interest rate subceed two per centum per annum or
    18  exceed sixteen per centum per annum;  and  provided  further  that  this
    19  limitation  shall  apply to units held in condominium form; and provided
    20  further that such limitation shall apply to all buildings held in  coop-
    21  erative  form regardless of owner occupancy status; and provided further

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04542-04-4

        S. 967--A                           2

     1  that this limitation shall not apply to real property that is vacant and
     2  abandoned, as defined in subdivision two  of  section  thirteen  hundred
     3  nine  of the real property actions and proceedings law, which was listed
     4  on  the  statewide vacant and abandoned property electronic registry, as
     5  defined in section thirteen hundred ten of the real property actions and
     6  proceedings law, and remains on such registry.   This subdivision  shall
     7  supersede  any  local tax act, code, law, rule, regulation, ordinance or
     8  resolution setting an interest rate above sixteen per centum  per  annum
     9  of  delinquent  tax  payments  due  on  residential real property.   The
    10  initial determination of the effective  prime  interest  rate  shall  be
    11  based  on  the  two thousand twenty-five rate. Subsequent determinations
    12  shall be made every five years thereafter.
    13    § 2.  This act shall take effect immediately.
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