Authorizes the commissioner of finance of the city of New York to establish a property tax amnesty program; provides that such program shall last for 4 months and shall forgive up to $1000 of interest on a delinquent tax bill if 100 percent of the principal bill is paid.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A5810
SPONSOR: Rosenthal D
 
TITLE OF BILL:
An act authorizing the commissioner of finance of the city of New York
to establish a property tax amnesty program; and providing for the
repeal of such provisions upon expiration thereof
 
PURPOSE OR GENERAL IDEA OF BILL:
Create a. property tax amnesty program
 
SUMMARY OF PROVISIONS:
Section 1. Directs the NYC Commissioner of Finance to establish a
4-month Amnesty Program for property owners who have a delinquent tax
bill.
For a property owner who owes more than $1,000, if 100 percent of the
principal bill is paid, 100 percent of interest will be forgiven; if 50
percent of the principal bill is paid, 75 percent of interest will be
forgiven; if 25 percent of the principal bill is paid, 50 percent of
interest will be forgiven. Any property owner With a remaining delin-
quent balance must enter into a payment plan.
Any property owner with a delinquent property tax balance of less than
$1,000 shall be eligible for forgiveness of 100 percent of the interest
on such delinquent property tax balance if 100 percent of the principal
bill is paid.
Section 2. Effective date
 
JUSTIFICATION:
The pandemic has been difficult and many homeowners and businesses have
fallen behind on their property taxes. According to the annual report on
Property taxes in New York City(1), the city's property tax delinquency
rate went from 1.69% in FY2019 up to 2.36% in FY2021. The increase of
the amount of people not paying their property taxes creates two signif-
icant problems: the City's tax revenue suffers, while property owners
are hit with enormous interest on their unpaid taxes, which then makes
it even harder to pay.
This program mirrors a similar program recently instituted by New York
City and the Department of Environmental Protection (DEP), where inter-
est on overdue water bills would be forgiven if customers settle their
outstanding balance(2).
With the future of NYC's lien sale program in doubt, this program would
provide an excellent mechanism to bring in a significant amount of tax
revenue to New York City, while helping property owners who have strug-
gled to pay their property taxes. This program will allow individuals
and businesses an opportunity to get back on track with their tax
payments and not fear losing their home or business due to back taxes.
1:https://www.nyc.gov/assets/finance/downloads/pdf/ reports/reports-
propertytax/nyc property fy22.pdf
2:https://www.nyc.gov/office-of-the-mayor/news/077-
23/meyor-adams-helps-newyorkers-saye-up-150-million- overdue-water-bills
 
LEGISLATIVE HISTORY:
New Bill
 
FISCAL IMPLICATIONS:
To be determined
 
EFFECTIVE DATE:
Immediately and shall expire and be deemed repealed one year after its
enactment
STATE OF NEW YORK
________________________________________________________________________
5810
2023-2024 Regular Sessions
IN ASSEMBLY
March 23, 2023
___________
Introduced by M. of A. D. ROSENTHAL -- read once and referred to the
Committee on Real Property Taxation
AN ACT authorizing the commissioner of finance of the city of New York
to establish a property tax amnesty program; and providing for the
repeal of such provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Notwithstanding any provision of law to the contrary, the
2 commissioner of finance of the city of New York shall establish an
3 amnesty program for any property owner who has a delinquent property tax
4 balance of more than $1,000 for more than one year. Such amnesty program
5 shall last for a period of 4 months and shall:
6 1. Forgive 100 percent of the interest on such delinquent property tax
7 balance, if 100 percent of the principal bill is paid;
8 2. Forgive 75 percent of the interest on such delinquent property tax
9 balance, if 50 percent of the principal bill is paid; and
10 3. Forgive 50 percent of the interest on such delinquent property tax
11 balance, if 25 percent of the principal bill is paid.
12 Any property owner with a delinquent property tax balance of less than
13 $1,000 shall be eligible for forgiveness of 100 percent of the interest
14 on such delinquent property tax balance if 100 percent of the principal
15 bill is paid. Any property owner with a remaining delinquent property
16 tax balance after participation in the program shall enter into a
17 payment agreement with the commissioner of finance.
18 § 2. This act shall take effect immediately and shall expire and be
19 deemed repealed one year after such date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08923-01-3