NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A1489A
SPONSOR: Thiele
 
TITLE OF BILL:
An act to amend the real property tax law, in relation to delinquent tax
interest rates
 
PURPOSE OR GENERAL IDEA OF BILL:
To tie the interest rate for delinquent tax payments due on real proper-
ty to the prime interest rate and set a floor of two percent and ceiling
of sixteen percent.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Amends section 924-a of the real property tax law by tying
the delinquent tax interest rate to the prime interest rate and setting
a floor of two percent and ceiling of sixteen percent. Also specifies
that the rate will be reviewed every five years.
Section 2: effective date.
 
JUSTIFICATION:
This bill provides relief for owners of residential properties who fall
behind in their taxes. The incredibly high interest rates that munici-
palities across New York State are charging prevents many homeowners
from being able to resolve their tax foreclosure delinquency and avoid
foreclosure.
Section 924-a currently sets the floor for the lowest rate a munici-
pality may charge at twelve percent. This has not been updated since
1983 and does not reflect the current economic conditions in New York
State. This bill would update section 924-a to cap the delinquent tax
interest rate at 16%, reduce the floor to 2% and tie the rate to the
prime interest rate.
 
LEGISLATIVE HISTORY:
2023: S.967/A.1489
2021-22:S.6310B/A.7776A Passed Senate
 
FISCAL IMPLICATIONS:
None to the state.
 
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
1489--A
2023-2024 Regular Sessions
IN ASSEMBLY
January 17, 2023
___________
Introduced by M. of A. THIELE, WILLIAMS, McMAHON, BURKE, RIVERA, DICK-
ENS, PEOPLES-STOKES, WALLACE, ZEBROWSKI -- read once and referred to
the Committee on Real Property Taxation -- reported and referred to
the Committee on Ways and Means -- recommitted to the Committee on
Ways and Means in accordance with Assembly Rule 3, sec. 2 -- 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 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-
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04542-05-4
A. 1489--A 2
1 erative form regardless of owner occupancy status; and provided further
2 that this limitation shall not apply to real property that is vacant and
3 abandoned, as defined in subdivision two of section thirteen hundred
4 nine of the real property actions and proceedings law, which was listed
5 on the statewide vacant and abandoned property electronic registry, as
6 defined in section thirteen hundred ten of the real property actions and
7 proceedings law, and remains on such registry. This subdivision shall
8 supersede any local tax act, code, law, rule, regulation, ordinance or
9 resolution setting an interest rate above sixteen per centum per annum
10 of delinquent tax payments due on residential real property. The
11 initial determination of the effective prime interest rate shall be
12 based on the two thousand twenty-five rate. Subsequent determinations
13 shall be made every five years thereafter.
14 § 2. This act shall take effect immediately.