senate Bill S1261B

Authorizes the city of Schenectady to enter into a contract to sell some or all of the delinquent tax liens held by such city to a private party

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 28 / Jan / 2009
    • REFERRED TO LOCAL GOVERNMENT
  • 13 / Feb / 2009
    • AMEND AND RECOMMIT TO LOCAL GOVERNMENT
  • 13 / Feb / 2009
    • PRINT NUMBER 1261A
  • 22 / Apr / 2009
    • 1ST REPORT CAL.215
  • 27 / Apr / 2009
    • 2ND REPORT CAL.
  • 28 / Apr / 2009
    • ADVANCED TO THIRD READING
  • 18 / May / 2009
    • AMENDED ON THIRD READING (T) 1261B
  • 09 / Jul / 2009
    • SUBSTITUTED BY A4554C

Summary

Authorizes the city of Schenectady to enter into a contract to sell some or all of the delinquent tax liens held by such city to a private party under certain conditions; requires 30 days notice to owners; provides for repeal as of December 31, 2011.

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Bill Details

See Assembly Version of this Bill:
A4554C
Versions:
S1261
S1261A
S1261B
Legislative Cycle:
2009-2010
Law Section:
Schenectady County
Versions Introduced in 2007-2008 Legislative Cycle:
S8796

Sponsor Memo

BILL NUMBER: S1261B

TITLE OF BILL :

An act to authorize the city of Schenectady to enter into a contract
to sell some or all of the delinquent tax liens held by such city to a
private party; and providing for the repeal of such provisions upon
expiration thereof


PURPOSE :

This bill continues the ability of the City of Schenectady to sell
delinquent tax liens to a private party.

SUMMARY OF PROVISIONS :

The bill provides that the City of Schenectady may, until December 31,
2009, enter into a contract to sell some or all of its delinquent tax
liens to private parties. This authority applies to liens which have
been attached to real property on or before January 31, 2010. The bill
also enacts certain notification and procedural requirements which
have been established in similar laws enacted for other cities (such
as Chapter 505 of 2006 for the City of Amsterdam, and Chapter 44 of
2007 for the City of Gloversville).

EXISTING LAW :

Chapter 177 of the Laws of 2004 authorized the City of Schenectady to
enter into a contract for the sale of tax liens to a private party.

JUSTIFICATION :

This bill was requested by the city of Schenectady (resolution
2008-203). Schenectady was the first municipality in New York State to
be authorized to enter into a contract for the sale of tax liens to a
private party. Schenectady's tax lien sales have been highly
successful, raising significant funds for the city while also
generally improving conditions for delinquent taxpayers who are able
to negotiate flexible repayment terms with the private purchaser.
Since the original law, other cities have sought, and have received,
special legislative authority to conduct similar sales. This
legislation will ensure the continued ability of the City of
Schenectady to enter into new contracts for the sale of delinquent tax
liens. The bill also establishes notification and procedural
requirements for the City of Schenectady which are consistent with the
requirements that have been enacted in the past couple of years for
other cities which have been granted the authority to sell delinquent
tax liens.

LEGISLATIVE HISTORY :

Similar to S.8796 of 2008.

FISCAL IMPLICATIONS :

None to the State.

LOCAL FISCAL IMPLICATIONS :

This legislation will permit the City of Schenectady to continue to
obtain revenue from the sale of tax liens to a private party. The
amount of revenue to the city will depend on the amount of tax
delinquencies and the contract that is negotiated.

EFFECTIVE DATE :
This act shall take effect immediately, and shall expire and be deemed
repealed on and after December 31,2011.
view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 1261--B
    Cal. No. 215

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            January 28, 2009
                               ___________

Introduced  by  Sen.  FARLEY -- read twice and ordered printed, and when
  printed to be committed  to  the  Committee  on  Local  Government  --
  committee  discharged,  bill amended, ordered reprinted as amended and
  recommitted to said committee -- reported favorably from said  commit-
  tee,  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 authorize the city of Schenectady to enter into a contract to
  sell some or all of the delinquent tax liens held by such  city  to  a
  private  party;  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:

  Section  1.  Notwithstanding  any provision of any general, special or
local law to the contrary and until December 31, 2009, the City of Sche-
nectady may enter into a contract to sell some or all of the  delinquent
tax  liens  held  by  it which have been attached to real property on or
before January 31, 2010, to a private party, subject  to  the  following
conditions:
  (a)  The  consideration  to  be paid may be more or less than the face
amount of the tax liens sold.
  (b) Property owners shall be given at least 30 days advance notice  of
such sale in the same form and manner as is provided by subdivision 2 of
section  1190  of  the  real  property  tax law. Failure to provide such
notice or the failure of the addressee to receive the same shall not  in
any  way  affect  the validity of any sale of a tax lien or tax liens or
the validity of the taxes or interest prescribed  by  law  with  respect
thereto.
  (c)  The City of Schenectady shall set the terms and conditions of the
contract of sale.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04244-08-9

S. 1261--B                          2

  (d) The tax lien purchaser must 30 days prior to the  commencement  of
any  foreclosure  action  provide  to  the City of Schenectady a list of
liens to be foreclosed. The City of Schenectady may, at its sole  option
and  discretion, repurchase a lien or liens on the foreclosure list from
the  tax lien purchaser. The repurchase price shall be the amount of the
lien or liens and may include any accrued interest  and  reasonable  and
necessary  collection  fees  incurred by the tax lien purchaser. The tax
lien purchaser shall provide the foreclosure list to the City  of  Sche-
nectady,  along  with  the  applicable repurchase price of each lien, by
certified mail, and the City of Schenectady  shall  have  30  days  from
receipt  to  notify the tax lien purchaser of its option to purchase one
or more of the liens.  If the City of Schenectady opts to  purchase  the
lien,  it  shall provide payment within 30 days of receipt of the repur-
chase price of said lien or liens.   If the City  of  Schenectady  shall
fail to opt to repurchase the lien or liens the tax lien purchaser shall
have the right to commence a foreclosure action immediately.
  (e)  The  sale of a tax lien pursuant to this act shall not operate to
shorten the otherwise applicable redemption period or change the  other-
wise applicable interest rate.
  (f)  Upon  the  expiration of the redemption period prescribed by law,
the purchaser of a delinquent tax lien, or its  successors  or  assigns,
may  foreclose  the  lien  as  in  an  action to foreclose a mortgage as
provided in section 1194 of the real property tax law. The procedure  in
such  action shall be the procedure prescribed by article 13 of the real
property actions and proceedings law for the foreclosure  of  mortgages.
At any time following the commencement of an action to foreclose a lien,
the amount required to redeem the lien, or the amount received upon sale
of  a  property,  may include reasonable and necessary collection costs,
attorneys' fees, legal costs, allowances, and disbursements.
  (g) The provisions of title 5 of article 11 of the real  property  tax
law  shall  apply so far as is practicable to a contract for the sale of
tax liens pursuant to this act.
  S 2. This act shall take effect immediately and shall  expire  and  be
deemed repealed on and after December 31, 2011.

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