senate Bill S4229

Relates to the sale of delinquent tax liens on brownfield property in Suffolk county

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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

  • 24 / Mar / 2011
    • REFERRED TO LOCAL GOVERNMENT
  • 11 / May / 2011
    • 1ST REPORT CAL.636
  • 16 / May / 2011
    • 2ND REPORT CAL.
  • 17 / May / 2011
    • ADVANCED TO THIRD READING
  • 01 / Jun / 2011
    • HOME RULE REQUEST
  • 01 / Jun / 2011
    • PASSED SENATE
  • 01 / Jun / 2011
    • DELIVERED TO ASSEMBLY
  • 01 / Jun / 2011
    • REFERRED TO WAYS AND MEANS
  • 04 / Jan / 2012
    • DIED IN ASSEMBLY
  • 04 / Jan / 2012
    • RETURNED TO SENATE
  • 04 / Jan / 2012
    • REFERRED TO LOCAL GOVERNMENT
  • 19 / Apr / 2012
    • 1ST REPORT CAL.554
  • 25 / Apr / 2012
    • 2ND REPORT CAL.
  • 26 / Apr / 2012
    • ADVANCED TO THIRD READING
  • 21 / Jun / 2012
    • HOME RULE REQUEST
  • 21 / Jun / 2012
    • PASSED SENATE
  • 21 / Jun / 2012
    • DELIVERED TO ASSEMBLY
  • 21 / Jun / 2012
    • REFERRED TO WAYS AND MEANS

Summary

Authorizes Suffolk county to sell certain delinquent tax liens on brownfield property to private buyers.

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Bill Details

See Assembly Version of this Bill:
A5554
Versions:
S4229
Legislative Cycle:
2011-2012
Current Committee:
Law Section:
Suffolk County Tax Act
Laws Affected:
Add ยง46-a, Chap 311 of 1920
Versions Introduced in 2009-2010 Legislative Cycle:
S5995A, A8772A

Sponsor Memo

BILL NUMBER:S4229

TITLE OF BILL:
An act
to amend the Suffolk county tax act, in relation to the sale of
delinquent tax liens on brownfields property

PURPOSE OR GENERAL IDEA OF BILL:
The amendment would allow Suffolk
County to sell or dispose of tax liens for less than outstanding tax
due on lien on parcels identifies by the County as Brownfields except
Super-fund Sites. The sale or disposal of the County tax liens on
these parcels will satisfy open real property tax liens and promote
the return of these parcels to a productive real property taxpaying
use.

SUMMARY OF PROVISIONS:
Adds a new section 46-a which would allow
Suffolk County to sell or dispose of tax liens for less than
outstanding tax due on lien on parcels Identifies by the County as
Brownfields except Superfund sites. The sale or disposal of the
County tax liens on these parcels will satisfy open real property tax
liens and promote the return of these parcels to a productive real
property taxpaying use.

JUSTIFICATION:
Suffolk County acquires an interest and, in most
instances, take title by tax deed to real property for non-payment of
taxes. However, the County has decided not to take title for
non-payment of real property taxes on parcels identified as
Brownfields. A parcel is identified as a Brownfield site as a result
of its past use and/or the presence of known contamination on the site.

In many instances, the tax liens held by the County on Brownfield
parcels and the cost to remediate the property are, in most
instances, in excess of the appraised value of the property assuming
the site is without contamination. Allowing the County, the option to
sell or dispose of the tax liens for less than the outstanding tax
due on a Brownfield parcel with the requirement that the buyer will
remediate the parcel will promote private developers to acquire the
tax liens, invest money to clean up the land, and convert these
contaminated non-taxpaying parcels into productive tax paying use.

The Suffolk County Treasurer currently lists seventy-six parcels with
tax liens that are eligible for sale or disposal that the County has
been reluctant to take a tax deed due to the presence of
contamination on the property. The seventy-six parcels include
approximately 215 acres of potentially contaminated, under utilized
land that would be remediated and restored to the tax rolls if the
tax lien on the property could be sold or transferred to a private
developer.

PRIOR LEGISLATIVE HISTORY:
2009-10: A.5995-A

FISCAL IMPLICATIONS:


The amendment would have a long-term benefit to
the taxpayers by returning these parcels, which are non-producing tax
revenue, to productive, tax paying use.

EFFECTIVE DATE:
This act shall take immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4229

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             March 24, 2011
                               ___________

Introduced  by  Sen.  MARCELLINO  -- read twice and ordered printed, and
  when printed to be committed to the Committee on Local Government

AN ACT to amend the Suffolk county tax act, in relation to the  sale  of
  delinquent tax liens on brownfields property

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Chapter 311 of the laws of 1920  constituting  the  Suffolk
county  tax  act  is  amended  by  adding  a new section 46-a to read as
follows:
  S 46-A. THE COUNTY SHALL HAVE THE RIGHT TO  ENTER  INTO  CONTRACTS  TO
SELL  SOME  OR ALL OF ITS DELINQUENT TAX LIENS ON PROPERTY IDENTIFIED AS
BROWNFIELD SITES  PURSUANT  TO  SECTION  27-1405  OF  THE  ENVIRONMENTAL
CONSERVATION  LAW,  EXCEPT  SUPERFUND SITES PLACED ON THE U.S.  ENVIRON-
MENTAL PROTECTION AGENCY'S  (USEPA)  NATIONAL  PRIORITY  LIST  (NPL)  AS
DEFINED  BY  THE COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION, AND
LIABILITIES ACT OF 1980 TO CLEAN UP  ABANDONED  HAZARDOUS  WASTE  SITES,
HELD  BY  SUCH  COUNTY  TO  ONE  OR  MORE PRIVATE PARTIES 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)  THE  COUNTY SHALL SET THE TERMS AND CONDITIONS OF THE CONTRACT OF
SALE AND ALL PRIOR CONTRACTS OF SALE SHALL BE DEEMED VALID AND SHALL  BE
ENFORCED  UNDER THIS ACT AND THAT THE COUNTY SHALL REQUIRE THE PURCHASER
TO REMEDIATE THE PROPERTY IN ACCORDANCE WITH THE PROVISIONS OF TITLE  14
OF  ARTICLE  27  OF  THE  ENVIRONMENTAL  CONSERVATION LAW AND TO PROMOTE
INVESTMENT IN AND DEVELOPMENT OF SUCH PARCELS.
  (C) THE COUNTY SHALL PROVIDE PROPERTY OWNERS WITH AT LEAST THIRTY 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 AND SHALL
BE DONE BY REGULAR MAIL TO THE LAST KNOWN ADDRESS.  FAILURE  TO  PROVIDE
SUCH  NOTICE  BY  THE COUNTY SHALL NOT IN ANY WAY AFFECT THE VALIDITY OF

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09128-01-1

S. 4229                             2

ANY SUCH SALE OF A TAX LIEN OR TAX LIENS OR THE VALIDITY OF THE TAXES OR
INTEREST PRESCRIBED BY LAW WITH RESPECT THERETO.
  (D)  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.
  (E)  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, SHALL INCLUDE ATTORNEY'S FEES, COURT COSTS, TITLE FEES,
SERVICE OF PROCESS FEES, AND OTHER DISBURSEMENTS ALLOWED BY A  COURT  OF
COMPETENT  JURISDICTION UPON THE FILING OF SAID COURT WITH PROOF OF SAID
EXPENSES.
  (F) 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.

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