senate Bill S2409

Provides that the department of taxation and finance shall withdraw from county records a tax lien for which the tax debt has been paid in full and satisfied

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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

  • 17 / Jan / 2013
    • REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

Summary

Provides that the department of taxation and finance shall withdraw from county records a tax lien for which the tax debt has been paid in full and satisfied.

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Bill Details

Versions:
S2409
Legislative Cycle:
2013-2014
Current Committee:
Senate Investigations And Government Operations
Law Section:
Tax Law
Laws Affected:
Amd §692, Tax L
Versions Introduced in 2011-2012 Legislative Cycle:
S7134

Sponsor Memo

BILL NUMBER:S2409

TITLE OF BILL: An act to amend the tax law, in relation to the
withdrawal of tax liens upon payment of taxes due

PURPOSE:
Provides that the department of taxation and finance shall withdraw
from county records a tax lien for which the tax debt has been paid in
full and satisfied.

SUMMARY OF PROVISIONS:
(j) Withdrawal of lien. - The department, upon payment in full and
satisfaction by a taxpayer of a tax debt for which a warrant has been
filed and a lien on property has been created pursuant to this
section, shall, withdraw such warrant and lien from the records of the
county in which such warrant was filed and lien was created. Within
five business days of such withdrawal, the department shall send
written notification to such taxpayer that such warrant and lien have
been withdrawn and that such taxpayer may contact credit reporting
agencies and notify them that such tax debt has been paid in full and
satisfied and that such warrant and lien have been withdrawn.

EXISTING LAW:
New bill.

JUSTIFICATION:
The IRS has introduced new legislation to make it easier for taxpayers
to obtain lien withdrawals after satisfying a tax bill. That law is
called the Federal "Lien On Me" tax law. This law will expunge or
withdraw a taxpayers debt lien from their credit record rather than
just release the lien, which stays on their credit record negatively
for seven years even after satisfaction. The law presently in effect
only covers your federal obligations and does not cover state taxation
and finance obligations. This bill would mirror the federal law, and
in addition would require the state taxation and finance agency to
inform consumers in writing at the end of their obligation that
removal of their lien will not happen automatically, that they, (the
consumer or tax payer) must contact the credit reporting agencies
themselves to notify that the lien has been satisfied and expunged or
withdrawn. This has not as yet been factored into the federal
legislation thusly may not be being addressed and is still showing
negatively on many consumers reports.

FISCAL IMPLICATIONS:
To be determined.

LOCAL FISCAL IMPLICATIONS:
Not applicable.

EFFECTIVE DATE:
§ 2. This act shall take effect on the sixtieth day after it shall
have become a law.

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

                                  2409

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 17, 2013
                               ___________

Introduced  by  Sen.  ADAMS  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation to the withdrawal of tax  liens
  upon payment of taxes due

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

  Section 1. Section 692 of the tax law  is  amended  by  adding  a  new
subsection (j) to read as follows:
  (J)  WITHDRAWAL  OF  LIEN.--THE  DEPARTMENT,  UPON PAYMENT IN FULL AND
SATISFACTION BY A TAXPAYER OF A TAX DEBT FOR WHICH A  WARRANT  HAS  BEEN
FILED  AND A LIEN ON PROPERTY HAS BEEN CREATED PURSUANT TO THIS SECTION,
SHALL, WITHDRAW SUCH WARRANT AND LIEN FROM THE RECORDS OF THE COUNTY  IN
WHICH  SUCH WARRANT WAS FILED AND LIEN WAS CREATED. WITHIN FIVE BUSINESS
DAYS OF SUCH WITHDRAWAL, THE DEPARTMENT SHALL SEND WRITTEN  NOTIFICATION
TO SUCH TAXPAYER THAT SUCH WARRANT AND LIEN HAVE BEEN WITHDRAWN AND THAT
SUCH TAXPAYER MAY CONTACT CREDIT REPORTING AGENCIES AND NOTIFY THEM THAT
SUCH  TAX DEBT HAS BEEN PAID IN FULL AND SATISFIED AND THAT SUCH WARRANT
AND LIEN HAVE BEEN WITHDRAWN.
  S 2. This act shall take effect on the sixtieth  day  after  it  shall
have become a law.




 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06097-01-3

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