senate Bill S5309

Relates to the sale, by counties, of delinquent tax liens on brownfields property

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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

  • 16 / May / 2013
    • REFERRED TO ENVIRONMENTAL CONSERVATION
  • 30 / May / 2013
    • 1ST REPORT CAL.823
  • 03 / Jun / 2013
    • 2ND REPORT CAL.
  • 04 / Jun / 2013
    • ADVANCED TO THIRD READING
  • 21 / Jun / 2013
    • COMMITTED TO RULES
  • 08 / Jan / 2014
    • REFERRED TO ENVIRONMENTAL CONSERVATION
  • 13 / May / 2014
    • 1ST REPORT CAL.621
  • 14 / May / 2014
    • 2ND REPORT CAL.
  • 19 / May / 2014
    • ADVANCED TO THIRD READING
  • 20 / Jun / 2014
    • COMMITTED TO RULES

Summary

Relates to the sale, by counties, of delinquent tax liens on brownfields property.

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Bill Details

See Assembly Version of this Bill:
A7470
Versions:
S5309
Legislative Cycle:
2013-2014
Current Committee:
Senate Rules
Law Section:
Environmental Conservation Law
Laws Affected:
Add §27-1437, En Con L; amd §181, Nav L
Versions Introduced in 2011-2012 Legislative Cycle:
S5424, A9747

Votes

7
0
7
Aye
0
Nay
5
aye with reservations
0
absent
0
excused
0
abstained
show Environmental Conservation committee vote details

Sponsor Memo

BILL NUMBER:S5309

TITLE OF BILL: An act to amend the environmental conservation law, in
relation to the sale of delinquent tax liens on brownfields property;
and to amend the navigation law, in relation to the liability of a
public corporation for the discharge of petroleum

PURPOSE: The amendment would allow any county in New York State 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.

SUMMARY OF PROVISIONS: Adds a new section, 27-1437 which would allow
Counties to sell or dispose of tax liens for less than outstanding tax
due on lien on parcels identified 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: Counties throughout the state acquire an interest and,
in most instances, take title by tax deed to real property for
non-payment of taxes. However, many counties have 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 Counties 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 Counties in New York State, 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 taxpaying use.

LEGISLATIVE HISTORY: 2012: S. 5424 Third Reading/A. 9747 Real
Property Taxation

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, taxpaying use.

EFFECTIVE DATE: This act shall take effect on the 120 days after it
shall have become law. Effective immediately, the addition, amendment
and/or repeal of any rule or regulation necessary for the
implementation of this act on its effective date is authorized to be
made on or before such date.

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

                                  5309

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              May 16, 2013
                               ___________

Introduced  by  Sen.  MARCELLINO  -- read twice and ordered printed, and
  when printed to be committed to the Committee on Environmental Conser-
  vation

AN ACT to amend the environmental conservation law, in relation  to  the
  sale of delinquent tax liens on brownfields property; and to amend the
  navigation  law,  in relation to the liability of a public corporation
  for the discharge of petroleum

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

  Section  1.  The environmental conservation law is amended by adding a
new section 27-1437 to read as follows:
S 27-1437. DELINQUENT TAX LIENS ON BROWNFIELDS PROPERTY.
  ANY 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 AS DEFINED IN SECTION 27-1405  OF  THIS  TITLE,  EXCEPT  SUPERFUND
SITES  PLACED  ON  THE  UNITED  STATES ENVIRONMENTAL PROTECTION AGENCY'S
NATIONAL PRIORITY LIST AS DEFINED  BY  THE  COMPREHENSIVE  ENVIRONMENTAL
RESPONSE,  COMPENSATION,  AND  LIABILITIES ACT OF 1980 TO CLEAN UP ABAN-
DONED HAZARDOUS WASTE SITES, HELD BY SUCH COUNTY TO ONE OR MORE  PRIVATE
PARTIES SUBJECT TO THE FOLLOWING CONDITIONS:
  1.  THE  CONSIDERATION  TO  BE  PAID MAY BE MORE OR LESS THAN THE FACE
AMOUNT OF THE TAX LIENS SOLD.
  2. 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 THIS
TITLE AND TO PROMOTE INVESTMENT IN AND DEVELOPMENT OF SUCH PARCELS.
  3. 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 TWO OF SECTION ELEVEN HUNDRED NINETY OF THE REAL PROPERTY
TAX LAW AND SHALL BE DONE BY REGULAR MAIL TO  THE  LAST  KNOWN  ADDRESS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11046-01-3

S. 5309                             2

FAILURE TO PROVIDE SUCH NOTICE BY THE COUNTY SHALL NOT IN ANY WAY AFFECT
THE VALIDITY OF ANY SUCH SALE OF A TAX LIEN OR TAX LIENS OR THE VALIDITY
OF THE TAXES OR INTEREST PRESCRIBED BY LAW WITH RESPECT THERETO.
  4.  THE  SALE OF A TAX LIEN PURSUANT TO THIS SECTION SHALL NOT OPERATE
TO SHORTEN THE OTHERWISE APPLICABLE  REDEMPTION  PERIOD  OR  CHANGE  THE
OTHERWISE APPLICABLE INTEREST RATE.
  5. 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 ELEVEN HUNDRED NINETY-FOUR OF THE REAL PROPERTY TAX LAW. THE
PROCEDURE IN SUCH ACTION SHALL BE THE PROCEDURE  PRESCRIBED  BY  ARTICLE
THIRTEEN  OF THE REAL PROPERTY ACTIONS AND PROCEEDINGS LAW FOR THE FORE-
CLOSURE 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.
  6. THE PROVISIONS OF TITLE FIVE OF ARTICLE ELEVEN 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 SECTION.
  S 2. Section 181 of the navigation law is  amended  by  adding  a  new
subdivision 7 to read as follows:
  7.  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF  THIS SECTION, A PUBLIC
CORPORATION SHALL NOT BE LIABLE FOR THE DISCHARGE OF PETROLEUM AT A SITE
IF SUCH PUBLIC CORPORATION ACQUIRED SUCH SITE  INVOLUNTARILY,  AND  SUCH
PUBLIC  CORPORATION  RETAINED  SUCH  SITE  WITHOUT  PARTICIPATING IN THE
DEVELOPMENT OF SUCH SITE. THIS EXEMPTION SHALL NOT APPLY TO  ANY  PUBLIC
CORPORATION  THAT  HAS  (A)  CAUSED  OR  CONTRIBUTED TO THE DISCHARGE OF
PETROLEUM FROM OR AT THE SITE,  (B)  PURCHASED,  SOLD,  REFINED,  TRANS-
PORTED,  OR DISCHARGED PETROLEUM FROM OR AT SUCH SITE, OR (C) CAUSED THE
PURCHASE, SALE, REFINEMENT, TRANSPORTATION, OR  DISCHARGE  OF  PETROLEUM
FROM  OR AT SUCH SITE. THE TERMS "PARTICIPATION IN DEVELOPMENT," "PUBLIC
CORPORATION" AND "INVOLUNTARY ACQUISITION OF OWNERSHIP OR CONTROL" SHALL
HAVE THE SAME MEANING AS THOSE TERMS ARE DEFINED IN SUBDIVISION  TWO  OF
SECTION 27-1323 OF THE ENVIRONMENTAL CONSERVATION LAW. HOWEVER, "PARTIC-
IPATION IN DEVELOPMENT" SHALL NOT INCLUDE IMPROVEMENTS WHICH ARE PART OF
A CLEANUP AND REMOVAL OF A DISCHARGE OF PETROLEUM PURSUANT TO THIS ARTI-
CLE.
  S 3. This act shall take effect on the one hundred twentieth day after
it  shall have become a law. Effective immediately, the addition, amend-
ment and/or repeal of any rule or regulation necessary for the implemen-
tation of this act on its effective date is authorized to be made on  or
before such date.

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