senate Bill S982

Requires multiple liens on farm property to be paid in chronological order, with the earliest lien being paid off first and the most recent being paid last

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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

  • 09 / Jan / 2013
    • REFERRED TO LOCAL GOVERNMENT
  • 05 / Mar / 2013
    • 1ST REPORT CAL.164
  • 06 / Mar / 2013
    • 2ND REPORT CAL.
  • 07 / Mar / 2013
    • ADVANCED TO THIRD READING
  • 13 / Mar / 2013
    • PASSED SENATE
  • 13 / Mar / 2013
    • DELIVERED TO ASSEMBLY
  • 13 / Mar / 2013
    • REFERRED TO REAL PROPERTY TAXATION
  • 08 / Jan / 2014
    • DIED IN ASSEMBLY
  • 08 / Jan / 2014
    • RETURNED TO SENATE
  • 08 / Jan / 2014
    • REFERRED TO LOCAL GOVERNMENT
  • 13 / May / 2014
    • 1ST REPORT CAL.733
  • 14 / May / 2014
    • 2ND REPORT CAL.
  • 19 / May / 2014
    • ADVANCED TO THIRD READING
  • 10 / Jun / 2014
    • PASSED SENATE
  • 10 / Jun / 2014
    • DELIVERED TO ASSEMBLY
  • 10 / Jun / 2014
    • REFERRED TO REAL PROPERTY TAXATION

Summary

Requires multiple liens on farm property to be paid in chronological order, with the earliest lien being paid off first and the most recent being paid last.

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Bill Details

See Assembly Version of this Bill:
A163
Versions:
S982
Legislative Cycle:
2013-2014
Current Committee:
Law Section:
Real Property Tax Law
Laws Affected:
Amd ยง1112, RPT L
Versions Introduced in 2011-2012 Legislative Cycle:
S4514, A7316

Sponsor Memo

BILL NUMBER:S982

TITLE OF BILL:
An act
to amend the real property tax law, in relation to the redemption of
multiple liens on farm property

PURPOSE OR GENERAL IDEA OF BILL:

To allow farm property tax liens to be paid in chronological order

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 amends subdivision 1 and 2 of section 1112 of the real
property tax law, as amended by chapter 532 of the laws of 1994, to
require liens on a parcel that is not farm property to be redeemed in
reverse chronological order. Section b requires that a tax lien on a
parcel that is farm property to be redeemed in chronological order,
so that the lien with the earliest lien date is redeemed first, and
the lien with the most recent lien date is redeemed last.

Section 2 ensures that unpaid tax liens on farm property are held
under the same provisions for enforcement as parcels of non-farm
property.

JUSTIFICATION:

Enshrined in the New York State Constitution, as well as in the
Agriculture and Markets Law, is the directive that the State should
utilize all of its powers to protect and preserve one of our state's
greatest resources - New York's 7 million acres of farmland.

One of the challenges that farmers face in producing food in New York
is our increasingly higher cost of doing business. Farmers are price
takers, not price makers. And while farmers produce food in New York
State with higher tax rates, higher energy and labor costs, and
higher regulatory burdens, the food that is sold and the price the
farmer receives is based upon global factors and global commodity
prices.

This puts farmers in a uniquely difficult position financially,
especially during cyclical times of very low prices. Farmers caught
in a financial bind at times face tax liens on their land, but unlike
most other businesses farmers must by necessity hold a substantial
amount of land upon which to produce food.

In order to help the farm community avoid foreclosures, and thus
preserve and protect New York's critical agricultural land, changing
the process by which the liens are redeemed would be a substantial
aid to the farmer who is caught in a cyclical price downturn.

Allowing a farmer to redeem the earliest tax lien first helps avoid
the additional accrual of interest and a potential foreclosure
process spurred by factors that may largely be out of the farmer's
control.


This bill takes a step forward in helping our State's farm families
and maintaining the state's crucial farm land.

PRIOR LEGISLATIVE HISTORY:

S.4514 - Passed Senate

FISCAL IMPLICATIONS:

None.

EFFECTIVE DATE:

This act shall take effect immediately.

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

                                   982

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

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

AN ACT to amend the real property tax law, in relation to the redemption
  of multiple liens on farm property

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

  Section  1.  Subdivisions 1 and 2 of section 1112 of the real property
tax law, as amended by chapter 532 of the laws of 1994, are  amended  to
read as follows:
  1.  When a tax district holds more than one tax lien against a parcel,
the  liens  need not be redeemed simultaneously.  (A) However, the liens
ON A PARCEL, WHICH IS NOT FARM PROPERTY, must  be  redeemed  in  reverse
chronological  order, so that the lien with the most recent lien date is
redeemed first, and the lien with the earliest  lien  date  is  redeemed
last. Notwithstanding the redemption of one or more of the liens against
SUCH  a  parcel  as  provided  [herein] IN THIS ARTICLE, the enforcement
process shall proceed according to the provisions  of  this  article  as
long as the earliest lien remains unredeemed.
  (B) HOWEVER, IN THE CASE OF LIENS AGAINST A PARCEL, THAT IS FARM PROP-
ERTY,  THE  LIENS  MUST  BE REDEEMED IN CHRONOLOGICAL ORDER, SO THAT THE
LIEN WITH THE EARLIEST LIEN DATE IS REDEEMED FIRST, AND  THE  LIEN  WITH
THE  MOST RECENT LIEN DATE IS REDEEMED LAST. NOTWITHSTANDING THE REDEMP-
TION OF ONE OR MORE OF THE LIENS AGAINST A PARCEL THAT IS FARM  PROPERTY
AS  PROVIDED  IN  THIS  ARTICLE,  THE  ENFORCEMENT PROCESS SHALL PROCEED
ACCORDING TO THE PROVISIONS OF THIS ARTICLE AS LONG AS THE  MOST  RECENT
LIEN REMAINS UNREDEEMED.
  2. (a) When one or more liens against a parcel, THAT IS NOT FARM PROP-
ERTY,  are redeemed as provided [herein] IN THIS ARTICLE, but the earli-
est lien remains unredeemed, the receipt issued to the person  redeeming
shall  include  a  statement in substantially the following form:  "This

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04920-01-3

S. 982                              2

parcel remains subject to one or more delinquent tax liens. The  payment
you  have made will not postpone the enforcement of the outstanding lien
or liens. Continued failure to pay the entire amount owed will result in
the loss of the property."
  (b)  WHEN  ONE  OR MORE LIENS AGAINST A PARCEL, THAT IS FARM PROPERTY,
ARE REDEEMED AS PROVIDED IN THIS  ARTICLE,  BUT  THE  MOST  RECENT  LIEN
REMAINS  UNREDEEMED,  THE  RECEIPT  ISSUED TO THE PERSON REDEEMING SHALL
INCLUDE A STATEMENT IN SUBSTANTIALLY  THE  FOLLOWING  FORM:  "THIS  FARM
PARCEL  REMAINS SUBJECT TO ONE OR MORE DELINQUENT TAX LIENS. THE PAYMENT
YOU HAVE MADE WILL NOT POSTPONE THE ENFORCEMENT OF THE OUTSTANDING  LIEN
OR LIENS. CONTINUED FAILURE TO PAY THE ENTIRE AMOUNT OWED WILL RESULT IN
THE LOSS OF THE PROPERTY."
  (C)  Failure  to  include  such  a  statement on the receipt shall not
invalidate any tax lien or  prevent  the  enforcement  of  the  same  as
provided by law.
  S 2. This act shall take effect immediately.

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