Assembly Bill A7763

                                BILL NUMBER:A7763A

TITLE  OF BILL:   An act to amend the real property tax law, in relation
to providing tax receipts electronically in Westchester county

PURPOSE OR GENERAL IDEA OF THE BILL: To provide collecting officers with
the option of making electronic receipts available, showing that a  real
property  tax  has  been  paid, to a taxpayer who pays through an escrow
account. Currently, a collecting officer can only deliver or  mail  this
receipt.  The option of making property tax receipts available electron-
ically only applies if the locality enacts a local law authorizing elec-
tronic delivery.

SUMMARY OF SPECIFIC PROVISIONS: This bill amends section 955 of the real
property tax law by adding a new subdivision 3-a. Paragraph (a)  of  the
new  subdivision  3-a provides that, in Westchester county, a collecting
officer shall deliver, mail or make available electronically  a  receipt
to  the  mortgagor  for whom a real property tax escrow account is main-
tained. Currently, such receipt can only  be  provided  by  delivery  or
mail.  In  addition,  paragraph (a) provides that the collecting officer
shall notify all taxpayers that any availability of electronic  receipts
does  not  preclude a taxpayer from electing to receive a copy of his or
her tax receipt in the mail or in person.

Paragraph (b) of the new subdivision 3-a provides  that  the  option  of
making  property  tax  receipts available electronically only applies if
              

the locality enacts a local law authorizing electronic delivery.

JUSTIFICATION: Traditionally, municipalities have relied heavily on  the
mail  to  deliver  required  property  tax  receipts to taxpayers paying
through an escrow agent. This is problematic due to the  theft  of  mail
(resulting,  in  identity  theft), the unreliability of the mail and the
increased cost of postage, paper and envelopes over time.

In addition, because the law requires that  a  receipt  be  sent  within
three  weeks  of payment (which occur at various times during the year),
taxpayers receive their receipts throughout the year. As a result,  many
taxpayers  do  not  have  these  essential  records  available when they
prepare their state and federal tax returns for filing.  Since  payments
are  made  by  third parties, these taxpayers have no cancelled check to
verify these payments. Accordingly, tax offices  statewide  are  flooded
with requests for information between February and April.

Taxpayers  have  consistently  asked  for  this information to be placed
securely online so that it is available to them whenever  they  need  it
(including  weekends and evenings when municipal offices are closed) but
especially, whenever they prepare their taxes. Providing access  to  tax
receipts  electronically  will  significantly  increase  access to these
essential documents.

As municipalities across the state allow for  various  payments  online,
including parking tickets, recreation programs, water bills and property

taxes  themselves,  the  availability of tax receipts online is the next
step in increasing accessibility to records and thus service to  taxpay-
ers.  Major utilities, such as Consolidated Edison, have also made their
customers'  usage  and  payment  records  available online. In addition,
within a short time, municipalities who choose to offer receipts  online
will  realize  savings  due  to the elimination of postage, printing and
envelope costs. Under this legislation, paper receipts  would  still  be
available upon the request of a taxpayer.

LEGISLATIVE HISTORY: New bill.

FISCAL IMPLICATIONS:  None to the State.

EFFECTIVE DATE: Immediately.