Senate Bill S1261

                                 BILL NUMBER:  S1261A

 TITLE OF BILL :

An act to amend chapter 177 of the laws of 2004 authorizing the city
of Schenectady to enter into a contract to sell some or all of the
delinquent tax liens held by such city to a private party, in relation
to renewing such authorization; and providing for the repeal of such
provisions


 PURPOSE :

This bill continues the authority of the City of Schenectady to sell
delinquent tax liens to a private party.

 SUMMARY OF PROVISIONS :

This bill amends Chapter 177 of the Laws of 2004 by renewing the
ability of the City of Schenectady to enter into contracts to sell its
delinquent tax liens to private parties. The bill provides that, until
December 31, 2009, the City of Schenectady may enter into such
contracts.  The bill also enacts certain notification and procedural
requirements which have been established in similar laws enacted for
other cities (such as Chapter 505 of 2006 for the City of Amsterdam,
and Chapter 44 of 2007 for the City of Gloversville). This legislation
              

will expire on December 31, 2011.

 EXISTING LAW :

Chapter 177 of the Laws of 2004 authorized the City of Schenectady to
enter into a contract by December 31, 2004 for the sale of tax liens
to a private party. In accordance with such law, the City entered
into, and has continued, such a contract.

 JUSTIFICATION :

This bill was requested by the city of Schenectady (resolution
2008-203). Schenectady was the first municipality in New York State to
receive the authority to enter into a contract for the sale of tax
liens to a private party. Schenectady's tax lien sales have been
highly successful, raising significant funds for the city, and
generally improving conditions for delinquent taxpayers, who are able
to negotiate flexible repayment terms with the private purchaser.
Since the original law, other cities have sought, and have received,
special legislative authority to conduct similar sales.

This legislation will ensure that the City of Schenectady continues to
have the authority to enter into new contracts for the sale of
delinquent tax liens. The bill also establishes notification and
procedural requirements for the City of Schenectady which are
consistent with the requirements that have been enacted in the past
couple of years for other cities which have been granted the authority
to sell delinquent tax liens.

 LEGISLATIVE HISTORY :

Similar to S.8796 of 2008.

 FISCAL IMPLICATIONS :

None.

 LOCAL FISCAL IMPLICATIONS :


This legislation will permit the City of Schenectady to continue to
benefit from the sale of tax liens to a private party. The amount of
revenue to the city will depend on the amount of tax delinquencies.

 EFFECTIVE DATE :
This act shall take effect immediately, and shall expire and be deemed
repealed on and after December 31, 2011.

                                 BILL NUMBER:  S1261B

 TITLE OF BILL :

An act to authorize the city of Schenectady to enter into a contract
to sell some or all of the delinquent tax liens held by such city to a
private party; and providing for the repeal of such provisions upon
expiration thereof


 PURPOSE :

This bill continues the ability of the City of Schenectady to sell
delinquent tax liens to a private party.

 SUMMARY OF PROVISIONS :

The bill provides that the City of Schenectady may, until December 31,
2009, enter into a contract to sell some or all of its delinquent tax
liens to private parties. This authority applies to liens which have
been attached to real property on or before January 31, 2010. The bill
also enacts certain notification and procedural requirements which
have been established in similar laws enacted for other cities (such
as Chapter 505 of 2006 for the City of Amsterdam, and Chapter 44 of
2007 for the City of Gloversville).

              

 EXISTING LAW :

Chapter 177 of the Laws of 2004 authorized the City of Schenectady to
enter into a contract for the sale of tax liens to a private party.

 JUSTIFICATION :

This bill was requested by the city of Schenectady (resolution
2008-203). Schenectady was the first municipality in New York State to
be authorized to enter into a contract for the sale of tax liens to a
private party. Schenectady's tax lien sales have been highly
successful, raising significant funds for the city while also
generally improving conditions for delinquent taxpayers who are able
to negotiate flexible repayment terms with the private purchaser.
Since the original law, other cities have sought, and have received,
special legislative authority to conduct similar sales.  This
legislation will ensure the continued ability of the City of
Schenectady to enter into new contracts for the sale of delinquent tax
liens. The bill also establishes notification and procedural
requirements for the City of Schenectady which are consistent with the
requirements that have been enacted in the past couple of years for
other cities which have been granted the authority to sell delinquent
tax liens.

 LEGISLATIVE HISTORY :

Similar to S.8796 of 2008.

 FISCAL IMPLICATIONS :

None to the State.

 LOCAL FISCAL IMPLICATIONS :

This legislation will permit the City of Schenectady to continue to
obtain revenue from the sale of tax liens to a private party. The
amount of revenue to the city will depend on the amount of tax
delinquencies and the contract that is negotiated.

 EFFECTIVE DATE :
This act shall take effect immediately, and shall expire and be deemed
repealed on and after December 31,2011.