Senate Bill S5608

                                 BILL NUMBER:  S5608A

 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 electronically only applies if the
locality enacts a local law authorizing electronic 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 maintained. 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 taxpayers. 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.