Assembly Bill A10597

                                BILL NUMBER:A10597

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 elec-
tronically  only  applies if the locality enacts a local law authorizing
electronic delivery.

SUMMARY OF SPECIFIC PROVISIONS:   Section 1: Section  955  of  the  real
property  tax  law  is  amended  by  adding  a new subdivision 3-a which
provides that, in Westchester county, a collecting officer shall  deliv-
er, 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.

Section 2: States the effective date.

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: This act shall take effect immediately.