senate Bill S5424

2011-2012 Legislative Session

Relates to the sale, by counties, of delinquent tax liens on brownfields property

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 21, 2012 committed to rules
Jun 11, 2012 advanced to third reading
Jun 06, 2012 2nd report cal.
Jun 05, 2012 1st report cal.1042
Jan 04, 2012 referred to environmental conservation
May 19, 2011 referred to environmental conservation

Votes

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Jun 5, 2012 - Environmental Conservation committee Vote

S5424
10
0
committee
10
Aye
0
Nay
4
Aye with Reservations
0
Absent
0
Excused
0
Abstained
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Environmental Conservation Committee Vote: Jun 5, 2012

S5424 - Bill Details

See Assembly Version of this Bill:
A9747
Current Committee:
Law Section:
Environmental Conservation Law
Laws Affected:
Add ยง27-1437, En Con L

S5424 - Bill Texts

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Relates to the sale, by counties, of delinquent tax liens on brownfields property.

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BILL NUMBER:S5424

TITLE OF BILL:
An act to amend the environmental conservation law, in relation to the
sale of delinquent tax liens on brownfields property

PURPOSE:
The amendment would allow any county in New York State to sell or
dispose of tax liens for less than outstanding tax due on lien on
parcels identifies by the County as Brownfields except Superfund
Sites. The sale or disposal of the County tax liens on these parcels
will satisfy open real property tax liens and promote the return of
these parcels to a productive real property taxpaying use.

SUMMARY OF PROVISIONS:
Adds a new section, 27-1437 which would allow Counties to sell or
dispose of tax liens for less than outstanding tax due on lien on
parcels Identifies by the County as Brownfields except Superfund
sites. The sale or disposal of the County tax liens on these parcels
will satisfy open real property tax liens and promote the return of
these parcels to a productive real property taxpaying use.

JUSTIFICATION:
Counties throughout the state acquire an interest and, in most
instances, take title by tax deed to real property for non-payment of
taxes. However, many counties have decided not to take title for
non-payment of real property taxes on parcels identified as
Brownfields. A parcel is identified as a Brownfield site as a result
of its past use and/or the presence of known contamination on the
site.

In many instances, the tax liens held by Counties on Brownfield
parcels and the cost to remediate the property are, in most instances,
in excess of the appraised value of the property assuming the site is
without contamination. Allowing Counties in New York State, the option
to sell or dispose of the tax liens for less than the outstanding tax
due on a Brownfield parcel with the requirement that the buyer will
remediate the parcel will promote private developers to acquire the
tax liens, invest money to clean up the land, and convert these
contaminated non-taxpaying parcels into productive taxpaying use.

LEGISLATIVE HISTORY:
New Legislation.

FISCAL IMPLICATIONS:
The amendment would have a long-term benefit to the taxpayers by
returning these parcels, which are non-producing tax revenue, to
productive, taxpaying use.

EFFECTIVE DATE:
This act shall take effect on the 120 days after it shall have become
law. Effective immediately, the addition, amendment and/or repeal of
any rule or regulation necessary for the implementation of this act on
its effective date is authorized to be made on or before such date.


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

                                  5424

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                              May 19, 2011
                               ___________

Introduced  by  Sen.  MARCELLINO  -- read twice and ordered printed, and
  when printed to be committed to the Committee on Environmental Conser-
  vation

AN ACT to amend the environmental conservation law, in relation  to  the
  sale of delinquent tax liens on brownfields property

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

  Section 1. The environmental conservation law is amended by  adding  a
new section 27-1437 to read as follows:
S 27-1437. DELINQUENT TAX LIENS ON BROWNFIELDS PROPERTY.
  ANY  COUNTY  SHALL HAVE THE RIGHT TO ENTER INTO CONTRACTS TO SELL SOME
OR ALL OF ITS DELINQUENT TAX LIENS ON PROPERTY IDENTIFIED AS  BROWNFIELD
SITES  AS  DEFINED  IN  SECTION  27-1405 OF THIS TITLE, EXCEPT SUPERFUND
SITES PLACED ON THE  UNITED  STATES  ENVIRONMENTAL  PROTECTION  AGENCY'S
NATIONAL  PRIORITY  LIST  AS  DEFINED BY THE COMPREHENSIVE ENVIRONMENTAL
RESPONSE, COMPENSATION, AND LIABILITIES ACT OF 1980 TO  CLEAN  UP  ABAN-
DONED  HAZARDOUS WASTE SITES, HELD BY SUCH COUNTY TO ONE OR MORE PRIVATE
PARTIES SUBJECT TO THE FOLLOWING CONDITIONS:
  1. THE CONSIDERATION TO BE PAID MAY BE MORE  OR  LESS  THAN  THE  FACE
AMOUNT OF THE TAX LIENS SOLD.
  2.  THE  COUNTY  SHALL SET THE TERMS AND CONDITIONS OF THE CONTRACT OF
SALE AND ALL PRIOR CONTRACTS OF SALE SHALL BE DEEMED VALID AND SHALL  BE
ENFORCED  UNDER THIS ACT AND THAT THE COUNTY SHALL REQUIRE THE PURCHASER
TO REMEDIATE THE PROPERTY IN ACCORDANCE  WITH  THE  PROVISIONS  OF  THIS
TITLE AND TO PROMOTE INVESTMENT IN AND DEVELOPMENT OF SUCH PARCELS.
  3.  THE COUNTY SHALL PROVIDE PROPERTY OWNERS WITH AT LEAST THIRTY DAYS
ADVANCE NOTICE OF SUCH SALE IN THE SAME FORM AND MANNER AS  IS  PROVIDED
BY SUBDIVISION TWO OF SECTION ELEVEN HUNDRED NINETY OF THE REAL PROPERTY
TAX  LAW  AND  SHALL  BE DONE BY REGULAR MAIL TO THE LAST KNOWN ADDRESS.
FAILURE TO PROVIDE SUCH NOTICE BY THE COUNTY SHALL NOT IN ANY WAY AFFECT

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11618-02-1

S. 5424                             2

THE VALIDITY OF ANY SUCH SALE OF A TAX LIEN OR TAX LIENS OR THE VALIDITY
OF THE TAXES OR INTEREST PRESCRIBED BY LAW WITH RESPECT THERETO.
  4.  THE  SALE OF A TAX LIEN PURSUANT TO THIS SECTION SHALL NOT OPERATE
TO SHORTEN THE OTHERWISE APPLICABLE  REDEMPTION  PERIOD  OR  CHANGE  THE
OTHERWISE APPLICABLE INTEREST RATE.
  5. UPON THE EXPIRATION OF THE REDEMPTION PERIOD PRESCRIBED BY LAW, THE
PURCHASER  OF  A  DELINQUENT TAX LIEN, OR ITS SUCCESSORS OR ASSIGNS, MAY
FORECLOSE THE LIEN AS IN AN ACTION TO FORECLOSE A MORTGAGE  AS  PROVIDED
IN  SECTION ELEVEN HUNDRED NINETY-FOUR OF THE REAL PROPERTY TAX LAW. THE
PROCEDURE IN SUCH ACTION SHALL BE THE PROCEDURE  PRESCRIBED  BY  ARTICLE
THIRTEEN  OF THE REAL PROPERTY ACTIONS AND PROCEEDINGS LAW FOR THE FORE-
CLOSURE OF MORTGAGES. AT ANY  TIME  FOLLOWING  THE  COMMENCEMENT  OF  AN
ACTION  TO  FORECLOSE A LIEN, THE AMOUNT REQUIRED TO REDEEM THE LIEN, OR
THE AMOUNT RECEIVED UPON SALE OF A PROPERTY,  SHALL  INCLUDE  ATTORNEY'S
FEES,  COURT  COSTS,  TITLE  FEES,  SERVICE  OF  PROCESS FEES, AND OTHER
DISBURSEMENTS ALLOWED BY A COURT  OF  COMPETENT  JURISDICTION  UPON  THE
FILING OF SAID COURT WITH PROOF OF SAID EXPENSES.
  6. THE PROVISIONS OF TITLE FIVE OF ARTICLE ELEVEN OF THE REAL PROPERTY
TAX  LAW SHALL APPLY SO FAR AS IS PRACTICABLE TO A CONTRACT FOR THE SALE
OF TAX LIENS PURSUANT TO THIS SECTION.
  S 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law. Effective immediately, the addition,  amend-
ment and/or repeal of any rule or regulation necessary for the implemen-
tation  of this act on its effective date is authorized to be made on or
before such date.

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