S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5383
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               March 3, 2023
                                ___________
 
 Introduced  by Sen. HARCKHAM -- read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT to amend the real  property  tax  law,  in  relation  to  surplus
   proceeds from tax lien foreclosures
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 2 of section section 1166 of the real  property
 tax law, as amended by chapter 532 of the laws of 1994, is amended and a
 new subdivision 3 is added to read as follows:
   2.  No  such  sale shall be effective unless and until such sale shall
 have been approved and confirmed by a majority  vote  of  the  governing
 body of the tax district, except that no such approval shall be required
 when  the  property  is sold at public auction to the highest bidder. IN
 ADDITION TO ANY OTHER NOTICES REQUIRED BY  LAW,  WHERE  A  TAX  DISTRICT
 SELLS  PROPERTY  AT  A PUBLIC AUCTION PURSUANT TO THE PROVISIONS OF THIS
 SECTION, SUCH TAX DISTRICT SHALL POST A NOTICE OF SUCH  AUCTION  ON  THE
 FRONT  DOOR,  OR EQUIVALENT PLACEMENT WHERE APPLICABLE, OF SUCH PROPERTY
 FOURTEEN DAYS PRIOR TO SUCH AUCTION.
   3. (A) A FORMER OWNER OF RESIDENTIAL OR FARM PROPERTY, AS  DEFINED  IN
 THIS  ARTICLE,  OR  COMMERCIAL PROPERTY SHALL BE ENTITLED TO ANY SURPLUS
 PROCEEDS WHICH RESULT FROM THE SALE OF SUCH REAL PROPERTY ACQUIRED BY  A
 TAX ENTITY THROUGH TAX FORECLOSURE PROCEEDINGS. THE TERM "SURPLUS" SHALL
 MEAN  THE  AMOUNT THAT IS LEFT AFTER THE PROPERTY HAS BEEN AUCTIONED AND
 ALL OUTSTANDING TAXES, INTEREST, ISSUES, PAYMENTS FOR COUNTY  TAX    AND
 UTILITY LIENS AND ADMINISTRATIVE AND OTHER FEES HAVE BEEN PAID.
   (B)  IN  THE  EVENT  THAT  A  SALE AUTHORIZED UNDER THIS SECTION SHALL
 RESULT IN A SURPLUS AS TO ANY PIECE OR PARCEL OF LAND  OFFERED  AT  SUCH
 SALE, THE ENFORCING OFFICER SHALL REPORT THE FACT OF SUCH SURPLUS TO THE
 COURT  WHICH  SHALL DIRECT THE ENFORCING OFFICER TO DEPOSIT SUCH SURPLUS
 IN TRUST WITH  THE COUNTY TREASURER OR COMMISSIONER OF FINANCE  FOR  THE
 BENEFIT  OF  WHOMSOEVER MAY BE ENTITLED TO SUCH SURPLUS PURSUANT TO THIS
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02602-01-3
              

 S. 5383                             2
 
 SUBDIVISION.  SUCH SURPLUS SHALL BE RETAINED FOR A PERIOD  OF  AT  LEAST
 THREE YEARS.
   (C)  A  MUNICIPALITY  SHALL  NOTIFY  A PROPERTY OWNER WHEN THE OWNER'S
 PROPERTY NETTED A SURPLUS AT A TAX FORECLOSURE AUCTION THAT WAS HELD  ON
 OR  AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION. THE NOTIFICATION SHALL
 BE MADE AS DIRECTED BY THE COURT AND SHALL STATE THE POSSIBLE  EXISTENCE
 OF A SURPLUS, HOW TO OBTAIN THE SURPLUS AND THE STEPS THE HOMEOWNER MUST
 TAKE TO OBTAIN THE SURPLUS.
   (D)  NOTWITHSTANDING SUBDIVISION TWO OF SECTION ELEVEN HUNDRED FOUR OF
 THIS ARTICLE, THE PROVISIONS OF THIS  SUBDIVISION  SHALL  APPLY  TO  ALL
 COUNTIES, CITIES, TOWNS AND VILLAGES IN THIS STATE.
   (E)  AS USED IN THIS SUBDIVISION, "COMMERCIAL PROPERTY" MEANS ANY NON-
 RESIDENTIAL PROPERTY USED PRIMARILY FOR THE BUYING, SELLING OR OTHERWISE
 PROVIDING OF GOODS OR SERVICES.
   § 2. This act shall take effect immediately.