NY State Senate Bill 2023-S7549A

Current Bill Status - Passed Senate & Assembly

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 20, 2023	returned to senate passed assembly
Jun 10, 2023	ordered to third reading rules cal.850 substituted for a7763
Jun 09, 2023	referred to ways and means delivered to assembly passed senate
Jun 08, 2023	ordered to third reading cal.1826
Jun 06, 2023	print number 7549a
Jun 06, 2023	amend and recommit to rules
Jun 05, 2023	referred to rules

Votes

- Jun 9, 2023 - Floor Vote
  S7549A
  
  46
  
  Aye
  
  17
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 9, 2023
      
      aye (46)
      
      Addabbo Jr.
      
      Bailey
      
      Breslin
      
      Brisport
      
      Brouk
      
      Chu
      
      Cleare
      
      Comrie
      
      Cooney
      
      Felder
      
      Fernandez
      
      Gianaris
      
      Gonzalez
      
      Gounardes
      
      Harckham
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Martinez
      
      May
      
      Mayer
      
      Myrie
      
      Oberacker
      
      Ortt
      
      Parker
      
      Persaud
      
      Ramos
      
      Rivera
      
      Rolison
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Scarcella-Spanton
      
      Sepúlveda
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stewart-Cousins
      
      Thomas
      
      Webb
      
      nay (17)
      
      Ashby
      
      Borrello
      
      Canzoneri-Fitzpatrick
      
      Gallivan
      
      Griffo
      
      Helming
      
      Martins
      
      Mattera
      
      Murray
      
      O'Mara
      
      Palumbo
      
      Rhoads
      
      Stec
      
      Tedisco
      
      Walczyk
      
      Weber
      
      Weik

Bill Amendments

Original

A (Active)

2023-S7549 - Details

See Assembly Version of this Bill:: A7763
Law Section:: Real Property
Versions Introduced in 2023-2024 Legislative Session:: S7549, A7763

2023-S7549 - Summary

Establishes a temporary in rem foreclosure moratorium to prohibit tax districts from foreclosing on real property for delinquent taxes.

2023-S7549 - Sponsor Memo

                                 
BILL NUMBER: S7549

SPONSOR: THOMAS
 
TITLE OF BILL:

An act relating to a temporary in rem foreclosure moratorium; and
providing for the repeal of such provisions upon the expiration thereof

 
PURPOSE:

Institutes an in rem foreclosure moratorium in response to United States
Supreme Court Case Tyler v. Hennepin County, Minnesota.

 
SUMMARY OF PROVISIONS:

Section 1 explains the legislative findings, and the Legislature's
conclusion that there should be a moratorium placed on in rem foreclo-
sures as a result of the legal uncertainty that exists following the
Supreme Court's decision in Tyler v. Hennepin County, Minnesota.

Section 2 institutes an in rem foreclosure moratorium and provides that
no tax enforcement officer may convey title to any tax-delinquent parcel

of real property owned by a tax district, which has been the subject of
an in rem tax foreclosure proceeding, to the treasurer or other official
of the tax district, in any in rem foreclosure action which was filed
and adjudicated prior to the effective date of the act, and prior to its
expiration date.

Section 3 provides that any properties that a tax district acquired
title to prior to July 1, 2023 pursuant to an in rem tax foreclosure
proceeding may be auctioned by the tax district if the surplus funds are
held in a segregated trust account that's maintained by the chief fiscal
officer of the tax district until the moratorium is repealed on June 30,
2024.

Tax districts that opted out of the state law and have local procedures
that govern their tax foreclosures will be able to continue those fore-
closures so long as they have, or they subsequently institute, a legal
mechanism that provides for the return of the surplus funds that is
compliant with the Tyler v.  Hennepin decision.

Section 4 provides that the act is effective immediately and will expire
on June 30, 2024.

 
JUSTIFICATION:

Tyler v. Hennepin County was a United States Supreme Court case decided
in May, 2023 which ruled on local governments' ability to seize property
for unpaid taxes, when the value of the property is greater than the tax
debt. The Court unanimously held that the surplus value (the amount the
property sells for above the value of the property) are protected by the
Fifth Amendment's Takings Clause.  Effectively, this means that local
governments must return surplus funds to homeowners.

In New York, tax foreclosures occur when a property owner is delinquent
on their taxes and does not pay the delinquency by the redemption date.
Localities then either foreclose on the property and sell it at auction
or utilize a tax lien sale where the tax liens are sold to third party
buyers. Some municipalities return the surplus funds, while others do
not. In the wake of Tyler v. Hennepin, certain areas of New York's stat-
ute are incompatible with this recent Supreme Court precedent. As issues
of real property tax, delinquencies, in rem foreclosures, and the asso-
ciated surpluses are complex issues of policy and law, the Legislature
seeks to provide time for the various stakeholders to discuss the tax
foreclosure process and how best to change New York's statute; as such,
this legislation institutes a moratorium on most in rem foreclosures
until June 30, 2024.

 
LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

None to the state or localities.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall expire and be deemed
repealed on and after June 30, 2024.

2023-S7549 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7549
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               June 5, 2023
                                ___________
 
 Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT relating to  a  temporary  in  rem  foreclosure  moratorium;  and
   providing for the repeal of such provisions upon the expiration there-
   of

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings. The legislature finds that the United
 States Supreme Court  Case  of  Tyler  v.  Hennepin  County,  Minnesota,
 decided  on  May  25, 2023, has created legal uncertainty with regard to
 how municipalities must conduct their in  rem  foreclosures  and  return
 funds  to the appropriate parties, when necessary. As such, the legisla-
 ture seeks to find a solution that will provide legal certainty in  this
 process  and ensure the rights of property owners and municipalities are
 adequately protected.
   § 2. 1. No tax district, as defined in subdivision 6 of  section  1102
 of  the  real property tax law, shall commence an in rem tax foreclosure
 proceeding in any court of competent jurisdiction against any parcel  or
 parcels  of  real  property  located within the geographic boundaries of
 such tax district until the expiration of  this  moratorium  under  this
 act.
   2.  No  enforcing officer, as defined in subdivision 3 of section 1102
 of the real property tax law, shall convey title to  any  tax-delinquent
 parcel  of  real  property  owned  by a tax district, which has been the
 subject of an in rem tax foreclosure proceeding,  to  the  treasurer  or
 other official of the tax district, in any in rem tax foreclosure action
 which  was filed and adjudicated prior to the effective date of this act
 and prior to its expiration date.
   § 3. This act shall not apply to:
   1. properties owned by a tax district which were acquired at any  time
 after  May 25, 2023 and prior to July 1, 2023, pursuant to article 11 of

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11739-02-3

 S. 7549                             2
 
 the real property tax law, or where the tax  district  filed  the  final
 foreclosure  judgement order with the court within such time period.  In
 the event that any tax district has acquired  title  to  any  delinquent
 parcel  of real property prior to July 1, 2023 pursuant to an in rem tax
 foreclosure proceeding under article 11 of the real  property  tax  law,
 the  tax district may auction said parcel or parcels contingent upon the
 foreclosing tax district holding any and all surplus funds in  a  segre-
 gated trust account to be maintained by the chief fiscal officer of such
 tax  district  until  such time that this moratorium is repealed on June
 30, 2024; or
   2. a tax district that has  a  mechanism  by  which  the  municipality
 offers  the return of surplus funds to the delinquent tax property owner
 and such municipality: (a) on January 1, 1993, was authorized to enforce
 the collection of delinquent taxes pursuant to a  county  charter,  city
 charter, administrative code or special law; or (b) adopted a local law,
 no  later  than  July  1, 1994 providing that the collection of taxes in
 such county, city or town shall continue to be enforced pursuant to such
 charter, code or special law, as such charter, code or special  law  may
 from  time  to  time  be amended; and (c) filed a copy of such local law
 with the commissioner of taxation and finance no later  than  August  1,
 1994.
   §  4.  This  act shall take effect immediately and shall expire and be
 deemed repealed on and after June 30, 2024.

2023-S7549A (ACTIVE) - Details

See Assembly Version of this Bill:: A7763
Law Section:: Real Property
Versions Introduced in 2023-2024 Legislative Session:: S7549, A7763

2023-S7549A (ACTIVE) - Summary

Establishes a temporary in rem foreclosure moratorium to prohibit tax districts from foreclosing on real property for delinquent taxes.

2023-S7549A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7549A

SPONSOR: THOMAS
 
TITLE OF BILL:

An act relating to a temporary in rem foreclosure moratorium; and
providing for the repeal of such provisions upon the expiration thereof

 
PURPOSE:

Institutes an in rem foreclosure moratorium in response to United States
Supreme Court Case Tyler v. Hennepin County, Minnesota.

 
SUMMARY OF PROVISIONS:

Section 1 explains the legislative findings, and the Legislature's
conclusion that there should be a moratorium placed on in rem foreclo-
sures as a result of the legal uncertainty that exists following the
Supreme Court's decision in Tyler v. Hennepin County, Minnesota.

Section 2 institutes an in rem foreclosure moratorium and provides that
no tax enforcement officer may convey title to any tax-delinquent parcel

of real property owned by a tax district, which has been the subject of
an in rem tax foreclosure proceeding, to the treasurer or other official
of the tax district, in any in rem foreclosure action which was filed
and adjudicated prior to the effective date of the act, and prior to its
expiration date.

Section 3 provides that any properties that a tax district acquired
title to prior to July 1, 2023 pursuant to an in rem tax foreclosure
proceeding may be auctioned by the tax district if the surplus funds are
held in a segregated trust account that's maintained by the chief fiscal
officer of the tax district until the moratorium is repealed on June 30,
2024.

Tax districts that opted out of the state law and have local procedures
that govern their tax foreclosures will be able to continue those fore-
closures so long as they have, or they subsequently institute, a legal
mechanism that provides for the return of the surplus funds that is
compliant with the Tyler v.  Hennepin decision.

Section 4 provides that the act is effective immediately and will expire
on June 30, 2024.

 
JUSTIFICATION:

Tyler v. Hennepin County was a United States Supreme Court case decided
in May, 2023 which ruled on local governments' ability to seize property
for unpaid taxes, when the value of the property is greater than the tax
debt. The Court unanimously held that the surplus value (the amount the
property sells for above the value of the property) are protected by the
Fifth Amendment's Takings Clause.  Effectively, this means that local
governments must return surplus funds to homeowners.

In New York, tax foreclosures occur when a property owner is delinquent
on their taxes and does not pay the delinquency by the redemption date.
Localities then either foreclose on the property and sell it at auction
or utilize a tax lien sale where the tax liens are sold to third party
buyers. Some municipalities return the surplus funds, while others do
not. In the wake of Tyler v. Hennepin, certain areas of New York's stat-
ute are incompatible with this recent Supreme Court precedent. As issues
of real property tax, delinquencies, in rem foreclosures, and the asso-
ciated surpluses are complex issues of policy and law, the Legislature
seeks to provide time for the various stakeholders to discuss the tax
foreclosure process and how best to change New York's statute; as such,
this legislation institutes a moratorium on most in rem foreclosures
until June 30, 2024.

 
LEGISLATIVE HISTORY:

New Bill.

 
FISCAL IMPLICATIONS:

None to the state or localities.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall expire and be deemed
repealed on and after June 30, 2024.

2023-S7549A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7549--A
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                               June 5, 2023
                                ___________
 
 Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
   printed to be  committed  to  the  Committee  on  Rules  --  committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN  ACT  relating  to  a  temporary  in  rem foreclosure moratorium; and
   providing for the repeal of such provisions upon the expiration there-
   of
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings. The legislature finds that the United
 States  Supreme  Court  Case  of  Tyler  v.  Hennepin County, Minnesota,
 decided on May 25, 2023, has created legal uncertainty  with  regard  to
 how  municipalities  must  conduct their in rem delinquent real property
 tax lien foreclosures and return any surplus funds  thereby  derived  to
 the  appropriate parties, when necessary. As such, the legislature seeks
 to find a solution that will provide legal certainty in this process and
 ensure the rights of property owners and municipalities  are  adequately
 protected.
   §  2.  No tax district, as defined in subdivision 6 of section 1102 of
 the real property tax law or enforcing officer, as defined  in  subdivi-
 sion 3 of such section, shall convey to any person title to any tax-del-
 inquent  parcel of real property which has been the subject of an in rem
 tax foreclosure  proceeding  in  any  court  of  competent  jurisdiction
 against  any  parcel  or  parcels  of  real  property located within the
 geographic boundaries of such tax district until the expiration  of  the
 moratorium under this act.
   § 3. This act shall not apply to:
   1.  properties owned by a tax district which were acquired at any time
 after May 25, 2023 and prior to July 1, 2023, pursuant to article 11  of
 the  real  property  tax  law, or where the tax district filed the final
 foreclosure judgement order with the court within such time period.   In
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11739-04-3

 S. 7549--A                          2
 
 the  event  that  any  tax district has acquired title to any delinquent
 parcel of real property prior to July 1, 2023 pursuant to an in rem  tax
 foreclosure  proceeding  under  article 11 of the real property tax law,
 the  tax district may auction said parcel or parcels contingent upon the
 foreclosing tax district holding any and all surplus funds in  a  segre-
 gated trust account to be maintained by the chief fiscal officer of such
 tax  district  until  such time that this moratorium is repealed on June
 30, 2024; or
   2. a tax district that has  a  mechanism  by  which  the  municipality
 offers  the return of surplus funds to the delinquent tax property owner
 and such municipality: (a) on January 1, 1993, was authorized to enforce
 the collection of delinquent taxes pursuant to a  county  charter,  city
 charter, administrative code or special law; or (b) adopted a local law,
 no  later  than  July  1, 1994 providing that the collection of taxes in
 such county, city or town shall continue to be enforced pursuant to such
 charter, code or special law, as such charter, code or special  law  may
 from  time  to  time  be amended; and (c) filed a copy of such local law
 with the commissioner of taxation and finance no later  than  August  1,
 1994.
   §  4.  This  act shall take effect immediately and shall expire and be
 deemed repealed on and after June 30, 2024.

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Senate Bill S7549A

Sponsored By

Current Bill Status - Passed Senate & Assembly

Jun 9, 2023 - Floor Vote

Floor Vote: Jun 9, 2023

Bill Amendments

2023-S7549 - Details

2023-S7549 - Summary

2023-S7549 - Sponsor Memo

2023-S7549 - Bill Text download pdf

2023-S7549A (ACTIVE) - Details

2023-S7549A (ACTIVE) - Summary

2023-S7549A (ACTIVE) - Sponsor Memo

2023-S7549A (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S7549A

Share this bill

Sponsored By

Kevin Thomas

Current Bill Status - Passed Senate & Assembly

Bill Amendments

2023-S7549 - Details

2023-S7549 - Summary

2023-S7549 - Sponsor Memo

2023-S7549 - Bill Text download pdf

2023-S7549A (ACTIVE) - Details

2023-S7549A (ACTIVE) - Summary

2023-S7549A (ACTIVE) - Sponsor Memo

2023-S7549A (ACTIVE) - Bill Text download pdf

Comments