Assembly Bill A10641A

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                 10641--A
 
                           I N  A S S E M B L Y
 
                              March 17, 2026
                                ___________
 
 Introduced by M. of A. SHRESTHA -- read once and referred to the Commit-
   tee  on  Real Property Taxation -- committee discharged, bill amended,
   ordered reprinted as amended and recommitted to said committee
 
 AN ACT to amend the real property tax law, in relation to allowing muni-
   cipalities to relieve property owners of  penalties  due  to  lack  of
   payment if such property owner was a victim of property tax fraud
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The real property tax  law  is  amended  by  adding  a  new
 section 924-c to read as follows:
   §  924-C. WAIVER OF INTEREST AND PENALTIES FOR VICTIMS OF PROPERTY TAX
 FRAUD. 1. NOTWITHSTANDING ANY PROVISION OF  LAW  TO  THE  CONTRARY,  THE
 GOVERNING  BODY  OF  ANY  TAX DISTRICT MAY, BY RESOLUTION, AUTHORIZE THE
 ENFORCING OFFICER, ON A GENERAL OR CASE-BY-CASE  BASIS,  TO  CANCEL,  IN
 WHOLE  OR  IN  PART, ANY INTEREST AND PENALTIES IMPOSED UPON A PARCEL OF
 REAL PROPERTY WHERE THE OWNER  OF  SUCH  PROPERTY  ESTABLISHES,  TO  THE
 SATISFACTION  OF  SUCH ENFORCING OFFICER, THAT SUCH OWNER WAS THE VICTIM
 OF PROPERTY TAX FRAUD IN CONNECTION WITH AN ATTEMPTED PAYMENT OF PROPER-
 TY TAXES. PROPERTY TAX FRAUD SHALL INCLUDE,  WITHOUT  LIMITATION,  CHECK
 FRAUD,  MAIL  THEFT, OR ANY THEFT, INTERCEPTION, DIVERSION, OR UNAUTHOR-
 IZED RECEIPT OF A PAYMENT INTENDED TO SATISFY A REAL PROPERTY TAX  OBLI-
 GATION.
   2.  A  PROPERTY  OWNER  SEEKING RELIEF UNDER THIS SECTION SHALL SUBMIT
 SUCH DOCUMENTATION AS THE  ENFORCING  OFFICER  MAY  REQUIRE,  WHICH  MAY
 INCLUDE, BUT NEED NOT BE LIMITED TO:
   (A) AN AFFIDAVIT DESCRIBING THE INCIDENT OF PROPERTY TAX FRAUD;
   (B) DOCUMENTATION FROM A FINANCIAL INSTITUTION INDICATING PROPERTY TAX
 FRAUD, INCLUDING REIMBURSEMENT OF FUNDS; OR
   (C) A POLICE REPORT OR OTHER EVIDENCE OF PROPERTY TAX FRAUD.
   3. ANY CANCELLATION OF INTEREST AND PENALTIES PURSUANT TO THIS SECTION
 SHALL  BE  LIMITED TO THE PERIOD OF DELINQUENCY ATTRIBUTABLE TO PROPERTY
 TAX FRAUD, AND IN NO EVENT SHALL EXCEED ONE YEAR FROM THE DATE THE PROP-
 ERTY TAXES BECAME DUE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13534-04-6
              

 A. 10641--A                         2
 
   4. IF ANY PORTION OF INTEREST AND PENALTIES CANCELLED PURSUANT TO THIS
 SECTION WOULD, IF COLLECTED, BE PAYABLE TO A MUNICIPAL CORPORATION WITH-
 IN SUCH TAX DISTRICT, NO SUCH CANCELLATION SHALL  BE  MADE  WITHOUT  THE
 CONSENT  OF SUCH MUNICIPAL CORPORATION. SUCH CONSENT MAY BE GRANTED ON A
 CASE-BY-CASE  BASIS  OR  ON  A  GENERAL BASIS BY LOCAL LAW OR RESOLUTION
 ADOPTED AFTER A PUBLIC HEARING.
   5. THE COMMISSIONER MAY PROMULGATE RULES AND REGULATIONS TO  IMPLEMENT
 THE PROVISIONS OF THIS SECTION, INCLUDING, BUT NOT LIMITED TO, STANDARDS
 FOR  DOCUMENTATION,  APPLICATION  PROCEDURES, AND GUIDANCE FOR ENFORCING
 OFFICERS.
   § 2. Section 1182 of the real property tax law, as amended by  chapter
 532 of the laws of 1994, is amended to read as follows:
   §  1182.  Cancellation  or  reduction of interest, penalties and other
 charges. 1. If the governing body of any tax  district  shall  determine
 that it is for the best interests of the tax district, it shall have the
 power,  by  resolution, to authorize the enforcing officer to permit the
 cancellation in whole or in part of any  interest,  penalties  or  other
 charges  imposed by law to which the tax district or any other municipal
 corporation shall be lawfully entitled; provided, however, that in cases
 where such interest, penalties, or other charges, if  collected  by  the
 tax district, belong to a municipal corporation therein, no reduction or
 remission  in  whole  or  in  part of such interest, penalties, or other
 charges shall be made without the consent of the  municipal  corporation
 affected,  which  consent  may  be  given  by resolution adopted after a
 public hearing.
   2. NOTWITHSTANDING SUBDIVISION ONE OF THIS SECTION,  AUTHORIZATION  BY
 THE  GOVERNING BODY OF ANY TAX DISTRICT AND THE CONSENT OF ANY MUNICIPAL
 CORPORATION THEREIN TO WAIVE INTEREST AND PENALTIES FOR VICTIMS OF PROP-
 ERTY TAX FRAUD PURSUANT TO SECTION NINE HUNDRED  TWENTY-FOUR-C  OF  THIS
 CHAPTER  MAY  BE GRANTED ON A GENERAL BASIS AS DESCRIBED IN SUCH SECTION
 NINE HUNDRED TWENTY-FOUR-C.
   § 3. This act shall take effect immediately.