S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6108
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 26, 2025
                                ___________
 
 Introduced  by  M.  of  A.  HUNTER, KELLES, CUNNINGHAM, DINOWITZ, GIBBS,
   FORREST, STIRPE -- read once and referred to  the  Committee  on  Real
   Property Taxation
 
 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 1166 of the real property tax law,
 as  amended  by section 13 of part BB of chapter 55 of the laws of 2024,
 is amended and a new subdivision 4 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.
   4.  (A)  NOTWITHSTANDING  THE  PROVISIONS OF SUBDIVISION THREE OF THIS
 SECTION, 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08590-01-5
              

 A. 6108                             2
 
 IN TRUST WITH  THE COUNTY TREASURER OR COMMISSIONER OF FINANCE  FOR  THE
 BENEFIT  OF  WHOMSOEVER MAY BE ENTITLED TO SUCH SURPLUS PURSUANT TO THIS
 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.