Assembly Bill A9353

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9353
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             December 19, 2025
                                ___________
 
 Introduced  by  M.  of  A.  MAGNARELLI  -- read once and referred to the
   Committee on Real Property Taxation
 
 AN ACT to amend the real property tax law, in relation to  the  determi-
   nation of the amount of surplus
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Section 1196 of the real property  tax  law,  as  added  by
 section  15  of part BB of chapter 55 of the laws of 2024, is amended to
 read as follows:
   § 1196. Determination of existence and amount of surplus. 1. (a) With-
 in forty-five days  after  the  sale  of  tax-foreclosed  property,  the
 enforcing  officer  shall determine whether a surplus is attributable to
 such sale and if so, the amount thereof. [Subject to the  provisions  of
 subdivision  two of this section, such] SUCH determination shall be made
 by ascertaining the sum of the total amount of taxes due plus  interest,
 penalties  and other charges as defined by section eleven hundred two of
 this article, and subtracting such sum from whichever of  the  following
 is applicable:
   (i)  where  the sale was a public sale, the amount to be so subtracted
 shall be the amount paid for the property;
   (ii) where the sale was not  a  public  sale,  the  amount  to  be  so
 subtracted  shall  be either (A) the full value of the property as shown
 on the most recent tax roll, (B) if available, an appraisal prepared  by
 a  licensed  New York state appraiser that establishes the full value of
 the property as of the date of the transfer of title, or  (C)  the  full
 value  of the property as of the date of the transfer of title as deter-
 mined by such other valuation method as the enforcing officer reasonably
 determines will result in just compensation  to  the  former  owner  and
 other parties whose interests were extinguished by the foreclosure.
   (b)  For purposes of this subdivision, where the enforcing officer has
 been notified that the tax district  intends  to  retain  tax-foreclosed

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD14179-01-5
              

 A. 9353                             2
 
 property  for  a  public  use, the property shall be deemed to have been
 sold on the date that the enforcing officer was  so  notified,  and  the
 enforcing  officer shall determine the existence and amount of a surplus
 relative to such property in the manner provided by subparagraph (ii) of
 paragraph (a) of this subdivision.
   [2. Notwithstanding the provisions of subdivision one of this section,
 when  a  tax  district has sold or conveyed tax-foreclosed property to a
 land bank, a housing development agency or another  public  entity,  and
 such  sale  or conveyance was not the result of a public sale, or when a
 tax district has determined to  retain  tax-foreclosed  property  for  a
 public  use,  no surplus shall be payable if all of the following condi-
 tions are satisfied:
   (a) prior to such sale, conveyance or determination, the property  had
 been offered for sale at two separate public auctions conducted at least
 three months apart from one another,
   (b)  both  auctions  had  been  conducted  in full compliance with the
 provisions of section  two  hundred  thirty-one  of  the  real  property
 actions and proceedings law,
   (c)  the  minimum  acceptable  bid  at each auction had been set at an
 amount no greater than the sum of the taxes due plus interest, penalties
 and other charges, and
   (d) no qualifying bids  were  received  for  the  property  at  either
 auction.
   3.]  2.  (a)  If  the  enforcing officer determines that no surplus is
 attributable to the sale, such enforcing officer shall submit  a  report
 to  the  court describing the circumstances of the sale, stating that no
 surplus was attributable to the sale and demonstrating how the enforcing
 officer reached that conclusion.
   (b) If the enforcing officer determines that a surplus is attributable
 to the sale, such enforcing officer shall submit a report to  the  court
 describing  the  circumstances  of  the sale, stating that a surplus was
 attributable to the sale,  and  demonstrating  how  the  amount  of  the
 surplus  was  determined. Such surplus shall be paid to the court there-
 with. Within ten days of submitting such report, the  enforcing  officer
 shall  notify  the former property owner that a surplus was attributable
 to the sale of such property, that  such  surplus  has  been  paid  into
 court,  and  that  the  court  will notify the interested parties of the
 procedure to be followed in order to make a claim for  a  share  of  the
 surplus.
   (c)  Where  the  enforcing officer's determination of surplus is based
 upon such enforcing officer's estimate  of  the  property's  value,  the
 enforcing  officer's  report to the court shall set forth an explanation
 of how this estimate was made, including the evidence upon which it  was
 based.
   [4.]  3. Upon approval by the court of the enforcing officer's report,
 the tax district shall have no further responsibilities in  relation  to
 the parcel or any surplus attributable thereto, except to the extent the
 court  directs otherwise pursuant to section eleven hundred ninety-seven
 of this title.
   § 2. This act shall take effect immediately.