Senate Bill S3181

                                 
BILL NUMBER: S3181

SPONSOR: FELDER
 
TITLE OF BILL:

An act authorizing the commissioner of finance of the city of New York
to establish a property tax amnesty program; and providing for the
repeal of such provisions upon expiration thereof

 
PURPOSE OR GENERAL IDEA OF BILL:

Create a property tax amnesty program

 
SUMMARY OF PROVISIONS:

Section 1. Directs the NYC Commissioner of Finance to establish a
4-month Amnesty Program for property owners who have a delinquent tax
bill.

For a property owner who owes more than $1,000, if 100 percent of the
principal bill is paid, 100 percent of interest will be forgiven; if 50
percent of the principal bill is paid, 75 percent of interest will be
              

forgiven; if 25 percent of the principal bill is paid, 50 percent of
interest will be forgiven. Any property owner with a remaining delin-
quent balance must enter into a payment plan.

Any property owner with a delinquent property tax balance of less than
$1,000 shall be eligible for forgiveness of 100 percent of the interest
on such delinquent property tax balance if 100 percent of the principal
bill is paid.

Section 2. Effective date

 
JUSTIFICATION:

The pandemic has been difficult and many homeowners and businesses have
fallen behind on their property taxes. According to the annual report on
Property taxes in New York Cityl, the city's property tax delinquency
rate went from 1.69% in FY2019 up to 2.36% in FY2021. The increase in
the amount of people not paying their property taxes creates two signif-
icant problems: the City's tax revenue suffers, while property owners
are hit with enormous interest on their unpaid taxes, which then makes
it even harder to pay.

This program mirrors a similar program recently instituted by New York
City and the Department of Environmental Protection (DEP), where inter-
est on overdue water bills would be forgiven if customers settle their
outstanding balance 2.

With the future of NYC's lien sale program in doubt, this program would
provide an excellent mechanism to bring in a significant amount of tax
revenue to New York City, while helping property owners who have strug-
gled to pay their property taxes. This program will allow individuals
and businesses an opportunity to get back on track with their tax
payments and not fear losing their home or business due to back taxes.

1:  https://www.nyc.gov/assets/finance/downloads
/pdf/reports/reports-property-tax/nyc_property_fy22.pdf

2:  https:www.nyc.gov/office-of-the-mayor
/news/077-23/mayor-adams-helps-new- yorkers-save-up-150-million-over-
due-water-bills

 
LEGISLATIVE HISTORY:

2023-2024: S4734 - Advanced to 3rd Reading

 
FISCAL IMPLICATIONS:

To be determined

 
EFFECTIVE DATE:
Immediately and shall expire and be deemed repealed one year after its
enactment