BILL NUMBER: S8201

SPONSOR: MARTINS
 
TITLE OF BILL:

An act to amend chapter 280 of the laws of 2016 authorizing the village
of Plandome Manor to enter into a contract to sell or pledge as collat-
eral for a loan some or all of the delinquent liens held by such village
to a private party or engage a private party to collect some or all of
the delinquent tax liens held by it, in relation to the effectiveness
thereof

 
PURPOSE OF THE BILL:  THIS BILL EXTENDS THE PROVISION OF LAW ALLOWING
THE VILLAGE OF PLANDOME MANOR TO SELL DELINQUENT TAX LIENS TO THIRD
PARTIES.

 
SUMMARY OF PROVISIONS:

SECTION 1 EXTENDS THE AUTHORITY OF THE VILLAGE OF PLANDOME MANOR TO
ENTER INTO A CONTRACT TO SELL SOME OR ALL OF ITS DELINQUENT TAX LIENS TO
PRIVATE PARTIES, AND ALLOWS THE VILLAGO TO SET THE TERMS AND CONDITIONS
OF SALE FOR AN ADDITIONAL THREE YEARS.
              

SECTION 3 ESTABLISHES THE EFFECTIVE DATE AND SUNSET DATE.

 
JUSTIFICATION:

THIS BILL EXTENDS THE AUTHORITY OF THE VILLAGE OF PLANDOME MANOR TO
ENTER CONTRACTS TO SELL DELINQUENT TAX LIENS TO THIRD PARTIES. THIS
AUTHORITY HAS GRANTED TO MUNICIPALITIES THROUGHOUT THE STATE ON A CASE
BY CASE BASIS. THIS BILL MERELY EXTENDS THE AUTHORITY PREVIOUSLY GRANTED
TO THE VILLAGE OF PLANDOME MANOR.  UNCOLLECTED TAXES ADVERSELY IMPACT
THE MUNICIPALITY'S
 ABILITY TO MEET THEIR OPERATING EXPENDITURES AND PROVIDE TO THE DELIV-
ERY OF NECESSARY AND ESSENTIAL LOCAL GOVERNMENT SERVICES, AMPLIFYING THE
RISK OF FUTURE REAL PROPERTY TAX INCREASES AND NEGATIVELY IMPACTING
THOSE TAXPAYERS WHO TIMELY REMIT PAYMENT. THERE EXISTS LIMITED MEANS FOR
MUNICIPALITIES TO EXPEDITE THE COLLECTION OF SUCH DELINQUENT TAXES AND
THAT IT IS IN THE PUBLIC INTEREST TO INCREASE THE NUMBER OF METHODS
AVAILABLE TO MUNICIPALITIES TO EXPEDITE SUCH COLLECTIONS. MANY DELIN-
QUENCIES OFTEN REMAIN UNPAID THEREBY CREATING A LIEN AGAINST THE
AFFECTED REAL PROPERTY. THE ASSIGNMENT OR SALE OF SUCH TAX LIENS, EITHER
INDIVIDUALLY OR IN BULK, WILL ENABLE MUNICIPALITIES TO EXPEDITE THE
RECEIPT OF ANTICIPATED REVENUES AND PROVIDE A NEW FUNDING SOURCE FOR
MUNICIPALITIES THAT HAVE SIGNIFICANT BUDGETARY PROBLEMS.

 
LEGISLATIVE HISTORY:

S.3598 OF 2023 - SIGNED CHAPTER 284.

 
FISCAL IMPLICATIONS:

NONE TO THE STATE.

 
EFFECTIVE DATE:
THIS ACT SHALL TAKE EFFECT IMMEDIATELY.