Authorizes the city of Schenectady to enter into a contract to sell some or all of the delinquent tax liens held by such city to a private party under certain conditions; requires 30 days notice to owners; provides for repeal as of December 31, 2011.
BILL NUMBER: S1261B
TITLE OF BILL :
An act to authorize the city of Schenectady to enter into a contract to sell some or all of the delinquent tax liens held by such city to a private party; and providing for the repeal of such provisions upon expiration thereof
This bill continues the ability of the City of Schenectady to sell delinquent tax liens to a private party.
SUMMARY OF PROVISIONS :
The bill provides that the City of Schenectady may, until December 31, 2009, enter into a contract to sell some or all of its delinquent tax liens to private parties. This authority applies to liens which have been attached to real property on or before January 31, 2010. The bill also enacts certain notification and procedural requirements which have been established in similar laws enacted for other cities (such as Chapter 505 of 2006 for the City of Amsterdam, and Chapter 44 of 2007 for the City of Gloversville).
EXISTING LAW :
Chapter 177 of the Laws of 2004 authorized the City of Schenectady to enter into a contract for the sale of tax liens to a private party.
This bill was requested by the city of Schenectady (resolution 2008-203). Schenectady was the first municipality in New York State to be authorized to enter into a contract for the sale of tax liens to a private party. Schenectady's tax lien sales have been highly successful, raising significant funds for the city while also generally improving conditions for delinquent taxpayers who are able to negotiate flexible repayment terms with the private purchaser. Since the original law, other cities have sought, and have received, special legislative authority to conduct similar sales. This legislation will ensure the continued ability of the City of Schenectady to enter into new contracts for the sale of delinquent tax liens. The bill also establishes notification and procedural requirements for the City of Schenectady which are consistent with the requirements that have been enacted in the past couple of years for other cities which have been granted the authority to sell delinquent tax liens.
LEGISLATIVE HISTORY :
Similar to S.8796 of 2008.
FISCAL IMPLICATIONS :
None to the State.
LOCAL FISCAL IMPLICATIONS :
This legislation will permit the City of Schenectady to continue to obtain revenue from the sale of tax liens to a private party. The amount of revenue to the city will depend on the amount of tax delinquencies and the contract that is negotiated.
EFFECTIVE DATE : This act shall take effect immediately, and shall expire and be deemed repealed on and after December 31,2011.
STATE OF NEW YORK ________________________________________________________________________ 1261--B Cal. No. 215 2009-2010 Regular Sessions IN SENATE January 28, 2009 ___________Introduced by Sen. FARLEY -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- reported favorably from said commit- tee, ordered to first and second report, ordered to a third reading, amended and ordered reprinted, retaining its place in the order of third reading AN ACT to authorize the city of Schenectady to enter into a contract to sell some or all of the delinquent tax liens held by such city to a private party; and providing for the repeal of such provisions upon expiration thereof THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Notwithstanding any provision of any general, special or local law to the contrary and until December 31, 2009, the City of Sche- nectady may enter into a contract to sell some or all of the delinquent tax liens held by it which have been attached to real property on or before January 31, 2010, to a private party, subject to the following conditions: (a) The consideration to be paid may be more or less than the face amount of the tax liens sold. (b) Property owners shall be given at least 30 days advance notice of such sale in the same form and manner as is provided by subdivision 2 of section 1190 of the real property tax law. Failure to provide such notice or the failure of the addressee to receive the same shall not in any way affect the validity of any sale of a tax lien or tax liens or the validity of the taxes or interest prescribed by law with respect thereto. (c) The City of Schenectady shall set the terms and conditions of the contract of sale.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD04244-08-9 S. 1261--B 2
(d) The tax lien purchaser must 30 days prior to the commencement of any foreclosure action provide to the City of Schenectady a list of liens to be foreclosed. The City of Schenectady may, at its sole option and discretion, repurchase a lien or liens on the foreclosure list from the tax lien purchaser. The repurchase price shall be the amount of the lien or liens and may include any accrued interest and reasonable and necessary collection fees incurred by the tax lien purchaser. The tax lien purchaser shall provide the foreclosure list to the City of Sche- nectady, along with the applicable repurchase price of each lien, by certified mail, and the City of Schenectady shall have 30 days from receipt to notify the tax lien purchaser of its option to purchase one or more of the liens. If the City of Schenectady opts to purchase the lien, it shall provide payment within 30 days of receipt of the repur- chase price of said lien or liens. If the City of Schenectady shall fail to opt to repurchase the lien or liens the tax lien purchaser shall have the right to commence a foreclosure action immediately. (e) The sale of a tax lien pursuant to this act shall not operate to shorten the otherwise applicable redemption period or change the other- wise applicable interest rate. (f) Upon the expiration of the redemption period prescribed by law, the purchaser of a delinquent tax lien, or its successors or assigns, may foreclose the lien as in an action to foreclose a mortgage as provided in section 1194 of the real property tax law. The procedure in such action shall be the procedure prescribed by article 13 of the real property actions and proceedings law for the foreclosure of mortgages. At any time following the commencement of an action to foreclose a lien, the amount required to redeem the lien, or the amount received upon sale of a property, may include reasonable and necessary collection costs, attorneys' fees, legal costs, allowances, and disbursements. (g) The provisions of title 5 of article 11 of the real property tax law shall apply so far as is practicable to a contract for the sale of tax liens pursuant to this act. S 2. This act shall take effect immediately and shall expire and be deemed repealed on and after December 31, 2011.