Provides that the department of taxation and finance shall withdraw from county records a tax lien for which the tax debt has been paid in full and satisfied.
TITLE OF BILL: An act to amend the tax law, in relation to the withdrawal of tax liens upon payment of taxes due
PURPOSE: Provides that the department of taxation and finance shall withdraw from county records a tax lien for which the tax debt has been paid in full and satisfied.
SUMMARY OF PROVISIONS: (j) Withdrawal of lien. - The department, upon payment in full and satisfaction by a taxpayer of a tax debt for which a warrant has been filed and a lien on property has been created pursuant to this section, shall, withdraw such warrant and lien from the records of the county in which such warrant was filed and lien was created. Within five business days of such withdrawal, the department shall send written notification to such taxpayer that such warrant and lien have been withdrawn and that such taxpayer may contact credit reporting agencies and notify them that such tax debt has been paid in full and satisfied and that such warrant and lien have been withdrawn.
EXISTING LAW: New bill.
JUSTIFICATION: The IRS has introduced new legislation to make it easier for taxpayers to obtain lien withdrawals after satisfying a tax bill. That law is called the Federal "Lien On Me" tax law. This law will expunge or withdraw a taxpayers debt lien from their credit record rather than just release the lien, which stays on their credit record negatively for seven years even after satisfaction. The law presently in effect only covers your federal obligations and does not cover state taxation and finance obligations. This bill would mirror the federal law, and in addition would require the state taxation and finance agency to inform consumers in writing at the end of their obligation that removal of their lien will not happen automatically, that they, (the consumer or tax payer) must contact the credit reporting agencies themselves to notify that the lien has been satisfied and expunged or withdrawn. This has not as yet been factored into the federal legislation thusly may not be being addressed and is still showing negatively on many consumers reports.
FISCAL IMPLICATIONS: To be determined.
LOCAL FISCAL IMPLICATIONS: Not applicable.
EFFECTIVE DATE: § 2. This act shall take effect on the sixtieth day after it shall have become a law.
STATE OF NEW YORK ________________________________________________________________________ 2409 2013-2014 Regular Sessions IN SENATE January 17, 2013 ___________Introduced by Sen. ADAMS -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Govern- ment Operations AN ACT to amend the tax law, in relation to the withdrawal of tax liens upon payment of taxes due THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 692 of the tax law is amended by adding a new subsection (j) to read as follows: (J) WITHDRAWAL OF LIEN.--THE DEPARTMENT, UPON PAYMENT IN FULL AND SATISFACTION BY A TAXPAYER OF A TAX DEBT FOR WHICH A WARRANT HAS BEEN FILED AND A LIEN ON PROPERTY HAS BEEN CREATED PURSUANT TO THIS SECTION, SHALL, WITHDRAW SUCH WARRANT AND LIEN FROM THE RECORDS OF THE COUNTY IN WHICH SUCH WARRANT WAS FILED AND LIEN WAS CREATED. WITHIN FIVE BUSINESS DAYS OF SUCH WITHDRAWAL, THE DEPARTMENT SHALL SEND WRITTEN NOTIFICATION TO SUCH TAXPAYER THAT SUCH WARRANT AND LIEN HAVE BEEN WITHDRAWN AND THAT SUCH TAXPAYER MAY CONTACT CREDIT REPORTING AGENCIES AND NOTIFY THEM THAT SUCH TAX DEBT HAS BEEN PAID IN FULL AND SATISFIED AND THAT SUCH WARRANT AND LIEN HAVE BEEN WITHDRAWN. S 2. This act shall take effect on the sixtieth day after it shall have become a law.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06097-01-3