Bill S4229-2011

Relates to the sale of delinquent tax liens on brownfield property in Suffolk county

Authorizes Suffolk county to sell certain delinquent tax liens on brownfield property to private buyers.

Details

Actions

  • Jun 21, 2012: referred to ways and means
  • Jun 21, 2012: DELIVERED TO ASSEMBLY
  • Jun 21, 2012: PASSED SENATE
  • Jun 21, 2012: HOME RULE REQUEST
  • Apr 26, 2012: ADVANCED TO THIRD READING
  • Apr 25, 2012: 2ND REPORT CAL.
  • Apr 19, 2012: 1ST REPORT CAL.554
  • Jan 4, 2012: REFERRED TO LOCAL GOVERNMENT
  • Jan 4, 2012: returned to senate
  • Jan 4, 2012: died in assembly
  • Jun 1, 2011: referred to ways and means
  • Jun 1, 2011: DELIVERED TO ASSEMBLY
  • Jun 1, 2011: PASSED SENATE
  • Jun 1, 2011: HOME RULE REQUEST
  • May 17, 2011: ADVANCED TO THIRD READING
  • May 16, 2011: 2ND REPORT CAL.
  • May 11, 2011: 1ST REPORT CAL.636
  • Mar 24, 2011: REFERRED TO LOCAL GOVERNMENT

Meetings

Calendars

Votes

VOTE: COMMITTEE VOTE: - Local Government - May 11, 2011
Ayes (7): Martins, Ball, Little, McDonald, Ritchie, Stewart-Cousins, Klein
Excused (1): Oppenheimer
VOTE: COMMITTEE VOTE: - Local Government - Apr 19, 2012
Ayes (7): Martins, Ball, Little, McDonald, Ritchie, Stewart-Cousins, Klein
Excused (1): Oppenheimer

Memo

BILL NUMBER:S4229

TITLE OF BILL: An act to amend the Suffolk county tax act, in relation to the sale of delinquent tax liens on brownfields property

PURPOSE OR GENERAL IDEA OF BILL: The amendment would allow Suffolk County to sell or dispose of tax liens for less than outstanding tax due on lien on parcels identifies by the County as Brownfields except Super-fund Sites. The sale or disposal of the County tax liens on these parcels will satisfy open real property tax liens and promote the return of these parcels to a productive real property taxpaying use.

SUMMARY OF PROVISIONS: Adds a new section 46-a which would allow Suffolk County to sell or dispose of tax liens for less than outstanding tax due on lien on parcels Identifies by the County as Brownfields except Superfund sites. The sale or disposal of the County tax liens on these parcels will satisfy open real property tax liens and promote the return of these parcels to a productive real property taxpaying use.

JUSTIFICATION: Suffolk County acquires an interest and, in most instances, take title by tax deed to real property for non-payment of taxes. However, the County has decided not to take title for non-payment of real property taxes on parcels identified as Brownfields. A parcel is identified as a Brownfield site as a result of its past use and/or the presence of known contamination on the site.

In many instances, the tax liens held by the County on Brownfield parcels and the cost to remediate the property are, in most instances, in excess of the appraised value of the property assuming the site is without contamination. Allowing the County, the option to sell or dispose of the tax liens for less than the outstanding tax due on a Brownfield parcel with the requirement that the buyer will remediate the parcel will promote private developers to acquire the tax liens, invest money to clean up the land, and convert these contaminated non-taxpaying parcels into productive tax paying use.

The Suffolk County Treasurer currently lists seventy-six parcels with tax liens that are eligible for sale or disposal that the County has been reluctant to take a tax deed due to the presence of contamination on the property. The seventy-six parcels include approximately 215 acres of potentially contaminated, under utilized land that would be remediated and restored to the tax rolls if the tax lien on the property could be sold or transferred to a private developer.

PRIOR LEGISLATIVE HISTORY: 2009-10: A.5995-A

FISCAL IMPLICATIONS:

The amendment would have a long-term benefit to the taxpayers by returning these parcels, which are non-producing tax revenue, to productive, tax paying use.

EFFECTIVE DATE: This act shall take immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 4229 2011-2012 Regular Sessions IN SENATE March 24, 2011 ___________
Introduced by Sen. MARCELLINO -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government AN ACT to amend the Suffolk county tax act, in relation to the sale of delinquent tax liens on brownfields property THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Chapter 311 of the laws of 1920 constituting the Suffolk county tax act is amended by adding a new section 46-a to read as follows: S 46-A. THE COUNTY SHALL HAVE THE RIGHT TO ENTER INTO CONTRACTS TO SELL SOME OR ALL OF ITS DELINQUENT TAX LIENS ON PROPERTY IDENTIFIED AS BROWNFIELD SITES PURSUANT TO SECTION 27-1405 OF THE ENVIRONMENTAL CONSERVATION LAW, EXCEPT SUPERFUND SITES PLACED ON THE U.S. ENVIRON- MENTAL PROTECTION AGENCY'S (USEPA) NATIONAL PRIORITY LIST (NPL) AS DEFINED BY THE COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION, AND LIABILITIES ACT OF 1980 TO CLEAN UP ABANDONED HAZARDOUS WASTE SITES, HELD BY SUCH COUNTY TO ONE OR MORE PRIVATE PARTIES 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) THE COUNTY SHALL SET THE TERMS AND CONDITIONS OF THE CONTRACT OF SALE AND ALL PRIOR CONTRACTS OF SALE SHALL BE DEEMED VALID AND SHALL BE ENFORCED UNDER THIS ACT AND THAT THE COUNTY SHALL REQUIRE THE PURCHASER TO REMEDIATE THE PROPERTY IN ACCORDANCE WITH THE PROVISIONS OF TITLE 14 OF ARTICLE 27 OF THE ENVIRONMENTAL CONSERVATION LAW AND TO PROMOTE INVESTMENT IN AND DEVELOPMENT OF SUCH PARCELS. (C) THE COUNTY SHALL PROVIDE PROPERTY OWNERS WITH AT LEAST THIRTY 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 AND SHALL BE DONE BY REGULAR MAIL TO THE LAST KNOWN ADDRESS. FAILURE TO PROVIDE SUCH NOTICE BY THE COUNTY SHALL NOT IN ANY WAY AFFECT THE VALIDITY OF
ANY SUCH SALE OF A TAX LIEN OR TAX LIENS OR THE VALIDITY OF THE TAXES OR INTEREST PRESCRIBED BY LAW WITH RESPECT THERETO. (D) 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. (E) 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, SHALL INCLUDE ATTORNEY'S FEES, COURT COSTS, TITLE FEES, SERVICE OF PROCESS FEES, AND OTHER DISBURSEMENTS ALLOWED BY A COURT OF COMPETENT JURISDICTION UPON THE FILING OF SAID COURT WITH PROOF OF SAID EXPENSES. (F) 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.

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