Relates to the sale, by counties, of delinquent tax liens on brownfields property.
TITLE OF BILL: An act to amend the environmental conservation law, in relation to the sale of delinquent tax liens on brownfields property; and to amend the navigation law, in relation to the liability of a public corporation for the discharge of petroleum
PURPOSE: The amendment would allow any county in New York State 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.
SUMMARY OF PROVISIONS: Adds a new section, 27-1437 which would allow Counties to sell or dispose of tax liens for less than outstanding tax due on lien on parcels identified 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: Counties throughout the state acquire an interest and, in most instances, take title by tax deed to real property for non-payment of taxes. However, many counties have 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 Counties 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 Counties in New York State, 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 taxpaying use.
LEGISLATIVE HISTORY: 2012: S. 5424 Third Reading/A. 9747 Real Property Taxation
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, taxpaying use.
EFFECTIVE DATE: This act shall take effect on the 120 days after it shall have become law. Effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date is authorized to be made on or before such date.
STATE OF NEW YORK ________________________________________________________________________ 5309 2013-2014 Regular Sessions IN SENATE May 16, 2013 ___________Introduced by Sen. MARCELLINO -- read twice and ordered printed, and when printed to be committed to the Committee on Environmental Conser- vation AN ACT to amend the environmental conservation law, in relation to the sale of delinquent tax liens on brownfields property; and to amend the navigation law, in relation to the liability of a public corporation for the discharge of petroleum THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The environmental conservation law is amended by adding a new section 27-1437 to read as follows: S 27-1437. DELINQUENT TAX LIENS ON BROWNFIELDS PROPERTY. ANY 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 AS DEFINED IN SECTION 27-1405 OF THIS TITLE, EXCEPT SUPERFUND SITES PLACED ON THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY'S NATIONAL PRIORITY LIST AS DEFINED BY THE COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION, AND LIABILITIES ACT OF 1980 TO CLEAN UP ABAN- DONED HAZARDOUS WASTE SITES, HELD BY SUCH COUNTY TO ONE OR MORE PRIVATE PARTIES SUBJECT TO THE FOLLOWING CONDITIONS: 1. THE CONSIDERATION TO BE PAID MAY BE MORE OR LESS THAN THE FACE AMOUNT OF THE TAX LIENS SOLD. 2. 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 THIS TITLE AND TO PROMOTE INVESTMENT IN AND DEVELOPMENT OF SUCH PARCELS. 3. 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 TWO OF SECTION ELEVEN HUNDRED NINETY OF THE REAL PROPERTY TAX LAW AND SHALL BE DONE BY REGULAR MAIL TO THE LAST KNOWN ADDRESS.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11046-01-3 S. 5309 2
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. 4. THE SALE OF A TAX LIEN PURSUANT TO THIS SECTION SHALL NOT OPERATE TO SHORTEN THE OTHERWISE APPLICABLE REDEMPTION PERIOD OR CHANGE THE OTHERWISE APPLICABLE INTEREST RATE. 5. 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 ELEVEN HUNDRED NINETY-FOUR OF THE REAL PROPERTY TAX LAW. THE PROCEDURE IN SUCH ACTION SHALL BE THE PROCEDURE PRESCRIBED BY ARTICLE THIRTEEN OF THE REAL PROPERTY ACTIONS AND PROCEEDINGS LAW FOR THE FORE- CLOSURE 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. 6. THE PROVISIONS OF TITLE FIVE OF ARTICLE ELEVEN 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 SECTION. S 2. Section 181 of the navigation law is amended by adding a new subdivision 7 to read as follows: 7. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, A PUBLIC CORPORATION SHALL NOT BE LIABLE FOR THE DISCHARGE OF PETROLEUM AT A SITE IF SUCH PUBLIC CORPORATION ACQUIRED SUCH SITE INVOLUNTARILY, AND SUCH PUBLIC CORPORATION RETAINED SUCH SITE WITHOUT PARTICIPATING IN THE DEVELOPMENT OF SUCH SITE. THIS EXEMPTION SHALL NOT APPLY TO ANY PUBLIC CORPORATION THAT HAS (A) CAUSED OR CONTRIBUTED TO THE DISCHARGE OF PETROLEUM FROM OR AT THE SITE, (B) PURCHASED, SOLD, REFINED, TRANS- PORTED, OR DISCHARGED PETROLEUM FROM OR AT SUCH SITE, OR (C) CAUSED THE PURCHASE, SALE, REFINEMENT, TRANSPORTATION, OR DISCHARGE OF PETROLEUM FROM OR AT SUCH SITE. THE TERMS "PARTICIPATION IN DEVELOPMENT," "PUBLIC CORPORATION" AND "INVOLUNTARY ACQUISITION OF OWNERSHIP OR CONTROL" SHALL HAVE THE SAME MEANING AS THOSE TERMS ARE DEFINED IN SUBDIVISION TWO OF SECTION 27-1323 OF THE ENVIRONMENTAL CONSERVATION LAW. HOWEVER, "PARTIC- IPATION IN DEVELOPMENT" SHALL NOT INCLUDE IMPROVEMENTS WHICH ARE PART OF A CLEANUP AND REMOVAL OF A DISCHARGE OF PETROLEUM PURSUANT TO THIS ARTI- CLE. S 3. This act shall take effect on the one hundred twentieth day after it shall have become a law. Effective immediately, the addition, amend- ment and/or repeal of any rule or regulation necessary for the implemen- tation of this act on its effective date is authorized to be made on or before such date.