Relates to the sale, by counties, of delinquent tax liens on brownfields property.

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S5424-2011 Actions

• Jun 21, 2012: COMMITTED TO RULES
• Jun 11, 2012: ADVANCED TO THIRD READING
• Jun 6, 2012: 2ND REPORT CAL.
• Jun 5, 2012: 1ST REPORT CAL.1042
• Jan 4, 2012: REFERRED TO ENVIRONMENTAL CONSERVATION
• May 19, 2011: REFERRED TO ENVIRONMENTAL CONSERVATION

S5424-2011 Meetings

Environmental Conservation: Jun 5, 2012

S5424-2011 Calendars

Floor Calendar: Jun 6, 2012 , Floor Calendar: Jun 11, 2012 , Floor Calendar: Jun 12, 2012 , Floor Calendar: Jun 13, 2012 , Floor Calendar: Jun 14, 2012 , Floor Calendar: Jun 18, 2012 , Floor Calendar: Jun 19, 2012 , Floor Calendar: Jun 20, 2012 , Floor Calendar: Jun 21, 2012

S5424-2011 Votes

S5424-2011 Memo

BILL NUMBER:S5424

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

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 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:
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:
New Legislation.

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.

S5424-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                    5424

                         2011-2012 Regular Sessions

                              I N  SENATE

                                May 19, 2011
                                 ___________

  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

    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.
  FAILURE TO PROVIDE SUCH NOTICE BY THE COUNTY SHALL NOT IN ANY WAY AFFECT

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD11618-02-1

 S. 5424                             2

  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. 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.