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.

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S7134-2011 Actions

• Apr 30, 2012: REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

S7134-2011 Memo

BILL NUMBER:S7134

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have been withdrawn and that such taxpayer may contact credit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withdrawn.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satisfied and expunged or withdrawn.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.

S7134-2011 Text

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

                                    7134

                              I N  SENATE

                               April 30, 2012
                                 ___________

  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
  subdivision (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.
                                                             LBD15593-01-2