Requires multiple liens on farm property to be paid in chronological order, with the earliest lien being paid off first and the most recent being paid last.
Ayes (61): Adams, Addabbo, Avella, Ball, Bonacic, Boyle, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Farley, Felder, Flanagan, Fuschillo, Gallivan, Gianaris, Gipson, Golden, Griffo, Grisanti, Hannon, Hassell-Thomps, Hoylman, Kennedy, Klein, Krueger, Lanza, Larkin, Latimer, LaValle, Libous, Little, Marcellino, Marchione, Martins, Maziarz, Montgomery, Nozzolio, O'Brien, O'Mara, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Rivera, Robach, Sampson, Savino, Serrano, Seward, Skelos, Smith, Squadron, Stavisky, Stewart-Cousin, Tkaczyk, Valesky, Young, Zeldin
Nays (1): Espaillat
Excused (1): Sanders
TITLE OF BILL: An act to amend the real property tax law, in relation to the redemption of multiple liens on farm property
PURPOSE OR GENERAL IDEA OF BILL:
To allow farm property tax liens to be paid in chronological order
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 amends subdivision 1 and 2 of section 1112 of the real property tax law, as amended by chapter 532 of the laws of 1994, to require liens on a parcel that is not farm property to be redeemed in reverse chronological order. Section b requires that a tax lien on a parcel that is farm property to be redeemed in chronological order, so that the lien with the earliest lien date is redeemed first, and the lien with the most recent lien date is redeemed last.
Section 2 ensures that unpaid tax liens on farm property are held under the same provisions for enforcement as parcels of non-farm property.
Enshrined in the New York State Constitution, as well as in the Agriculture and Markets Law, is the directive that the State should utilize all of its powers to protect and preserve one of our state's greatest resources - New York's 7 million acres of farmland.
One of the challenges that farmers face in producing food in New York is our increasingly higher cost of doing business. Farmers are price takers, not price makers. And while farmers produce food in New York State with higher tax rates, higher energy and labor costs, and higher regulatory burdens, the food that is sold and the price the farmer receives is based upon global factors and global commodity prices.
This puts farmers in a uniquely difficult position financially, especially during cyclical times of very low prices. Farmers caught in a financial bind at times face tax liens on their land, but unlike most other businesses farmers must by necessity hold a substantial amount of land upon which to produce food.
In order to help the farm community avoid foreclosures, and thus preserve and protect New York's critical agricultural land, changing the process by which the liens are redeemed would be a substantial aid to the farmer who is caught in a cyclical price downturn.
Allowing a farmer to redeem the earliest tax lien first helps avoid the additional accrual of interest and a potential foreclosure process spurred by factors that may largely be out of the farmer's control.
This bill takes a step forward in helping our State's farm families and maintaining the state's crucial farm land.
PRIOR LEGISLATIVE HISTORY:
S.4514 - Passed Senate
This act shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 982 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________Introduced by Sen. LIBOUS -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government AN ACT to amend the real property tax law, in relation to the redemption of multiple liens on farm property THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivisions 1 and 2 of section 1112 of the real property tax law, as amended by chapter 532 of the laws of 1994, are amended to read as follows: 1. When a tax district holds more than one tax lien against a parcel, the liens need not be redeemed simultaneously. (A) However, the liens ON A PARCEL, WHICH IS NOT FARM PROPERTY, must be redeemed in reverse chronological order, so that the lien with the most recent lien date is redeemed first, and the lien with the earliest lien date is redeemed last. Notwithstanding the redemption of one or more of the liens against SUCH a parcel as provided
[herein]IN THIS ARTICLE, the enforcement process shall proceed according to the provisions of this article as long as the earliest lien remains unredeemed. (B) HOWEVER, IN THE CASE OF LIENS AGAINST A PARCEL, THAT IS FARM PROP- ERTY, THE LIENS MUST BE REDEEMED IN CHRONOLOGICAL ORDER, SO THAT THE LIEN WITH THE EARLIEST LIEN DATE IS REDEEMED FIRST, AND THE LIEN WITH THE MOST RECENT LIEN DATE IS REDEEMED LAST. NOTWITHSTANDING THE REDEMP- TION OF ONE OR MORE OF THE LIENS AGAINST A PARCEL THAT IS FARM PROPERTY AS PROVIDED IN THIS ARTICLE, THE ENFORCEMENT PROCESS SHALL PROCEED ACCORDING TO THE PROVISIONS OF THIS ARTICLE AS LONG AS THE MOST RECENT LIEN REMAINS UNREDEEMED. 2. (a) When one or more liens against a parcel, THAT IS NOT FARM PROP- ERTY, are redeemed as provided [herein]IN THIS ARTICLE, but the earli- est lien remains unredeemed, the receipt issued to the person redeeming shall include a statement in substantially the following form: "ThisEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD04920-01-3 S. 982 2
parcel remains subject to one or more delinquent tax liens. The payment you have made will not postpone the enforcement of the outstanding lien or liens. Continued failure to pay the entire amount owed will result in the loss of the property." (b) WHEN ONE OR MORE LIENS AGAINST A PARCEL, THAT IS FARM PROPERTY, ARE REDEEMED AS PROVIDED IN THIS ARTICLE, BUT THE MOST RECENT LIEN REMAINS UNREDEEMED, THE RECEIPT ISSUED TO THE PERSON REDEEMING SHALL INCLUDE A STATEMENT IN SUBSTANTIALLY THE FOLLOWING FORM: "THIS FARM PARCEL REMAINS SUBJECT TO ONE OR MORE DELINQUENT TAX LIENS. THE PAYMENT YOU HAVE MADE WILL NOT POSTPONE THE ENFORCEMENT OF THE OUTSTANDING LIEN OR LIENS. CONTINUED FAILURE TO PAY THE ENTIRE AMOUNT OWED WILL RESULT IN THE LOSS OF THE PROPERTY." (C) Failure to include such a statement on the receipt shall not invalidate any tax lien or prevent the enforcement of the same as provided by law. S 2. This act shall take effect immediately.