BILL NUMBER: S967A
SPONSOR: RYAN
 
TITLE OF BILL:
An act to amend the real property tax law, in relation to delinquent tax
interest rates
 
PURPOSE OR GENERAL IDEA OF BILL:
To tie the interest rate for delinquent tax payments due on real proper-
ty to the prime interest rate and set a floor of two percent and ceiling
of sixteen percent.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1: Amends section 924-a of the real property tax law by tying
the delinquent tax interest rate to the prime interest rate and setting
a floor of two percent and ceiling of sixteen percent. Also specifies
that the rate will be reviewed every five years.
Section 2: effective date.
 
JUSTIFICATION:
This bill provides relief for owners of residential properties who fall
behind in their taxes. The incredibly high interest rates that munici-
palities across New York State are charging prevents many homeowners
from being able to resolve their tax foreclosure delinquency and avoid
foreclosure.
Section 924-a currently sets the floor for the lowest rate a munici-
pality may charge at twelve percent. This has not been updated since
1983 and does not reflect the current economic conditions in New York
State. This bill would update section 924-a to cap the delinquent tax
interest rate at 16%, reduce the floor to 2% and tie the rate to the
prime interest rate.
 
LEGISLATIVE HISTORY:
2021: S6310/A7776 Passed Senate. 2023: S967/A1489
 
FISCAL IMPLICATIONS:
None to the state.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S967: 924-a real property tax law, 924-a(1) real property tax law
S967A: 924-a real property tax law, 924-a(1) real property tax law