BILL NUMBER: S526
SPONSOR: MAYER
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill would amend section 924-a of the Real Property Tax law to
provide that interest on missed installment payments begins from the due
date of such missed installment payment.
 
SUMMARY OF PROVISIONS:
Section one would amend section 924-a of the Real Property Tax law by
adding a new subdivision 4 stating that in any case where an owner of
real property has elected to pay taxes in installments, if any such
installment is not paid on or before the due date additional interest
shall only begin to accrue from the due date of such missed payment.
Section two provides the effective date.
 
JUSTIFICATION:
Under the Real Property Tax law, a village can opt to allow partial
payments of property taxes by passing a resolution. If a taxpayer exer-
cises this option, they must pay interest on all payments after the
first installment in an amount set forth in the law. Villages currently
have no ability to adjust the interest if they allow for partial
payments.
During the coronavirus pandemic, some villages opted to allow partial
payments on taxes to make it easier for residents experiencing financial
difficulty. However, they were forced to charge the full interest rate
on any payments made after the first installment, accruing from the
original payment due date. This bill provides that where an owner of
real property has elected to pay taxes in installments, if any such
installment is not paid on or before the due date, interest will only
begin to accrue from the due date of such missed payment. This will
ensure that residents are not penalized simply for choosing to pay their
taxes in installments, but still requires interest to be charged when
any payment is missed or paid after the due date for such payment.
 
PRIOR LEGISLATIVE HISTORY:
2023-2024: S2973/A2711, Referred to Local Government.
2021-2022: S8371/A8514, Referred to Local Government.
 
FISCAL IMPLICATIONS:
None
 
EFFECTIVE DATE:
This act shall take effect immediately.