BILL NUMBER: S9958
SPONSOR: FAHY
 
TITLE OF BILL:
An act to amend the real property tax law, in relation to allowing muni-
cipalities to relieve property owners of penalties due to lack of
payment if such property owner was a victim of property tax fraud
 
PURPOSE:
This bill allows tax districts to waive interest and penalties on prop-
erty taxes for property owners who are victims of property tax fraud
during payment attempts.
 
SUMMARY OF PROVISIONS:
Section 1: Amends Real Property Law by adding a new section 924-c. This
section authorizes the governing body of any tax districts to waive
interest and penalties in whole or in part for property owners who have
been victims of property tax fraud. Municipalities that would receive
such interest or penalties shall consent to cancelling them. Addi-
tionally, this section authorized the Department of Tax and Finance to
promulgate rules and regulations to guide municipalities in the imple-
mentation of this policy.
Section 2: Section 1182 of the Real Property Tax Law allows tax
districts and municipalities to cancel or reduce interest and penalties
for property tax fraud victims on a case-by-case or general basis pursu-
ant to Section 924-c.
Section 3: Effective date.
 
JUSTIFICATION:
Having a property tax check stolen means New Yorkers often become
victims a second time, because property tax districts' enforcing offi-
cers are unable to waive interest and penalties that accrue once a
stolen tax payment is late. In fact, many New Yorkers only realize they
are a victim of fraud when they receive their property tax bill that
says their payment is past due with interest and penalties accumulating.
To rectify this situation, tax districts should be authorized to decide
if they want their enforcing officers to waive interest and penalties
after someone has been found to be the victim of property tax fraud.
 
LEGISLATIVE HISTORY:
New bill
 
FISCAL IMPLICATIONS:
TBD.
 
EFFECTIVE DATE:
This act shall take effect immediately.

Statutes affected:
S9958: 1182 real property tax law