Relates to authorizing counties to set interest rates imposed on late payment of property taxes and delinquencies and redemption of property subject to more than one tax lien.
STATE OF NEW YORK
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10475
IN ASSEMBLY
March 6, 2026
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Introduced by M. of A. HYNDMAN -- read once and referred to the Commit-
tee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to certain inter-
est rates imposed on late payment of taxes and delinquencies and
redemption of certain property subject to more than one tax lien
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 1 of section 924-a of the real property tax
2 law, as amended by chapter 26 of the laws of 2003, is amended to read as
3 follows:
4 1. The amount of interest to be added on all taxes received after the
5 interest free period and all delinquent taxes shall be one-twelfth the
6 rate of interest as determined pursuant to subdivision two or two-a of
7 this section rounded to the nearest one-hundredth of a percentage point,
8 except as otherwise provided by a general or special law, or a local law
9 adopted by a city pursuant to the municipal home rule law or any special
10 law or by a local law adopted by a county. Such interest shall be added
11 for each month or fraction thereof until such taxes are paid.
12 § 2. Section 936 of the real property tax law, as amended by chapter
13 237 of the laws of 1995, subdivision 1 as amended by chapter 355 of the
14 laws of 1997, is amended to read as follows:
15 § 936. Return of unpaid delinquent taxes. 1. Upon the expiration of
16 [his] the collecting officer's warrant, each collecting officer shall
17 make and deliver to the county treasurer an account, subscribed and
18 affirmed by [him] such collecting officer as true under the penalties of
19 perjury, of all taxes listed on the tax roll which remain unpaid, except
20 that such collecting officer shall not include in such account the
21 amount of the installments of taxes returned unpaid pursuant to [section
22 nine hundred twenty-eight-b or] subdivision one of section nine hundred
23 seventy-six of this chapter. The county treasurer shall, if satisfied
24 that such account is correct, credit [him] such collecting officer with
25 the amount of such unpaid delinquent taxes. Such return shall be
26 endorsed upon or attached to the tax roll.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00086-01-5
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1 2. In making the return of unpaid taxes, the collecting officer shall
2 add five per centum to the amount of each tax as levied. In the event
3 that the collecting officer fails to do so, the county treasurer shall
4 make such addition. In a county in which there is a local law in effect
5 pursuant to [section nine hundred twenty-eight-b or] section nine
6 hundred seventy-two of this chapter providing for the collection of
7 taxes in installments, the five per centum provided by this subdivision
8 shall not be added to the taxes which a real property owner has elected
9 to pay in installments pursuant to [section nine hundred twenty-eight-b
10 or] section nine hundred seventy-five of this chapter. Such five per
11 centum shall be added by the county treasurer to the amount of such
12 taxes as shall have remained unpaid after the date upon which the last
13 installment was due as provided in such local law. Such five per centum
14 shall not be added where the taxable real property upon which such
15 unpaid tax was levied is an owner occupied residential property as
16 defined by section eleven hundred eleven of this chapter. The amount of
17 such added per centum shall thereafter be deemed part of the amount of
18 the unpaid tax.
19 § 3. Subdivision 1 and paragraph (a) of subdivision 2 of section 1112
20 of the real property tax law, as amended by chapter 532 of the laws of
21 1994, are amended to read as follows:
22 1. (a) When a tax district holds more than one tax lien against a
23 parcel, the liens need not be redeemed simultaneously. However, the
24 liens must be redeemed in reverse chronological order, so that the lien
25 with the most recent lien date is redeemed first, and the lien with the
26 earliest lien date is redeemed last. Notwithstanding the redemption of
27 one or more of the liens against a parcel as provided herein, the
28 enforcement process shall proceed according to the provisions of this
29 article as long as the earliest lien remains unredeemed.
30 (b) Notwithstanding the provisions of paragraph (a) of this subdivi-
31 sion, when a tax district holds more than one tax lien against a parcel
32 and such parcel is an owner occupied residential property as defined by
33 section eleven hundred eleven of this title, the liens need not be
34 redeemed simultaneously. However, the liens shall be redeemed in chron-
35 ological order, so that the lien with the earliest lien date is redeemed
36 first, and the lien with the most recent lien date is redeemed last.
37 Notwithstanding the redemption of one or more of the liens against a
38 parcel as provided herein, the enforcement process shall proceed accord-
39 ing to the provisions of this article as long as any lien remains unre-
40 deemed for a period of three years or more from the date of delinquency
41 of such lien.
42 (a) (i) When one or more liens against a parcel are redeemed as
43 provided herein, but the earliest lien remains unredeemed, the receipt
44 issued to the person redeeming shall include a statement in substantial-
45 ly the following form: "This parcel remains subject to one or more
46 delinquent tax liens. The payment you have made will not postpone the
47 enforcement of the outstanding lien or liens. Continued failure to pay
48 the entire amount owed will result in the loss of the property."
49 (ii) Notwithstanding the provisions of subparagraph (i) of this para-
50 graph, when one or more liens against a parcel are redeemed as provided
51 herein and such parcel is an owner occupied residential property as
52 defined by section eleven hundred eleven of this title, but any lien
53 remains unredeemed for a period of three years or more from the date of
54 delinquency of such lien, the receipt issued to the person redeeming
55 shall include a statement in substantially the following form: "This
56 parcel remains subject to one or more delinquent tax liens. The payment
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1 you have made will not postpone the enforcement of the outstanding lien
2 or liens. Continued failure to pay the entire amount owed will result
3 in the loss of the property."
4 § 4. Subdivision 2 of section 924-a of the real property tax law, as
5 amended by chapter 355 of the laws of 2003 and as further amended by
6 subdivision (b) of section 1 of part W of chapter 56 of the laws of
7 2010, is amended to read as follows:
8 2. The rate of interest applicable to the third calendar quarter of
9 each year, as set by the commissioner of taxation and finance pursuant
10 to subparagraph (A) of paragraph two of subsection (j) of section six
11 hundred ninety-seven of the tax law, shall be the rate of interest
12 applicable to unpaid real property taxes for purposes of this section.
13 Such commissioner shall set such rate on or before the fifteenth day of
14 July in each year. Such rate shall be effective for all warrants issued
15 for a collection period commencing on or after the first day of Septem-
16 ber next succeeding the date the rate of interest is set. Provided,
17 however, the rate of interest prescribed by this subdivision shall in no
18 event be less than twelve per centum per annum unless the taxable real
19 property upon which such tax was levied is an owner occupied residential
20 property as defined in section eleven hundred eleven of this chapter.
21 The commissioner shall inform each affected municipality of any change
22 in the rate established pursuant to this subdivision.
23 § 5. This act shall take effect on the ninetieth day after it shall
24 have become a law.
