Provides for the return of surplus proceeds from tax lien foreclosures to a former owner; requires 14-day posted notice prior to the public auction of a property.
STATE OF NEW YORK
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10681
IN ASSEMBLY
August 22, 2022
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Introduced by COMMITTEE ON RULES -- (at request of M. of A. Hunter) --
read once and referred to the Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to surplus
proceeds from tax lien foreclosures
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 2 of section section 1166 of the real property
2 tax law, as amended by chapter 532 of the laws of 1994, is amended and a
3 new subdivision 3 is added to read as follows:
4 2. No such sale shall be effective unless and until such sale shall
5 have been approved and confirmed by a majority vote of the governing
6 body of the tax district, except that no such approval shall be required
7 when the property is sold at public auction to the highest bidder. In
8 addition to any other notices required by law, where a tax district
9 sells property at a public auction pursuant to the provisions of this
10 section, such tax district shall post a notice of such auction on the
11 front door, or equivalent placement where applicable, of such property
12 fourteen days prior to such auction.
13 3. (a) A former owner of residential or farm property, as defined in
14 this article, or commercial property shall be entitled to any surplus
15 proceeds which result from the sale of such real property acquired by a
16 tax entity through tax foreclosure proceedings. The term "surplus" shall
17 mean the amount that is left after the property has been auctioned and
18 all outstanding taxes, interest, issues, payments for county tax and
19 utility liens and administrative and other fees have been paid.
20 (b) In the event that a sale authorized under this section shall
21 result in a surplus as to any piece or parcel of land offered at such
22 sale, the enforcing officer shall report the fact of such surplus to the
23 court which shall direct the enforcing officer to deposit such surplus
24 in trust with the county treasurer or commissioner of finance for the
25 benefit of whomsoever may be entitled to such surplus pursuant to this
26 subdivision. Such surplus shall be retained for a period of at least
27 three years.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD16237-01-2
A. 10681 2
1 (c) A municipality shall notify a property owner when the owner's
2 property netted a surplus at a tax foreclosure auction that was held on
3 or after the effective date of this subdivision. The notification shall
4 be made as directed by the court and shall state the possible existence
5 of a surplus, how to obtain the surplus and the steps the homeowner must
6 take to obtain the surplus.
7 (d) Notwithstanding subdivision two of section eleven hundred four of
8 this article, the provisions of this subdivision shall apply to all
9 counties, cities, towns and villages in this state.
10 (e) As used in this subdivision, "commercial property" means any non-
11 residential property used primarily for the buying, selling or otherwise
12 providing of goods or services.
13 § 2. This act shall take effect immediately.
