Authorizes the prepayment of estimated tax by installment method; repealer

BILL NUMBER:A10075

Title of bill

An act to amend the real property tax law, in relation to authorizing the prepayment of estimated tax by installment method; and repealing certain provisions of such law relating thereto

Purpose or general idea of bill

Provides for real property tax relief by allowing homeowners and businesses to pay their annual property tax bills monthly.

Summary of specific provisions

Section 1 repeals Sections 972, 973, and 976 of the Real Property Tax law and adds a new Section 972 to require all taxing jurisdictions, unless such law is repealed by a local law or resolution, to allow the prepayment of estimated property taxes. A property taxpayer will make property tax payments based upon an esti- mated tax equal to the actual taxes levied upon the parcel in the prior year. The monthly installment payments would be based on one-twelfth of the total taxes paid in the prior year and then adjusted upon enactment of the local taxing bodies' budget. Interest penalties would be applied to any homeowner's tax bill if an installment is not paid on or before the date it is due.

Section 2 thru 4 amends various sections of the Real Property Tax Law to comply with required installment property tax payments.

Section 5 provides the effective date.

Justification

Reducing New York's tremendously high tax burden is the number one issue facing families and businesses throughout our state. Skyrocketing property taxes have severely eroded. New York's competitive edge. The sheer cost of living in New York has forced many residents and businesses to leave, thus slowing the economic engine of the Empire State. Young people are finding it difficult to purchase homes, seniors . are struggling to maintain their homes and businesses are facing immense challenges to create and retain jobs.

Property tax relief is a key ingredient to easing the tax burden on New York's families and businesses and this proposal sets out to help taxpayers with their payments. This legislation would ease the burden of high property taxes by allowing homeowners to pay their property tax bills in installments. Spreading out a high property tax payment would allow the homeowner to budget their property tax payments more effi- ciently and further reduce the stress of a large onetime property tax payment.

Prior legislative history

New bill

Fiscal implications for state and local governments

Minor administra- tive costs to local taxing jurisdictions.

Effective date

This act shall take effect on the first of January next succeeding the date on which it shall have , become a law.