Authorizes the city of Schenectady to enter into a contract to sell some or all of the delinquent tax liens held by such city to a private party

BILL NUMBER:A4554C

Title of bill

An act to authorize the city of Schenectady to enter into a contract to sell some or all of the delinquent tax liens held by such city to a private party; and providing for the repeal of such provisions upon expiration thereof

Purpose or general idea of bill

This bill continues the authority of the City of Schenectady to sell delinquent tax liens to a private party.

Summary of specific provisions

Permits the City of Schenectady, under enumerated circumstances, to enter into a contract to sell some or all of their delinquent tax liens to a private party. The contract must be entered into by December 31, 2009, and this authority shall sunset on December 31, 2011. This act provides "consumer protections" for affected property owners, including a requirement for thirty days notification and assurances that the existing redemption periods and interest rates remain unchanged.

Existing law

Chapter 177 of the Laws of 2004 authorized the City of Schenectady to enter into a contract by December 31, 2004 for the sale of tax liens to a private party. In accordance with such law, the City entered into, and has continued, such a contract. This similar measure is modeled after Chapter 45 of the Laws of 2007.

Justification

This bill was requested by the city of Schenectady (resolution 2008-203). Schenectady was the first municipality in New York to receive the authority to enter into a contract for the sale of tax liens to a private party. Schenectady's tax lien sales have been highly successful, raising significant funds for the city, and generally improving conditions for delinquent taxpayers, who are able to negotiate flexible repayment terms with the private purchaser. Since the original law, other cities have sought, and have received, special legislative authority to conduct similar sales.

This legislation will ensure that the City of Schenectady has the authority to enter into a new contract for the sale of delinquent tax liens. The bill also establishes notification and procedural require- ments for the City of Schenectady, which are consistent with similar provisions that have been enacted over the past several years for cities granted the authority to sell delinquent tax liens, such as Utica.

Prior legislative history

New Bill; similar to A.1204 of 2009 (Desti- to)

Fiscal implications

None to the state.

Local fiscal implications

This legislation will permit the City of Schenectady to continue to benefit from the sale of tax liens to a private party. The amount of revenue to the city will depend on the amount of tax delinquencies.

Effective date

This act shall take effect immediately, and shall expire and be deemed repealed on and after December 31, 2011.