Provides that the amount required to redeem real property affected by any tax sale certificate in foreclosure shall include certain amounts and costs

1 Co-sponsor

• William T. Stachowski

Title of bill

An act to amend the Erie county tax act, in relation to providing that the amount required to redeem real property affected by any tax sale certificate in foreclosure, or to be recovered by the plaintiff in foreclosure, shall include the aggregate amount of all tax sale certificates affecting such real property and shall also include amounts for attorneys' fees, abstracts of title, court costs, allowances and other disbursements

Purpose

To provide that the amount required to redeem real property affected by any tax sale certificate in foreclosure, or to be recovered by the plaintiff in foreclosure, shall include the aggregate amount of all tax sale certificates affecting such real property and shall also include amounts for reasonable and necessary attorneys' fees, abstracts of title, court costs, allowances and other disbursements.

Summary of provisions

This bill would amend Sections 8-1.0, 8-2.0, 98.0,11-4.0 and 11-12.0 of the Erie County Tax Act so as to provide that the amount required to redeem real property affected by any Erie County tax sale certificate in foreclosure, or to be recovered by the plaintiff in such foreclosure, shall include the aggregate amount of all tax sale certificates affecting such real property, together with amounts for reasonable and necessary attorney's fees, abstracts of title, court costs, allowances and other disbursements.

Justification

By requiring that the amount required to be paid to redeem such property, and the amount to be recovered in foreclosure by the owner of any Erie County tax sale certificate, shall include the full amount of all such tax sale certificates so-owned, together with accrued interest, penalties and the costs and expenses of foreclosure such as reasonable and necessary attorneys' fees, court costs and abstracts of title, the value and enforceability of Erie County tax sale certificates offered for sale will be significantly enhanced.

Similarly, insofar as Erie County may find itself continuing to own tax sale certificates, and thus needing to directly enforce the collection of tax delinquencies under the in rem tax foreclosure provisions of the Erie County Tax Act, the legislation also specifically provides for the payment or recovery of a per parcel "in rem fee" of not more than five hundred dollars so as to cover the presumptive costs to Erie County for reasonable and necessary attorneys' fees, abstracts of title and other disbursements for such in rem tax foreclosures.

Legislative history

2008: S.6677-B/A.8345-C, passed the Senate. However, the Erie County Tax Act, originally enacted as Chapter 812 of the Laws of 1942, was last amended by Chapter 8 of the laws of 2006 so as to allow for the receipt by local tax collectors of partial payments toward current fiscal year real property taxes.

Fiscal implications

Enhancement of the inherent value of Erie County tax sale certificates, whether offered for sale or retained by Erie County, by including foreclosure expenses such as reasonable and necessary attorneys' fees, abstract of title, court costs, allowances and other disbursements in the amount to be paid to redeem affected properties, and the amount to be recovered in foreclosure, thereby removing the financial burden of such reasonable and necessary expenses from the owners of Erie County tax sale certificates. EFFECTIVE DATE : This act shall take effect immediately; provided that sections two, three, four and five of this act shall not affect or apply to any Erie county tax sale certificates for any fiscal year prior to 2010.