Authorizes alternative means of notice of commencement of property tax lien foreclosure, in case where commissioner of taxation and finance is required to get notice

Title of bill

An act to amend the real property tax law, in relation to notice of commencement of real property tax lien foreclosure petitions

Purpose

This bill would allow county, city and village tax districts to provide the Commissioner of Taxation and Finance ("Commissioner") with notice of commencement of real property tax lien foreclosure proceedings by alternative means approved by the Commissioner.

Summary of provisions

Section 1 of this bill would amend the Real Property Tax Law ("RPTL") § 1125(1)(b)(i) to allow a tax district foreclosing on a real property tax lien to provide the Commissioner with notice of commencement of the judicial proceeding by some alternative means, other than certified or first class mail, if that means has been prescribed by the Commissioner.

Section 2 of the bill provides that it would take effect immediately.

Existing law

A tax district foreclosing on a real property tax lien must provide notice by certified and regular mail to any person whose right, title or interest in the real property was a matter of public record as of the date the list of delinquent taxes was filed. Warrants filed by the Commissioner are considered liens and fall within the definition of "right, title or interest in real property."

Legislative history

This is a new bill.

Statement in support

Currently, counties and cities serve thousands of individual real property tax lien foreclosure notices on the Department of Taxation and Finance ("Department"). This bill would authorize the Commissioner to allow local governments to use an alternative means of providing notice. That alternative could include allowing the local governments to file summaries of real property tax lien foreclosure petitions with the Commissioner, instead of serving individual notice and petitions. This measure would provide relief to local governments from an expensive and cumbersome process, without prejudice to the tax collection efforts of the Commissioner. This bill would allow the Department and the tax districts the flexibility to agree to transmittal of the summaries by improved electronic technologies. This alternative means of notice may also assist the Department in tracking these foreclosure proceedings.

Budget implications

This bill would result in significant clerical and postage related savings to counties and cities.

Effective date

This bill will take effect immediately.