Relates to the sale of delinquent tax liens on brownfield property in Suffolk county

Title of bill

An act to amend the Suffolk county tax act, in relation to the sale of delinquent tax liens on brownfields property

Purpose/summary of provisions

The amendment would allow Suffolk County to sell or dispose of tax liens for less than outstanding tax due on lien on parcels identifies by the County as Brownfields. The sale or disposal of the County tax liens on these parcels will satisfy open real property tax liens and promote the return of these parcels to a productive real property taxpaying use.

Justification

Suffolk County acquires an interest and, in most instances, take title by tax deed to real property for non-payment of taxes. However, the County has decided not to take title for non-payment of real property taxes on parcels identified as Brownfields. A parcel is identified as a Brownfield site as a result of its past use and/or the presence of known contamination on the site.

In many instances, the tax liens held by the County on Brownfield parcels and the cost to remediate the property are, in most instances, in excess of the appraised value of the property assuming the site is without contamination. Allowing the County the option to sell or dispose of the tax liens for less than the outstanding tax due on a Brownfield parcel with the requirement that the buyer will remediate the parcel will promote private developers to acquire the tax liens, invest money to clean up the land, and convert these contaminated non-taxpaying parcels into productive taxpaying use.

The Suffolk County Treasurer currently lists seventy-six parcels with tax liens that are eligible for sale or disposal that the County has been reluctant to take a tax deed due to the presence of contamination on the property. The seventy-six parcels include approximately 215 acres of potentially contaminated, underutilized land that would be remediated and restored to the tax rolls if the tax lien on the property could be sold or transferred to a private developer.

Fiscal implications for state and local governments

The amendment would have a long term benefit to the taxpayers by returning these parcels, which are non producing tax revenue, to productive, taxpaying use.

Effective date

This act shall take effect immediately