Relates to making real property tax receipts available online

2 Co-sponsors

• Ruth Hassell-Thompson
• Craig M. Johnson

Title of bill

An act to amend the real property tax law, in relation to providing tax receipts electronically in Westchester county

Purpose or general idea of the bill

To provide collecting officers with the option of making electronic receipts available, showing that a real property tax has been paid, to a taxpayer who pays through an escrow account. Currently, a collecting officer can only deliver or mail this receipt. The option of making property tax receipts available electronically only applies if the locality enacts a local law authorizing electronic delivery.

Summary of specific provisions

This bill amends section 955 of the real property tax law by adding a new subdivision 3-a. Paragraph (a) of the new subdivision 3-a provides that, in Westchester county, a collecting officer shall deliver, mail or make available electronically a receipt to the mortgagor for whom a real property tax escrow account is maintained. Currently, such receipt can only be provided by delivery or mail. In addition, paragraph (a) provides that the collecting officer shall notify all taxpayers that any availability of electronic receipts does not preclude a taxpayer from electing to receive a copy of his or her tax receipt in the mail or in person.

Paragraph (b) of the new subdivision 3-a provides that the option of making property tax receipts available electronically only applies if the locality enacts a local law authorizing electronic delivery.

Justification

Traditionally, municipalities have relied heavily on the mail to deliver required property tax receipts to taxpayers paying through an escrow agent. This is problematic due to the theft of mail (resulting in identity theft), the unreliability of the mail and the increased cost of postage, paper and envelopes over time.

In addition, because the law requires that a receipt be sent within three weeks of payment (which occur at various times during the year), taxpayers receive their receipts throughout the year. As a result, many taxpayers do not have these essential records available when they prepare their state and federal tax returns for filing. Since payments are made by third parties, these taxpayers have no cancelled check to verify these payments. Accordingly, tax offices statewide are flooded with requests for information between February and April.

Taxpayers have consistently asked for this information to be placed securely online so that it is available to them whenever they need it (including weekends and evenings when municipal offices are closed) but especially, whenever they prepare their taxes. Providing access to tax receipts electronically will significantly increase access to these essential documents.

As municipalities across the state allow for various payments online, including parking tickets, recreation programs, water bills and property taxes themselves, the availability of tax receipts online is the next step in increasing accessibility to records and thus service to taxpayers. Major utilities, such as Consolidated Edison, have also made their customers' usage and payment records available online. In addition, within a short time, municipalities who choose to offer receipts online will realize savings due to the elimination of postage, printing and envelope costs. Under this legislation, paper receipts would still be available upon the request of a taxpayer.

Legislative history

New bill.

Fiscal implications

None to the State.

Effective date

Immediately.