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History
- Referred to investigations and government operations
Full text
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Sponsor's memo
BILL NUMBER:S7134
Title of bill
An act to amend the tax law, in relation to the withdrawal of tax liens upon payment of taxes due
Purpose
Provides that the department of taxation and finance shall withdraw from county records a tax lien for which the tax debt has been paid in full and satisfied.
Summary of provisions
(j) Withdrawal of lien. - The department, upon payment in full and satisfaction by a taxpayer of a tax debt for which a warrant has been filed and a lien on property has been created pursuant to this section, shall, withdraw such warrant and lien from the records of the county in which such warrant was filed and lien was created. Within five business days of such withdrawal, the department shall send written notification to such taxpayer that such warrant and lien have been withdrawn and that such taxpayer may contact credit reporting agencies and notify them that such tax debt has been paid in full and satisfied and that such warrant and lien have been withdrawn.
Existing law
New bill.
Justification
The IRS has introduced new legislation to make it easier for taxpayers to obtain lien withdrawals after satisfying a tax bill. That law is called the Federal "Lien On Me" tax law. This law will expunge or withdraw a taxpayers debt lien from their credit record rather than just release the lien, which stays on their credit record negatively for seven years even after satisfaction. The law presently in effect only covers your federal obligations and does not cover state taxation and finance obligations. This bill would mirror the federal law, and in addition would require the state taxation and finance agency to inform consumers in writing at the end of their obligation that removal of their lien will not happen automatically, that they, (the consumer or tax payer) must contact the credit reporting agencies themselves to notify that the lien has been satisfied and expunged or withdrawn. This has not as yet been factored into the federal legislation thusly may not be being addressed and is still showing negatively on many consumers reports.
Fiscal implications
To be determined.
Local fiscal implications
Not applicable.
Effective date
§ 2. This act shall take effect on the sixtieth day after it shall have become a law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.