Relates to the sale, by counties, of delinquent tax liens on brownfields property

BILL NUMBER:S5309

Title of bill

An act to amend the environmental conservation law, in relation to the sale of delinquent tax liens on brownfields property; and to amend the navigation law, in relation to the liability of a public corporation for the discharge of petroleum

Purpose

The amendment would allow any county in New York State to sell or dispose of tax liens for less than outstanding tax due on lien on parcels identifies by the County as Brownfields except Superfund Sites. 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.

Summary of provisions

Adds a new section, 27-1437 which would allow Counties to sell or dispose of tax liens for less than outstanding tax due on lien on parcels identified by the County as Brownfields except Superfund sites. 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

Counties throughout the state acquire an interest and, in most instances, take title by tax deed to real property for non-payment of taxes. However, many counties have 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 Counties 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 Counties in New York State, 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.

Legislative history

2012: S. 5424 Third Reading/A. 9747 Real Property Taxation

Fiscal implications

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 on the 120 days after it shall have become law. Effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date is authorized to be made on or before such date.