Relates to the sale of liens and tax exempt property in the county of Schenectady

1 Co-sponsor

• Cecilia Tkaczyk

BILL NUMBER:S5641

Title of bill

An act relating to the sale of liens and tax exempt property in the county of Schenectady

Purpose

This bill retroactively retains the approved tax-exempt status of real property where liens have been sold.

Summary of provisions

Section 1: Any real property that was subject to a tax lien and was sold pursuant to chapter 177 of the laws of 2004 or chapter 100 of the laws of 2009 and was tax exempt pursuant to 420-a of real property tax law prior to the sale of the lien shall retain its tax exempt status retroactively so long as the property is still continued to be in the same use.

Section 2: Effective date.

Justification

Legislation was passed in New York State allowing the sale of tax liens in the City of Schenectady between the years of 2004-2009. Unintentionally included in these sales were liens associated with numerous tax-exempt churches and temples; these include, but are not limited to, Consecration Temple Church of God in Christ, Calvary Baptist Church, Koinonia Christian Ministries, Schenectady Hindi Temple and Community Services, First Unitarian Society of Schenectady, Mount Olivet Missionary Baptist Church, Duryee Memorial AME Zion, Bethel AME Zion Church, New Creation in Christ and State Street Presbyterian. These smaller religious entities, which are staffed almost solely by volunteers, provide a stabilizing effect throughout the City and are in imminent danger of being foreclosed upon. The City of Schenectady and the County of Schenectady are in support of any legislation which would prevent these foreclosures. Additionally, the City has offered to pay the private lien buyer for the face-value of the lien, without success. The intent of the original legislation that went through the Assembly Committee on Cities was to sell liens in years from 2004 through 2009 to give municipalities cash infusions, but was not meant to sell liens associated with tax-exempt properties. Through a series of errors by the City of Schenectady's former Sole Assessor and those in charge of the lien sales, the liens for tax-exempt properties were sold to a private entity which is now threatening foreclosure. This legislation will retroactively retain the tax-exempt status of these properties, invalidating the sale of these liens.

Legislative history

New bill.

Fiscal implications

None to the State of New York.

Effective date

Immediately.