Authorizes municipalities to treat unpaid fines for building code and fire code violations as unpaid real property taxes

Title of bill

An act to amend the real property tax law, in relation to authorizing municipalities to treat unpaid building code and fire code fines as delinquent taxes and impose tax liens upon the real property which is the subject of such fines

Purpose or general idea of bill

This bill authorizes municipalities to include unpaid fines for building and fire code violations in the following year's tax levy and subjects the property to foreclosure proceedings as authorized by the law for unpaid real property taxes. This legislation will enable municipalities, at local option, to treat unpaid enforcement fines as liens on the affected property. The liens could then be foreclosed pursuant to annual tax foreclosure proceedings should the fines remain unpaid. Faced with prospect of having their property sold at a tax sale, it is anticipated that violators would choose to settle outstanding fines to municipality.

Summary of specific provisions

Adds a new section 901 to the Real Property Tax law. subsection 1 empowers municipalities to enact law, resolution, or ordinance providing that finally adjudicated fines imposed upon real property for building code or fire code violations may be recovered as delinquent taxes. Subsection 2 calls for the enactment of procedures for judicial determination and adjudication of the underlying circumstances of the fine and avenues of appeal. Subsection 3 provides that affected property owners shall be afforded no less than ten days written notice of the occurrence of any action under this section and that a lien may be imposed if the fine is unpaid. Subsection 4 allows for unpaid fines and expenses incurred in adjudicating such fine to be unpaid real property taxes.

Also amends section 936 of the real property tax law to include fines to be deemed as unpaid taxes and amends Subdivision 2 of section 1102 of the real property tax law to add to the definition of "Delinquent Tax" unpaid fines described by this Bill. The bill excludes properties which serve as the primary residence for one or more of the property owners.

Justification

It is costly for municipalities to collect unpaid fines because the fine may only be collected pending a civil judgment. Consequently, smaller fines remain unpaid but, in the aggregate, may amount to thousands of dollars. While revenue may be raised under this Bill, the overall purpose is to ensure that buildings violations and other quality of life protections are enforced and properties are maintained. This legislation is specifically targeting landlords who fail to keep their properties up to code.

Prior legislative history

2013-2014: A.478-A, 2011-2012: A.7846, Similar to A.2459 of 2004.

Fiscal implications

Will help local governments more effectively collect monies owed.

Effective date

Effective on the first of January next succeeding the date on which it shall have become a law.