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A2784Assembly2017-2018 SessionSame asS3691

Tax Liens on Fire Payouts

Official title

“Relates to the placing of a lien for unpaid property taxes against the proceeds of a fire insurance policy on certain real property located within a municipality”

Sponsor John T. McDonald IIIAD-108+4 co-sponsorsAffects Legal
Status
Signed by Governor
Impact
3/10
Low
Outcome
Signed into law

Bill progress

Signed into law

What's happening

This bill excludes owner-occupied single and two-family homes from having fire insurance proceeds used to pay unpaid property taxes.

Why it matters

  1. Protects homeowners. By excluding owner-occupied one- and two-family homes from having fire insurance proceeds used to pay unpaid property taxes, the bill ensures that homeowners can use insurance money to rebuild or recover after a fire, rather than losing those funds to tax liens.

  2. Targets financial vulnerability. Owner-occupiers are often less financially resilient than landlords or commercial property owners; this change reduces the risk that a fire will lead to housing instability or displacement due to unpaid taxes.

  3. Shifts municipal collection strategy. The bill requires local governments to seek other means to collect unpaid property taxes from owner-occupied homes, rather than intercepting insurance payouts, which may alter municipal tax enforcement practices.

  4. Encourages property maintenance and recovery. By improving access to insurance proceeds, the bill may incentivize timely repairs and help maintain neighborhood stability after a fire, potentially reducing blight and its associated costs.

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Who cares

  • Municipal tax collectors

    The bill would expand the properties covered by the fire insurance proceeds lien law to include non-owner-occupied one- and two-family residential properties.

  • Owners of non-owner-occupied one- and two-family homes

    Their properties would no longer be exempt from liens against fire insurance proceeds for unpaid property taxes.

  • Owner-occupants of one- and two-family homes

    Their properties would remain exempt from the fire insurance proceeds lien law.

  • Fire insurers

    The bill would expand the residential properties whose policy proceeds could be subject to municipal liens for unpaid property taxes.

Headline styles

Tax Liens on Fire Payouts

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
John T. McDonald III

Assembly Member · Assembly District 108

Chair, Governmental Operations

History

  1. Signed chap.342
  2. Delivered to governor
  3. Returned to assembly
  4. Passed senateVote 62–0
  5. 3rd reading cal.332
  6. Substituted for S3691B
  7. Referred to rules
  8. Delivered to senate
  9. Passed assembly
  10. Ordered to third reading rules cal.587
  11. Rules report cal.587
  12. Reported
Show 8 earlier actions
  1. Reported referred to rules
  2. Reported referred to ways and means
  3. Reported referred to codes
  4. Print number 2784b
  5. Amend (t) and recommit to local governments
  6. Print number 2784a
  7. Amend and recommit to local governments
  8. Referred to local governments

Companion bill

The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.

S3691Senate

Tax Liens on Insurance Payouts

Senate Floor Calendar · Sponsor Kathleen A. Marchione

Impact 3 · Low0% to pass

Full text

1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

2784--B

2017-2018 Regular Sessions

IN ASSEMBLY

January 23, 2017

Introduced by M. of A. McDONALD, GALEF, BLAKE -- read once and referred to the Committee on Local Governments -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- again reported from said committee with amendments, ordered reprinted as amended and recommitted to said committee

AN ACT to amend the general municipal law, in relation to the placing of a lien for unpaid property taxes against the proceeds of a fire insurance policy on certain real property located within a municipality

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Paragraph (e) of subdivision 1 of section 22 of the general municipal law, as added by chapter 569 of the laws of 1978, is amended to read as follows:

(e) "Real property" means property upon which there is erected any residential, commercial or industrial building or structure except [a one or two] an owner-occupied single family residential structure and owner-occupied two family residential [structure] structures.

§ 2. This act shall take effect immediately.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD07645-06-7

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.