What's happening
This bill requires the state to withdraw tax liens and notify taxpayers and credit agencies once tax debts are fully paid.
Why it matters
Helps protect taxpayers’ credit scores. By requiring official withdrawal of tax liens and notifying both taxpayers and credit agencies, the bill reduces the risk of lingering negative marks on credit reports after debts are paid.
Ensures government accountability and transparency. The law would mandate prompt action (within five business days) by the tax department, helping prevent bureaucratic delays that could otherwise harm individuals who have resolved their debts.
Empowers taxpayers to restore financial standing. With formal notification that their debt is satisfied and the lien is withdrawn, individuals are better equipped to proactively clear up their credit history and regain access to loans, housing, and other financial opportunities.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Remove Paid Tax Liens
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Substituted by A4162
- Ordered to third reading cal.1826
- Committee discharged and committed to rules
- Referred to investigations and government operations
- Referred to investigations and government operations
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.
Remove Paid Tax Liens
Vetoed · Sponsor Thomas Abinanti
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3650
2017-2018 Regular Sessions
IN SENATE
January 25, 2017
Introduced by Sens. PARKER, HOYLMAN -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the tax law, in relation to the withdrawal of tax liens upon payment of taxes due
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 692 of the tax law is amended by adding a new subsection (j) to read as follows:
(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.
§ 2. This act shall take effect on the sixtieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03390-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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
Section 1: Amends section 692 of the tax law by adding a new section (j) to read:
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.
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.
Legislative history
2015-16: S.2834/A.5404 - Referred to Investigations and Government Operations 2014: S.6278 - Referred to Investigations and Government Operations 2013: S.2409(Adams) - Referred to Investigations and Government Operations 2012: S.7134(Adams) - Referred to Investigations and Government Operations
Fiscal implications
To be determined
Effective date
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.