What's happening
This bill cancels any unpaid property taxes on land sold by New York State to private owners, preventing new owners from inheriting past tax liabilities.
Why it matters
Encourages Private Investment. By ensuring that new private owners of former state land are not saddled with old, unpaid property taxes, the bill removes a major disincentive for individuals or businesses to purchase land from the state, potentially leading to increased development or productive use of such properties.
Clarifies Tax Liability. The bill draws a clear line—any unpaid taxes up to the point of sale are wiped out, and only taxes from the date of new private ownership forward are collectible. This provides legal certainty and reduces the risk of unexpected tax bills for new owners.
Protects Local Revenue Streams Going Forward. While it forgives old taxes, the bill explicitly allows local governments to assess and collect property taxes from the new private owners starting from the date of transfer, ensuring that municipalities do not lose out on future tax revenue for these properties.
Prevents Legal Disputes. By automatically extinguishing prior tax debts upon conveyance, the bill helps prevent lengthy or costly legal disputes between new owners and tax authorities regarding responsibility for back taxes.
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Who cares
Private buyers of state-owned land
The bill would automatically cancel existing unpaid taxes on the parcel when ownership transfers, shielding buyers from those tax liabilities.
Local governments and taxing authorities
The bill would extinguish unpaid taxes assessed before the transfer while preserving their authority to assess and collect lawful taxes from the date private ownership begins.
State agencies conveying real property
The bill would make cancellation of existing unpaid property taxes automatic when state-owned land is conveyed to a private person.
Headline styles
Erase Old State Property Taxes
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Enacting clause stricken
- Referred to real property taxation
- Referred to real property taxation
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2150
2019-2020 Regular Sessions
IN ASSEMBLY
January 22, 2019
Introduced by M. of A. GANTT -- read once and referred to the Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to cancellation of unpaid taxes on real property conveyed by the state of New York to a private party
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The real property tax law is amended by adding a new section 1185 to read as follows:
§ 1185. Cancellation of unpaid taxes on real property owned by the state of New York. Notwithstanding the provisions of any other law, all existing unpaid taxes assessed on a parcel of real property owned by the state of New York shall be extinguished by operation of law upon the alienation or conveyance of such state owned land to any private person. The purpose of this section is to prevent private persons who acquire real property from the state of New York from incurring tax liabilities existing at the time of acquisition. Nothing in this section shall be construed to prevent any local government or taxing authority from assessing and collecting otherwise lawfully authorized taxes on such real property commencing from the date that ownership of such property passes from the state to a private person.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00448-01-9
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.