What's happening
This bill amends the Real Property Tax Law to require tax liens on farm property to be redeemed in chronological order, rather than reverse chronological order.
Why it matters
Provides additional flexibility for farmers. by allowing them to pay off their oldest tax debts first, which may help them address longstanding financial burdens and avoid losing their property due to older liens.
Aligns tax enforcement with agricultural cash flow realities. , as farmers often experience seasonal and unpredictable income; this change could make it easier for them to manage delinquent taxes and maintain farm operations.
Potentially reduces risk of farm foreclosure. by enabling redemption of liens in a way that gives priority to clearing the earliest debts, rather than forcing payment of the most recent liens first (which might be less financially feasible for farmers).
Creates a distinct legal process for farm properties versus other properties. , which recognizes the unique economic challenges facing agricultural landowners and could encourage more sustainable land management and rural economic stability.
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Who cares
Farm property owners
When a tax district holds multiple tax liens on their parcel, they would have to redeem the oldest lien first and the newest last, reversing the current order.
Local tax districts
They would have to apply the farm-specific redemption order and continue enforcement while the most recent lien remains unpaid.
People redeeming farm tax liens
Their receipts would have to warn that remaining delinquent liens still expose the property to enforcement and eventual loss despite a partial payment.
Headline styles
Prioritize Old Farm Liens
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to local government
- Referred to local government
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2864
2019-2020 Regular Sessions
IN SENATE
January 30, 2019
Introduced by Sen. JORDAN -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government
AN ACT to amend the real property tax law, in relation to the redemption of multiple liens on farm property
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivisions 1 and 2 of section 1112 of the real property tax law, as amended by chapter 532 of the laws of 1994, are amended to read as follows:
1. When a tax district holds more than one tax lien against a parcel, the liens need not be redeemed simultaneously. (a) However, the liens on a parcel, which is not farm property, must be redeemed in reverse chronological order, so that the lien with the most recent lien date is redeemed first, and the lien with the earliest lien date is redeemed last. Notwithstanding the redemption of one or more of the liens against such a parcel as provided [herein] in this article, the enforcement process shall proceed according to the provisions of this article as long as the earliest lien remains unredeemed.
(b) However, in the case of liens against a parcel, that is farm property, the liens must be redeemed in chronological order, so that the lien with the earliest lien date is redeemed first, and the lien with the most recent lien date is redeemed last. Notwithstanding the redemption of one or more of the liens against a parcel that is farm property as provided in this article, the enforcement process shall proceed according to the provisions of this article as long as the most recent lien remains unredeemed.
2. (a) When one or more liens against a parcel, that is not farm property, are redeemed as provided [herein] in this article, but the earliest lien remains unredeemed, the receipt issued to the person redeeming shall include a statement in substantially the following form: "This parcel remains subject to one or more delinquent tax liens. The payment
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09085-01-9
S. 2864 2
you have made will not postpone the enforcement of the outstanding lien or liens. Continued failure to pay the entire amount owed will result in the loss of the property."
(b) When one or more liens against a parcel, that is farm property, are redeemed as provided in this article, but the most recent lien remains unredeemed, the receipt issued to the person redeeming shall include a statement in substantially the following form: "This farm parcel remains subject to one or more delinquent tax liens. The payment you have made will not postpone the enforcement of the outstanding lien or liens. Continued failure to pay the entire amount owed will result in the loss of the property."
(c) Failure to include such a statement on the receipt shall not invalidate any tax lien or prevent the enforcement of the same as provided by law.
§ 2. This act shall take effect immediately and shall apply to the redemption of liens occurring on and after such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the real property tax law, in relation to the redemption of multiple liens on farm property
Purpose or general idea of bill
To allow farm property tax liens to be paid in chronological order
Summary of specific provisions
Section 1 amends subdivision 1 and 2 of section 1112 of the real proper- ty tax law, as amended by chapter 532 of the laws of 1994, to require liens on a parcel that is not farm property to be redeemed in reverse chronological order. Section b requires that a tax lien on a parcel that is farm property to be redeemed in chronological order, so that the lien with the earliest lien date is redeemed first, and the lien with the most recent lien date is redeemed last.
Section 2 ensures that unpaid tax liens on farm property are held under the same provisions for enforcement as parcels of non-farm property.
Justification
Enshrined in the New York State Constitution, as well as in the Agricul- ture and Markets Law, is the directive that the State should utilize all of its powers to protect and preserve one of our state's greatest resources - New York's 7 million acres of farmland. One of the chal- lenges that farmers face in producing food in New York is our increas- ingly higher cost of doing business. Farmers are price takers, not price makers. And while farmers produce food in New York State with higher tax rates, higher energy and labor costs, and higher regulatory burdens, the food that is sold and the price the farmer receives is based upon global factors and global commodity prices.
This puts farmers in a uniquely difficult position financially, espe- cially during cyclical times of very low prices. Farmers caught in a financial bind at times face tax liens on their land, but unlike most other businesses farmers must by necessity hold a substantial amount of land upon which to produce food.
In order to help the farm community avoid foreclosures, and thus preserve and protect New York's critical agricultural land, changing the process by which the liens are redeemed would be a substantial aid to the farmer who is Caught in a cyclical price downturn. Allowing a farm- er to redeem the earliest tax lien first helps avoid the additional accrual of interest and a potential foreclosure process spurred by factors that may largely be out of the farmer's control. This bill takes a step forward in helping our State's farm families and maintaining the state's crucial farm land.
Prior legislative history
S.4514 of 2012: Passed Senate S.982 of 2013: Passed Senate S.982 of 2014: Passed Senate S.6431 of 2016: Passed Senate S.212 of 2018: Passed Senate
Fiscal implications
None.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.