STATE OF NEW YORK ________________________________________________________________________ 3748 2019-2020 Regular Sessions IN SENATE February 13, 2019 ___________ Introduced by Sen. JACOBS -- 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 surplus proceeds from tax lien foreclosures The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 1166 of the real property tax law is amended by 2 adding a new subdivision 3 to read as follows: 3 3. (a) A former owner of residential or farm property, as defined in 4 this article, shall be entitled to any surplus proceeds which result 5 from the sale of such real property acquired by a tax entity through tax 6 foreclosure proceedings. The term "surplus" shall mean the amount that 7 is left after the property has been auctioned and all outstanding taxes, 8 issues, payments for county tax and utility liens and administrative 9 and other fees have been paid. 10 (b) In the event that a sale authorized under this section shall 11 result in a surplus as to any piece or parcel of land offered at such 12 sale, the enforcing officer shall report the fact of such surplus to the 13 court which shall direct the enforcing officer to deposit such surplus 14 in trust with the county treasurer or commissioner of finance for the 15 benefit of whomsoever may be entitled to such surplus pursuant to this 16 subdivision. Such surplus shall be retained for a period of at least 17 three years. 18 (c) A municipality shall notify a property owner when the owner's 19 property netted a surplus at a tax foreclosure auction that was held on 20 or after the effective date of this subdivision. The notification shall 21 be made as directed by the court and shall state the possible existence 22 of a surplus, how to obtain the surplus and the steps the homeowner must 23 take to obtain the surplus. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05811-01-9

S. 3748 2 1 (d) Notwithstanding subdivision two of section eleven hundred four of 2 this article, the provisions of this subdivision shall apply to all 3 counties, cities, towns and villages in this state. 4 § 2. This act shall take effect immediately.

Relates to surplus proceeds from tax lien foreclosures

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