What's happening
This bill sets a statewide 3% cap on penalties for unpaid real property taxes from March 7, 2020 to June 30, 2021.
Why it matters
Provides financial relief to property owners. by significantly lowering potential penalty costs for late tax payments during the COVID-19 emergency period, which may help families and businesses struggling with cash flow.
Overrides stricter local penalty rules. , ensuring that no municipality or county in New York can impose higher interest rates for unpaid property taxes for the specified time frame, creating uniformity and fairness statewide.
Supports economic recovery. by preventing disproportionately high penalties from exacerbating financial distress, which can help avoid foreclosures and business closures during a period of economic uncertainty.
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Who cares
Homeowners with unpaid property taxes
The bill would cap interest on covered unpaid taxes or installments at 3% per year during March 7, 2020, through June 30, 2021.
Businesses owing property taxes
The same interest cap would limit charges on business property taxes due or remaining unpaid during the covered period.
Local governments and property tax collectors
They would have to apply the statewide interest cap despite contrary state or local laws, while other rules governing interest would remain unchanged.
Headline styles
Limit Property Tax Penalties
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 14
No co-sponsors yet.
History
- Referred to local government
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.
Cap Property Tax Penalties
In Assembly Committee · Real Property Taxation · Sponsor Tremaine Wright
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
8457
IN SENATE
June 3, 2020
Introduced by Sen. COMRIE -- 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 setting a state-wide three percent cap on penalties for unpaid real property tax due and payable or remaining unpaid during the period from March 7,
2020 to June 30, 2021
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Legislative findings. The Legislature finds that the COVID-19 pandemic has caused an immediate financial crisis for many homeowners and businesses who may be unable to pay property taxes on the prescribed due dates and that the imposition of interest at rates well above current market rates would hamper recovery of the state's economy.
§ 2. Section 924-a of the real property tax law is amended by adding a new subdivision 4 to read as follows:
4. Notwithstanding any general, special or local law to the contrary, the rate of interest on unpaid taxes or installments of tax due and payable or remaining unpaid during the period from March seventh, two thousand twenty to June thirtieth, two thousand twenty-one, shall not exceed three percent per annum during such period. All other provisions of general, special or local law relating to the imposition, collection and determination of the rate of interest shall not be affected by the provisions of this subdivision.
§ 3. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD16511-01-0
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 setting a state-wide three percent cap on penalties for unpaid real property tax due and payable or remaining unpaid during the period from March 7, 2020 to June 30, 2021
Purpose
To temporarily cap unpaid property tax interest penalties to 3%.
Summary of specific provisions
Section 1: Sets forth the Legislative Findings.
Section 2: Adds a new subdivision 4 to Section 924-a of the Real Proper- ty Tax Law, setting a state-wide three percent cap per annum on penal- ties for unpaid real property tax
Section 2: Sets the effective date.
Justification
The COVID-19 pandemic has caused an immediate financial crisis for many homeowners and businesses who may be unable to pay property taxes on the prescribed due dates and that the imposition of interest at rates well above current market rates would hamper recovery of the state's economy.
To alleviate some financial pressures as homeowners and businesses get back on their feet, this legislation would temporarily cap the interest penalties for unpaid property taxes state-wide to three percent per annum.
Prior legislative history
New bill.
FISCAL IMPLICATIONS:;
To be determined.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.