What's happening
This bill amends real property tax law to start interest on missed tax installment payments from their due date, not earlier.
Why it matters
Prevents early accumulation of interest. By clarifying that interest on missed installment payments only starts from the actual due date, the bill stops municipalities from charging interest retroactively or before the payment was missed, which could otherwise increase financial penalties for property owners.
Provides clearer expectations for taxpayers. Homeowners who choose to pay property taxes in installments will know exactly when interest begins to accrue if they miss a payment, helping them better manage their finances and avoid unexpected costs.
Ensures uniformity and fairness. The amendment overrides any conflicting local or state laws, establishing a consistent statewide standard for when interest on late tax installment payments starts, reducing confusion and potential discrepancies between jurisdictions.
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Who cares
Headline styles
Charge Interest on Late Payments
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 37
No co-sponsors yet.
History
- Referred to local government
- 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.
Interest on Late Installments
In Assembly Committee · Real Property Taxation · Sponsor Amy Paulin
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
526
2025-2026 Regular Sessions
IN SENATE (Prefiled)
January 8, 2025
Introduced by Sen. MAYER -- 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 providing for interest to accrue on missed installment payments beginning from the due date of such missed installment payment
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 924-a of the real property tax law is amended by adding a new subdivision 4 to read as follows:
4. Notwithstanding any provisions of this chapter, or any other general, special or local law to the contrary, in any case where an owner of real property has elected to pay taxes in installments, if any such installment is not paid on or before the date when due, additional interest shall only begin to accrue from the due date of such missed installment payment at the rate as determined pursuant to this section, or such other law as may locally be applicable.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01408-01-5
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Purpose or general idea of bill
This bill would amend section 924-a of the Real Property Tax law to provide that interest on missed installment payments begins from the due date of such missed installment payment.
Summary of provisions
Section one would amend section 924-a of the Real Property Tax law by adding a new subdivision 4 stating that in any case where an owner of real property has elected to pay taxes in installments, if any such installment is not paid on or before the due date additional interest shall only begin to accrue from the due date of such missed payment.
Section two provides the effective date.
Justification
Under the Real Property Tax law, a village can opt to allow partial payments of property taxes by passing a resolution. If a taxpayer exer- cises this option, they must pay interest on all payments after the first installment in an amount set forth in the law. Villages currently have no ability to adjust the interest if they allow for partial payments.
During the coronavirus pandemic, some villages opted to allow partial payments on taxes to make it easier for residents experiencing financial difficulty. However, they were forced to charge the full interest rate on any payments made after the first installment, accruing from the original payment due date. This bill provides that where an owner of real property has elected to pay taxes in installments, if any such installment is not paid on or before the due date, interest will only begin to accrue from the due date of such missed payment. This will ensure that residents are not penalized simply for choosing to pay their taxes in installments, but still requires interest to be charged when any payment is missed or paid after the due date for such payment.
Prior legislative history
2023-2024: S2973/A2711, Referred to Local Government.
2021-2022: S8371/A8514, Referred to Local Government.
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.