STATE OF NEW YORK
        ________________________________________________________________________

                                           786

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    January 11, 2023
                                       ___________

        Introduced  by  M.  of A. HUNTER, KELLES, CUNNINGHAM, DINOWITZ, GIBBS --
          read once and referred to the Committee on Real Property Taxation

        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. Subdivision 2 of section section 1166 of the real  property
     2  tax law, as amended by chapter 532 of the laws of 1994, is amended and a
     3  new subdivision 3 is added to read as follows:
     4    2.  No  such  sale shall be effective unless and until such sale shall
     5  have been approved and confirmed by a majority  vote  of  the  governing
     6  body of the tax district, except that no such approval shall be required
     7  when  the  property  is sold at public auction to the highest bidder. In
     8  addition to any other notices required by  law,  where  a  tax  district
     9  sells  property  at  a public auction pursuant to the provisions of this
    10  section, such tax district shall post a notice of such  auction  on  the
    11  front  door,  or equivalent placement where applicable, of such property
    12  fourteen days prior to such auction.
    13    3. (a) A former owner of residential or farm property, as  defined  in
    14  this  article,  or  commercial property shall be entitled to any surplus
    15  proceeds which result from the sale of such real property acquired by  a
    16  tax entity through tax foreclosure proceedings. The term "surplus" shall
    17  mean  the  amount that is left after the property has been auctioned and
    18  all outstanding taxes, interest, issues, payments for county  tax    and
    19  utility liens and administrative and other fees have been paid.
    20    (b)  In  the  event  that  a  sale authorized under this section shall
    21  result in a surplus as to any piece or parcel of land  offered  at  such
    22  sale, the enforcing officer shall report the fact of such surplus to the
    23  court  which  shall direct the enforcing officer to deposit such surplus
    24  in trust with  the county treasurer or commissioner of finance  for  the
    25  benefit  of  whomsoever may be entitled to such surplus pursuant to this

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02602-01-3

        A. 786                              2

     1  subdivision.  Such surplus shall be retained for a period  of  at  least
     2  three years.
     3    (c)  A  municipality  shall  notify  a property owner when the owner's
     4  property netted a surplus at a tax foreclosure auction that was held  on
     5  or  after the effective date of this subdivision. The notification shall
     6  be made as directed by the court and shall state the possible  existence
     7  of a surplus, how to obtain the surplus and the steps the homeowner must
     8  take to obtain the surplus.
     9    (d)  Notwithstanding subdivision two of section eleven hundred four of
    10  this article, the provisions of this  subdivision  shall  apply  to  all
    11  counties, cities, towns and villages in this state.
    12    (e)  As used in this subdivision, "commercial property" means any non-
    13  residential property used primarily for the buying, selling or otherwise
    14  providing of goods or services.
    15    § 2. This act shall take effect immediately.