Bill Text: NY S05058 | 2023-2024 | General Assembly | Introduced

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Bill Title: Requires multiple liens on farm property to be paid in chronological order, with the earliest lien being paid off first and the most recent being paid last.

Spectrum: Bipartisan Bill

Status: (Introduced) 2024-01-29 - REPORTED AND COMMITTED TO FINANCE [S05058 Detail]

Download: New_York-2023-S05058-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          5058

                               2023-2024 Regular Sessions

                    IN SENATE

                                    February 22, 2023
                                       ___________

        Introduced  by  Sen. HINCHEY -- 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  Assem-
        bly, do enact as follows:

     1    Section  1.  Subdivisions 1 and 2 of section 1112 of the real property
     2  tax law, as amended by chapter 532 of the laws of 1994, are  amended  to
     3  read as follows:
     4    1.  When a tax district holds more than one tax lien against a parcel,
     5  the  liens  need not be redeemed simultaneously.  (a) However, the liens
     6  on a parcel, which is not farm property, must  be  redeemed  in  reverse
     7  chronological  order, so that the lien with the most recent lien date is
     8  redeemed first, and the lien with the earliest  lien  date  is  redeemed
     9  last. Notwithstanding the redemption of one or more of the liens against
    10  such  a  parcel  as  provided  [herein] in this article, the enforcement
    11  process shall proceed according to the provisions  of  this  article  as
    12  long as the earliest lien remains unredeemed.
    13    (b) However, in the case of liens against a parcel, that is farm prop-
    14  erty,  the  liens  must  be redeemed in chronological order, so that the
    15  lien with the earliest lien date is redeemed first, and  the  lien  with
    16  the  most recent lien date is redeemed last. Notwithstanding the redemp-
    17  tion of one or more of the liens against a parcel that is farm  property
    18  as  provided  in  this  article,  the  enforcement process shall proceed
    19  according to the provisions of this article as long as the  most  recent
    20  lien remains unredeemed.
    21    2. (a) When one or more liens against a parcel, that is not farm prop-
    22  erty,  are redeemed as provided [herein] in this article, but the earli-
    23  est lien remains unredeemed, the receipt issued to the person  redeeming
    24  shall  include  a  statement in substantially the following form:  "This
    25  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.
                                                                   LBD05798-01-3
        S. 5058                             2

     1  you  have made will not postpone the enforcement of the outstanding lien
     2  or liens. Continued failure to pay the entire amount owed will result in
     3  the loss of the property."
     4    (b)  When  one  or more liens against a parcel, that is farm property,
     5  are redeemed as provided in this  article,  but  the  most  recent  lien
     6  remains  unredeemed,  the  receipt  issued to the person redeeming shall
     7  include a statement in substantially  the  following  form:  "This  farm
     8  parcel  remains subject to one or more delinquent tax liens. The payment
     9  you have made will not postpone the enforcement of the outstanding  lien
    10  or liens. Continued failure to pay the entire amount owed will result in
    11  the loss of the property."
    12    (c)  Failure  to  include  such  a  statement on the receipt shall not
    13  invalidate any tax lien or  prevent  the  enforcement  of  the  same  as
    14  provided by law.
    15    §  2.  This  act  shall take effect immediately and shall apply to the
    16  redemption of liens occurring on and after such effective date.