Bill > A03901

This bill provides new rules for distributing proceeds from tax foreclosure sales, ensuring that property owners can potentially recover surplus funds after their property is sold due to unpaid taxes. The legislation establishes a clear framework for how sale proceeds should be distributed, prioritizing the local government's recovery of taxes, interest, penalties, and administrative costs. If the sale proceeds exceed these amounts, the excess funds will be returned to the former property owner, or in cases where other liens exist, distributed to lienholders according to a specific legal hierarchy. The bill requires municipalities to notify former property owners about potential surplus funds from a tax foreclosure auction, specifying how to obtain these funds. Importantly, the bill does not apply to abandoned properties, and it supersedes previous laws regarding tax enforcement proceedings to ensure a more standardized and transparent process. The new provisions will take effect on October 1, 2025, and will apply to all tax foreclosure proceedings commenced on or after that date, providing clarity and potential financial protection for property owners facing tax foreclosure.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A3901