Bill > A05656

This bill modifies the real property tax law to provide more comprehensive procedures and protections for property owners during tax lien sales and foreclosure proceedings. The bill requires municipal tax collectors to hold a hearing to distribute any surplus funds to the former property owner after a tax lien sale. Key provisions include: mandating detailed public notice requirements for property sales, including newspaper publication and physical posting; establishing a process for postponing sales; requiring the officer conducting the sale to file a detailed report within 30 days; and creating a mechanism for former property owners and other interested parties to claim surplus funds from the sale. Additionally, the bill introduces a new provision that if a tax district keeps a foreclosed property for its own use, it must pay the former owner just compensation representing the difference between the property's fair market value and the total tax debt owed. The changes aim to increase transparency, provide more opportunities for property owners to reclaim equity, and ensure fairer treatment during tax foreclosure processes. The bill will take effect 60 days after becoming law.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A5656