Bill > A07497

This bill modifies the existing real property tax law to create a more flexible system for paying delinquent property taxes. It allows any corporation, limited liability company, or partnership registered in the state to lend money to property owners to pay their overdue taxes, replacing previous restrictions that only allowed specific loan corporations to do so. The bill introduces a "conditional tax receipt" process where the lending entity pays the taxes directly to the taxing jurisdiction, and in return receives a tax lien on the property. The legislation provides detailed provisions for how these tax liens can be transferred, recorded, and potentially foreclosed, including requirements for notifying property owners before foreclosure and giving them opportunities to redeem their property. The bill also sets limits on interest rates (no more than 1.25% per month) and allows lenders to recover their loan costs by adding them to the lien. The underlying motivation is to help taxing jurisdictions collect unpaid taxes more efficiently and provide property owners with more options for managing tax debt, while also protecting property owners' interests through specific foreclosure and redemption procedures.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A7497