Bill > A07494

This bill establishes a new legal framework for property tax lien transfers that allows homeowners facing financial difficulties to voluntarily transfer their property tax liens to a third-party "property tax payor" who can pay the taxes on their behalf. The bill creates a comprehensive process for these transfers, including detailed requirements for tax lien transfer authorizations and certificates. Property owners can enter into payment agreements with these tax payors, who are permitted to charge reasonable fees and interest (up to 1.5% per month) for their services. The legislation aims to help both local governments, by ensuring tax collection, and property owners, by providing an alternative to immediate foreclosure. The tax payor can initiate foreclosure proceedings after one year, but the original property owner or a first mortgage holder retains the right to redeem the property within 180 days of the foreclosure sale by paying 120% of the purchase price plus documented upkeep costs. Importantly, the bill specifies that these tax lien transfer agreements are not considered mortgages and are instead treated as repayment contracts, though foreclosure proceedings will follow mortgage foreclosure rules. The act will take effect 90 days after becoming law.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A7494