Bill > S07940

This bill amends the Real Property Tax Law to enhance protections and procedures 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, specifying how sales should be conducted (such as selling distinct properties separately), and establishing a process for former property owners to claim surplus funds. The bill introduces a new mechanism where 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 market value and the total tax debt owed. Additionally, the bill modifies existing laws to clarify that property owners retain a right to claim surplus equity after a sale, rather than being completely barred from any recovery. These changes aim to provide more transparency, fairness, and procedural safeguards for property owners facing tax foreclosure, ensuring they have opportunities to recover potential excess value from their property's sale.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S7940