Bill > A09353

This bill amends the Real Property Tax Law to modify how surplus funds are determined and handled when a tax-foreclosed property is sold or transferred. The legislation changes the process for calculating surplus by establishing different valuation methods depending on whether the property was sold through a public sale or transferred to a public entity like a land bank. Specifically, for non-public sales, the surplus will be calculated by subtracting the total taxes and charges from either the property's most recent tax roll value, an independent appraisal, or another valuation method that ensures just compensation to the former property owner. The bill removes previous provisions that allowed tax districts to avoid paying surplus if they had attempted to sell the property at two public auctions without receiving qualifying bids. Instead, the enforcing officer must now submit a detailed report to the court explaining how the surplus was determined, and if a surplus exists, must pay it into court and notify the former property owner. The bill aims to provide more transparency and consistency in handling surplus funds from tax-foreclosed property sales, ensuring that former property owners have a clear path to potential compensation.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A9353