New York Senate Bill S06166

New York 2025-2026 Regular Session

• Introduced: 3/6/25
• Refer: 3/6/25
• Engrossed: 6/9/25
• Refer: 6/9/25

Caption

Relates to setting a minimum and maximum delinquent tax interest rate for payments due on residential real property.

Summary

Bill S06166 amends the real property tax law to establish a framework for the interest rates applicable to delinquent tax payments on residential real property. Specifically, it sets a maximum interest rate for such payments that cannot exceed the prime interest rate, with a minimum rate of 2% per annum and a maximum of 16% per annum. This change is set to take effect for local fiscal years commencing in 2026 and aims to provide a more predictable and manageable interest rate structure for homeowners facing delinquent taxes.

Impact

The bill significantly impacts state laws governing real property tax by superseding any local laws that set higher interest rates for delinquent tax payments on residential properties. This means that local governments will need to adjust their tax collection practices to comply with the new state-mandated interest rate limits, potentially reducing the financial burden on homeowners who fall behind on their taxes.

Sentiment

The general sentiment surrounding Bill S06166 appears to be positive, as evidenced by the strong support it received during the Senate floor vote, which passed with 59 votes in favor and only 2 against. The bill was also unanimously supported in the Senate Rules Committee, indicating a broad consensus on the need for reform in this area.

Contention

While the bill received overwhelming support, there may be contention regarding its implications for local governments that rely on higher interest rates for tax collection. Some local officials may argue that the limits imposed by the bill could hinder their ability to manage delinquent taxes effectively, particularly in areas with high rates of tax delinquency. However, this concern was not prominently raised during discussions or votes.