Prohibits the sale of tax liens by a tax district in a city with a population of one million or more.
Summary
This bill would prohibit tax districts in any city with a population of one million or more from selling delinquent tax liens. It amends the Real Property Tax Law to carve out large cities from the existing authority that allows tax districts to sell tax liens to the state municipal bond bank agency or related tax lien entities. It also amends the New York City Administrative Code to state that, effective on the bill’s effective date, no tax lien may be sold under that chapter.
In practical terms, the measure would end tax lien sales as a collection tool in New York City, the only city in the state that currently meets the population threshold. The bill would shift the city away from lien-sale-based debt collection and preserve the city’s ability to collect delinquent property taxes through other means, while removing the option to transfer liens to outside entities. The act would take effect on January 1 following enactment.
Impact
The bill would amend section 1190 of the Real Property Tax Law and section 11-319 of the New York City Administrative Code. Its main legal effect is to prohibit any tax district in a city of one million or more residents from selling tax liens, overriding contrary provisions of law and eliminating the lien-sale authority otherwise available under state law and the city code. This would directly affect New York City’s property tax enforcement practices, tax lien purchasers, and property owners with delinquent taxes, while leaving other collection methods intact.
Sentiment
No committee transcript or vote record is provided, so there is no documented floor or committee debate to gauge formal sentiment. Based on the bill’s structure and sponsor framing, the measure appears to reflect a policy preference against tax lien sales in large cities, likely aimed at limiting aggressive debt-collection practices. The absence of recorded votes or discussion means support and opposition cannot be measured from the supplied materials.
Contention
The central point of contention is the elimination of tax lien sales as a municipal revenue-collection tool in large cities, especially New York City. Supporters would likely view the bill as protecting homeowners and property owners from lien sales and potential downstream consequences, while opponents may argue that it removes an important mechanism for collecting delinquent taxes and managing municipal cash flow. Because no transcripts are available, specific arguments from legislators, city officials, lien purchasers, or housing advocates are not documented in the provided record.
Provides that no interest shall accrue on taxes imposed by a city with a population of one million or more unless a tax appeals tribunal shall have made a determination within one year from the date a petition is filed.