New York Senate Bill S09681

New York 2025-2026 Regular Session

• Introduced: 4/1/26
• Refer: 4/1/26

Caption

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

Summary

This bill amends the Real Property Tax Law to change how interest is charged on delinquent property taxes. For taxes paid after the interest-free period, the bill keeps the general monthly interest framework but adds a new rule for residential real property beginning with local fiscal years starting in calendar year 2026: delinquent tax interest may not exceed the prime interest rate, as determined by the commissioner, and may not fall below 2% or rise above 16% per year. The bill also applies this cap to condominiums and to all cooperative buildings regardless of owner-occupancy status. The bill creates an exception for vacant and abandoned property that is listed on and remains on the statewide vacant and abandoned property electronic registry. It also provides that the new residential cap overrides any conflicting general, special, or local law, including local tax acts or resolutions that currently set a higher delinquent interest rate. The initial prime-rate benchmark would be based on the 2026 rate, with recalculations every five years thereafter.

Impact

The bill would directly amend section 924-a of the Real Property Tax Law and limit local governments’ ability to set delinquent tax interest rates on residential property above the new statutory ceiling. It would standardize interest charges for residential delinquent taxes statewide, while preserving higher-rate treatment for vacant and abandoned properties on the registry. Counties, cities, towns, and other local taxing authorities would need to conform their tax enforcement practices to the new minimum and maximum rates for covered properties.

Sentiment

The available record shows no committee transcript or vote history, so there is no documented debate or recorded opposition in the materials provided. Based on the bill text and caption, the measure appears aimed at providing relief and predictability for homeowners and residential property owners by limiting punitive interest accumulation on delinquent taxes. The absence of recorded votes or discussion means overall sentiment cannot be measured beyond the bill’s apparent consumer-protection orientation.

Contention

The main policy tension is between taxpayer relief and local revenue/enforcement flexibility. Supporters would likely favor the cap as a way to prevent delinquent interest from becoming excessive on homes, condominiums, and cooperatives, while local governments may object to losing the ability to set higher rates for collection purposes. Another point of distinction is the carve-out for vacant and abandoned properties, which suggests a deliberate choice to keep stronger enforcement tools for distressed or neglected real estate rather than occupied residential property.