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Bill

A 11584

Allows municipalities to cancel any interest and penalties on delinquent property tax payments due to extraordinary circumstances, financial hardship or a history of previous timely payment of property taxes

2025 Regular Session

Allows local tax districts to waive or reduce delinquent property tax interest/penalties for hardship, extraordinary events, or timely payment history, with municipal consent when

REFERRED TO REAL PROPERTY TAXATION
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Bill Summary · A 11584

Summary of Bill A. 11584 (2025-2026) – New York

Purpose and intent

  • Allows municipalities to cancel all or part of interest and penalties on delinquent real property taxes under certain conditions.
  • The goal is to provide relief to property owners facing extraordinary circumstances, financial hardship, or a documented history of timely tax payment, while preserving local control and procedural safeguards.

Key provisions and changes

  • Section 924-c (new addition to Real Property Tax Law)

    • Governing body authorization: Tax districts may adopt a resolution enabling the enforcing officer to grant waivers on a case-by-case or general basis.
    • Basis for relief:
    • Extraordinary circumstances (e.g., natural disasters, serious illness, death of an immediate family member, or other events beyond the owner’s control).
    • Financial hardship.
    • Documented history of timely property tax payment.
    • Documentation: Property owners must provide documentation deemed sufficient by the enforcing officer to demonstrate the basis for relief.
    • Municipal consent: If the canceled interest/penalties would have gone to a municipal corporation within the tax district, consent from that municipal corporation is required. Consent can be given by resolution after a public hearing, either case-by-case or on a general basis.
    • Administrative framework: The state’s Department of Taxation and Finance (the commissioner) may issue rules to implement requirements (documentation standards, application procedures, guidance for enforcing officers).

  • Section 1182 (amendment to existing provision)

    • Reinforces that tax districts may authorize cancellation or reduction of interest, penalties, or other charges.
    • Confirms that if cancellation affects a municipal portion, consent from the affected municipal corporation is required, typically via resolution after a public hearing.
    • Adds a key cross-reference: authorization to cancel under extraordinary circumstances/financial hardship/history of timely payment may be granted on a general basis as described under Section 924-c (the new section).

  • Effective date

    • Immediate implementation upon enactment.

Who would be affected

  • Tax districts (counties, cities, towns, villages, and school districts) in New York that levy real property taxes.
  • Property owners who owe delinquent property taxes and meet the specified criteria (extraordinary circumstances, financial hardship, or history of timely payment).
  • Municipal corporations within tax districts that would receive canceled sums, requiring their consent if applicable.

Procedural and timeline aspects

  • Local control: Governing bodies must adopt a resolution to authorize waivers, either for individual cases or on a general basis.
  • Consent requirement: When the waived amounts would otherwise go to a municipal corporation, that municipality must consent (via resolution after a public hearing).
  • Documentation: Enforcing officers will establish required documentation standards; applicants must submit appropriate evidence.
  • Rulemaking: The state commissioner can issue rules to implement the sections (documentation, procedures, guidance).
  • Effective date: Immediate upon enactment.

Potential impact and considerations

  • Relief mechanism for taxpayers facing hardship or extraordinary events, potentially reducing tax delinquency burdens.
  • Increased discretion at the local level may lead to variability in relief standards across districts.
  • The requirement for municipal consent ensures that local governments maintain oversight of waivers affecting their share of tax revenue.
  • Public hearing process for consent promotes transparency in decisions affecting municipal revenue.

This summary presents the substantive core of Bill A. 11584, highlighting its objective to empower municipalities to mitigate interest and penalties on delinquent property taxes under specified circumstances, while maintaining procedural safeguards and local accountability.

Compiled from official sources — confirm details with the bill’s official record.

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