WeVote
Log In

Bill

Bill

A 10641

Allows municipalities to relieve property owners of penalties due to lack of payment if such property owner was a victim of property tax fraud

2025 Regular Session Introduced by Sarahana Shrestha

Allows tax districts to cancel or reduce interest and penalties on delinquent real property taxes for owners who were victims of property tax fraud, with municipal consent and a on

REPORTED REFERRED TO RULES
0
WeVote Research Nonpartisan
Bill Summary · A 10641

Overview

Bill A. 10641-A (2025-2026, New York) would authorize municipalities to forgive or reduce interest and penalties on delinquent real property taxes when the owner was the victim of property tax fraud during the payment process. The proposal adds a new section to the Real Property Tax Law (section 924-c) and clarifies, via cross-reference to existing law (section 1182), how such relief interacts with municipal and local government interests.

Purpose and intent

  • Provide relief to property owners who were victims of property tax fraud in the course of attempting to pay their taxes.
  • Allow local governments to mitigate the financial harm caused by tax fraud by forgiving or canceling penalties and interest attributable to the period of delinquency caused by the fraud.
  • Create a standardized yet flexible framework for administrative decision-making (board resolutions) and documentation requirements to determine eligibility.

Key provisions

  • New section 924-c: Waiver of interest and penalties for victims of property tax fraud
    • Governing body of any tax district may enact a resolution allowing the enforcing officer to cancel, in whole or in part, interest and penalties on a parcel where the owner proves they were a victim of property tax fraud (e.g., check fraud, mail theft, interception or unauthorized receipt of a tax payment).
    • Relief can be granted on a general or case-by-case basis.
    • Documentation may include:
    • Affidavit describing the fraud incident
    • Financial institution documentation showing fraud and reimbursement
    • Police report or other evidence
    • Relief limited to the delinquency period attributable to the fraud, and cannot exceed one year from the due date.
    • Consent from the municipal corporation within the tax district is required for portions of relief that would otherwise go to that municipal entity. Consent can be granted via case-by-case or general basis through local law, resolution, or public hearing.
    • The State Commissioner may issue rules to implement standards for documentation, procedures, and guidance for enforcing officers.
  • Amendment to section 1182 of the Real Property Tax Law
    • Establishes that a tax district may authorize cancellation or reduction of interest, penalties, and charges, subject to municipal consent when those charges would go to a municipal corporation.
    • In cases of fraud relief under section 924-c, authorization and municipal consent may be granted on a general basis as described in section 924-c.

Who would be affected

  • Property owners who are victims of property tax fraud during payment processes would be eligible for potential relief.
  • Tax districts and their enforcing officers could apply the authorizing resolutions to cancel or reduce penalties and interest.
  • Municipal corporations within the tax district may need to provide consent for the relief, particularly for portions of penalties/interest due to the municipality.
  • Local officials would need to establish procedures, documentation standards, and possibly hold public hearings to enable general or case-by-case relief.

Procedural and timeline aspects

  • Enacting authority resides with the governing body of each tax district via resolution.
  • Relief can be granted on a general basis or per-case, but must adhere to the one-year cap on the delinquency period affected by fraud.
  • Municipal consent is required for portions of relief payable to municipalities; consent can be granted case-by-case or through a general basis via local law, resolution, or public hearing.
  • The bill includes a directive for the state Commissioner to promulgate implementing rules and regulations.

Effective date

  • Immediate effective date upon enactment.

This bill would create a structured mechanism to mitigate the financial impact of tax-fraud incidents on property taxpayers while balancing municipal revenue considerations through required consent and formal processes.

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

Sign in to ask a question.