BILL NUMBER:S2834

TITLE OF BILL:

An act to amend the tax law, in relation to the withdrawal of tax
liens upon payment of taxes due

PURPOSE:

Provides that the department of taxation and finance shall withdraw
from county records a tax lien for which the tax debt has been paid in
full and satisfied.

SUMMARY OF PROVISIONS:

Section 1: Amends section 692 of the tax law by adding a new section
(j) to read:

Withdrawal of lien. - The department, upon payment in full and
satisfaction by a taxpayer of a tax debt for which a warrant has been
filed and a lien on property has been created pursuant to this
section, shall, withdraw such warrant and lien from the records of the
county in which such warrant was filed and lien was created.  Within
five business days of such withdrawal, the department shall send
written notification to such taxpayer that such warrant and lien have
been withdrawn and that such taxpayer may contact credit reporting
              

agencies and notify them that such tax debt has been paid in full and
satisfied and that such warrant and lien have been withdrawn.

JUSTIFICATION:

The IRS has introduced new legislation to make it easier for taxpayers
to obtain lien withdrawals after satisfying a tax bill. That law is
called the Federal "Lien On Me" tax law. This law will expunge or
withdraw a taxpayers debt lien from their credit record rather than
just release the lien, which stays on their credit record negatively
for seven years even after satisfaction. The law presently in effect
only covers your federal obligations and does not cover state taxation
and finance obligations. This bill would mirror the federal law, and
in addition would require the state taxation and finance agency to
inform consumers in writing at the end of their obligation that
removal of their lien will not happen automatically, that they, (the
consumer or tax payer) must contact the credit reporting agencies
themselves to notify that the lien has been satisfied and expunged or
withdrawn. This has not as yet been factored into the federal
legislation thusly may not be being addressed and is still showing
negatively on many consumers reports.

LEGISLATIVE HISTORY:

2014: S.6278 - Referred to Investigations and Government Operations
2013: S.2409(Adams) - Referred to Investigations and Government
Operations
2012: S.7134(Adams) - Referred to Investigations and Government
Operations

FISCAL IMPLICATIONS:


To be determined

EFFECTIVE DATE:

This act shall take effect on the sixtieth day after it shall have
become a law.