BILL NUMBER: S4421

SPONSOR: PARKER
 
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 with-
drawn 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that such warrant and lien have been withdrawn.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 with-
draw 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notify that the lien has been satisfied and expunged or withdrawn.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:

2019-20:S.4530/A9957 -Passed Senate

2017-18:S.3650/A4162 -vetoed memo.277

2017-18:S.3650/ A4162- PASSED SENATE

2015-16:S.2834/A.5404- Referred to Investigations and Government Oper-
ations

2014: S.6278 - Referred to Investigations and Government Operations

2013: S.2409(Adams) - Referred to Investigations and Government Oper-
ations

2012: S.7134(Adams) - Referred to Investigations and Government Oper-
ations

 
FISCAL IMPLICATIONS:

To be determined

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