NY State Senate Bill 2023-S5058

Senate Bill S5058

2023-2024 Legislative Session

Requires multiple liens on farm property to be paid in chronological order, with the earliest lien being paid off first and the most recent being paid last

download bill text pdf

Current Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 29, 2024	reported and committed to finance
Jan 03, 2024	referred to local government
Apr 17, 2023	reported and committed to finance
Feb 22, 2023	referred to local government

Votes

- Jan 29, 2024 - Local Government Committee Vote
  S5058
  
  7
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Local Government Committee Vote: Jan 29, 2024
      
      aye (7)
      
      Harckham
      
      Hinchey
      
      Martinez
      
      Rhoads
      
      Skoufis
      
      Thomas
      
      Weik
  Apr 17, 2023 - Local Government Committee Vote
  S5058
  
  7
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Local Government Committee Vote: Apr 17, 2023
      
      aye (7)
      
      Harckham
      
      Hinchey
      
      Martinez
      
      Rhoads
      
      Skoufis
      
      Thomas
      
      Weik

co-Sponsors

2023-S5058 (ACTIVE) - Details

See Assembly Version of this Bill:: A3966
Current Committee:: Senate Finance
Law Section:: Real Property Tax Law
Laws Affected:: Amd §1112, RPT L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S6431
2017-2018: S212
2019-2020: S2864
2021-2022: S2084, A8129

2023-S5058 (ACTIVE) - Summary

Requires multiple liens on farm property to be paid in chronological order, with the earliest lien being paid off first and the most recent being paid last.

2023-S5058 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S5058

SPONSOR: HINCHEY
 
TITLE OF BILL:

An act to amend the real property tax law, in relation to the redemption
of multiple liens on farm property

 
PURPOSE:

To allow farm property tax liens to be paid in chronological order

 
SUMMARY OF PROVISIONS:

Section 1 amends subdivision 1 and 2 of section 1112 of the real proper-
ty tax law, as amended by chapter 532 of the laws of 1994, to require
liens on a parcel that is not farm property to be redeemed in reverse
chronological order. Section b requires that a tax lien on a parcel that
is farm property to be redeemed in chronological order, so that the lien
with the earliest lien date is redeemed first, and the lien with the
most recent lien date is redeemed last.

Section 2 ensures that unpaid tax liens on farm property are held under
the same provisions for enforcement as parcels of non-farm property.

 
JUSTIFICATION:

Enshrined in the New York State Constitution, as well as in the Agricul-
ture and Markets Law, is the directive that the State should utilize all
of its powers to protect and preserve one of our state's greatest
resources - New York's 7 million acres of farmland. One of the chal-
lenges that farmers face in producing food in New York is our increas-
ingly higher cost of doing business. Farmers are price takers, not price
makers. While farmers produce food in New York State with higher tax
rates, higher energy and labor costs, and higher regulatory burdens, the
food that is sold and the price the farmer receives is based upon global
factors and global commodity prices.

This puts farmers in a uniquely difficult position financially, espe-
cially during cyclical times of very low prices. Farmers caught in a
financial bind at times face tax liens on their land, but unlike most
other businesses farmers must by necessity hold a substantial amount of
land upon which to produce food.

In order to help the farm community avoid foreclosures, and thus
preserve and protect New York's critical agricultural land, changing the
process by which the liens are redeemed would be a substantial aid to
the farmer who is caught in a cyclical price downturn.  Allowing a farm-
er to redeem the earliest tax lien first helps avoid the additional
accrual of interest and a potential foreclosure process spurred by
factors that may largely be out of the farmer's control. This bill takes
a step forward in helping our State's farm families and maintaining the
state's crucial farmland.

 
LEGISLATIVE HISTORY:

2011-12: S.4514 Passed Senate/ A.7316 Referred to Real Property Taxation

2013-14: S.982 Passed Senate/ A.163 Referred to Real Property Taxation
2015-16: S.6431 Passed Senate/ A.9215 Referred to Real Property Taxation

2017-18: S. 212 Passed Senate/ A.4479 Referred to Real Property Taxation

2019-20: S2864 Referred to Local Government

2021-22: S.2084 Reported and Committed to Finance

 
FISCAL IMPLICATIONS:

None to State

 
EFFECTIVE DATE:
This act shall take effect immediately and shall apply to the redemption
of liens occurring on and after such effective date.

2023-S5058 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5058
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             February 22, 2023
                                ___________
 
 Introduced  by  Sen. HINCHEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT to amend the real property tax law, in relation to the redemption
   of multiple liens on farm property
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivisions 1 and 2 of section 1112 of the real property
 tax law, as amended by chapter 532 of the laws of 1994, are  amended  to
 read as follows:
   1.  When a tax district holds more than one tax lien against a parcel,
 the  liens  need not be redeemed simultaneously.  (A) However, the liens
 ON A PARCEL, WHICH IS NOT FARM PROPERTY, must  be  redeemed  in  reverse
 chronological  order, so that the lien with the most recent lien date is
 redeemed first, and the lien with the earliest  lien  date  is  redeemed
 last. Notwithstanding the redemption of one or more of the liens against
 SUCH  a  parcel  as  provided  [herein] IN THIS ARTICLE, the enforcement
 process shall proceed according to the provisions  of  this  article  as
 long as the earliest lien remains unredeemed.
   (B) HOWEVER, IN THE CASE OF LIENS AGAINST A PARCEL, THAT IS FARM PROP-
 ERTY,  THE  LIENS  MUST  BE REDEEMED IN CHRONOLOGICAL ORDER, SO THAT THE
 LIEN WITH THE EARLIEST LIEN DATE IS REDEEMED FIRST, AND  THE  LIEN  WITH
 THE  MOST RECENT LIEN DATE IS REDEEMED LAST. NOTWITHSTANDING THE REDEMP-
 TION OF ONE OR MORE OF THE LIENS AGAINST A PARCEL THAT IS FARM  PROPERTY
 AS  PROVIDED  IN  THIS  ARTICLE,  THE  ENFORCEMENT PROCESS SHALL PROCEED
 ACCORDING TO THE PROVISIONS OF THIS ARTICLE AS LONG AS THE  MOST  RECENT
 LIEN REMAINS UNREDEEMED.
   2. (a) When one or more liens against a parcel, THAT IS NOT FARM PROP-
 ERTY,  are redeemed as provided [herein] IN THIS ARTICLE, but the earli-
 est lien remains unredeemed, the receipt issued to the person  redeeming
 shall  include  a  statement in substantially the following form:  "This
 parcel remains subject to one or more delinquent tax liens. The  payment
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05798-01-3

 S. 5058                             2
 
 you  have made will not postpone the enforcement of the outstanding lien
 or liens. Continued failure to pay the entire amount owed will result in
 the loss of the property."
   (b)  WHEN  ONE  OR MORE LIENS AGAINST A PARCEL, THAT IS FARM PROPERTY,
 ARE REDEEMED AS PROVIDED IN THIS  ARTICLE,  BUT  THE  MOST  RECENT  LIEN
 REMAINS  UNREDEEMED,  THE  RECEIPT  ISSUED TO THE PERSON REDEEMING SHALL
 INCLUDE A STATEMENT IN SUBSTANTIALLY  THE  FOLLOWING  FORM:  "THIS  FARM
 PARCEL  REMAINS SUBJECT TO ONE OR MORE DELINQUENT TAX LIENS. THE PAYMENT
 YOU HAVE MADE WILL NOT POSTPONE THE ENFORCEMENT OF THE OUTSTANDING  LIEN
 OR LIENS. CONTINUED FAILURE TO PAY THE ENTIRE AMOUNT OWED WILL RESULT IN
 THE LOSS OF THE PROPERTY."
   (C)  Failure  to  include  such  a  statement on the receipt shall not
 invalidate any tax lien or  prevent  the  enforcement  of  the  same  as
 provided by law.
   §  2.  This  act  shall take effect immediately and shall apply to the
 redemption of liens occurring on and after such effective date.

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Senate Bill S5058

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Sponsored By

Michelle Hinchey