S 6166: Relates to setting a minimum and maximum delinquent tax interest rate for payments due on residential real property.

  
  STATE OF NEW YORK ________________________________________________________________________ 6166 2025-2026 Regular Sessions  IN SENATE March 6, 2025 ___________ Introduced by Sen. S. RYAN -- 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 delinquent tax interest rates The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 1 of section 924-a of the real property tax 2 law, as amended by chapter 26 of the laws of 2003, is amended to read as 3 follows: 4 1. The amount of interest to be added on all taxes received after the 5 interest free period and all delinquent taxes shall be one-twelfth the 6 rate of interest as determined pursuant to subdivision two or two-a of 7 this section rounded to the nearest one-hundredth of a percentage point, 8 except as otherwise provided by a general or special law, or a local law 9 adopted by a city pursuant to the municipal home rule law or any special 10 law. Such interest shall be added for each month or fraction thereof 11 until such taxes are paid; provided however, that notwithstanding any 12 provision of general, special, or local law or resolution to the contra- 13 ry, beginning in all local fiscal years commencing in calendar year two 14 thousand twenty-six and thereafter, in no case shall the interest rate 15 of delinquent tax payments due on residential real property exceed the 16 prime interest rate, as determined by the commissioner, provided that in 17 no instance shall the interest rate subceed two per centum per annum or 18 exceed sixteen per centum per annum; and provided further that this 19 limitation shall apply to units held in condominium form; and provided 20 further that such limitation shall apply to all buildings held in coop- 21 erative form regardless of owner occupancy status; and provided further 22 that this limitation shall not apply to real property that is vacant and 23 abandoned, as defined in subdivision two of section thirteen hundred 24 nine of the real property actions and proceedings law, which was listed 25 on the statewide vacant and abandoned property electronic registry, as EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD10762-01-5 
 S. 6166 2 1 defined in section thirteen hundred ten of the real property actions and 2 proceedings law, and remains on such registry. This subdivision shall 3 supersede any local tax act, code, law, rule, regulation, ordinance or 4 resolution setting an interest rate above sixteen per centum per annum 5 of delinquent tax payments due on residential real property. The 6 initial determination of the effective prime interest rate shall be 7 based on the two thousand twenty-six rate. Subsequent determinations 8 shall be made every five years thereafter. 9 § 2. This act shall take effect immediately.