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

S T A T E   O F   N E W   Y O R K
        ________________________________________________________________________

                                          10641

                                  I N  A S S E M B L Y

                                     March 17, 2026
                                       ___________

        Introduced by M. of A. SHRESTHA -- read once and referred to the Commit-
          tee on Real Property Taxation

        AN ACT to amend the real property tax law, in relation to allowing muni-
          cipalities  to  relieve  property  owners  of penalties due to lack of
          payment if such property owner was a victim of property tax fraud

          THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
        BLY, DO ENACT AS FOLLOWS:

     1    Section  1.  The  real  property  tax  law  is amended by adding a new
     2  section 924-c to read as follows:
     3    § 924-C. WAIVER OF INTEREST AND PENALTIES FOR VICTIMS OF PROPERTY  TAX
     4  FRAUD.  1.  NOTWITHSTANDING  ANY  PROVISION  OF LAW TO THE CONTRARY, THE
     5  GOVERNING BODY OF ANY TAX DISTRICT MAY,  BY  RESOLUTION,  AUTHORIZE  THE
     6  ENFORCING  OFFICER,  ON  A  GENERAL OR CASE-BY-CASE BASIS, TO CANCEL, IN
     7  WHOLE OR IN PART, ANY INTEREST AND PENALTIES IMPOSED UPON  A  PARCEL  OF
     8  REAL  PROPERTY  WHERE  THE  OWNER  OF  SUCH PROPERTY ESTABLISHES, TO THE
     9  SATISFACTION OF THE ENFORCING OFFICER, THAT SUCH OWNER WAS THE VICTIM OF
    10  PROPERTY TAX FRAUD IN CONNECTION WITH AN ATTEMPTED PAYMENT  OF  PROPERTY
    11  TAXES.  PROPERTY  TAX  FRAUD  SHALL  INCLUDE,  WITHOUT LIMITATION, CHECK
    12  FRAUD, MAIL THEFT, OR ANY THEFT, INTERCEPTION, DIVERSION,  OR  UNAUTHOR-
    13  IZED  RECEIPT OF A PAYMENT INTENDED TO SATISFY A REAL PROPERTY TAX OBLI-
    14  GATION.
    15    2. A PROPERTY OWNER SEEKING RELIEF UNDER  THIS  SECTION  SHALL  SUBMIT
    16  SUCH  DOCUMENTATION  AS  THE  ENFORCING  OFFICER  MAY REQUIRE, WHICH MAY
    17  INCLUDE, BUT NEED NOT BE LIMITED TO:
    18    (A) AN AFFIDAVIT DESCRIBING THE INCIDENT OF PROPERTY TAX FRAUD;
    19    (B) DOCUMENTATION FROM A FINANCIAL INSTITUTION DEMONSTRATING  PROPERTY
    20  TAX FRAUD, INCLUDING REIMBURSEMENT OF FUNDS; OR
    21    (C) A POLICE REPORT OR OTHER EVIDENCE OF PROPERTY TAX FRAUD.
    22    3. ANY CANCELLATION OF INTEREST AND PENALTIES PURSUANT TO THIS SECTION
    23  SHALL  BE  LIMITED TO THE PERIOD OF DELINQUENCY ATTRIBUTABLE TO PROPERTY
    24  TAX FRAUD, AND IN NO EVENT SHALL EXCEED ONE YEAR FROM THE DATE THE PROP-
    25  ERTY TAXES BECAME DUE.
    26    4. IF ANY PORTION OF INTEREST AND PENALTIES CANCELLED PURSUANT TO THIS
    27  SECTION WOULD, IF COLLECTED, BE PAYABLE TO A MUNICIPAL CORPORATION WITH-

         EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13534-03-6
        A. 10641                            2

     1  IN SUCH TAX DISTRICT, NO SUCH CANCELLATION SHALL  BE  MADE  WITHOUT  THE
     2  CONSENT  OF SUCH MUNICIPAL CORPORATION. SUCH CONSENT MAY BE GRANTED ON A
     3  CASE-BY-CASE BASIS OR ON A GENERAL BASIS  BY  LOCAL  LAW  OR  RESOLUTION
     4  ADOPTED AFTER A PUBLIC HEARING.
     5    §  2. Section 1182 of the real property tax law, as amended by chapter
     6  532 of the laws of 1994, is amended to read as follows:
     7    § 1182. Cancellation or reduction of  interest,  penalties  and  other
     8  charges.  1.  If  the governing body of any tax district shall determine
     9  that it is for the best interests of the tax district, it shall have the
    10  power, by resolution, to authorize the enforcing officer to  permit  the
    11  cancellation  in  whole  or  in part of any interest, penalties or other
    12  charges imposed by law to which the tax district or any other  municipal
    13  corporation shall be lawfully entitled; provided, however, that in cases
    14  where  such  interest,  penalties, or other charges, if collected by the
    15  tax district, belong to a municipal corporation therein, no reduction or
    16  remission in whole or in part of  such  interest,  penalties,  or  other
    17  charges  shall  be made without the consent of the municipal corporation
    18  affected, which consent may be  given  by  resolution  adopted  after  a
    19  public hearing.
    20    2.  NOTWITHSTANDING  SUBDIVISION ONE OF THIS SECTION, AUTHORIZATION BY
    21  THE GOVERNING BODY OF ANY TAX DISTRICT AND THE CONSENT OF ANY  MUNICIPAL
    22  CORPORATION THEREIN TO WAIVE INTEREST AND PENALTIES FOR VICTIMS OF PROP-
    23  ERTY  TAX  FRAUD  PURSUANT TO SECTION NINE HUNDRED TWENTY-FOUR-C OF THIS
    24  CHAPTER MAY BE GRANTED ON A GENERAL BASIS AS DESCRIBED IN  SUCH  SECTION
    25  NINE HUNDRED TWENTY-FOUR-C.
    26    § 3. This act shall take effect immediately.