N.Y. Real Property Tax Law § 1184: Payment of delinquent taxes in installments

§ 1184. Payment of delinquent taxes in installments. 1. Definitions.

As used in this section:

(a) "Eligible delinquent taxes" means the delinquent taxes, including

interest, penalties and other charges, which have accrued against a

parcel as of the date on which an installment agreement is executed.

(b) "Eligible owner" means an owner of real property who is eligible

to or has entered into an installment agreement.

(c) "Farm property" means property which qualifies as farm property

pursuant to section eleven hundred eleven of this article.

(d) "Installment agreement" means a written agreement between an

eligible owner and the enforcing officer providing for the payment of

eligible delinquent taxes in installments pursuant to the provisions of

this section and the local law adopted hereunder.

(e) "Residential property" means property which qualifies as

residential property pursuant to section eleven hundred eleven of this

article.

2. Installment payment of eligible delinquent taxes. The governing

body of a tax district is hereby authorized and empowered to enact and

amend a local law providing for the installment payment of eligible

delinquent taxes. Such installment payment of eligible delinquent taxes

shall be made available to each eligible owner on a uniform basis

pursuant to the provisions of this section and the local law. Such

installment payment of eligible delinquent taxes shall commence upon the

signing of an agreement between the enforcing officer and the eligible

owner. The agreement shall be kept on file in the office of the

enforcing officer.

3. The local law enacted pursuant to this section shall provide:

(a) the maximum term of installment agreements, which shall not exceed

thirty-six months;

(b) the payment schedule, which shall be monthly, bi-monthly quarterly

or semi-annually;

(c) the required initial down payment, if any, which shall not exceed

twenty-five percent of the eligible delinquent taxes;

(d) the properties to which the local law shall apply, which shall be

either (i) residential property, (ii) both residential and farm

property, or (iii) all properties within such tax district; and

(e) other terms and conditions consistent with the provisions of this

section.

4. A property owner shall not be eligible to enter into an agreement

pursuant to this section where:

(a) there is a delinquent tax lien on the same property for which the

application is made or on another property owned by such person and such

delinquent tax lien is not eligible to be made part of the agreement

pursuant to this section;

(b) such person is the owner of another parcel within the tax district

on which there is a delinquent tax lien, unless such delinquent tax lien

is eligible to be and is made part of the agreement pursuant to this

section;

(c) such person was the owner of property on which there existed a

delinquent tax lien and which lien was foreclosed within three years of

the date on which an application is made to execute an agreement

pursuant to this section; or

(d) such person defaulted on an agreement executed pursuant to this

section within three years of the date on which an application is made

to execute an agreement pursuant to this section.

5. A property owner shall be eligible to enter into an agreement

pursuant to this section no earlier than thirty days after the delivery

of the return of unpaid taxes to the enforcing officer.

6. The amount due under an installment agreement shall be the eligible

delinquent taxes plus the interest that is to accrue on each installment

payment up to and including the date on which each payment is to be

made. The agreement shall provide that the amount due shall be paid, as

nearly as possible, in equal amounts on each payment due date. Each

installment payment shall be due on the last day of the month in which

it is to be paid.

7. Interest and penalties. Interest on the total amount of eligible

delinquent taxes, less the amount of the down payment made by the

eligible owner, if any is required, shall be that amount as determined

pursuant to section nine hundred twenty-four-a of this chapter, or such

other law as may be applicable. The rate of interest in effect on the

date the agreement is signed shall remain constant during the period of

the agreement. If an installment is not paid on or before the date it is

due, interest shall be added at the applicable rate for each month or

portion thereof until paid. In addition, if an installment is not paid

by the end of the fifteenth calendar day after the payment due date, a

late charge of five percent of the overdue payment shall be added.

7-a. Waiver of interest and penalties for certain eligible deployed

military members. A county, city, town, village or other taxing entity

may adopt a local law, resolution or ordinance to waive interest,

penalties and fees as would otherwise be imposed pursuant to this

section, provided that:

(a) the financial hardship was caused in substantial part by the

owner's having been ordered to active military duty in the United States

armed forces including the reserve components of such armed forces;

(b) the deployment lasted for at least six contiguous months, or the

owner was killed in acting during such activation; and

(c) the owner provides satisfactory written evidence as prescribed in

the local law, resolution or ordinance that the chief elected officer or

such county, city, town, village or taxing entity, or their designee, or

any other official that may be designated by such law, ordinance or

regulation.

8. Default. (a) The eligible owners shall be deemed to be in default

of the agreement upon:

(i) non-payment of any installment within thirty days from the payment

due date;

(ii) non-payment of any tax, special ad valorem levy or special

assessment which is levied subsequent to the signing of the agreement by

the tax district, and which is not paid prior to the receipt of the

return of unpaid taxes by the enforcing officer; or

(iii) default of the eligible owner on another agreement made and

executed pursuant to this section.

(b) In the event of a default, the tax district shall have the right

to require the entire unpaid balance, with interest and late charges, to

be paid in full. The tax district shall also have the right to enforce

the collection of the delinquent tax lien pursuant to the applicable

sections of law, special tax act, charter or local law.

(c) Where an eligible owner is in default and the tax district does

not either require the eligible owner to pay in full the balance of the

delinquent taxes or elect to institute foreclosure proceedings, the tax

district shall not be deemed to have waived the right to do so.

9. Notification of potential eligible owners. (a) Within forty-five

days after receiving the return of unpaid taxes from the collecting

officer, or as soon thereafter as is practicable, the enforcing officer

shall notify, by first class mail, all potential eligible owners of

their possible eligibility to make installment payments on such tax

delinquencies. The enforcing officer shall add one dollar to the amount

of the tax lien for such mailing, if the local law provided for such a

charge.

(b) The failure to mail any such notice, or the failure of the

addressee to receive the same, shall not in any way affect the validity

of taxes or interest prescribed by law with respect thereto.

(c) The enforcing officer shall not be required to notify the eligible

owner when an installment is due.

10. Where an installment agreement so provides, the lien or liens to

which the agreement relates may be sold to the state of New York

municipal bond bank agency, or a tax lien entity created thereby,

pursuant to title five of this article. In case of such a sale, the

rights and duties of the tax district under the agreement shall be

assumed by the tax lien purchaser. The tax lien purchaser shall continue

to allow the owner or owners to make installment payments in the amounts

and at the times called for by the agreement, as they did prior to the

sale to the tax lien purchaser. However, such payments shall be made to

the tax lien purchaser or its tax collection agent, rather than to the

tax district, unless the tax district and the tax lien purchaser have

agreed otherwise.

11. The provisions of this section shall not affect the tax lien

against the property except that the lien shall be reduced by the

payments made under an installment agreement, and that the lien shall

not be foreclosed during the period of installment payments provided

that such installment payments are not in default.