N.Y. Suffolk County Tax Act § 47-a: Payment of delinquent taxes in installments

§ 47-a. Payment of delinquent taxes in installments. 1. Definitions.

As used in this section:

(a) "Eligible delinquent taxes" means the combined amount of unpaid

taxes, special ad valorem levies, special assessments, and any penalties

and interest which have accrued and which the county has bid for

pursuant to section forty-five of this act.

(b) "Eligible owner" means an owner of small business property who

occupies such property for such purposes.

(c) "Small business" means property used for commercial purposes by a

business, the income of which did not exceed fifty thousand dollars and

which did not employ more than twenty full time employees at any time

since the date on which such taxes became a lien.

(d) "Income" means the net taxable income as defined by the internal

revenue code for the calendar year immediately preceding the date of

application for the installment payment of eligible delinquent taxes

pursuant to this section.

2. Installment payment of eligible delinquent taxes. The eligible

owner may enter into an agreement with the county treasurer to pay

eligible delinquent taxes in installments, as provided in this section,

at a date no earlier than one year after the date on which the eligible

delinquent taxes became a lien nor no later than three months prior to

the last date on which the property may be redeemed pursuant to section

forty-nine of this act, provided that all provisions of this section are

met. The burden of proof of eligibility for the provisions of this

section shall be on the applicant. The applicant shall submit

documentation to the treasurer which the treasurer shall deem to be

consistent with the provisions of this section and necessary to

determine the eligibility of such applicant.

3. Agreement to pay installment taxes. An eligible owner shall be

permitted to enter into an agreement to pay eligible delinquent taxes in

installments, as provided in this section, only where:

(a) All taxes, special ad valorem levies and special assessments

levied subsequent to the eligible delinquent taxes are paid prior to

approval of such agreement; or

(b) Such eligible owner is not the owner of another parcel or parcels

within the county against which a tax lien had been sold for unpaid

taxes within three years of the date of the creation of the lien

applicable to eligible delinquent taxes.

4. Agreement to pay eligible delinquent taxes in installments. The

agreement to pay eligible delinquent taxes in installments shall be kept

on file in the office of the county treasurer and shall be governed by

the provisions of this subdivision. The agreement shall provide:

(a) The term of the agreement, which shall not exceed twenty-four

months;

(b) The payment schedule, which shall be no less than bi-weekly and

may be monthly, quarterly or semi-annually;

(c) The payment shall be paid in equal installments on each payment

due date;

(d) The interest on the total amount of eligible delinquent taxes,

less the amount of down payment made by the eligible owner, shall be one

percent more than the amount as determined pursuant to section

thirteen-c of this act and at such rate in effect on the date that the

agreement is signed which rate shall remain constant during the period

of the agreement;

(e) Where the amount of the installment is not received by the end of

the fifteenth calendar day after the payment due date, a five percent

charge shall be added to the amount due for that installment period;

(f) For a down payment not to exceed twenty-five percent of eligible

delinquent taxes;

(g) Prepayments can only be made with the consent of the county and

only in an amount equal to at least one installment sum, or any multiple

thereof, and only at the time an installment payment is due; and

(h) Each installment shall be due on the same calendar date as the

agreement date.

5. Default. (a) The eligible owner 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 by the date or date by which such tax may be paid without

penalty pursuant to paragraph (c) of section thirteen of this act and

which is levied subsequent to the signing of the agreement; or

(iii) sale of the subject parcel.

(b) In the event of a default, the entire unpaid balance, with

interest and late charges, shall be due. The county shall have the right

to enforce the collection of the remaining unpaid tax lien pursuant to

this act. In the event of a default and provided that the period to

redeem such property pursuant to section forty-nine of this act has,

except for the provisions of this section, expired, the last day to

redeem such property shall be sixty days after the date of default. In

the event of a default and provided that the period to redeem such

property pursuant to section forty-nine of this act has not expired, the

last day to redeem such property shall be the date provided in such

section.

(c) Notwithstanding section fifty-two of this act or section one

thousand fourteen of the real property tax law to the contrary, notice

of unredeemed real estate which is in default of the provisions of this

section shall be given and published once by the treasurer at least

thirty days prior to the last day to redeem such property as provided in

paragraph (b) of this subdivision and the notice by first class mail to

the name and address of the owner, or occupant, as shown on the

assessment roll shall be given no later than such date.

(d) Where an eligible owner is in default and the county does not

elect to immediately institute procedures to enforce its tax lien

purchase or to obtain a tax deed, the county shall not be deemed to have

waived the right to do so.

6. Notification of potential eligible owners. The county treasurer

shall notify, by first class mail, all potential eligible property

owners of property which is subject to a tax lien sale of the provisions

of this section. Such notice shall be in the same manner and given no

later than fourteen days after such personal notice is provided to the

taxpayer pursuant to section one thousand two of the real property tax

law.

7. Tax lien; not affected. The provisions of this section shall not

affect the tax lien against the property except in the reduction of such

lien and that the lien shall not be assigned, sold or foreclosed during

the period of installment payments, provided that such installment

payments are not in default.

8. The treasurer is authorized and empowered to establish other terms

and conditions which are consistent with and necessary to implement the

provisions of this section. Such terms and conditions shall be in

writing and available in the office of the treasurer.