§ 1184 — Payment of delinquent taxes in installments

§ 1184. Payment of delinquent taxes in installments. 1. Definitions.\nAs used in this section:\n (a) "Eligible delinquent taxes" means the delinquent taxes, including\ninterest, penalties and other charges, which have accrued against a\nparcel as of the date on which an installment agreement is executed.\n (b) "Eligible owner" means an owner of real property who is eligible\nto or has entered into an installment agreement.\n (c) "Farm property" means property which qualifies as farm property\npursuant to section eleven hundred eleven of this article.\n (d) "Installment agreement" means a written agreement between an\neligible owner and the enforcing officer providing for the payment of\neligible delinquent taxes in installments pursuant to the provisions of\nthis section and the local law adopted hereunder.\n (e) "Residential property" means property which qualifies as\nresidential property pursuant to section eleven hundred eleven of this\narticle.\n 2. Installment payment of eligible delinquent taxes. The governing\nbody of a tax district is hereby authorized and empowered to enact and\namend a local law providing for the installment payment of eligible\ndelinquent taxes. Such installment payment of eligible delinquent taxes\nshall be made available to each eligible owner on a uniform basis\npursuant to the provisions of this section and the local law. Such\ninstallment payment of eligible delinquent taxes shall commence upon the\nsigning of an agreement between the enforcing officer and the eligible\nowner. The agreement shall be kept on file in the office of the\nenforcing officer.\n 3. The local law enacted pursuant to this section shall provide:\n (a) the maximum term of installment agreements, which shall not exceed\nthirty-six months;\n (b) the payment schedule, which shall be monthly, bi-monthly quarterly\nor semi-annually;\n (c) the required initial down payment, if any, which shall not exceed\ntwenty-five percent of the eligible delinquent taxes;\n (d) the properties to which the local law shall apply, which shall be\neither (i) residential property, (ii) both residential and farm\nproperty, or (iii) all properties within such tax district; and\n (e) other terms and conditions consistent with the provisions of this\nsection.\n 4. A property owner shall not be eligible to enter into an agreement\npursuant to this section where:\n (a) there is a delinquent tax lien on the same property for which the\napplication is made or on another property owned by such person and such\ndelinquent tax lien is not eligible to be made part of the agreement\npursuant to this section;\n (b) such person is the owner of another parcel within the tax district\non which there is a delinquent tax lien, unless such delinquent tax lien\nis eligible to be and is made part of the agreement pursuant to this\nsection;\n (c) such person was the owner of property on which there existed a\ndelinquent tax lien and which lien was foreclosed within three years of\nthe date on which an application is made to execute an agreement\npursuant to this section; or\n (d) such person defaulted on an agreement executed pursuant to this\nsection within three years of the date on which an application is made\nto execute an agreement pursuant to this section.\n 5. A property owner shall be eligible to enter into an agreement\npursuant to this section no earlier than thirty days after the delivery\nof the return of unpaid taxes to the enforcing officer.\n 6. The amount due under an installment agreement shall be the eligible\ndelinquent taxes plus the interest that is to accrue on each installment\npayment up to and including the date on which each payment is to be\nmade. The agreement shall provide that the amount due shall be paid, as\nnearly as possible, in equal amounts on each payment due date. Each\ninstallment payment shall be due on the last day of the month in which\nit is to be paid.\n 7. Interest and penalties. Interest on the total amount of eligible\ndelinquent taxes, less the amount of the down payment made by the\neligible owner, if any is required, shall be that amount as determined\npursuant to section nine hundred twenty-four-a of this chapter, or such\nother law as may be applicable. The rate of interest in effect on the\ndate the agreement is signed shall remain constant during the period of\nthe agreement. If an installment is not paid on or before the date it is\ndue, interest shall be added at the applicable rate for each month or\nportion thereof until paid. In addition, if an installment is not paid\nby the end of the fifteenth calendar day after the payment due date, a\nlate charge of five percent of the overdue payment shall be added.\n 7-a. Waiver of interest and penalties for certain eligible deployed\nmilitary members. A county, city, town, village or other taxing entity\nmay adopt a local law, resolution or ordinance to waive interest,\npenalties and fees as would otherwise be imposed pursuant to this\nsection, provided that:\n (a) the financial hardship was caused in substantial part by the\nowner's having been ordered to active military duty in the United States\narmed forces including the reserve components of such armed forces;\n (b) the deployment lasted for at least six contiguous months, or the\nowner was killed in acting during such activation; and\n (c) the owner provides satisfactory written evidence as prescribed in\nthe local law, resolution or ordinance that the chief elected officer or\nsuch county, city, town, village or taxing entity, or their designee, or\nany other official that may be designated by such law, ordinance or\nregulation.\n 8. Default. (a) The eligible owners shall be deemed to be in default\nof the agreement upon:\n (i) non-payment of any installment within thirty days from the payment\ndue date;\n (ii) non-payment of any tax, special ad valorem levy or special\nassessment which is levied subsequent to the signing of the agreement by\nthe tax district, and which is not paid prior to the receipt of the\nreturn of unpaid taxes by the enforcing officer; or\n (iii) default of the eligible owner on another agreement made and\nexecuted pursuant to this section.\n (b) In the event of a default, the tax district shall have the right\nto require the entire unpaid balance, with interest and late charges, to\nbe paid in full. The tax district shall also have the right to enforce\nthe collection of the delinquent tax lien pursuant to the applicable\nsections of law, special tax act, charter or local law.\n (c) Where an eligible owner is in default and the tax district does\nnot either require the eligible owner to pay in full the balance of the\ndelinquent taxes or elect to institute foreclosure proceedings, the tax\ndistrict shall not be deemed to have waived the right to do so.\n 9. Notification of potential eligible owners. (a) Within forty-five\ndays after receiving the return of unpaid taxes from the collecting\nofficer, or as soon thereafter as is practicable, the enforcing officer\nshall notify, by first class mail, all potential eligible owners of\ntheir possible eligibility to make installment payments on such tax\ndelinquencies. The enforcing officer shall add one dollar to the amount\nof the tax lien for such mailing, if the local law provided for such a\ncharge.\n (b) The failure to mail any such notice, or the failure of the\naddressee to receive the same, shall not in any way affect the validity\nof taxes or interest prescribed by law with respect thereto.\n (c) The enforcing officer shall not be required to notify the eligible\nowner when an installment is due.\n 10. Where an installment agreement so provides, the lien or liens to\nwhich the agreement relates may be sold to the state of New York\nmunicipal bond bank agency, or a tax lien entity created thereby,\npursuant to title five of this article. In case of such a sale, the\nrights and duties of the tax district under the agreement shall be\nassumed by the tax lien purchaser. The tax lien purchaser shall continue\nto allow the owner or owners to make installment payments in the amounts\nand at the times called for by the agreement, as they did prior to the\nsale to the tax lien purchaser. However, such payments shall be made to\nthe tax lien purchaser or its tax collection agent, rather than to the\ntax district, unless the tax district and the tax lien purchaser have\nagreed otherwise.\n 11. The provisions of this section shall not affect the tax lien\nagainst the property except that the lien shall be reduced by the\npayments made under an installment agreement, and that the lien shall\nnot be foreclosed during the period of installment payments provided\nthat such installment payments are not in default.\n