§ 996 — Contracts with banks for the collection of taxes and certain special assessments

New York § 996

• Jurisdiction: New York
• Law RPT: Real Property Tax
• Title 5: Provisions of General Application; Miscellaneous
• Art. 9: Levy and Collection of Taxes

Text

§ 996. Contracts with banks for the collection of taxes and certain\nspecial assessments. 1. Notwithstanding any general, special or local\nlaw to the contrary, a municipal corporation having the responsibility\nfor collection of taxes or special assessments, or both, may enter into\nagreements with a bank, or with two or more banks, for the collection of\ntaxes and special assessments which are collected together with such\ntaxes. For purposes of this section, the term "bank" shall have the same\nmeaning as in paragraph d of subdivision one of section ten of the\ngeneral municipal law. The term "special assessments" shall be limited\nto those special assessments collected together with taxes.\n 2. A bank that has entered into an agreement pursuant to this section\nshall: (a) accept payments of taxes or special assessments, or both, for\na period beginning on the day on which the warrant for the collection of\ntaxes is delivered to the collecting officer, and ending on the day on\nwhich such warrant expires;\n (b) decline any partial payments of a tax bill, or special assessment,\nor both, except where the municipal corporation is one which is\nauthorized to accept partial payments of taxes or special assessments or\nboth;\n (c) collect the appropriate amount of interest on any taxes or special\nassessments, or both, paid after the end of the interest-free collection\nperiod;\n (d) furnish receipts to each person paying a tax or special\nassessment, or both, except that when a tax or special assessment has\nbeen paid by a mortgage investing institution pursuant to the provisions\nof title three-A of this article, receipts shall be delivered or mailed\nto such mortgage investing institution, subject to the provisions of\nsuch title;\n (e) deposit all taxes and special assessments and interest collected,\nimmediately upon receipt, in the account or accounts designated by the\nmunicipal corporation in such bank, or in any other bank designated by\nthe municipal corporation;\n (f) continually maintain records of deposit showing the dates and\namounts of all taxes and special assessments collected, and the\ntaxpayers from whom such taxes and special assessments were collected;\n (g) transmit to the collecting officer a daily report of the taxes and\nspecial assessments collected, which report shall be accompanied by a\nstatement showing the deposits credited to the account of the municipal\ncorporation; and\n (h) perform such other duties, and maintain such other records, as the\ncontract may provide.\n 3. (a) A bank which has entered into an agreement with a municipal\ncorporation pursuant to this section shall be liable to the municipal\ncorporation for all loss or damage which may result from any failure of\nits officers or agents to discharge their duties, or from any improper\nor incorrect discharge of those duties. The bank shall save the\nmunicipal corporation free and harmless from any and all loss occasioned\nby or incurred in the performance of services under a contract pursuant\nto this section.\n (b) A bank which has entered into an agreement with a municipal\ncorporation pursuant to this section, and which receives moneys from a\ntaxpayer for payment of real property taxes or special assessments, or\nboth, shall be liable to such taxpayer, upon failure to properly credit\nsuch payment, for the amount of the taxes or special assessments, or\nboth, plus interest and penalties imposed thereon.\n 4. Moneys deposited with a bank pursuant to this section shall be\nsecured in the manner provided by section ten of the general municipal\nlaw.\n 5. The statutory powers and duties of a tax collecting officer,\nincluding the authority to receive taxes, shall not be affected by the\nexistence of a contract executed pursuant to this section, except that\nthe collecting officer shall: (a) notify the bank upon receiving the\nwarrant for the collection of taxes or special assessments, or both;\n (b) include in the appropriate notices the fact that taxes or special\nassessments, or both, may be paid to the bank;\n (c) notify the bank of the date on which the interest-free collection\nperiod expires;\n (d) make the appropriate entries in the official records, upon\nreceiving each daily report of taxes and special assessments collected\nby the bank; and\n (e) make the accounting and return, as provided by law, upon receipt\nfrom the bank of the final daily report of taxes and special assessments\ncollected.\n 6. A contract executed pursuant to this section shall be subject to\nthe requirements of article five-A of the general municipal law, and\nshall be for a term not to exceed five years, except that it shall be\nsubject to cancellation by the municipal corporation at any time upon\nthirty days notice to the bank.\n