2023 New York Laws › RPT - Real Property Tax › Article 11 - Procedures for Enforcement of Collection of Delinquent Taxes › Title 4 - General Provisions › 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.