2023 New York Laws › RPT - Real Property Tax › Article 11 - Procedures for Enforcement of Collection of Delinquent Taxes › Title 6 - Distribution of Surplus › 1196 - Determination of Existence and Amount of Surplus.

§  1196.  Determination  of  existence  and  amount of surplus. 1. (a)
Within forty-five days after the sale of  tax-foreclosed  property,  the
enforcing  officer  shall determine whether a surplus is attributable to
such sale and if so, the amount thereof. Subject to  the  provisions  of
subdivision  two  of  this  section, such determination shall be made by
ascertaining the sum of the total amount of  taxes  due  plus  interest,
penalties  and other charges as defined by section eleven hundred two of
this article, and subtracting such sum from whichever of  the  following
is applicable:
(i)  where  the sale was a public sale, the amount to be so subtracted
shall be the amount paid for the property;
(ii) where the sale was not  a  public  sale,  the  amount  to  be  so
subtracted  shall  be either (A) the full value of the property as shown
on the most recent tax roll, (B) if available, an appraisal prepared  by
a  licensed  New York state appraiser that establishes the full value of
the property as of the date of the transfer of title, or  (C)  the  full
value  of  the  property  as  of  the  date  of the transfer of title as
determined by such other  valuation  method  as  the  enforcing  officer
reasonably  determines  will  result  in just compensation to the former
owner and  other  parties  whose  interests  were  extinguished  by  the
foreclosure.
(b)  For purposes of this subdivision, where the enforcing officer has
been notified that the tax district  intends  to  retain  tax-foreclosed
property  for  a  public  use, the property shall be deemed to have been
sold on the date that the enforcing officer was  so  notified,  and  the
enforcing  officer shall determine the existence and amount of a surplus
relative to such property in the manner provided by subparagraph (ii) of
paragraph (a) of this subdivision.
2. Notwithstanding the provisions of subdivision one of this  section,
when  a  tax  district has sold or conveyed tax-foreclosed property to a
land bank, a housing development agency or another  public  entity,  and
such  sale  or conveyance was not the result of a public sale, or when a
tax district has determined to  retain  tax-foreclosed  property  for  a
public  use,  no  surplus  shall  be  payable  if  all  of the following
conditions are satisfied:
(a) prior to such sale, conveyance or determination, the property  had
been offered for sale at two separate public auctions conducted at least
three months apart from one another,
(b)  both  auctions  had  been  conducted  in full compliance with the
provisions of section  two  hundred  thirty-one  of  the  real  property
actions and proceedings law,
(c)  the  minimum  acceptable  bid  at each auction had been set at an
amount no greater than the sum of the taxes due plus interest, penalties
and other charges, and
(d) no qualifying bids  were  received  for  the  property  at  either
auction.
3.  (a)  If  the  enforcing  officer  determines  that  no  surplus is
attributable to the sale, such enforcing officer shall submit  a  report
to  the  court describing the circumstances of the sale, stating that no
surplus was attributable to the sale and demonstrating how the enforcing
officer reached that conclusion.
(b) If the enforcing officer determines that a surplus is attributable
to the sale, such enforcing officer shall submit a report to  the  court
describing  the  circumstances  of  the sale, stating that a surplus was
attributable to the sale,  and  demonstrating  how  the  amount  of  the
surplus  was  determined.  Such  surplus  shall  be  paid  to  the court
therewith. Within ten days of  submitting  such  report,  the  enforcing
officer  shall  notify  the  former  property  owner  that a surplus was

attributable to the sale of such property, that such  surplus  has  been
paid  into  court, and that the court will notify the interested parties
of the procedure to be followed in order to make a claim for a share  of
the surplus.
(c)  Where  the  enforcing officer's determination of surplus is based
upon such enforcing officer's estimate  of  the  property's  value,  the
enforcing  officer's  report to the court shall set forth an explanation
of how this estimate was made, including the evidence upon which it  was
based.
4.  Upon  approval by the court of the enforcing officer's report, the
tax district shall have no further responsibilities in relation  to  the
parcel  or  any  surplus  attributable thereto, except to the extent the
court directs otherwise pursuant to section eleven hundred  ninety-seven
of this title.