N.Y. Real Property Tax Law 1140 – Parcels affected by bankruptcy proceedings
§ 1140. Parcels affected by bankruptcy proceedings. 1. Stay of enforcement proceeding. The commencement of a bankruptcy proceeding pursuant to the bankruptcy code of 1978 (title eleven of the United States code) shall stay a proceeding to enforce a delinquent tax lien, to the extent required by the bankruptcy code.
Terms Used In N.Y. Real Property Tax Law 1140
- Bankruptcy: Refers to statutes and judicial proceedings involving persons or businesses that cannot pay their debts and seek the assistance of the court in getting a fresh start. Under the protection of the bankruptcy court, debtors may discharge their debts, perhaps by paying a portion of each debt. Bankruptcy judges preside over these proceedings.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- delinquent tax: include any unpaid tax or other charge against lands owned by the state. See N.Y. Real Property Tax Law 1102
- Enforcing officer: means any elected or appointed officer of any tax district empowered or charged by law to enforce the collection of tax liens on real property; provided, however, that (a) where no law provides otherwise, the enforcing officer shall be (i) in a county which is a tax district, the county treasurer or commissioner of finance, (ii) in a city which is a tax district, the official so empowered or charged by the city charter, (iii) in a village which is a tax district, the village treasurer, and (iv) in a town which is a tax district, the town supervisor; and (b) when the duties and powers of an "enforcing officer" are vested in two or more elected or appointed officials, the governing body of the tax district shall designate which of such officials shall act as enforcing officer for the purposes set forth in this article. See N.Y. Real Property Tax Law 1102
- Lien: A claim against real or personal property in satisfaction of a debt.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Tax district: means : (a) a county, other than (i) a county for which the cities and towns enforce delinquent taxes pursuant to the county administrative code, or (ii) a county wholly contained within a city;
(b) a city, other than a city for which the county enforces delinquent taxes pursuant to the city charter;
(c) a village, other than a village for which the county enforces delinquent taxes pursuant to section fourteen hundred forty-two of this chapter; or
(d) a town in a county in which towns enforce delinquent taxes pursuant to the county administrative code. See N.Y. Real Property Tax Law 1102
2. Notice to enforcing officer. Whenever an officer or employee of a municipal corporation receives an official notification of the commencement of a bankruptcy proceeding affecting real property therein, such officer or employee shall forthwith forward the same, or a copy thereof, to the enforcing officer of the tax district which enforces taxes on behalf of such municipal corporation.
3. Partial payments. Notwithstanding any law otherwise precluding the acceptance of partial payments of taxes, a partial payment may be accepted in relation to property which is the subject of a bankruptcy proceeding, provided that the payment is accompanied by satisfactory proof of the bankruptcy proceeding, such as a copy of an order or plan issued thereunder.
4. Cancellation and chargebacks. A tax district shall direct the cancellation of a delinquent tax lien to the extent such lien has been rendered permanently unenforceable as the result of a bankruptcy proceeding. The tax district shall not be required to credit or otherwise guarantee to any municipal corporation a delinquent tax against a parcel to the extent the lien thereon has been cancelled pursuant to this section. If such a credit or guarantee shall have been given before the cancellation of the lien, the tax district shall be entitled to charge back to each municipal corporation a proportionate share of the cancelled lien.