Contact: Colleen Roche or Dwight Williams (212) 788-2958
The first bill is Introductory Number 962, introduced at my request by Council Members Berman, DeMarco, Perez, Wooten, Stabile and O'Donovan. This bill would amend the Administrative Code of the City of New York in relation to the prepayment of real estate taxes.
The bill provides for a five percent per annum discount rate for the prepayment of the July 1 and October 1, 1997 installments of Fiscal Year 1998 real property taxes. The five percent per annum discount rate would only apply to the installment of taxes prepaid in full on or after June 6, 1997 but no later than July 12, 1998.
The discount would be allowed from the date of payment of the installment to and including the fifteenth day of the calendar month in which the installment is due and payable pursuant to statute. However, there are two exceptions: first, properties that have an assessed valuation greater than $40,000, excluding real property held in cooperative form of ownership if the average assessed value per unit does not exceed $40,000; and second, properties for which property taxes are held in escrow and paid by a mortgage escrow agent, regardless of the property's assessed value. For properties in these two groups, the discount shall be allowed from the date of payment of the installment to and including the statutory due date.
No discount shall apply if, at the time of prepayment, a property has any unpaid prior installments.
Finally, the bill provides that for any prepayment of Fiscal Year 1998 taxes made after June 12, 1998, the discount, if any, shall be determined pursuant to existing statutory provisions in the New York City Charter.
This legislation provides an incentive to taxpayers to prepay the July and October installments of real estate taxes at minimal cost to the City. Borrowing alternatives would impose substantially higher costs on the City.
I will first turn to the bill's sponsors and then to any other elected official wishing to be heard.
There being no one else to be heard, and for the reasons stated previously, I will now sign this bill.