[HISTORY: Adopted by the Town Board of the Town of New Castle 4-29-1997 by L.L. No. 9-1997. Amendments noted where applicable.]
This chapter shall be known as "Taxation: Payment of Delinquent Taxes in Installments."
As used in this chapter, the following terms shall have the meanings indicated:
- ELIGIBLE DELINQUENT TAXES
- 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.
- ELIGIBLE OWNER
- An owner of real property who is eligible to or has entered into an installment agreement.
- ENFORCING OFFICER
- The Receiver of Taxes of the Town of New Castle.
- FARM PROPERTY
- Property which qualifies as farm property pursuant to § 1111 of the Real Property Tax Law of the State of New York.
- INSTALLMENT AGREEMENT
- 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 § 1184 of the Real Property Tax Law of the State of New York and this chapter.
- RESIDENTIAL PROPERTY
- Property which qualifies as residential property pursuant to § 1111 of the Real Property Tax Law of the State of New York.
An eligible owner may agree to enter into an agreement for the installment payment of eligible delinquent taxes pursuant to the provisions of § 1184 of the Real Property Tax Law and this chapter. The following terms and conditions shall apply to such an installment agreement:
The payment in installments of eligible delinquent taxes shall commence upon the signing of an installment agreement between the enforcing officer and the eligible owner.
The installment agreement shall be kept on file in the office of the Receiver of Taxes.
The maximum term of an installment agreement shall be 24 months.
The payment schedule for any such installment agreement shall be monthly.
The required initial downpayment shall be 25% of the eligible delinquent taxes.
The properties eligible shall be one-family, two-family and three-family residences and farms.
A property owner shall not be eligible to enter into an installment agreement pursuant to this chapter where:
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 installment agreement pursuant to this chapter.
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 installment agreement pursuant to this chapter.
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 installment agreement pursuant to this section.
Such person defaulted on an installment agreement executed pursuant to this chapter within three years of the date on which an application is made to execute an installment agreement pursuant to this chapter.
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 installment 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.
Interest on the total amount of eligible delinquent taxes, less the amount of the downpayment made by the eligible owner, if any is required, shall be that amount as determined pursuant to § 924-a of the Real Property Tax Law of the State of New York, or such other law as may be applicable. The rate of interest in effect on the date the installment agreement is signed shall remain constant during the period of the installment 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 15th calendar day after the payment due date, a late charge of 5% of the overdue payment shall be added.
The eligible owner shall be deemed to be in default of the installment agreement upon:
Nonpayment of any installment within 30 days from the payment due date;
Nonpayment of any tax, special ad valorem levy or special assessment which is levied subsequent to the signing of the installment 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
Default of the eligible owner on another installment agreement made and executed pursuant to this chapter.
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.
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.
Within 45 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.
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.
The enforcing officer shall not be required to notify the eligible owner when an installment is due.
The provisions of this chapter 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.