File #: Res 0880-2025    Version: * Name: Interest rate be 2 1/2 % per annum for FY'26 for certain properties for which the owner has entered into an installment payment agreement with the dept of finance for payment of delinquent property taxes, assessments, or other charges.
Type: Resolution Status: Adopted
Committee: Committee on Finance
On agenda: 5/28/2025
Enactment date: Law number:
Title: Resolution to establish that the interest rate be two and one half percent per annum for Fiscal Year 2026 for certain properties for which the owner has entered into an installment payment agreement with the department of finance for payment of delinquent property taxes, assessments, or other charges.
Sponsors: Justin L. Brannan
Council Member Sponsors: 1
Attachments: 1. Res. No. 880, 2. Committee Report, 3. Committee Report - Stated Meeting, 4. May 28, 2025 - Stated Meeting Agenda
Date Ver.Prime SponsorAction ByActionResultAction DetailsMeeting DetailsMultimedia
5/28/2025*Justin L. Brannan City Council Approved, by CouncilPass Action details Meeting details Not available
5/28/2025*Justin L. Brannan City Council Referred to Comm by Council  Action details Meeting details Not available
5/28/2025*Justin L. Brannan City Council Introduced by Council  Action details Meeting details Not available
5/28/2025*Justin L. Brannan Committee on Finance Hearing on P-C Item by Comm  Action details Meeting details Not available
5/28/2025*Justin L. Brannan Committee on Finance P-C Item Approved by CommPass Action details Meeting details Not available

Preconsidered Res. No. 880

Resolution to establish that the interest rate be two and one half percent per annum for Fiscal Year 2026 for  certain properties for which the owner has entered into an installment payment agreement with the department of finance for payment of delinquent property taxes, assessments, or other charges.

 

By Council Member Brannan

 

                     Whereas, Pursuant to Section 11-224.1 of the Administrative Code of the City of New York, the Banking Commission is required to recommend to the City Council, not later than the 13th day of May of each year, the proposed interest rate to be charged for certain properties for which the owner has entered into an installment payment agreement with the department of finance for payment of delinquent property taxes, assessments, or other charges; and

                     Whereas, The Banking Commission is required to propose a rate at least equal to the most recent federal short-term interest rate as determined by the United States Secretary of the Treasury in accordance with U.S. Internal Revenue Code § 1247(d), rounded to the nearest half percent (the “Applicable Federal Rate”); and

                     Whereas, The Banking Commission notes that as of May 2025, the Applicable Federal Rate stands at 4.05 percent; and

                     Whereas, It is in the best interest of the City to encourage otherwise delinquent taxpayers to enter into arrangements to begin the prompt payment of taxes on real estate by all taxpayers; and

Whereas, The Banking Commission forwarded its recommendation to the Council, by letter dated May 13, 2025, that the interest rate to be charged for certain properties for which the owner has entered into an installment payment agreement with the department of finance for payment of delinquent property taxes, assessments, or other charges be 5 percent per annum for Fiscal Year 2026; now, therefore, be it

                     Resolved, That the Council of the City of New York establishes that the interest rate be 2.5 percent per annum for Fiscal Year 2026 for certain properties for which the owner has entered into an installment payment agreement with the department of finance for payment of delinquent property taxes, assessments, or other charges.