Res. No. 193
Resolution to establish that the interest rate be seven percent per annum for Fiscal Year 2023 for non-payment of taxes on properties with an assessed value of more than $250,000 but less than or equal to $450,000, or more than $250,000 but less than or equal to $450,000 per residential unit for cooperative apartments.
By Council Members Ayala and Abreu
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 non-payment of taxes on properties with an assessed value of more than $250,000 but less than or equal to $450,000, or more than $250,000 but less than or equal to $450,000 per residential unit for cooperative apartments; and
Whereas, The Banking Commission is required to propose a rate of at least four percent per annum greater than the prevailing interest rate charged for commercial loans extended to prime borrowers by commercial banks operating in the City (the “Prime Rate”); and
Whereas, The Banking Commission notes that as of May 12, 2022, the Prime Rate stands at four percent as published by the Board of Governors of the Federal Reserve System; and
Whereas, It is in the best interest of the City to encourage 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, 2022, that the interest rate to be charged for non-payment of taxes on properties where the assessed value on a parcel is more than $250,000 but less than or equal to $450,000, or more than $250,000 but less than or equal to $450,000 per residential unit for cooperative apartments, be 12 percent per annum for Fiscal Year 2023; now, therefore, be it
Resolved, That the Council of the City of New York establishes that the interest rate be seven percent per annum for Fiscal Year 2023 for non-payment of taxes on properties with an assessed value of over 250,000 but less than or equal to $450,000, or more than $250,000 but less than or equal to $450,000 per residential unit for cooperative apartments.
MMB
LS #9462
5/24/22; 9:40 a.m.