File #: Res 0692-2023    Version: * Name: Establish that the interest rate be fifteen percent per annum for Fiscal Year 2024 for non-payment of taxes on properties with an assessed value of more than $450,000, or more than $450,000 per residential unit for cooperative apartments.
Type: Resolution Status: Adopted
Committee: Committee on Finance
On agenda: 6/22/2023
Enactment date: Law number:
Title: Resolution to establish that the interest rate be fifteen percent per annum for Fiscal Year 2024 for non-payment of taxes on properties with an assessed value of more than $450,000, or more than $450,000 per residential unit for cooperative apartments.
Sponsors: Justin L. Brannan
Council Member Sponsors: 1
Attachments: 1. Res. No. 692, 2. Committee Report, 3. Hearing Transcript, 4. June 22, 2023 - Stated Meeting Agenda, 5. Hearing Transcript - Stated Meeting 6-22-23, 6. Minutes of the Stated Meeting - June 22, 2023
Date Ver.Prime SponsorAction ByActionResultAction DetailsMeeting DetailsMultimedia
6/22/2023*Justin L. Brannan City Council Approved, by CouncilPass Action details Meeting details Not available
6/22/2023*Justin L. Brannan City Council Referred to Comm by Council  Action details Meeting details Not available
6/22/2023*Justin L. Brannan City Council Introduced by Council  Action details Meeting details Not available
6/22/2023*Justin L. Brannan Committee on Finance Hearing on P-C Item by Comm  Action details Meeting details Not available
6/22/2023*Justin L. Brannan Committee on Finance P-C Item Approved by CommPass Action details Meeting details Not available

Preconsidered Res. No. 692

Resolution to establish that the interest rate be fifteen percent per annum for Fiscal Year 2024 for non-payment of taxes on properties with an assessed value of more than $450,000, or more than $450,000 per residential unit for cooperative apartments.

 

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 non-payment of taxes on properties with an assessed value of more than $450,000, or more than $450,000 per residential unit for cooperative apartments; and

                     Whereas, The Banking Commission is required to propose a rate at least six percentage points 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 11, 2023, the Prime Rate stands at 8.25 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 12, 2023, that the interest rate to be charged for the non-payment of taxes on properties where the assessed value of more than $450,000, or more than $450,000 per residential unit for cooperative apartments, be 18 percent per annum for Fiscal Year 2024; now, therefore, be it

                     Resolved, That the Council of the City of New York establishes that the interest rate be 15 percent per annum for Fiscal Year 2024 for non-payment of taxes on properties with an assessed value of more than $450,000, or more than $450,000 per residential unit for cooperative apartments.

 

MJT

6/15/23; 9:52 a.m.