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File #: Res 0737-2015    Version: * Name: Establish that the interest rate be 18% per annum for FY'16 for non-payment of taxes on properties with an assessed value of over $250,000, or over $250,000 per residential unit for co-op apartments.
Type: Resolution Status: Adopted
Committee: Committee on Finance
On agenda: 6/10/2015
Enactment date: Law number:
Title: Resolution to establish that the interest rate be 18 percent per annum for Fiscal Year 2016 for non-payment of taxes on properties with an assessed value of over $250,000, or over $250,000 per residential unit for cooperative apartments
Sponsors: Julissa Ferreras-Copeland
Council Member Sponsors: 1
Attachments: 1. Banking Commission Letter, 2. Committee Report, 3. June 10, 2015 - Stated Meeting Agenda with Links to Files, 4. Hearing Testimony 6/10/15, 5. Hearing Transcript 6/10/15, 6. Hearing Transcript - Stated Meeting 6-10-15, 7. Minutes of the Stated Meeting - June 10, 2015
Date Ver.Prime SponsorAction ByActionResultAction DetailsMeeting DetailsMultimedia
6/10/2015*Julissa Ferreras-Copeland City Council Approved, by CouncilPass Action details Meeting details Not available
6/10/2015*Julissa Ferreras-Copeland City Council Referred to Comm by Council  Action details Meeting details Not available
6/10/2015*Julissa Ferreras-Copeland City Council Introduced by Council  Action details Meeting details Not available
6/10/2015*Julissa Ferreras-Copeland Committee on Finance Hearing on P-C Item by Comm  Action details Meeting details Not available
6/10/2015*Julissa Ferreras-Copeland Committee on Finance P-C Item Approved by CommPass Action details Meeting details Not available
Preconsidered Res. No. 737
 
 
Resolution to establish that the interest rate be 18 percent per annum for Fiscal Year 2016 for non-payment of taxes on properties with an assessed value of over $250,000, or over $250,000 per residential unit for cooperative apartments
 
 
By Council Member Ferreras-Copeland
 
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 over $250,000, or over $250,000 per residential unit for cooperative apartments; and
Whereas, The Banking Commission is required to propose a rate of at least six 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, 2015, the Prime Rate stands at three and one-quarter 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 large taxpayers; and
Whereas, The Banking Commission forwarded its recommendation to the Council, by letter dated May 13, 2015, that the interest rate to be charged for non-payment of taxes on properties where the assessed value on a parcel is over $250,000, or over $250,000 per residential unit for cooperative apartments, be 18 percent per annum for Fiscal Year 2016; now, therefore, be it
Resolved, That the Council of the City of New York establishes that the interest rate be 18 percent per annum for Fiscal Year 2016 for non-payment of taxes on properties with an assessed value of over 250,000, or over $250,000 per residential unit for cooperative apartments.
 
RC LS#5520
6/2/15