File #: Res 0902-2007    Version: * Name: Recommendations of the interest rate to be charged for FY'08 for non-payment of taxes on real estate, and for non-payment of water and sewer rents.
Type: Resolution Status: Adopted
Committee: Committee on Finance
On agenda: 6/5/2007
Enactment date: Law number:
Title: Resolution to establish that the interest rate be 18% per annum for Fiscal Year 2008 for non-payment of taxes on properties with an assessed value of over $80,000, or over $80,000 per residential unit for cooperative apartments.
Sponsors: David I. Weprin, Leroy G. Comrie, Jr., Michael C. Nelson
Council Member Sponsors: 3
Attachments: 1. Committee Report, 2. Hearing Transcript, 3. Hearing Transcript - Stated Meeting 6/5/07
Date Ver.Prime SponsorAction ByActionResultAction DetailsMeeting DetailsMultimedia
6/5/2007*David I. Weprin City Council Approved, by CouncilPass Action details Meeting details Not available
6/5/2007*David I. Weprin City Council Referred to Comm by Council  Action details Meeting details Not available
6/5/2007*David I. Weprin City Council Introduced by Council  Action details Meeting details Not available
6/5/2007*David I. Weprin Committee on Finance Hearing on P-C Item by Comm  Action details Meeting details Not available
6/5/2007*David I. Weprin Committee on Finance P-C Item Approved by CommPass Action details Meeting details Not available
Preconsidered Res. No. 902
 
 
Resolution to establish that the interest rate be 18% per annum for Fiscal Year 2008 for non-payment of taxes on properties with an assessed value of over $80,000, or over $80,000 per residential unit for cooperative apartments.
 
 
By Council Members Weprin, Comrie and Nelson
 
      Whereas, Pursuant to Section 11-224.1 of the Administrative Code of the City of New York, as added by Local Law No. 62 of 2005, the Banking Commission is required to recommend to the City Council, not later than the 25th 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 eighty thousand dollars ($80,000), or over eighty thousand dollars ($80,000) per residential unit for cooperative apartments; and
      Whereas, The Banking Commission is required to propose a rate of at least six percent (6%) 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 the Prime Rate now stands at eight point twenty-five percent (8.25%) as published by the Federal Reserve Board of Governors; 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 recommended to the City Council, that the interest rate to be charged for non-payment of taxes on properties where the assessed value on a parcel is over eighty thousand dollars ($80,000), or over eighty thousand dollars ($80,000) per residential unit for cooperative apartments, be eighteen percent (18%) per annum for Fiscal 2008; now, therefore, be it
      Resolved, That the Council establishes that the interest rate be 18% per annum for Fiscal Year 2008 for non-payment of taxes on properties with an assessed value of over $80,000, or over $80,000 per residential unit for cooperative apartments.
 
       
AB
LS# 3336
5/30/07