A New York bill would temporarily prohibit municipalities from selling property tax warrants because of the coronavirus pandemic.
Under S. 8928 — introduced August 19 by Sen. Leroy Comrie (D), chair of the Senate Committee on Corporations, Authorities, and Commissions — municipalities would be unable to sell property tax warrants to private companies for the duration of the COVID-19 state of emergency. A similar bill, A. 10481, was introduced in the State Assembly on May 22.
Gov. Andrew Cuomo (D) on March 7 declared a state disaster emergency that is in effect until September 7.
“In normal times the practice of municipalities selling property tax warrants to private for-profit companies is a nasty practice. During the COVID-19 emergency it will contribute to ruining homes, lives and businesses so a select few can profit while municipalities see a minimal increase in tax revenue,” according to the justification for the bill. "This practice should be eliminated altogether, but a good first step would be to suspend this activity during the COVID-19 pandemic."
The bill, which has been referred to the Senate Rules Committee, would take effect immediately upon enactment and would expire and be repealed on January 1, 2024.
Comrie did not respond to a request for comment by press time.