Authorize adoption by resolution of an interest rate for nonpayment of taxes on real property with an assessed value over two hundred fifty thousand dollars in FY'21 for certain property owners adversely affected by COVID-19.

A Local Law to authorize adoption by resolution of an interest rate for nonpayment of taxes on real property with an assessed value over two hundred fifty thousand dollars in fiscal year 2021 for certain property owners adversely affected by COVID-19

This bill would authorize the City Council to pass a resolution adopting a 7.5 percent interest rate on the late payment of fiscal year 2021 property taxes due on July 1, 2020 for the period between July 1, 2020 and October 15, 2020 for certain real property owners. To be eligible, property owners would be required to demonstrate to the Department of Finance (DOF) by no later than September 30, 2020 that such property owner has been adversely affected by COVID-19 and either: (a) owns class 4 real property with an assessed value of more than $250,000 and less than $750,000; or (b) owns real property with an assessed value over $250,000 where at least 50 percent of the property is used for residential rental dwellings and contains no more than 30 rental dwelling units, of which at least 50 percent are rent regulated accommodations. For the first category, adversely affected by COVID-19 means the income of the property owner declined between March 7, 2020 and June 30, 2020, by at least 50 percent as compared to the corresponding period in the previous calendar year, and for the second category that the income of the property owner declined between March 7, 2020 and June 30, 2020, by at least 25 percent as compared to the corresponding period in the previous calendar year. Additionally, DOF would be required to report to the Speaker of the Council no later than November 1, 2020 the number of properties for which the 7.5 percent interest rate was imposed pursuant to the provisions of this local law and the aggregate value of the real property tax liability of those properties.