Sign in Subscribe
City councils

New York City Banking Commission Recommends Hardship Exemption and Reduced Interest Rate for Late Property Tax Payments

Strategic Insights

— 1 min read

The New York City Banking Commission, consisting of Mayor Bill de Blasio, Department of Finance Commissioner Jacques Jiha, and City Comptroller Scott Stringer, has recommended creating a hardship exemption to eliminate interest on late payments for property taxes due in July for taxpayers whose property is assessed below $250,000 and who have a financial hardship as a result of COVID-19. The Commission also proposed reducing the interest rate for late payments in Fiscal Year 2020-21 for properties assessed below $250,000. These recommendations aim to provide relief to New Yorkers struggling financially due to the pandemic.

Key Takeaways:

  • The Banking Commission recommends creating a hardship exemption to eliminate interest on late payments for property taxes due in July for taxpayers whose property is assessed below $250,000 and who have a financial hardship as a result of COVID-19.
  • The Commission also proposed reducing the interest rate for late payments in Fiscal Year 2020-21 for properties assessed below $250,000, from 7 percent in Fiscal Year 2019-20 to 3.25 percent in July and 5 percent for the remaining three quarters.
  • The hardship exemption must be enacted through Local Law, and specific details about qualifications for property owners will come through the legislative process.
  • The Department of Finance currently defines "hardship" as involving the death or serious illness of a property's owner or immediate family member, loss of income, or enrollment in the Department of Environmental Protection's Water Debt Assistance Program.
  • Taxpayers eligible for the new hardship exemption will be asked to submit appropriate documentation to the Department of Finance.

Statistics:

  • Interest rate for late payments in Fiscal Year 2020-21: 3.25 percent in July, rising to 5 percent for the remaining three quarters.
  • Interest rate for late payments in Fiscal Year 2019-20: 7 percent.
  • Approximately 250,000 properties in New York City are assessed below $250,000.

Sources:

  • Office of the Mayor of New York City
  • New York City Banking Commission
  • NYC Department of Finance
  • NYC Comptroller's Office
  • City Charter
  • New York State program for Banking Development District (BDD)

Read more