Matter of Foreclosure of Tax Liens

[*1] Matter of Foreclosure of Tax Liens 2009 NY Slip Op 51206(U) [23 Misc 3d 1140(A)] Decided on June 12, 2009 Supreme Court, Cortland County Rumsey, J. Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431. This opinion is uncorrected and will not be published in the printed Official Reports.

Decided on June 12, 2009
Supreme Court, Cortland County

In the Matter of the Foreclosure of Tax Liens by Proceeding In Rem, pursuant to article Eleven of the Real Property Tax Law by THE COUNTY OF CORTLAND, a Municipal Corporation Organized under the laws of the State of New York,



39482



CORTLAND COUNTY ATTORNEY

EDWARD R. PURSER, ESQ.

Attorney for The County of Cortland

60 Central Avenue

Cortland, New York 13045

Phillip R. Rumsey, J.

The County of Cortland (petitioner) commenced proceedings, pursuant to RPTL article 11, to foreclose tax liens for years 2004 (Index No. 39482) and 2006 (Index No. 40929). Judgments were granted in each proceeding on April 24, 2009, and were entered on May 11, 2009. By resolution adopted on April 23, 2009, the Cortland County Legislature authorized the County Treasurer to accept payment of delinquent taxes for tax year 2006 through May 15, 2009, if legally permissible (Affidavits of John R. Daniels, sworn to May 27, 2009 [Daniels Affidavit], Exhibit A). On May 15, 2009, the County Legislature adopted a resolution authorizing extension of the time for taxpayers to redeem properties by payment of delinquent taxes for years 2004 and 2006 (Daniels Affidavits, Exhibit B). Since adoption of the resolutions, the County Treasurer has declined to accept payments from several taxpayers who attempted to pay [*2]delinquent taxes for 2004 and 2006, on the basis that the statutory redemption period has passed. Petitioner now moves for an order vacating the judgments and extending the time for redemption through June 30, 2009.

Under article 11 of the RPTL, a taxpayer has a statutory right to redeem property through the end of the redemption period, which, unless extended pursuant to RPTL 1111, is two years after the relevant taxes first become a lien upon the property (see RPTL 1110, RPTL 1102[4], and RPTL 902). In this case, the time for redemption of right expired on December 31, 2005 for the 2004 tax year, and on December 31, 2007 for the 2006 tax year.

A taxpayer's property rights are not foreclosed at the expiration of the redemption period, nor upon the execution of a judgment; they are finally foreclosed, or extinguished, only when the enforcing officer of the tax district, here the County Treasurer, executes a deed conveying the property to the tax district (RPTL 1136[3]; see also First Natl. Bank of Downsville v Atkin, 279 AD2d 779 [2001]). During the period of time between the expiration of the statutory right to redeem and the conveyance of fee title to the tax district by deed from the enforcement officer, a tax district, such as petitioner, may authorize an extension of the time to redeem (Anderson v Pease, 284 AD2d 871, 873 — 874 [2001]). Notably, the court lacks such authority (see Matter of City of Binghamton (Ritter), 128 AD2d 266, 268 [1987]).

In this case, the judgments entered in both proceedings provided, in compliance with RPTL 1136(3), for foreclosure of the taxpayers' interest in their properties only upon execution of a deed, or deeds, by the County Treasurer, specifically stating that it is:

ORDERED, ADJUDGED AND DECREED that the Cortland County Treasurer and Tax Enforcement Officer, Patrick O'Mara, is hereby directed to make, execute and cause to be recorded a deed or deeds conveying to said County of Cortland full and complete title to the said parcels of land; and it is further

ORDERED, ADJUDGED AND DECREED that upon execution and recording of the deeds herein before directed, the County of Cortland shall be seized of an estate in fee simple absolute in all those parcels of land therein described, and all persons, including the People of the State of New York, infants, incompetents, absentees, and non-residents who may have had any right, title, interest, claim, lien or equity of redemption, in or upon such lands, shall be barred and forever foreclosed of all such right, title, interest, claim, lien or equity of redemption.

Inasmuch as petitioner has not yet acquired fee title to the relevant properties, the County Legislature may, by resolution and without further order from the court, extend the period for redemption until such time as the County Treasurer executes and records deeds conveying the properties to petitioner. Under the facts of these proceedings, no purpose would be served by vacating the judgments, and petitioner's motions are denied.

This decision shall constitute the order of the court, and shall be executed in duplicate for filing in both proceedings.

Dated:June 12, 2009

Cortland, New York [*3]

_______________________________

HON. PHILLIP R. RUMSEY

Supreme Court Justice

ENTER