Res 1348-2020

By Council Member Dromm Whereas, Pursuant to Section 11-224.1 of the Administrative Code of the City of New York the Banking Commission is required to recommend to the City Council, not later than the 13th day of May of each year, the proposed interest rate to be charged for non-payment of taxes on properties with an assessed value of not more than $250,000, or not more than $250,000 per residential unit for cooperative apartments; and Whereas, The Banking Commission is required to propose a rate at least equal to 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 as of May 13, 2020, the Prime Rate stands at 3.25 percent as published by the Board of Governors of the Federal Reserve System; and Whereas, It is in the best interest of the City to encourage the prompt payment of taxes on real estate by all taxpayers; and Whereas, The Banking Commission forwarded its recommendation to the Council, by letter dated May 13, 2020, that the interest rate to be charged for the non-payment of taxes on properties where the assessed value on a parcel is not more than $250,000, or not more than $250,000 per residential unit for cooperative apartments, be 3.25 percent for the first quarter of Fiscal Year 2021, and five percent for the second, third, and fourth quarters of Fiscal Year 2021; now, therefore, be it Resolved, That the Council of the City of New York establishes that the interest rate be that 3.25 percent for the first quarter of Fiscal Year 2021 and 5 percent for the remainder of Fiscal Year 2021 for non-payment of taxes on properties with an assessed value of not more than $250,000, or not more than $250,000 per residential unit for cooperative apartments. NAB LS #15583 06/16/2020