Res 1694-2021

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 no greater than $250,000, or no greater 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, 2021, the Prime Rate stands at three and one-quarters 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, 2021, that the interest rate to be charged for the non-payment of taxes on properties with an assessed value of no greater than $250,000, or no greater than $250,000 per residential unit for cooperative apartments, be three and one-quarter percent (3.25%) per annum in the first quarter (July 1, 2021 to September 30, 2021) and four and one-half percent (4.5%) per annum in the second, third, and fourth quarters (October 1, 2021 to June 30, 2022); now, therefore, be it Resolved, That the Council of the City of New York establishes that the interest rate be three percent per annum for Fiscal Year 2022 for non-payment of taxes on properties with an assessed value of no greater than $250,000, or no greater than $250,000 per residential unit for cooperative apartments. NB LS #17836 06/24/2021