Res 0488-2024

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 more than $450,000, or more than $450,000 per residential unit for cooperative apartments; and Whereas, The Banking Commission is required to propose a rate at least six percentage points per annum greater than 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 9, 2024, the Prime Rate stands at 8.50 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 10, 2024, that the interest rate to be charged for the non-payment of taxes on properties where the assessed value of more than $450,000, or more than $450,000 per residential unit for cooperative apartments, be 18 percent per annum for Fiscal Year 2025; now, therefore, be it Resolved, That the Council of the City of New York establishes that the interest rate be 16 percent per annum for Fiscal Year 2025 for non-payment of taxes on properties with an assessed value of more than $450,000, or more than $450,000 per residential unit for cooperative apartments. MJT 6/29/24