No penalties for taxpayers suffering financial loss

Westchester County Executive George Latimer received clearance from Governor Andrew Cuomo last week through an executive order to remove late payment penalties on property taxes until July 15. To receive this benefit, a resident or business must prove they have suffered financial hardship due to the COVID-19 pandemic.

Recipients also must qualify for a STAR exemption and not pay their property taxes through escrow. Rental properties or business owners may also qualify for this option.

Latimer recently proposed a similar plan to the executive order, but it was disregarded due to concerns from town supervisors that it would be difficult to implement.

There is also a non-hardship option for taxpayers who have not suffered financial loss. Last week, the Westchester County Board of Legislators passed legislation to reduce interest penalties on late tax payments for all residents.

In May, late tax payment interest penalties are being reduced from 2 percent to .05 percent. From June to July, the interest is decreased from 5 percent to 1 percent.

These options are only applicable to town and county property taxes that were due on Apr. 30. Visit townofryeny.com to view the necessary papers to prove financial hardship.

Additionally, towns concerned about property tax revenue shortages can now submit less than 60 percent of taxes due to the county on May 25 if they eliminate the late fees up until July 15. However, Rye Town Supervisor Gary Zuckerman said he does not believe that will be necessary here.

“I don’t think we’ll have a large number of people not paying,” Zuckerman said during a Rye Town Council meeting on Tuesday, Apr. 21. “But these are tough times. And the county, the towns and the state are all walking a line. We are between being cognizant of difficulties of people while at the same time fulfilling financial responsibilities.”

During the meeting, the council also gave Zuckerman permission to take out a Tax Anticipation Note (TAN), if necessary. A TAN would give Rye Town financing before appropriate tax revenues were collected. However, he said right now there is no need for it.

“We don’t want to issue a TAN, but I want the authorization to do so if it becomes necessary,” Zuckerman said.