Bulletin: NY000063

Dear Associates:

We have just been made aware of an August 24, 1994 resolution passed by the New York City Council, to amend and restate the City's tax resolution adopted on June 22, 1994. The effect will be to amend the tax rates and to raise the 1994-95 real estate taxes in mid-year, but covering the entire tax year period. An amended real property tax bill for the installment or installments due on or after January 1, 1995 will be sent out by the City. The revised bills will reflect adjustments which may be required covering the first half period.

Event though the period covered will include the first half of the tax year, we are advised that the increased tax will not be a lien or due and payable until at least January 1, 1995.

Coverage under policies issued to date omitting first and second quarter 1994-95 NYC real estate taxes is unaffected, since any additional tax covering a retroactive period will not be a lien until January 1, 1995. However, now that we are aware of the changes, we need to alert our customers. Prospectively, an exception should be raised in Schedule B of all unclosed preliminary title certificates or commitments where the property is located in New York City, as follows:

T-14 "Note for Information Only:
By Resolution of the New York City Council dated August 24, 1994, the City's tax resolution of June 22, 1994 was amended. Tax rates for the entire 1994-95 fiscal year have been reassessed, but any additional tax due will not be a lien, or due and payable, until a date on or after January 1, 1995. The title policy, by its terms, does not cover against the lien of taxes which are not yet due. This note is informational and will not appear in the policy."

A copy of the City's resolution is annexed to this bulletin.

This issue is also discussed in the latest issue of Metes and Bounds (November 1994, Vol. 1, No. 3), Stewart Title's publication for agents to distribute to your customers.