6/30/2025

RE: State Tax Warrants effective 7/1/2025 - Memo

New York State Tax Law - State Tax Warrants -

Lien Docketing with Department of State

On May 9, 2025, New York State amended Section 6 of the State Tax Law, related to filing State Tax Warrants, to be effective as of JULY 1, 2025. Under this amendment, any state tax warrant filed electronically by the Department of Taxation and Finance with the Department of State will create a statewide lien on all real, personal, and after-acquired property of the taxpayer without the need for county-level filing. Such filing provides constructive notice of a lien in all 62 counties of NY with a single filing. Previously, for a state tax warrant to attach to real property, the Department of Taxation and Finance would need to file the lien with the county clerk. This is no longer required as of the effective date of the legislative amendment, July 1, 2025. State tax warrants will be required to filed with the Department of State from July 1, 2025, forward. The liens will be searchable through the Department of State’s Tax Warrant System, which database is currently unofficial. 

At this time, our understanding is that State Tax Warrants that have been previously filed electronically with the Department of State (prior to July 1, 2025), will not become liens on real property as of the effective date of the legislation. State Tax Warrants filed prior to July 1, 2025, will rather be governed by the prior statutory scheme. This means that in order for a State Tax Warrant filed prior to July 1, 2025, to attach to real property as a lien, it will need to be docketed with the county clerk in county which the property is located.

 It is unclear if the Department of Taxation and Finance will continue to also file at the County Clerk level after July 1, 2025, or will solely file as required with Department of State. Due to this, title companies will need to search both indices, state and county, to ensure that all effective liens as of July 1, 2025, are captured in our title searches.

We are actively monitoring the practical and logistical rollout from the Department of State and Department of Taxation and Finance with the State Land Title Association, our Underwriters, and various Bar Associations in New York. Updates and guidance will be provided as they become available.

If you should have any questions, please contact Anthony Chiellino (achiellino@prestitle.com), John Bauer, Esq.(jbauer@prestitle.com), or Ryan Considine, Esq. (rconsidine@prestitle.com) via email, phone at 212-651-1200 or website at prestitle.com.

Thank you.