State Tax Warrants

June 18, 2025

Subject: Important Change to New York Tax Law Affecting Real Property – Effective July 1, 2025

Dear Clients,

We want to alert you to a major change in New York State tax law that will affect real property interests and title searches statewide.

On May 9, 2025, New York State amended Section 6 of the Tax Law, effective July 1st. Under this change, any 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.

Under this revised statute, any tax warrant filed electronically by the New York State Department of Taxation and Finance with the Department of State (DOS) will constitute constructive notice of a lien in all 62 counties of New York. In effect, a single electronic filing will create a statewide lien on all real, personal, and other property of the named taxpayer.

This is a major shift from current practice, where warrants are docketed at the county level. While these liens will be searchable through the Department of State’s Tax Warrant Notice System, this database is currently unofficial. It’s unclear whether future filings will also appear in individual County Clerk records, meaning searches may need to include both sources.

One key uncertainty is whether warrants filed before July 1st on the DOS system will retroactively create statewide liens. To date we have received conflicting guidance on this point.

We are actively monitoring the situation and working with the NYS Land Title Association, Underwriters, Bar Associations, and others to gain clarity. This change will increase both the risk and complexity of clearing title.

You may see multiple new State Tax Warrants against seller’s names show up on closing continuations done after June 30th.  Consider having appropriate affidavits prepared in advance.

Running this new DOS system will increase the time and difficulty of searches which may lead to additional fees.  

We will share updates on our website and LinkedIn page as more information becomes available. In the meantime, we recommend exercising caution and consulting your advisors on transactions or secured lending involving New York property.

Please don’t hesitate to reach out with any questions.