S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    756
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 9, 2019
                                ___________
 
 Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Veterans, Homeland Securi-
   ty and Military Affairs
 
 AN ACT to amend the tax law, the real property tax law and  the  general
   municipal law, in relation to providing personal income tax credit for
   real property taxes paid by honorably discharged veterans or the unre-
   married surviving spouses of such veterans; and to repeal sections 458
   and  458-a  of  the  real  property  tax  law  and sections 11-245.45,
   11-245.5, 11-245.6 and 11-245.7 of the administrative code of the city
   of New York relating thereto
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  606  of  the  tax law is amended by adding a new
 subsection (jjj) to read as follows:
   (JJJ) REAL PROPERTY TAX CREDIT FOR VETERANS. (1) A TAXPAYER WHO IS  AN
 HONORABLY  DISCHARGED  VETERAN  OF THE SPANISH-AMERICAN WAR, THE MEXICAN
 BORDER PERIOD,  WORLD  WAR  I,  WORLD  WAR  II,  THE  HOSTILITIES  WHICH
 COMMENCED  JUNE  TWENTY-SEVENTH,  NINETEEN  HUNDRED FIFTY TO THE THIRTY-
 FIRST OF  JANUARY,  NINETEEN  HUNDRED  FIFTY-FIVE,  OR  THE  HOSTILITIES
 PARTICIPATED  IN  BY  THE MILITARY FORCES OF THE UNITED STATES, FROM THE
 FIRST DAY OF JANUARY, NINETEEN HUNDRED SIXTY-THREE, TO  THE  SEVENTH  OF
 MAY,  NINETEEN HUNDRED SEVENTY-FIVE; OR THE UNREMARRIED SURVIVING SPOUSE
 OF SUCH VETERAN SHALL BE ALLOWED A CREDIT OF  FIFTEEN  PERCENT  OF  REAL
 PROPERTY  TAXES  PAID  DURING  THE TAXABLE YEAR TO A MUNICIPALITY NOT TO
 EXCEED TWO HUNDRED FIFTY DOLLARS AGAINST THE TAX IMPOSED BY  THIS  ARTI-
 CLE.
   (2) ANY SUCH TAXPAYER WHO SERVED IN A COMBAT THEATRE OR COMBAT ZONE OF
 OPERATIONS,  AS  DOCUMENTED  BY  THE  AWARD  OF A UNITED STATES CAMPAIGN
 RIBBON OR SERVICE MEDAL, OR THE UNREMARRIED  SURVIVING  SPOUSE  OF  SUCH
 VETERAN,  SHALL  BE  ALLOWED AN ADDITIONAL CREDIT OF TEN PERCENT OF REAL
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD02608-01-9

 S. 756                              2
 
 PROPERTY TAXES PAID DURING THE TAXABLE YEAR TO A  MUNICIPALITY,  NOT  TO
 EXCEED TWO HUNDRED DOLLARS, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (3)  ANY  SUCH  TAXPAYER  WHO  SUSTAINED A ONE HUNDRED PERCENT SERVICE
 CONNECTED DISABILITY,  OR  THE  UNREMARRIED  SURVIVING  SPOUSE  OF  SUCH
 TAXPAYER,  SHALL  BE  ALLOWED A CREDIT OF SIXTY PERCENT OF REAL PROPERTY
 TAXES PAID DURING THE TAXABLE YEAR TO A MUNICIPALITY, NOT TO EXCEED  ONE
 THOUSAND DOLLARS, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (4)  ANY SUCH TAXPAYER WHO SUSTAINED A SERVICE CONNECTED DISABILITY IN
 EXCESS OF FIFTY PERCENT BUT LESS THAN ONE HUNDRED PERCENT, OR THE  UNRE-
 MARRIED  SURVIVING SPOUSE OF SUCH TAXPAYER, SHALL BE ALLOWED A CREDIT OF
 FORTY-FIVE PERCENT OF REAL PROPERTY TAXES PAID DURING THE  TAXABLE  YEAR
 TO  A  MUNICIPALITY,  NOT TO EXCEED SEVEN HUNDRED FIFTY DOLLARS, AGAINST
 THE TAX IMPOSED BY THIS ARTICLE.
   (5) ANY SUCH TAXPAYER WHO SUSTAINED A SERVICE CONNECTED DISABILITY  OF
 LESS  THAN  FIFTY  PERCENT,  OR THE UNREMARRIED SURVIVING SPOUSE OF SUCH
 TAXPAYER, SHALL BE ALLOWED A CREDIT OF THIRTY PERCENT OF  REAL  PROPERTY
 TAXES PAID DURING THE TAXABLE YEAR TO A MUNICIPALITY, NOT TO EXCEED FIVE
 HUNDRED DOLLARS, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   (6)  A TAXPAYER, OR THE UNREMARRIED SURVIVING SPOUSE OF SUCH TAXPAYER,
 DESCRIBED  IN  PARAGRAPHS  ONE  THROUGH  FIVE,  RESPECTIVELY,  OF   THIS
 SUBSECTION  WHO  RENTED  REAL PROPERTY FOR PERSONAL RESIDENTIAL PURPOSES
 SHALL DETERMINE THE PERCENTAGE OF TOTAL RENTAL PAYMENTS ATTRIBUTABLE  TO
 PAYMENT  OF  REAL  PROPERTY TAXES IMPOSED UPON THE LESSOR AND TREAT SUCH
 PERCENTAGE OF PAYMENTS,  FOR  PURPOSES  OF  CREDITS  PERMITTED  BY  THIS
 SUBSECTION, AS IF SUCH TAXPAYER HAD PAID REAL PROPERTY TAXES DIRECTLY TO
 THE TAXING MUNICIPALITY.
   (7)  A TAXPAYER, OR THE UNREMARRIED SURVIVING SPOUSE OF SUCH TAXPAYER,
 DESCRIBED  IN  PARAGRAPHS  ONE  THROUGH  FIVE,  RESPECTIVELY,  OF   THIS
 SUBSECTION  WHO OWNS SHARES OF A RESIDENTIAL COOPERATIVE CORPORATION AND
 OCCUPIES AN APARTMENT AS HIS OR  HER  PRINCIPAL  RESIDENCE  PURSUANT  TO
 PROPRIETARY  LEASE  FOR SAID APARTMENT, SHALL COMPUTE HIS OR HER PROPOR-
 TIONATE SHARE OF THE REAL PROPERTY TAXES PAID BY THE COOPERATIVE  CORPO-
 RATION  FOR  PURPOSES OF CREDITS PERMITTED BY THIS SUBSECTION AS IF SUCH
 TAXPAYER HAD PAID REAL PROPERTY TAXES DIRECTLY  TO  THE  TAXING  MUNICI-
 PALITY.
   (8)  SUCH  TAX  CREDITS WILL BE GRANTED ON "QUALIFYING REAL PROPERTY".
 "QUALIFYING REAL PROPERTY" MEANS PROPERTY CONTAINING THREE OR LESS RESI-
 DENTIAL OR COMMERCIAL UNITS (BUT NOT LESS  THAN  ONE  RESIDENTIAL  UNIT)
 OWNED  OR,  IN  THE CASE OF AN APARTMENT OR OTHER SUCH UNIT, RENTED BY A
 TAXPAYER DESCRIBED IN THIS SUBSECTION OR IN THE CASE  OF  A  COOPERATIVE
 APARTMENT, OCCUPIED BY A TENANT-SHAREHOLDER OF A COOPERATIVE CORPORATION
 WHO  IS A TAXPAYER DESCRIBED IN THIS SUBSECTION, WHICH IS USED WHOLLY OR
 PARTIALLY FOR RESIDENTIAL PURPOSES.  SUCH PROPERTY, OR A  UNIT  THEREOF,
 MUST  BE  THE  PRIMARY RESIDENCE OF THE VETERAN OR UNREMARRIED SURVIVING
 SPOUSE OF THE VETERAN,  UNLESS  THE  VETERAN  OR  UNREMARRIED  SURVIVING
 SPOUSE  IS  ABSENT  FROM THE PROPERTY DUE TO MEDICAL REASONS OR INSTITU-
 TIONALIZATION. IN THE EVENT THE VETERAN DIES AND THERE IS NO UNREMARRIED
 SURVIVING  SPOUSE,  "QUALIFYING  REAL  PROPERTY"  SHALL  MEAN   PROPERTY
 CONTAINING  THE  PRIMARY  RESIDENCE  OWNED BY A QUALIFIED OWNER PRIOR TO
 DEATH, PROVIDED THAT THE TITLE TO THE PROPERTY  BECOMES  VESTED  IN  THE
 DEPENDENT  FATHER OR MOTHER OR DEPENDENT CHILD OR CHILDREN UNDER TWENTY-
 ONE YEARS OF AGE OF A VETERAN BY VIRTUE OF DEVISE BY OR DESCENT FROM THE
 DECEASED QUALIFIED OWNER, PROVIDED THAT THE PROPERTY OR A  UNIT  THEREOF
 IS THE PRIMARY RESIDENCE OF ONE OR ALL OF THE DEVISEES.
   (9)  SUCH  VETERANS WHO RECEIVED REAL PROPERTY TAX EXEMPTIONS PURSUANT
 TO THE PROVISIONS OF FORMER SECTION FOUR HUNDRED FIFTY-EIGHT OF THE REAL

 S. 756                              3

 PROPERTY TAX LAW, FOR ANY REAL PROPERTY TAXABLE  YEAR  BETWEEN  NINETEEN
 HUNDRED  EIGHTY-ONE AND NINETEEN HUNDRED NINETY SHALL RECEIVE EITHER THE
 CREDITS PROVIDED FOR IN THIS SUBSECTION OR A CREDIT  IN  THE  AMOUNT  OF
 REAL  PROPERTY  TAX  SAVINGS  IN  THIS  SUBSECTION,  RESULTING FROM SUCH
 EXEMPTIONS FOR ANY ONE OF SUCH REAL PROPERTY TAXABLE YEARS, WHICHEVER IS
 GREATER.
   (10) NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SUBSECTION, SUCH
 VETERANS WHO  HAVE  RECEIVED  ASSISTANCE  FROM  THE  FEDERAL  GOVERNMENT
 TOWARDS THE ACQUISITION OF A SUITABLE HOUSING UNIT WITH SPECIAL FIXTURES
 OR  MOVABLE  FACILITIES  MADE  NECESSARY  BY THE NATURE OF THE VETERAN'S
 DISABILITY SHALL BE ENTITLED TO A CREDIT EQUAL TO ONE HUNDRED PERCENT OF
 THE REAL PROPERTY TAXES PAID ON THE  VETERAN'S  RESIDENCE  OR  THE  RENT
 ATTRIBUTABLE  TO REAL PROPERTY TAXES, INCLUDING SCHOOL TAXES AND SPECIAL
 ASSESSMENTS, DURING THE CALENDAR YEAR.
   (11) CREDITS WHICH EXCEED THE AMOUNT OF TAX DUE SHALL BE  REFUNDED  TO
 THE  TAXPAYER.  THE COMMISSIONER SHALL PREPARE FORMS TO BE USED FOR SUCH
 REFUNDS BY TAXPAYERS NOT REQUIRED TO FILE RETURNS PURSUANT TO THIS ARTI-
 CLE.
   (12) THE COMMISSIONER SHALL PROMULGATE RULES AND REGULATIONS TO IMPLE-
 MENT THE PROVISIONS OF THIS SUBSECTION.
   § 2. Subdivision 1 of section 844 of the real  property  tax  law,  as
 amended  by  chapter  654  of the laws of 2004 and as further amended by
 subdivision (b) of section 1 of part W of chapter  56  of  the  laws  of
 2010, is amended to read as follows:
   1. In any county to which this title is applicable, county taxes shall
 be apportioned among the cities and towns within the county on the basis
 of  the  proportion of the total full valuation of taxable real property
 within the county which is located within each city and town. This total
 valuation shall be determined by dividing the taxable assessed value  of
 taxable  real property by the appropriate city or town equalization rate
 as certified by the commissioner pursuant to this title. For purposes of
 this section:  (a) "taxable real property" excludes real property which,
 by statute, is wholly exempt from county taxation, (b) "taxable assessed
 value" is limited to the assessed value actually subject to county taxa-
 tion except that it also includes the amount of assessed value partially
 exempt from county taxation  pursuant  to  (i)  sections  [four  hundred
 fifty-eight,]  four  hundred  sixty  and four hundred sixty-four of this
 chapter, and (ii) such other sections of law as the  county  legislature
 designates  by  resolution  to be included in the total valuation. Where
 the commissioner furnishes the same state equalization or special equal-
 ization rate for two or more of the cities and towns in the  county  for
 use by that county in the apportionment of taxes, the commissioner shall
 concurrently therewith notify the county that county taxes may be appor-
 tioned in the manner provided by subdivision two of this section.
   §  3.  Section  51 of the general municipal law, as amended by chapter
 614 of the laws of 1981, is amended to read as follows:
   § 51. Prosecution of officers for illegal acts.  All officers, agents,
 commissioners and other persons acting, or who have acted,  for  and  on
 behalf  of  any  county,  town, village or municipal corporation in this
 state, and each and every one of them, may be prosecuted, and an  action
 may  be  maintained  against them to prevent any illegal official act on
 the part of any such officers, agents, commissioners or  other  persons,
 or to prevent waste or injury to, or to restore and make good, any prop-
 erty,  funds or estate of such county, town, village or municipal corpo-
 ration by any person or corporation whose assessment, or by  any  number
 of  persons or corporations, jointly, the sum of whose assessments shall

 S. 756                              4
 
 amount to one thousand dollars, and who shall be liable to pay taxes  on
 such assessment in the county, town, village or municipal corporation or
 by any person who owns shares in a cooperative housing corporation where
 the  pro  rata share of the assessment attributable to such shares shall
 amount to one thousand dollars (or by any number of such persons, joint-
 ly, the sum of whose pro  rata  shares  shall  amount  to  one  thousand
 dollars)  and  where the cooperative housing corporation shall be liable
 to pay taxes on such assessment in the county, town, village or  munici-
 pal  corporation  to  prevent  the waste or injury of whose property the
 action is brought, or who have been assessed or paid taxes therein  upon
 any assessment of the above-named amount within one year previous to the
 commencement of any such action, or who has been so assessed but has not
 paid  nor shall be liable to pay any or the full amount of taxes on such
 assessment because of a veteran's [exemption therefrom]  CREDIT  THERETO
 pursuant to SUBSECTION (JJJ) OF section [four] SIX hundred [fifty-eight]
 SIX  of the [real property] tax law, or who has been so assessed but has
 not paid nor shall be liable to pay any or the full amount of  taxes  on
 such  assessment  because  of  an exemption therefrom granted to persons
 sixty-five years of age or over or their spouses pursuant  to  the  real
 property  tax  law.  Such person or corporation upon the commencement of
 such action, shall furnish a  bond  to  the  defendant  therein,  to  be
 approved  by  a  justice of the supreme court or the county judge of the
 county in which the action is brought, in such penalty as the justice or
 judge approving the same shall direct, but not less than two hundred and
 fifty dollars, and to be executed by any two of the plaintiffs, if there
 be more than one party plaintiff, providing said two  parties  plaintiff
 shall  severally justify in the sum of five thousand dollars.  Said bond
 shall be approved by said justice or judge and be conditioned to pay all
 costs that may be awarded the defendant in  such  action  if  the  court
 shall  finally  determine  the same in favor of the defendant. The court
 shall require, when the plaintiffs shall not justify as above mentioned,
 and in any case may require two more sufficient sureties to execute  the
 bond  above  provided for. Such bond shall be filed in the office of the
 county clerk of the county in which the action is brought,  and  a  copy
 shall  be  served  with  the summons in such action. If an injunction is
 obtained as herein provided for, the same bond may also provide for  the
 payment  of  the  damages arising therefrom to the party entitled to the
 money, the auditing, allowing or paying of which was  enjoined,  if  the
 court shall finally determine that the plaintiff is not entitled to such
 injunction.  In  case  the waste or injury complained of consists in any
 board, officer or agent in any county, town, village or municipal corpo-
 ration, by collusion or otherwise, contracting,  auditing,  allowing  or
 paying,  or conniving at the contracting, audit, allowance or payment of
 any fraudulent,  illegal,  unjust  or  inequitable  claims,  demands  or
 expenses,  or  any item or part thereof against or by such county, town,
 village or municipal corporation, or by  permitting  a  judgment  to  be
 recovered  against  such county, town, village or municipal corporation,
 or against himself in his official capacity, either by default or  with-
 out  the  interposition and proper presentation of any existing legal or
 equitable defenses, or by any such officer or agent, retaining or  fail-
 ing  to  pay over to the proper authorities any funds or property of any
 county, town, village or municipal  corporation,  after  he  shall  have
 ceased  to  be  such officer or agent, the court may, in its discretion,
 prohibit the payment or collection of any such claims, demands, expenses
 or judgments, in whole or in part, and shall enforce the restitution and
 recovery thereof, if heretofore or hereafter paid, collected or retained

 S. 756                              5
 
 by the person or party heretofore or hereafter  receiving  or  retaining
 the  same,  and  also  may,  in  its discretion, adjudge and declare the
 colluding or defaulting official personally  responsible  therefor,  and
 out  of  his property, and that of his bondsmen, if any, provide for the
 collection or repayment thereof, so as to indemnify  and  save  harmless
 the  said  county, town, village or municipal corporation from a part or
 the whole thereof; and in case of  a  judgment  the  court  may  in  its
 discretion,  vacate,  set  aside  and open said judgment, with leave and
 direction for the defendant therein to interpose and enforce any  exist-
 ing  legal  or  equitable  defense  therein, under the direction of such
 person as the court  may,  in  its  judgment  or  order,  designate  and
 appoint.  All  books of minutes, entry or account, and the books, bills,
 vouchers, checks, contracts or other papers connected with  or  used  or
 filed  in the office of, or with any officer, board or commission acting
 for or on behalf of any county, town, village or  municipal  corporation
 in this state or any body corporate or other unit of local government in
 this  state  which  possesses the power to levy taxes or benefit assess-
 ments upon real estate or to require the levy of such taxes  or  assess-
 ments  or for which taxes or benefit assessments upon real estate may be
 required pursuant to  law  to  be  levied,  including  the  Albany  port
 district commission, are hereby declared to be public records, and shall
 be  open  during all regular business hours, subject to reasonable regu-
 lations to be adopted by the applicable local legislative body,  to  the
 inspection of any taxpayer or registered voter, who may copy, photograph
 or make photocopies thereof on the premises where such records are regu-
 larly  kept.  This section shall not be so construed as to take away any
 right of action from any county, town, village or municipal corporation,
 or from any public officer, but any right of  action  now  existing,  or
 which  may  hereafter  exist  in  favor  of any county, town, village or
 municipal corporation, or in  favor  of  any  officer  thereof,  may  be
 enforced  by  action or otherwise by the persons hereinbefore authorized
 to prosecute and maintain actions; and whenever  by  the  provisions  of
 this section an action may be prosecuted or maintained against any offi-
 cer  or other person, his bondsmen, if any, may be joined in such action
 or proceeding and their liabilities as such enforced by the proper judg-
 ment or direction of the court; but any recovery under the provisions of
 this article shall be for the benefit of and shall be paid to the  offi-
 cer entitled by law to hold and disburse the public moneys of such coun-
 ty,  town,  village  or  municipal corporation, and shall, to the amount
 thereof, be credited the defendant in determining his liability  in  the
 action  by  the county, town, village or municipal corporation or public
 officer.  The provisions of this article shall apply as  well  to  those
 cases  in  which  the body, board, officer, agent, commissioner or other
 person above named has not, as to those in which it or he has  jurisdic-
 tion over the subject-matter of its action.
   §  4.  Section 11-245.45 of the administrative code of the city of New
 York is REPEALED.
   § 5. Sections 11-245.5, 11-245.6 and 11-245.7  of  the  administrative
 code of the city of New York are REPEALED.
   § 6. Paragraph (f) of subdivision 2 of section 467-a of the real prop-
 erty  tax  law, as amended by chapter 97 of the laws of 2013, is amended
 to read as follows:
   (f) For purposes of this subdivision, a property shall be  deemed  not
 to  be  receiving complete or partial real property tax exemption or tax
 abatement if the property is, or certain  dwelling  units  therein  are,
 receiving  benefits  pursuant to section four hundred, four hundred two,

 S. 756                              6
 
 four hundred four, four hundred six, four hundred  eight,  four  hundred
 ten,  four  hundred  ten-a,  four hundred twelve, four hundred twelve-a,
 four hundred sixteen, four hundred eighteen, four hundred twenty-a, four
 hundred  twenty-b,  four  hundred  twenty-five, four hundred thirty-six,
 [four hundred fifty-eight, four  hundred  fifty-eight-a,]  four  hundred
 fifty-nine-c,  four  hundred  sixty-two,  four hundred sixty-seven, four
 hundred sixty-seven-b, four hundred  ninety-nine-bbb,  or  four  hundred
 ninety-nine-bbbb  of this article, or if the property is receiving a tax
 abatement but not a tax  exemption  pursuant  to  section  four  hundred
 eighty-nine of this article.
   §  7. Subdivision (f) of section 1801 of the real property tax law, as
 amended by chapter 191 of the laws  of  2001,  is  amended  to  read  as
 follows:
   (f)  "Base  proportion" means either: (1) for a special assessing unit
 which is not a city, the proportion of the  taxable  assessed  value  of
 real property which each class constituted of the total taxable assessed
 value  of  all  real  property  as  entered on the final assessment roll
 completed and filed in calendar year nineteen hundred eighty-one of such
 special assessing unit or on the part of that assessment roll applicable
 to a portion of the special assessing unit, except  that  for  town  and
 county  special districts not included within the definition of portion,
 the applicable roll shall be that  which  was  completed  and  filed  in
 calendar  year  two  thousand  one,  or (2) for a special assessing unit
 which is a city, the proportion of the taxable assessed  value  of  real
 property  which  each  class  constituted  of the total taxable assessed
 value of all real property as  entered  on  the  final  assessment  roll
 completed  and filed in calendar year nineteen hundred eighty-four, [and
 as adjusted to  account  for  properties  exempted  under  section  four
 hundred  fifty-eight  of  this chapter to the extent such properties are
 taxable for education purposes,] provided,  however,  that  the  taxable
 assessed  value  of  real  property  subject  to a transition assessment
 pursuant to subdivision three of section eighteen hundred five  of  this
 article shall be determined from the lesser of the transition assessment
 or actual assessment.
   § 8. Sections 458 and 458-a of the real property tax law are REPEALED.
   §  9.  This  act  shall  take  effect  immediately  and shall apply to
 personal income taxable years beginning on and after  January  1,  2021,
 provided, however, that section four of this act shall take effect Janu-
 ary 1, 2021.