S T A T E O F N E W Y O R K
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1746
2017-2018 Regular Sessions
I N A S S E M B L Y
January 12, 2017
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Introduced by M. of A. PRETLOW -- read once and referred to the Commit-
tee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to providing for
the imposition of a civil penalty for the failure of a cooperative
apartment corporation to credit the STAR exemption to the tenant-
stockholders thereof and for the recoupment by such tenant-stockhold-
ers of amounts due them
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subparagraph (iii) of paragraph (k) of subdivision 2 of
section 425 of the real property tax law is amended by adding a new
clause (C) to read as follows:
(C)(I) THE FAILURE OF ANY COOPERATIVE APARTMENT CORPORATION TO COMPLY
WITH THE PROVISIONS OF THIS SUBPARAGRAPH SHALL BE PUNISHABLE BY A CIVIL
PENALTY NOT TO EXCEED FIVE HUNDRED DOLLARS FOR EACH VIOLATION. SUCH
CIVIL PENALTY MAY BE RECOVERED IN A COURT OF COMPETENT JURISDICTION BY
THE COUNTY ATTORNEY OF THE COUNTY IN WHICH THE SUBJECT REAL PROPERTY IS
LOCATED; PROVIDED THAT SUCH PENALTY MAY BE RECOVERED BY THE CORPORATION
COUNSEL OF A CITY IF THE SUBJECT REAL PROPERTY IS LOCATED IN A COUNTY
WHOLLY CONTAINED WITHIN A CITY.
(II) COMMENCING SIXTY DAYS AFTER A COOPERATIVE APARTMENT CORPORATION'S
RECEIPT OF A TAX BILL AND, UPON SUCH FAILURE, EACH TENANT-STOCKHOLDER
DENIED SUCH CREDIT OR PAYMENT MAY WITHHOLD FROM THE COOPERATIVE APART-
MENT CORPORATION ANY PAYMENTS DUE FROM SUCH TENANT-STOCKHOLDER TO SUCH
COOPERATIVE APARTMENT CORPORATION FOR THE FOLLOWING MONTH OR MONTHS
UNTIL SUCH CREDIT OR PAYMENT HAS BEEN FULLY RECOUPED BY SUCH TENANT-
STOCKHOLDER.
(III) THE REMEDIES AFFORDED BY SUBCLAUSES (I) AND (II) OF THIS CLAUSE
SHALL NOT LIE IF ANY SUCH FAILURE IS ATTRIBUTABLE TO AN ERROR ON THE
PART OF AN ASSESSOR OR A TAXING AUTHORITY.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04227-01-7
A. 1746 2
(1) IN ANY ACTION OR PROCEEDING BROUGHT PURSUANT TO SUBCLAUSE (I) OF
THIS CLAUSE, IT SHALL BE AN AFFIRMATIVE DEFENSE THAT SUCH FAILURE IS SO
ATTRIBUTABLE. IF A COOPERATIVE APARTMENT CORPORATION BRINGS A PROCEEDING
PURSUANT TO ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES OR
AN ACTION FOR DECLARATORY OR INJUNCTIVE RELIEF OR BOTH FORMS OF RELIEF
CONTESTING SUCH TAX BILL, ANY ACTION OR PROCEEDING BROUGHT PURSUANT TO
SUBCLAUSE (I) OF THIS CLAUSE SHALL BE STAYED BY THE COURT PENDING THE
DETERMINATION OF SUCH ACTION OR PROCEEDING BROUGHT BY SUCH COOPERATIVE
APARTMENT CORPORATION. IF SUCH PROCEEDING OR ACTION BROUGHT BY SUCH
COOPERATIVE APARTMENT CORPORATION BE DETERMINED IN FAVOR OF SUCH COOPER-
ATIVE APARTMENT CORPORATION, SUCH ACTION OR PROCEEDING BROUGHT PURSUANT
TO SUBCLAUSE (I) OF THIS CLAUSE SHALL THEREUPON BE DISMISSED. IF SUCH
PROCEEDING OR ACTION BROUGHT BY SUCH COOPERATIVE APARTMENT CORPORATION
BE OTHERWISE DETERMINED OR CONCLUDED, SUCH STAY OF SUCH ACTION OR
PROCEEDING BROUGHT PURSUANT TO SUBCLAUSE (I) OF THIS CLAUSE SHALL BE
LIFTED BY THE COURT AND THE REMEDY AFFORDED UNDER SUBCLAUSE (II) OF THIS
CLAUSE SHALL THEREUPON LIE.
(2) THE REMEDY AFFORDED BY SUBCLAUSE (II) OF THIS CLAUSE SHALL NOT LIE
PENDING THE OUTCOME OF SUCH PROCEEDING OR ACTIONS IF, WITHIN SIXTY DAYS
OF RECEIPT OF THE TAX BILL, THE COOPERATIVE APARTMENT CORPORATION BRINGS
A PROCEEDING PURSUANT TO ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW
AND RULES OR AN ACTION FOR DECLARATORY OR INJUNCTIVE RELIEF OR BOTH
FORMS OF RELIEF CONTESTING SUCH TAX BILL, GIVES NOTICE OF THE INSTITU-
TION OF SUCH PROCEEDING OR ACTION TO ALL AFFECTED TENANT-STOCKHOLDERS,
AND GIVES NOTICE OF THE OUTCOME OF SUCH ACTION OR PROCEEDING WITHIN
THIRTY DAYS OF THE DETERMINATION THEREOF TO ALL AFFECTED TENANT-STOCK-
HOLDERS. IF THE PROCEEDING OR ACTION BE DETERMINED IN FAVOR OF THE COOP-
ERATIVE APARTMENT CORPORATION, NO REMEDY SHALL LIE UNDER SUBCLAUSE (II)
OF THIS CLAUSE. IF THE PROCEEDING OR ACTION BE OTHERWISE DETERMINED OR
CONCLUDED, THE REMEDY AFFORDED UNDER SUBCLAUSE (II) OF THIS CLAUSE SHALL
THEREUPON LIE.
§ 2. This act shall take effect immediately and shall apply to the
administration of the school tax relief (STAR) exemption authorized by
section 425 of the real property tax law beginning with the 2017-2018
school year.