S T A T E O F N E W Y O R K
________________________________________________________________________
3406--A
2011-2012 Regular Sessions
I N A S S E M B L Y
January 25, 2011
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Introduced by M. of A. PRETLOW -- read once and referred to the Commit-
tee on Real Property Taxation -- recommitted to the Committee on Real
Property Taxation in accordance with Assembly Rule 3, sec. 2 --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
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:
1 Section 1. Subparagraph (iii) of paragraph (k) of subdivision 2 of
2 section 425 of the real property tax law is amended by adding a new
3 clause (C) to read as follows:
4 (C)(I) THE FAILURE OF ANY COOPERATIVE APARTMENT CORPORATION TO COMPLY
5 WITH THE PROVISIONS OF THIS SUBPARAGRAPH SHALL BE PUNISHABLE BY A CIVIL
6 PENALTY NOT TO EXCEED FIVE HUNDRED DOLLARS FOR EACH VIOLATION. SUCH
7 CIVIL PENALTY MAY BE RECOVERED IN A COURT OF COMPETENT JURISDICTION BY
8 THE COUNTY ATTORNEY OF THE COUNTY IN WHICH THE SUBJECT REAL PROPERTY IS
9 LOCATED; PROVIDED THAT SUCH PENALTY MAY BE RECOVERED BY THE CORPORATION
10 COUNSEL OF A CITY IF THE SUBJECT REAL PROPERTY IS LOCATED IN A COUNTY
11 WHOLLY CONTAINED WITHIN A CITY.
12 (II) COMMENCING SIXTY DAYS AFTER A COOPERATIVE APARTMENT CORPORATION'S
13 RECEIPT OF A TAX BILL AND, UPON SUCH FAILURE, EACH TENANT-STOCKHOLDER
14 DENIED SUCH CREDIT OR PAYMENT MAY WITHHOLD FROM THE COOPERATIVE APART-
15 MENT CORPORATION ANY PAYMENTS DUE FROM SUCH TENANT-STOCKHOLDER TO SUCH
16 COOPERATIVE APARTMENT CORPORATION FOR THE FOLLOWING MONTH OR MONTHS
17 UNTIL SUCH CREDIT OR PAYMENT HAS BEEN FULLY RECOUPED BY SUCH
18 TENANT-STOCKHOLDER.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07210-02-2
A. 3406--A 2
1 (III) THE REMEDIES AFFORDED BY SUBCLAUSES (I) AND (II) OF THIS CLAUSE
2 SHALL NOT LIE IF ANY SUCH FAILURE IS ATTRIBUTABLE TO AN ERROR ON THE
3 PART OF AN ASSESSOR OR A TAXING AUTHORITY.
4 (1) IN ANY ACTION OR PROCEEDING BROUGHT PURSUANT TO SUBCLAUSE (I) OF
5 THIS CLAUSE, IT SHALL BE AN AFFIRMATIVE DEFENSE THAT SUCH FAILURE IS SO
6 ATTRIBUTABLE. IF A COOPERATIVE APARTMENT CORPORATION BRINGS A PROCEEDING
7 PURSUANT TO ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES OR
8 AN ACTION FOR DECLARATORY OR INJUNCTIVE RELIEF OR BOTH FORMS OF RELIEF
9 CONTESTING SUCH TAX BILL, ANY ACTION OR PROCEEDING BROUGHT PURSUANT TO
10 SUBCLAUSE (I) OF THIS CLAUSE SHALL BE STAYED BY THE COURT PENDING THE
11 DETERMINATION OF SUCH ACTION OR PROCEEDING BROUGHT BY SUCH COOPERATIVE
12 APARTMENT CORPORATION. IF SUCH PROCEEDING OR ACTION BROUGHT BY SUCH
13 COOPERATIVE APARTMENT CORPORATION BE DETERMINED IN FAVOR OF SUCH COOPER-
14 ATIVE APARTMENT CORPORATION, SUCH ACTION OR PROCEEDING BROUGHT PURSUANT
15 TO SUBCLAUSE (I) OF THIS CLAUSE SHALL THEREUPON BE DISMISSED. IF SUCH
16 PROCEEDING OR ACTION BROUGHT BY SUCH COOPERATIVE APARTMENT CORPORATION
17 BE OTHERWISE DETERMINED OR CONCLUDED, SUCH STAY OF SUCH ACTION OR
18 PROCEEDING BROUGHT PURSUANT TO SUBCLAUSE (I) OF THIS CLAUSE SHALL BE
19 LIFTED BY THE COURT AND THE REMEDY AFFORDED UNDER SUBCLAUSE (II) OF THIS
20 CLAUSE SHALL THEREUPON LIE.
21 (2) THE REMEDY AFFORDED BY SUBCLAUSE (II) OF THIS CLAUSE SHALL NOT LIE
22 PENDING THE OUTCOME OF SUCH PROCEEDING OR ACTIONS IF, WITHIN SIXTY DAYS
23 OF RECEIPT OF THE TAX BILL, THE COOPERATIVE APARTMENT CORPORATION BRINGS
24 A PROCEEDING PURSUANT TO ARTICLE SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW
25 AND RULES OR AN ACTION FOR DECLARATORY OR INJUNCTIVE RELIEF OR BOTH
26 FORMS OF RELIEF CONTESTING SUCH TAX BILL, GIVES NOTICE OF THE INSTITU-
27 TION OF SUCH PROCEEDING OR ACTION TO ALL AFFECTED TENANT-STOCKHOLDERS,
28 AND GIVES NOTICE OF THE OUTCOME OF SUCH ACTION OR PROCEEDING WITHIN
29 THIRTY DAYS OF THE DETERMINATION THEREOF TO ALL AFFECTED TENANT-STOCK-
30 HOLDERS. IF THE PROCEEDING OR ACTION BE DETERMINED IN FAVOR OF THE COOP-
31 ERATIVE APARTMENT CORPORATION, NO REMEDY SHALL LIE UNDER SUBCLAUSE (II)
32 OF THIS CLAUSE. IF THE PROCEEDING OR ACTION BE OTHERWISE DETERMINED OR
33 CONCLUDED, THE REMEDY AFFORDED UNDER SUBCLAUSE (II) OF THIS CLAUSE SHALL
34 THEREUPON LIE.
35 S 2. This act shall take effect immediately and shall apply to the
36 administration of the school tax relief (STAR) exemption authorized by
37 section 425 of the real property tax law beginning with the 2012-2013
38 school year.