S T A T E   O F   N E W   Y O R K
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                                 837--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                             January 7, 2015
                               ___________

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:

  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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05480-03-6

              

A. 837--A                           2

  (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.
  (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.
  S  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 2016-2017
school year.