S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3802

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            January 28, 2009
                               ___________

Introduced by M. of A. LENTOL -- read once and referred to the Committee
  on Ways and Means

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 (qq) to read as follows:
  (QQ) 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
PROPERTY  TAXES  PAID  DURING THE TAXABLE YEAR TO A MUNICIPALITY, NOT TO
EXCEED TWO HUNDRED DOLLARS, AGAINST THE TAX IMPOSED BY THIS ARTICLE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05880-01-9
              

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  (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 SECTION FOUR HUNDRED FIFTY-EIGHT OF THE REAL  PROP-
ERTY  TAX  LAW,  FOR  ANY  REAL  PROPERTY  TAXABLE YEAR BETWEEN NINETEEN
HUNDRED EIGHTY-ONE AND NINETEEN HUNDRED NINETY SHALL RECEIVE EITHER  THE

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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.
  S  2.  Subdivision  1  of section 844 of the real property tax law, as
amended by chapter 654 of the laws  of  2004,  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 state board 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  state board 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 state board shall
concurrently therewith notify the county that county taxes may be appor-
tioned in the manner provided by subdivision two of this section.
  S 3. Section 51 of the general municipal law, as  amended  by  chapter
614 of the laws of 1981, is amended to read as follows:
   S  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 property, funds or estate of such county, town, village or municipal
corporation by any person or corporation whose  assessment,  or  by  any
number of persons or corporations, jointly, the sum of whose assessments
shall  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

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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, jointly, 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 municipal 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 (QQ) 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  there-
from 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  thou-
sand  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 suffi-
cient 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 plain-
tiff 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  corporation,  by  collusion  or  otherwise,
contracting, auditing, allowing or paying, or conniving at the contract-
ing,  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 without the interposition and  proper  presentation
of  any  existing legal or equitable defenses, or by any such officer or
agent, retaining or failing 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 by the person or party heretofore  or  here-
after  receiving or retaining the same, and also may, in its discretion,
adjudge and declare the  colluding  or  defaulting  official  personally

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responsible therefor, and out of his property, and that of his bondsmen,
if any, provide for the collection or repayment thereof, so as to indem-
nify  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  judg-
ment,  with  leave  and direction for the defendant therein to interpose
and enforce any existing 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 commis-
sion  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 assessments upon real estate or to  require  the  levy  of  such
taxes or assessments or for which taxes or benefit assessments upon real
estate may be required pursuant to law to be levied, including the Alba-
ny  port  district commission, are hereby declared to be public records,
and shall be open during all regular business hours, subject to  reason-
able regulations 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 regularly kept. This section shall not be so construed as to
take  away any right of action from any county, town, village or munici-
pal 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 officer or other person, his bondsmen, if any, may be joined
in  such  action or proceeding and their liabilities as such enforced by
the proper judgment 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 officer entitled by law to  hold  and  disburse  the  public
moneys  of  such  county,  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 jurisdiction over the subject-matter of its action.
  S  4.  Section 11-245.45 of the administrative code of the city of New
York is REPEALED.
  S 5. Sections 11-245.5, 11-245.6 and 11-245.7  of  the  administrative
code of the city of New York are REPEALED.
  S 6. Paragraph (f) of subdivision 2 of section 467-a of the real prop-
erty  tax law, as separately amended by chapters 461 and 473 of the laws
of 2008, 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,
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

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hundred twenty-b, four hundred thirty-six,  [four  hundred  fifty-eight,
four  hundred  fifty-eight-a,]  four  hundred  sixty-two,  four  hundred
sixty-seven, four hundred sixty-seven-b, or  four  hundred  ninety-nine-
bbb, or four hundred ninety-nine-bbbb of this article, or if the proper-
ty  is  receiving  a  tax  abatement but not a tax exemption pursuant to
section four hundred eighty-nine of this article.
  S 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.
  S 8. Sections 458 and 458-a of the real property tax law are REPEALED.
  S 9. This act  shall  take  effect  immediately  and  shall  apply  to
personal  income  taxable  years beginning on and after January 1, 2010,
provided, however, that section four of this act shall take effect Janu-
ary 1, 2010.