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

                                  4090

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            January 30, 2013
                               ___________

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.
                                                           LBD07560-01-3

              

A. 4090                             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.
  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 2013-2014
school year.