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

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2015
                               ___________

Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations -- recommitted to the Committee on Investigations  and
  Government  Operations  in  accordance  with  Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

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 (ccc) to read as follows:
  (CCC) 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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01461-03-6
              

S. 767--A                           2

  (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.
  (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

S. 767--A                           3

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 FORMER SECTION FOUR HUNDRED FIFTY-EIGHT OF THE REAL
PROPERTY TAX LAW, FOR ANY REAL PROPERTY TAXABLE  YEAR  BETWEEN  NINETEEN
HUNDRED  EIGHTY-ONE AND NINETEEN HUNDRED NINETY SHALL RECEIVE EITHER THE
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 and as further amended by
subdivision (b) of section 1 of part W of chapter  56  of  the  laws  of
2010, 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 commissioner 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 commissioner 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 commissioner 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

S. 767--A                           4

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
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 (CCC) 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,

S. 767--A                           5

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
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 amended by chapter 97 of the laws of 2013, is amended
to read as follows:

S. 767--A                           6

  (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
hundred  twenty-b,  four  hundred  twenty-five, four hundred thirty-six,
[four hundred fifty-eight, four  hundred  fifty-eight-a,]  four  hundred
fifty-nine-c,  four  hundred  sixty-two,  four hundred sixty-seven, four
hundred sixty-seven-b, four hundred  ninety-nine-bbb,  or  four  hundred
ninety-nine-bbbb  of this article, or if the property 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,  2017,
provided, however, that section four of this act shall take effect Janu-
ary 1, 2017.