S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    76
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2017
                                ___________
 
 Introduced  by  Sen. HOYLMAN -- read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 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.
                                                            LBD04227-01-7

 S. 76                               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.
   §  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 2017-2018
 school year.