What's happening
This bill imposes civil penalties on cooperative apartment corporations that fail to credit STAR tax exemptions to eligible tenant-shareholders and allows tenants to withhold payments to recover owed amounts.
Why it matters
Strengthens tenant-shareholder rights. by explicitly allowing those in co-ops to withhold monthly payments if their STAR tax exemption benefit is not properly credited, giving them direct leverage rather than relying solely on complaints or litigation.
Creates real financial consequences for non-compliant co-op boards. through civil penalties up to $500 per violation, which may motivate better compliance and accountability in handling tax exemptions for residents.
Establishes clear legal procedures and protections. Co-op corporations are protected from penalties if the failure to credit STAR exemptions is due to government (assessor/tax authority) error, and any disputes or legal actions are paused if the co-op contests the tax bill in court, ensuring fairness for both sides.
Improves transparency and communication requirements. by mandating that co-op boards notify affected shareholders about any legal proceedings and the outcomes if the STAR credit is being contested, reducing confusion and keeping residents informed about their rights and the status of their exemptions.
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Who cares
Headline styles
Fine Co-ops for STAR Violations
Plain English, a few words. Used as the page title.
Sponsors
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History
- Referred to real property taxation
- Referred to real property taxation
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Fine Co-ops for STAR Violations
In Senate Committee · Local Government · Sponsor Brad Hoylman-Sigal
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1746
2017-2018 Regular Sessions
IN ASSEMBLY
January 12, 2017
Introduced by M. of A. PRETLOW -- read once and referred to the Committee 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 tenantstockholders thereof and for the recoupment by such tenant-stockholders of amounts due them
The People of the State of New York, represented in Senate and Assembly, 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 apartment 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 tenantstockholder.
(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
A. 1746 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 cooperative 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 institution 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-stockholders. If the proceeding or action be determined in favor of the cooperative 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.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.