What's happening
This bill imposes civil penalties on cooperative apartment corporations that fail to credit the STAR tax exemption to tenant-shareholders and allows tenants to withhold payments to recover owed amounts.
Why it matters
Strengthens tenant-shareholder protections. by giving individuals in co-ops a clear legal right to the STAR tax exemption, and the ability to directly withhold payments if the corporation fails to pass through the benefit, making it easier for residents to enforce their rights without costly litigation.
Creates financial consequences for non-compliant co-op boards. by imposing civil penalties (up to $500 per violation), potentially encouraging better compliance and deterring boards from withholding tax savings from residents.
Establishes due process for co-ops. by outlining defenses and stays: if the failure to credit the STAR exemption is due to an assessor or tax authority error, or if the co-op is actively contesting the tax bill in court, penalties and tenant remedies are paused, balancing tenant rights with fairness for the corporation.
Could improve transparency and accountability. in the administration of property tax benefits within co-ops, ensuring that public tax relief programs like STAR reach the intended beneficiaries rather than being withheld by intermediaries.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Fine Co-ops for STAR Violations
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to local government
- Referred to local government
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 Assembly Committee · Real Property Taxation · Sponsor J. Gary Pretlow
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
76
2017-2018 Regular Sessions
IN SENATE (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 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
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 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.
Sponsor's memo
Title of bill
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-stockholders of amounts due them
Purpose or general idea of bill
This bill guarantees that those residents in cooperative apartments receive their STAR benefit exemptions as provided by law.
Summary of specific provisions
Amends 425 of the Real Property Tax Law to allow tenants, living in apartment cooperatives to seek judicial redress when a cooperative corporation does not fully comply with disbursing STAR benefits.
Justification
Tenants in apartment cooperatives are entitled to STAR benefits like many other citizens. In these cases, the cooperative corporation disburses the STAR benefit to the tenant. However, there have been many cases where the corporation has not fully complied with the law and has not distributed the benefit in a timely manner as prescribed by law or, in many cases, has not distributed the benefit at all. When this does happen tenants have no remedy. This bill would provide a remedy to these tenants similar to the remedies allowed by law to others including mobile home residents.
Prior legislative history
S.2746-A of 2015-2016 (Hoylman): Died in Local Government A.837-A of 2015-2016 (Pretlow): Died in Real Property Taxation A.4090 of 2013-2014 (Pretlow): Died in Codes (2013)/Died in Real Property Taxation (2014)
Fiscal implications
None.
Effective date
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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.