Provides for the imposition of a fine for the failure of a cooperative apartment corporation to credit the STAR exemption to the tenant-stockholders thereof.
Summary
This bill amends New York’s Real Property Tax Law to address how the School Tax Relief (STAR) exemption is handled in cooperative apartment buildings. It requires cooperative apartment corporations to properly credit the STAR exemption or related payment to tenant-stockholders who are entitled to it, and it creates a civil penalty of up to $500 for each violation if the corporation fails to comply. The county attorney, or in certain city-contained counties the city corporation counsel, would be authorized to recover the penalty in court.
The bill also gives affected tenant-stockholders a self-help remedy: beginning 60 days after the cooperative receives the tax bill, a tenant-stockholder who was denied the credit or payment may withhold monthly payments to the cooperative until the amount owed is fully recouped. These remedies do not apply if the failure was caused by an assessor or taxing authority error, and the bill sets out procedures for staying or dismissing enforcement actions while a cooperative challenges the tax bill through an Article 78 proceeding or related court action. The bill applies to STAR administration beginning with the 2025-2026 school year and takes effect immediately.
Impact
The bill would add enforcement mechanisms to Real Property Tax Law section 425 governing the STAR exemption for cooperative apartments. It creates a new civil penalty framework for noncompliant cooperative apartment corporations and establishes a tenant-stockholder withholding remedy, while also protecting cooperatives when the underlying problem stems from assessor or taxing authority error or when the tax bill is being formally challenged in court. The measure would affect cooperative apartment corporations, tenant-stockholders, county attorneys, city corporation counsels in certain counties, assessors, and local taxing authorities.
Sentiment
No committee transcript or vote record is provided, so there is no direct evidence of debate or recorded support/opposition. Based on the bill text and caption, the measure appears designed to protect tenant-stockholders and improve compliance with STAR credits in cooperative housing, suggesting a consumer- and taxpayer-protection orientation. The absence of recorded votes or discussion means the overall sentiment cannot be assessed beyond the bill’s apparent remedial purpose.
Contention
The main point of contention is likely the enforcement approach: the bill imposes a civil penalty on cooperative apartment corporations and allows tenant-stockholders to withhold payments, which could be viewed by cooperatives as burdensome or disruptive. At the same time, the bill includes safeguards for cooperatives by exempting cases involving assessor or taxing authority error and by staying enforcement while a cooperative contests the tax bill in court. Any disagreement would likely center on whether the remedy is appropriately targeted and whether the withholding mechanism could create financial or administrative strain for cooperatives.