S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         1560
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 12, 2015
                                      ___________
       Introduced by M. of A. LENTOL -- read once and referred to the Committee
         on Ways and Means
       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:
    1    Section  1.  Section  606  of  the  tax law is amended by adding a new
    2  subsection (ccc) to read as follows:
    3    (CCC) REAL PROPERTY TAX CREDIT FOR VETERANS. (1) A TAXPAYER WHO IS  AN
    4  HONORABLY  DISCHARGED  VETERAN  OF THE SPANISH-AMERICAN WAR, THE MEXICAN
    5  BORDER PERIOD,  WORLD  WAR  I,  WORLD  WAR  II,  THE  HOSTILITIES  WHICH
    6  COMMENCED   JUNE   TWENTY-SEVENTH,   NINETEEN   HUNDRED   FIFTY  TO  THE
    7  THIRTY-FIRST OF JANUARY, NINETEEN HUNDRED FIFTY-FIVE, OR THE HOSTILITIES
    8  PARTICIPATED IN BY THE MILITARY FORCES OF THE UNITED  STATES,  FROM  THE
    9  FIRST  DAY  OF  JANUARY, NINETEEN HUNDRED SIXTY-THREE, TO THE SEVENTH OF
   10  MAY, NINETEEN HUNDRED SEVENTY-FIVE; OR THE UNREMARRIED SURVIVING  SPOUSE
   11  OF  SUCH  VETERAN  SHALL  BE ALLOWED A CREDIT OF FIFTEEN PERCENT OF REAL
   12  PROPERTY TAXES PAID DURING THE TAXABLE YEAR TO  A  MUNICIPALITY  NOT  TO
   13  EXCEED  TWO  HUNDRED FIFTY DOLLARS AGAINST THE TAX IMPOSED BY THIS ARTI-
   14  CLE.
   15    (2) ANY SUCH TAXPAYER WHO SERVED IN A COMBAT THEATRE OR COMBAT ZONE OF
   16  OPERATIONS, AS DOCUMENTED BY THE  AWARD  OF  A  UNITED  STATES  CAMPAIGN
   17  RIBBON  OR  SERVICE  MEDAL,  OR THE UNREMARRIED SURVIVING SPOUSE OF SUCH
   18  VETERAN, SHALL BE ALLOWED AN ADDITIONAL CREDIT OF TEN  PERCENT  OF  REAL
   19  PROPERTY  TAXES  PAID  DURING THE TAXABLE YEAR TO A MUNICIPALITY, NOT TO
   20  EXCEED TWO HUNDRED DOLLARS, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD01461-02-5
       A. 1560                             2
    1    (3) ANY SUCH TAXPAYER WHO SUSTAINED  A  ONE  HUNDRED  PERCENT  SERVICE
    2  CONNECTED  DISABILITY,  OR  THE  UNREMARRIED  SURVIVING  SPOUSE  OF SUCH
    3  TAXPAYER, SHALL BE ALLOWED A CREDIT OF SIXTY PERCENT  OF  REAL  PROPERTY
    4  TAXES  PAID DURING THE TAXABLE YEAR TO A MUNICIPALITY, NOT TO EXCEED ONE
    5  THOUSAND DOLLARS, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
    6    (4)  ANY SUCH TAXPAYER WHO SUSTAINED A SERVICE CONNECTED DISABILITY IN
    7  EXCESS OF FIFTY PERCENT BUT LESS THAN ONE HUNDRED PERCENT, OR THE  UNRE-
    8  MARRIED  SURVIVING SPOUSE OF SUCH TAXPAYER, SHALL BE ALLOWED A CREDIT OF
    9  FORTY-FIVE PERCENT OF REAL PROPERTY TAXES PAID DURING THE  TAXABLE  YEAR
   10  TO  A  MUNICIPALITY,  NOT TO EXCEED SEVEN HUNDRED FIFTY DOLLARS, AGAINST
   11  THE TAX IMPOSED BY THIS ARTICLE.
   12    (5) ANY SUCH TAXPAYER WHO SUSTAINED A SERVICE CONNECTED DISABILITY  OF
   13  LESS  THAN  FIFTY  PERCENT,  OR THE UNREMARRIED SURVIVING SPOUSE OF SUCH
   14  TAXPAYER, SHALL BE ALLOWED A CREDIT OF THIRTY PERCENT OF  REAL  PROPERTY
   15  TAXES PAID DURING THE TAXABLE YEAR TO A MUNICIPALITY, NOT TO EXCEED FIVE
   16  HUNDRED DOLLARS, AGAINST THE TAX IMPOSED BY THIS ARTICLE.
   17    (6)  A TAXPAYER, OR THE UNREMARRIED SURVIVING SPOUSE OF SUCH TAXPAYER,
   18  DESCRIBED  IN  PARAGRAPHS  ONE  THROUGH  FIVE,  RESPECTIVELY,  OF   THIS
   19  SUBSECTION  WHO  RENTED  REAL PROPERTY FOR PERSONAL RESIDENTIAL PURPOSES
   20  SHALL DETERMINE THE PERCENTAGE OF TOTAL RENTAL PAYMENTS ATTRIBUTABLE  TO
   21  PAYMENT  OF  REAL  PROPERTY TAXES IMPOSED UPON THE LESSOR AND TREAT SUCH
   22  PERCENTAGE OF PAYMENTS,  FOR  PURPOSES  OF  CREDITS  PERMITTED  BY  THIS
   23  SUBSECTION, AS IF SUCH TAXPAYER HAD PAID REAL PROPERTY TAXES DIRECTLY TO
   24  THE TAXING MUNICIPALITY.
   25    (7)  A TAXPAYER, OR THE UNREMARRIED SURVIVING SPOUSE OF SUCH TAXPAYER,
   26  DESCRIBED  IN  PARAGRAPHS  ONE  THROUGH  FIVE,  RESPECTIVELY,  OF   THIS
   27  SUBSECTION  WHO OWNS SHARES OF A RESIDENTIAL COOPERATIVE CORPORATION AND
   28  OCCUPIES AN APARTMENT AS HIS OR  HER  PRINCIPAL  RESIDENCE  PURSUANT  TO
   29  PROPRIETARY  LEASE  FOR SAID APARTMENT, SHALL COMPUTE HIS OR HER PROPOR-
   30  TIONATE SHARE OF THE REAL PROPERTY TAXES PAID BY THE COOPERATIVE  CORPO-
   31  RATION  FOR  PURPOSES OF CREDITS PERMITTED BY THIS SUBSECTION AS IF SUCH
   32  TAXPAYER HAD PAID REAL PROPERTY TAXES DIRECTLY  TO  THE  TAXING  MUNICI-
   33  PALITY.
   34    (8)  SUCH  TAX  CREDITS WILL BE GRANTED ON "QUALIFYING REAL PROPERTY".
   35  "QUALIFYING REAL PROPERTY" MEANS PROPERTY CONTAINING THREE OR LESS RESI-
   36  DENTIAL OR COMMERCIAL UNITS (BUT NOT LESS  THAN  ONE  RESIDENTIAL  UNIT)
   37  OWNED  OR,  IN  THE CASE OF AN APARTMENT OR OTHER SUCH UNIT, RENTED BY A
   38  TAXPAYER DESCRIBED IN THIS SUBSECTION OR IN THE CASE  OF  A  COOPERATIVE
   39  APARTMENT, OCCUPIED BY A TENANT-SHAREHOLDER OF A COOPERATIVE CORPORATION
   40  WHO  IS A TAXPAYER DESCRIBED IN THIS SUBSECTION, WHICH IS USED WHOLLY OR
   41  PARTIALLY FOR RESIDENTIAL PURPOSES.  SUCH PROPERTY, OR A  UNIT  THEREOF,
   42  MUST  BE  THE  PRIMARY RESIDENCE OF THE VETERAN OR UNREMARRIED SURVIVING
   43  SPOUSE OF THE VETERAN,  UNLESS  THE  VETERAN  OR  UNREMARRIED  SURVIVING
   44  SPOUSE  IS  ABSENT  FROM THE PROPERTY DUE TO MEDICAL REASONS OR INSTITU-
   45  TIONALIZATION. IN THE EVENT THE VETERAN DIES AND THERE IS NO UNREMARRIED
   46  SURVIVING  SPOUSE,  "QUALIFYING  REAL  PROPERTY"  SHALL  MEAN   PROPERTY
   47  CONTAINING  THE  PRIMARY  RESIDENCE  OWNED BY A QUALIFIED OWNER PRIOR TO
   48  DEATH, PROVIDED THAT THE TITLE TO THE PROPERTY  BECOMES  VESTED  IN  THE
   49  DEPENDENT  FATHER OR MOTHER OR DEPENDENT CHILD OR CHILDREN UNDER TWENTY-
   50  ONE YEARS OF AGE OF A VETERAN BY VIRTUE OF DEVISE BY OR DESCENT FROM THE
   51  DECEASED QUALIFIED OWNER, PROVIDED THAT THE PROPERTY OR A  UNIT  THEREOF
   52  IS THE PRIMARY RESIDENCE OF ONE OR ALL OF THE DEVISEES.
   53    (9)  SUCH  VETERANS WHO RECEIVED REAL PROPERTY TAX EXEMPTIONS PURSUANT
   54  TO THE PROVISIONS OF FORMER SECTION FOUR HUNDRED FIFTY-EIGHT OF THE REAL
   55  PROPERTY TAX LAW, FOR ANY REAL PROPERTY TAXABLE  YEAR  BETWEEN  NINETEEN
   56  HUNDRED  EIGHTY-ONE AND NINETEEN HUNDRED NINETY SHALL RECEIVE EITHER THE
       A. 1560                             3
    1  CREDITS PROVIDED FOR IN THIS SUBSECTION OR A CREDIT  IN  THE  AMOUNT  OF
    2  REAL  PROPERTY  TAX  SAVINGS  IN  THIS  SUBSECTION,  RESULTING FROM SUCH
    3  EXEMPTIONS FOR ANY ONE OF SUCH REAL PROPERTY TAXABLE YEARS, WHICHEVER IS
    4  GREATER.
    5    (10) NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SUBSECTION, SUCH
    6  VETERANS  WHO  HAVE  RECEIVED  ASSISTANCE  FROM  THE  FEDERAL GOVERNMENT
    7  TOWARDS THE ACQUISITION OF A SUITABLE HOUSING UNIT WITH SPECIAL FIXTURES
    8  OR MOVABLE FACILITIES MADE NECESSARY BY  THE  NATURE  OF  THE  VETERAN'S
    9  DISABILITY SHALL BE ENTITLED TO A CREDIT EQUAL TO ONE HUNDRED PERCENT OF
   10  THE  REAL  PROPERTY  TAXES  PAID  ON THE VETERAN'S RESIDENCE OR THE RENT
   11  ATTRIBUTABLE TO REAL PROPERTY TAXES, INCLUDING SCHOOL TAXES AND  SPECIAL
   12  ASSESSMENTS, DURING THE CALENDAR YEAR.
   13    (11)  CREDITS  WHICH EXCEED THE AMOUNT OF TAX DUE SHALL BE REFUNDED TO
   14  THE TAXPAYER. THE COMMISSIONER SHALL PREPARE FORMS TO BE USED  FOR  SUCH
   15  REFUNDS BY TAXPAYERS NOT REQUIRED TO FILE RETURNS PURSUANT TO THIS ARTI-
   16  CLE.
   17    (12) THE COMMISSIONER SHALL PROMULGATE RULES AND REGULATIONS TO IMPLE-
   18  MENT THE PROVISIONS OF THIS SUBSECTION.
   19    S  2.  Subdivision  1  of section 844 of the real property tax law, as
   20  amended by chapter 654 of the laws of 2004 and  as  further  amended  by
   21  section  1  of  part  W of chapter 56 of the laws of 2010, is amended to
   22  read as follows:
   23    1. In any county to which this title is applicable, county taxes shall
   24  be apportioned among the cities and towns within the county on the basis
   25  of the proportion of the total full valuation of taxable  real  property
   26  within the county which is located within each city and town. This total
   27  valuation  shall be determined by dividing the taxable assessed value of
   28  taxable real property by the appropriate city or town equalization  rate
   29  as certified by the commissioner pursuant to this title. For purposes of
   30  this section:  (a) "taxable real property" excludes real property which,
   31  by statute, is wholly exempt from county taxation, (b) "taxable assessed
   32  value" is limited to the assessed value actually subject to county taxa-
   33  tion except that it also includes the amount of assessed value partially
   34  exempt  from  county  taxation  pursuant  to  (i) sections [four hundred
   35  fifty-eight,] four hundred sixty and four  hundred  sixty-four  of  this
   36  chapter,  and  (ii) such other sections of law as the county legislature
   37  designates by resolution to be included in the  total  valuation.  Where
   38  the commissioner furnishes the same state equalization or special equal-
   39  ization  rate  for two or more of the cities and towns in the county for
   40  use by that county in the apportionment of taxes, the commissioner shall
   41  concurrently therewith notify the county that county taxes may be appor-
   42  tioned in the manner provided by subdivision two of this section.
   43    S 3. Section 51 of the general municipal law, as  amended  by  chapter
   44  614 of the laws of 1981, is amended to read as follows:
   45     S  51.  Prosecution  of  officers  for  illegal acts.   All officers,
   46  agents, commissioners and other persons acting, or who have  acted,  for
   47  and  on  behalf of any county, town, village or municipal corporation in
   48  this state, and each and every one of them, may be  prosecuted,  and  an
   49  action  may  be  maintained against them to prevent any illegal official
   50  act on the part of any such officers,  agents,  commissioners  or  other
   51  persons,  or to prevent waste or injury to, or to restore and make good,
   52  any property, funds or estate of such county, town, village or municipal
   53  corporation by any person or corporation whose  assessment,  or  by  any
   54  number of persons or corporations, jointly, the sum of whose assessments
   55  shall  amount  to  one  thousand dollars, and who shall be liable to pay
   56  taxes on such assessment in  the  county,  town,  village  or  municipal
       A. 1560                             4
    1  corporation  or  by  any person who owns shares in a cooperative housing
    2  corporation where the pro rata share of the assessment  attributable  to
    3  such  shares  shall  amount to one thousand dollars (or by any number of
    4  such  persons, jointly, the sum of whose pro rata shares shall amount to
    5  one thousand dollars) and  where  the  cooperative  housing  corporation
    6  shall  be  liable  to  pay taxes on such assessment in the county, town,
    7  village or municipal corporation to prevent the waste or injury of whose
    8  property the action is brought, or who have been assessed or paid  taxes
    9  therein  upon  any  assessment of the above-named amount within one year
   10  previous to the commencement of any such action,  or  who  has  been  so
   11  assessed  but  has  not  paid nor shall be liable to pay any or the full
   12  amount of taxes on such assessment because  of  a  veteran's  [exemption
   13  therefrom] CREDIT THERETO pursuant to SUBSECTION (CCC) OF section [four]
   14  SIX hundred [fifty-eight] SIX of the [real property] tax law, or who has
   15  been  so assessed but has not paid nor shall be liable to pay any or the
   16  full amount of taxes on such assessment because of an  exemption  there-
   17  from granted to persons sixty-five years of age or over or their spouses
   18  pursuant  to  the real property tax law. Such person or corporation upon
   19  the commencement of such action, shall furnish a bond to  the  defendant
   20  therein,  to be approved by a justice of the supreme court or the county
   21  judge of the county in which the action is brought, in such  penalty  as
   22  the  justice or judge approving the same shall direct, but not less than
   23  two hundred and fifty dollars, and to be executed  by  any  two  of  the
   24  plaintiffs,  if  there  be more than one party plaintiff, providing said
   25  two parties plaintiff shall severally justify in the sum of  five  thou-
   26  sand  dollars.  Said bond shall be approved by said justice or judge and
   27  be conditioned to pay all costs that may be  awarded  the  defendant  in
   28  such  action  if  the court shall finally determine the same in favor of
   29  the defendant. The court shall require, when the  plaintiffs  shall  not
   30  justify  as above mentioned, and in any case may require two more suffi-
   31  cient sureties to execute the bond above provided for. Such  bond  shall
   32  be  filed  in  the office of the county clerk of the county in which the
   33  action is brought, and a copy shall be served with the summons  in  such
   34  action.  If  an  injunction is obtained as herein provided for, the same
   35  bond may also provide for the payment of the damages  arising  therefrom
   36  to  the party entitled to the money, the auditing, allowing or paying of
   37  which was enjoined, if the court shall finally determine that the plain-
   38  tiff is not entitled to such injunction. In case  the  waste  or  injury
   39  complained  of  consists  in  any board, officer or agent in any county,
   40  town, village or  municipal  corporation,  by  collusion  or  otherwise,
   41  contracting, auditing, allowing or paying, or conniving at the contract-
   42  ing,  audit,  allowance or payment of any fraudulent, illegal, unjust or
   43  inequitable claims, demands or expenses, or any  item  or  part  thereof
   44  against or by such county, town, village or municipal corporation, or by
   45  permitting a judgment to be recovered against such county, town, village
   46  or  municipal  corporation, or against himself in his official capacity,
   47  either by default or without the interposition and  proper  presentation
   48  of  any  existing legal or equitable defenses, or by any such officer or
   49  agent, retaining or failing to pay over to the  proper  authorities  any
   50  funds or property of any county, town, village or municipal corporation,
   51  after  he  shall have ceased to be such officer or agent, the court may,
   52  in its discretion, prohibit  the  payment  or  collection  of  any  such
   53  claims,  demands,  expenses or judgments, in whole or in part, and shall
   54  enforce the restitution and recovery thereof, if heretofore or hereafter
   55  paid, collected or retained by the person or party heretofore  or  here-
   56  after  receiving or retaining the same, and also may, in its discretion,
       A. 1560                             5
    1  adjudge and declare the  colluding  or  defaulting  official  personally
    2  responsible therefor, and out of his property, and that of his bondsmen,
    3  if any, provide for the collection or repayment thereof, so as to indem-
    4  nify  and  save  harmless  the  said  county, town, village or municipal
    5  corporation from a part or the whole thereof; and in case of a  judgment
    6  the  court  may in its discretion, vacate, set aside and open said judg-
    7  ment, with leave and direction for the defendant  therein  to  interpose
    8  and  enforce  any existing legal or equitable defense therein, under the
    9  direction of such person as the court may, in  its  judgment  or  order,
   10  designate  and  appoint. All books of minutes, entry or account, and the
   11  books, bills, vouchers, checks, contracts or other papers connected with
   12  or used or filed in the office of, or with any officer, board or commis-
   13  sion acting for or on behalf of any county, town, village  or  municipal
   14  corporation  in  this state or any body corporate or other unit of local
   15  government in this state which possesses the  power  to  levy  taxes  or
   16  benefit  assessments  upon  real  estate  or to require the levy of such
   17  taxes or assessments or for which taxes or benefit assessments upon real
   18  estate may be required pursuant to law to be levied, including the Alba-
   19  ny port district commission, are hereby declared to be  public  records,
   20  and  shall be open during all regular business hours, subject to reason-
   21  able regulations to be adopted by the applicable local legislative body,
   22  to the inspection of any taxpayer or registered  voter,  who  may  copy,
   23  photograph  or  make  photocopies  thereof  on  the  premises where such
   24  records are regularly kept. This section shall not be so construed as to
   25  take away any right of action from any county, town, village or  munici-
   26  pal corporation, or from any public officer, but any right of action now
   27  existing,  or  which  may  hereafter exist in favor of any county, town,
   28  village or municipal corporation, or in favor of  any  officer  thereof,
   29  may  be  enforced  by  action  or  otherwise by the persons hereinbefore
   30  authorized to prosecute  and  maintain  actions;  and  whenever  by  the
   31  provisions  of  this  section  an action may be prosecuted or maintained
   32  against any officer or other person, his bondsmen, if any, may be joined
   33  in such action or proceeding and their liabilities as such  enforced  by
   34  the  proper  judgment  or direction of the court; but any recovery under
   35  the provisions of this article shall be for the benefit of and shall  be
   36  paid  to  the  officer  entitled  by law to hold and disburse the public
   37  moneys of such county,  town,  village  or  municipal  corporation,  and
   38  shall,  to  the amount thereof, be credited the defendant in determining
   39  his liability in the action by the county, town,  village  or  municipal
   40  corporation  or  public  officer.   The provisions of this article shall
   41  apply as well to those cases in which the body, board,  officer,  agent,
   42  commissioner  or  other person above named has not, as to those in which
   43  it or he has jurisdiction over the subject-matter of its action.
   44    S 4. Section 11-245.45 of the administrative code of the city  of  New
   45  York is REPEALED.
   46    S  5.  Sections  11-245.5, 11-245.6 and 11-245.7 of the administrative
   47  code of the city of New York are REPEALED.
   48    S 6. Paragraph (f) of subdivision 2 of section 467-a of the real prop-
   49  erty tax law, as amended by chapter 97 of the laws of 2013,  is  amended
   50  to read as follows:
   51    (f)  For  purposes of this subdivision, a property shall be deemed not
   52  to be receiving complete or partial real property tax exemption  or  tax
   53  abatement  if  the  property  is, or certain dwelling units therein are,
   54  receiving benefits pursuant to section four hundred, four  hundred  two,
   55  four  hundred  four,  four hundred six, four hundred eight, four hundred
   56  ten, four hundred ten-a, four hundred  twelve,  four  hundred  twelve-a,
       A. 1560                             6
    1  four hundred sixteen, four hundred eighteen, four hundred twenty-a, four
    2  hundred  twenty-b,  four  hundred  twenty-five, four hundred thirty-six,
    3  [four hundred fifty-eight, four  hundred  fifty-eight-a,]  four  hundred
    4  fifty-nine-c,  four  hundred  sixty-two,  four hundred sixty-seven, four
    5  hundred sixty-seven-b, four hundred  ninety-nine-bbb,  or  four  hundred
    6  ninety-nine-bbbb  of this article, or if the property is receiving a tax
    7  abatement but not a tax  exemption  pursuant  to  section  four  hundred
    8  eighty-nine of this article.
    9    S  7. Subdivision (f) of section 1801 of the real property tax law, as
   10  amended by chapter 191 of the laws  of  2001,  is  amended  to  read  as
   11  follows:
   12    (f)  "Base  proportion" means either: (1) for a special assessing unit
   13  which is not a city, the proportion of the  taxable  assessed  value  of
   14  real property which each class constituted of the total taxable assessed
   15  value  of  all  real  property  as  entered on the final assessment roll
   16  completed and filed in calendar year nineteen hundred eighty-one of such
   17  special assessing unit or on the part of that assessment roll applicable
   18  to a portion of the special assessing unit, except  that  for  town  and
   19  county  special districts not included within the definition of portion,
   20  the applicable roll shall be that  which  was  completed  and  filed  in
   21  calendar  year  two  thousand  one,  or (2) for a special assessing unit
   22  which is a city, the proportion of the taxable assessed  value  of  real
   23  property  which  each  class  constituted  of the total taxable assessed
   24  value of all real property as  entered  on  the  final  assessment  roll
   25  completed  and filed in calendar year nineteen hundred eighty-four, [and
   26  as adjusted to  account  for  properties  exempted  under  section  four
   27  hundred  fifty-eight  of  this chapter to the extent such properties are
   28  taxable for education purposes,] provided,  however,  that  the  taxable
   29  assessed  value  of  real  property  subject  to a transition assessment
   30  pursuant to subdivision three of section eighteen hundred five  of  this
   31  article shall be determined from the lesser of the transition assessment
   32  or actual assessment.
   33    S 8. Sections 458 and 458-a of the real property tax law are REPEALED.
   34    S  9.  This  act  shall  take  effect  immediately  and shall apply to
   35  personal income taxable years beginning on and after  January  1,  2016,
   36  provided, however, that section four of this act shall take effect Janu-
   37  ary 1, 2016.