NY A01698

Imposes a civil penalty of up to $500 per violation on cooperative apartment corporations that fail to credit the School Tax Relief (STAR) exemption to tenant-stockholders, recoverable by county attorneys or corporation counsel.

Allows tenant-stockholders to withhold payments to the cooperative apartment corporation starting 60 days after the corporation receives a tax bill if the STAR credit or payment is not provided, until the full amount owed is recouped.

Exempts the corporation from penalties and withholding remedies if the failure to credit the STAR exemption is attributable to an error by an assessor or taxing authority.

Requires cooperative apartment corporations challenging a tax bill to notify all affected tenant-stockholders within 60 days and provide notice of the outcome within 30 days; withholding remedies are suspended pending the court's determination of such challenge.

Takes effect immediately and applies to the STAR exemption administration beginning with the 2021-2022 school year.