§ 926-A — Liability for taxes of owners and renters of certain residential property

New York § 926-A

• Jurisdiction: New York
• Law RPT: Real Property Tax
• Title 3: Collection of Taxes; Return of Collecting Officer
• Art. 9: Levy and Collection of Taxes

Text

* § 926-a. Liability for taxes of owners and renters of certain\nresidential property. 1. Notwithstanding the provisions of any other\nlaw to the contrary, a renter whose interest has been described in\nsection three hundred four of this chapter shall be personally liable\nfor the taxes levied on such interest.\n 2. The owner of the real property where such a renter is an occupant\nshall be deemed an agent of the collecting officer of the municipality\nin which the real property is located for the purposes of collecting the\ntaxes due from each tenant personally liable for taxes.\n 3. Notwithstanding any other provisions of law, the payments by the\nrenter, whose property has been assessed pursuant to subdivision five of\nsection three hundred four of this chapter shall be made in two separate\namounts consisting of basic rent and the real property tax due from the\nrental unit occupied by such renter. Each real property tax payment\nshall be determined by dividing the total real property taxes due\nannually by twelve and paid in equal monthly installments. The owner of\nreal property or his designated agent, is obligated to apply the first\nmoney paid by the renter to taxes due under his ownership.\n 4. Such payment shall discharge the renter's liability for taxes so\npaid, regardless of any subsequent disposition of such moneys by the\nlandlord owner. After notice to the owner of real property or his\ndesignated agent, such payment, placed into an escrow fund established\nfor the deposit of rents pursuant to section two hundred thirty-five-b\nof the real property law, shall also discharge the renter's liability\nfor taxes so paid. At any time prior to such payment, the county, city,\ntown or village may collect the taxes due from each tenant personally\nliable for taxes directly from such tenants, and such collection shall\ndischarge the tenant's obligation to the landlord by an equal amount of\nthat portion of the rent attributable to taxes.\n 5. As proof of payment of real property taxes by a renter personally\nliable for said taxes pursuant to section three hundred four of this\nchapter, the owner of the real property must submit to the renter on or\nbefore January thirtieth a statement indicating the amount of taxes paid\nby such renter during the previous calendar year. This annual statement\nmust be submitted to each present or former renter for the calendar year\ncovered by the statement if said renter occupied the unit during any\nportion of that calendar year.\n 6. Where a unit is vacant all or part of the taxing period the owner\nshall be deemed to hold the renter's interest in that unit for the\nperiod of vacancy and assume the personal liability for taxes levied on\nthat unit.\n 7. No person being an owner of real property where a renter described\nin section three hundred four of this chapter is an occupant, may charge\nsuch a renter under any written lease, or by reason of a tenancy created\nby a state or local law relating to the regulation and control of\nresidential rents, an amount in any rent period in excess of the rent\nreserved in such lease or the maximum rent permitted under such\nprovisions for the regulation and control of residential rents, reduced\nby the taxes allocated to the renter pursuant to this section.\n 8. Where a renter personally liable for real property taxes fails to\npay that portion of the rental charges attributable to taxes or is\ndelinquent in his payments to the owner so that less than all of the\nmoney due and chargeable for real property taxes is paid to the owner,\nthe owner shall be deemed to have assumed the renter's interest in the\noccupied unit and may commence a summary proceeding to recover real\nproperty. The provisions of this subdivision shall not apply where a\nrenter has applied for a stay pursuant to section seven hundred\nfifty-five or seven hundred fifty-six of the real property actions and\nproceedings law, or has commenced a special proceeding pursuant to\narticle seven-a of such law.\n 9. (a) Any owner who fails to remit to the collecting officer of the\nmunicipality any real estate taxes submitted to him by a renter shall be\nliable for a penalty equal to twenty-five percent of the tax which\nshould be remitted.\n (b) If the owner is a corporation, all officers and directors of such\ncorporation shall be jointly and severally liable for the payment of the\npenalty described in paragraph (a) of this subdivision.\n 10. Nothing in this section shall be construed to affect, alter or in\nany way impair the rights of the municipality in which the real property\nis located to collect taxes levied against the owner of such real\nproperty for that portion of such real property devoted to\nnonresidential uses or for which the owner assumes liability under\nsubdivisions six and nine of this section.\n* NB (Effective pending ruling by Commissioner of Internal Revenue)\n