N.Y. Real Property Tax Law § 926-a: Liability for taxes of owners and renters of certain residential property

* § 926-a. Liability for taxes of owners and renters of certain

residential property. 1. Notwithstanding the provisions of any other

law to the contrary, a renter whose interest has been described in

section three hundred four of this chapter shall be personally liable

for the taxes levied on such interest.

2. The owner of the real property where such a renter is an occupant

shall be deemed an agent of the collecting officer of the municipality

in which the real property is located for the purposes of collecting the

taxes due from each tenant personally liable for taxes.

3. Notwithstanding any other provisions of law, the payments by the

renter, whose property has been assessed pursuant to subdivision five of

section three hundred four of this chapter shall be made in two separate

amounts consisting of basic rent and the real property tax due from the

rental unit occupied by such renter. Each real property tax payment

shall be determined by dividing the total real property taxes due

annually by twelve and paid in equal monthly installments. The owner of

real property or his designated agent, is obligated to apply the first

money paid by the renter to taxes due under his ownership.

4. Such payment shall discharge the renter's liability for taxes so

paid, regardless of any subsequent disposition of such moneys by the

landlord owner. After notice to the owner of real property or his

designated agent, such payment, placed into an escrow fund established

for the deposit of rents pursuant to section two hundred thirty-five-b

of the real property law, shall also discharge the renter's liability

for taxes so paid. At any time prior to such payment, the county, city,

town or village may collect the taxes due from each tenant personally

liable for taxes directly from such tenants, and such collection shall

discharge the tenant's obligation to the landlord by an equal amount of

that portion of the rent attributable to taxes.

5. As proof of payment of real property taxes by a renter personally

liable for said taxes pursuant to section three hundred four of this

chapter, the owner of the real property must submit to the renter on or

before January thirtieth a statement indicating the amount of taxes paid

by such renter during the previous calendar year. This annual statement

must be submitted to each present or former renter for the calendar year

covered by the statement if said renter occupied the unit during any

portion of that calendar year.

6. Where a unit is vacant all or part of the taxing period the owner

shall be deemed to hold the renter's interest in that unit for the

period of vacancy and assume the personal liability for taxes levied on

that unit.

7. No person being an owner of real property where a renter described

in section three hundred four of this chapter is an occupant, may charge

such a renter under any written lease, or by reason of a tenancy created

by a state or local law relating to the regulation and control of

residential rents, an amount in any rent period in excess of the rent

reserved in such lease or the maximum rent permitted under such

provisions for the regulation and control of residential rents, reduced

by the taxes allocated to the renter pursuant to this section.

8. Where a renter personally liable for real property taxes fails to

pay that portion of the rental charges attributable to taxes or is

delinquent in his payments to the owner so that less than all of the

money due and chargeable for real property taxes is paid to the owner,

the owner shall be deemed to have assumed the renter's interest in the

occupied unit and may commence a summary proceeding to recover real

property. The provisions of this subdivision shall not apply where a

renter has applied for a stay pursuant to section seven hundred

fifty-five or seven hundred fifty-six of the real property actions and

proceedings law, or has commenced a special proceeding pursuant to

article seven-a of such law.

9. (a) Any owner who fails to remit to the collecting officer of the

municipality any real estate taxes submitted to him by a renter shall be

liable for a penalty equal to twenty-five percent of the tax which

should be remitted.

(b) If the owner is a corporation, all officers and directors of such

corporation shall be jointly and severally liable for the payment of the

penalty described in paragraph (a) of this subdivision.

10. Nothing in this section shall be construed to affect, alter or in

any way impair the rights of the municipality in which the real property

is located to collect taxes levied against the owner of such real

property for that portion of such real property devoted to

nonresidential uses or for which the owner assumes liability under

subdivisions six and nine of this section.

* NB (Effective pending ruling by Commissioner of Internal Revenue)