2023 New York Laws › RPT - Real Property Tax › Article 9 - Levy and Collection of Taxes › Title 3 - Collection of Taxes; Return of Collecting Officer › 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)