NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A5969A
SPONSOR: Galef
 
TITLE OF BILL: An act to amend the real property tax law and the tax
law, in relation to removing references to the school tax relief credit;
and to repeal certain provisions of such laws relating thereto
 
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this legislation is to sunset the School Tax Relief
(STAR) Credit Program and reopen the STAR Exemption Program to new
applicants.
 
SUMMARY OF PROVISIONS:
Sections 1-10: Amend the Real Property Tax Law and the Tax Law to repeal
changes made to the STAR Exemption program in part A of chapter 60 of
the laws of 2016 and part A of chapter 73 of the 17 laws of 2016, which
closed the STAR Exemption program to new applicants and created a new
STAR Credit program for new homeowners. Specifically, this bill would:
*Reopen the STAR Exemption program to new applicants;
*Sunset the STAR Credit program. The Department of Taxation and Finance
(Department) would still issue any outstanding credits; Require the
Department to assist localities in notifying the public of the changes
provided for in this act, and any action required by taxpayers to quali-
fy for the STAR Exemption for the 2018-2019 school year;
*Require the Department to share with local assessors the names,
addresses and other appropriate information of taxpayers who qualified
for the STAR Credit for 2017, or applied for the credit for 2018, which
will be used by the local assessor to enroll them in the STAR Exemption
going forward. It would also allow the local assessor to request of
these taxpayers any outstanding information needed to qualify them for
the exemption for the 2018-2019 school year;
*Allow new homeowners who have not registered with the State for the
STAR Credit a minimum of sixty days to apply for the exemption for
2018-2019 school year;
*Allow local assessors to apply an exemption to an assessment roll or
tax roll beyond the normal timeframe for the 2018-2019 school year; and
*Repeal various provisions of the prior acts that would no longer be
relevant.
Section 11: Establishes the effective date.
 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
Changes were only made to certain date and year references.
 
JUSTIFICATION:
The STAR Exemption program, which provides an immediate reduction in
property owners' tax liability, is the most convenient form of real
property tax relief in that it provides the relief upfront. This
distinction is important as many taxpayers, especially those with lower
incomes, have difficulty paying their school tax bills in their entirety
and waiting for a reimbursement check. The exemption program also
requires less administration than the credit as no checks need to be
printed and mailed. This bill would transition STAR back to an exemption
program and repeal many of the changes made in 2016.
 
PRIOR LEGISLATIVE HISTORY:
This is new legislation.
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
The sunset of the STAR Credit program will allow for increased revenues,
which would be offset by an increase in spending. For FY 2017-18 it is
estimated that this proposal would lead to a revenue increase of $194
million, and a spending increase in the same amount.
 
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
5969--A
Cal. No. 428
2017-2018 Regular Sessions
IN ASSEMBLY
February 21, 2017
___________
Introduced by M. of A. GALEF, ZEBROWSKI, MORELLE, SCHIMMINGER, GANTT,
MAGEE, ENGLEBRIGHT, CAHILL, PAULIN, LIFTON, PEOPLES-STOKES, GUNTHER,
LUPARDO, JAFFEE, JENNE, THIELE, ABINANTI, BARRETT, BRINDISI, BRONSON,
BUCHWALD, D'URSO, FAHY, HUNTER, JEAN-PIERRE, JONES, MAYER, McDONALD,
OTIS, RYAN, SANTABARBARA, SKARTADOS, SKOUFIS, STECK, STIRPE, WALLACE,
WOERNER, PRETLOW, SOLAGES, ROZIC, BRABENEC, HOOPER, B. MILLER, BUTLER,
STEC, WALTER, MAGNARELLI, OAKS, RAMOS, KOLB, NORRIS, GOODELL,
LAWRENCE, FRIEND, FITZPATRICK, JOHNS, PALMESANO, GARBARINO, WEPRIN,
MORINELLO, DiPIETRO -- Multi-Sponsored by -- M. of A. BYRNE, CROUCH,
WALSH -- read once and referred to the Committee on Real Property
Taxation -- ordered to a third reading, amended and ordered reprinted,
retaining its place on the order of third reading
AN ACT to amend the real property tax law and the tax law, in relation
to removing references to the school tax relief credit; and to repeal
certain provisions of such laws relating thereto
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph (a) of subdivision 6 of section 425 of the real
2 property tax law, as amended by section 1 of part A of chapter 60 of the
3 laws of 2016, is amended to read as follows:
4 (a) Generally. All owners of the property who primarily reside thereon
5 [and who are not subject to the provisions of subdivision sixteen of
6 this section] must jointly file an application for exemption with the
7 assessor on or before the appropriate taxable status date. Such applica-
8 tion may be filed by mail if it is enclosed in a postpaid envelope prop-
9 erly addressed to the appropriate assessor, deposited in a post office
10 or official depository under the exclusive care of the United States
11 postal service, and postmarked by the United States postal service on or
12 before the applicable taxable status date. Each such application shall
13 be made on a form prescribed by the commissioner, which shall require
14 the applicant or applicants to agree to notify the assessor if their
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09835-06-8
A. 5969--A 2
1 primary residence changes while their property is receiving the
2 exemption. The assessor may request that proof of residency be submitted
3 with the application. If the applicant requests a receipt from the
4 assessor as proof of submission of the application, the assessor shall
5 provide such receipt. If such request is made by other than personal
6 request, the applicant shall provide the assessor with a self-addressed
7 postpaid envelope in which to mail the receipt.
8 § 2. Subdivision 16 of section 425 of the real property tax law is
9 REPEALED.
10 § 3. Subdivision 2 of section 496 of the real property tax law, as
11 amended by section 3 of part A of chapter 60 of the laws of 2016, is
12 amended to read as follows:
13 2. An application to renounce an exemption shall be made on a form
14 prescribed by the commissioner and shall be filed with the county direc-
15 tor of real property tax services no later than ten years after the levy
16 of taxes upon the assessment roll on which the renounced exemption
17 appears. The county director, after consulting with the assessor as
18 appropriate, shall compute the total amount owed on account of the
19 renounced exemption as follows:
20 (a) For each assessment roll on which the renounced exemption appears,
21 the assessed value that was exempted shall be multiplied by the tax rate
22 or rates that were applied to that assessment roll. Interest shall then
23 be added to each such product at the rate prescribed by section nine
24 hundred twenty-four-a of this chapter or such other law as may be appli-
25 cable for each month or portion thereon since the levy of taxes upon
26 such assessment roll.
27 (b) The sum of the calculations made pursuant to paragraph (a) of this
28 subdivision with respect to all of the assessment rolls in question
29 shall be determined.
30 (c) A processing fee of five hundred dollars shall be added to the sum
31 determined pursuant to paragraph (b) of this subdivision[, unless the
32 provisions of paragraph (d) of this subdivision are applicable.
33 (d) If the applicant is renouncing a STAR exemption in order to quali-
34 fy for the personal income tax credit authorized by subsection (eee) of
35 section six hundred six of the tax law, and no other exemptions are
36 being renounced on the same application, no processing fee shall be
37 applicable].
38 § 4. Subdivision 6 of section 1306-a of the real property tax law is
39 REPEALED.
40 § 5. Subparagraph (A) of paragraph 3 of subsection (eee) of section
41 606 of the tax law, as amended by section 8 of part A of chapter 73 of
42 the laws of 2016, is amended to read as follows:
43 (A) [Beginning with] For the taxable [years after] years two thousand
44 [fifteen] sixteen and two thousand seventeen, a basic STAR credit shall
45 be available to a qualified taxpayer if the affiliated income of the
46 parcel that serves as the taxpayer's primary residence is less than or
47 equal to five hundred thousand dollars.
48 § 6. The opening paragraph of subparagraph (A) of paragraph 4 of
49 subsection (eee) of section 606 of the tax law, as amended by section 8
50 of part A of chapter 73 of the laws of 2016, is amended to read as
51 follows:
52 [Beginning with] For the taxable [years after] years two thousand
53 [fifteen] sixteen and two thousand seventeen, an enhanced STAR credit
54 shall be available to a qualified taxpayer where both of the following
55 conditions are satisfied:
A. 5969--A 3
1 § 7. Clause (iii) of subparagraph (A) of paragraph 10 of subsection
2 (eee) of section 606 of the tax law is REPEALED.
3 § 8. Paragraph (c) of subdivision 11 of section 425 of the real prop-
4 erty tax law, as amended by section 3 of part A of chapter 73 of the
5 laws of 2016, is amended to read as follows:
6 (c) Transfers of title. When the assessor has received a report pursu-
7 ant to section five hundred seventy-four of this chapter of a transfer
8 of title to real property which is exempt pursuant to this section, the
9 assessor shall [discontinue the exemption as required by subdivision
10 sixteen of this section] send the new owner or owners as shown thereon
11 an application for the exemption authorized by this section. The asses-
12 sor shall not implement the provisions of section five hundred twenty of
13 this chapter upon such a transfer, except to the extent that the proper-
14 ty may also be receiving one or more other exemptions.
15 § 9. Paragraph (c) of subdivision 6 of section 425 of the real proper-
16 ty tax law, as amended by section 4 of part A of chapter 73 of the laws
17 of 2016, is amended to read as follows:
18 (c) Senior citizens exemption. When property is eligible for the
19 senior citizens exemption authorized by section four hundred sixty-seven
20 of this [article] title, it shall also be deemed to be eligible for the
21 enhanced exemption authorized by this section for certain senior citi-
22 zens, provided, where applicable, that the age requirement established
23 by a municipal corporation pursuant to subdivision five of section four
24 hundred sixty-seven of this [article] title is satisfied, and no sepa-
25 rate application need be filed therefor. [Provided, however, that the
26 provisions of this paragraph shall only apply where at least one of the
27 applicants held title to the property on the taxable status date of the
28 assessment roll that was used to levy school district taxes for the two
29 thousand fifteen--two thousand sixteen school year and the property was
30 granted an exemption pursuant to this section on such assessment roll.]
31 § 10. Implementation for the 2018--2019 school year. The commissioner
32 of taxation and finance shall assist localities in notifying the public
33 of the provisions of this act and any action required by taxpayers to
34 receive a STAR exemption for the 2018--2019 school year. Notwithstand-
35 ing subdivision 6 of section 425 of the real property tax law, for
36 assessment rolls used to levy school district taxes for the 2018--2019
37 school year, an application for an exemption under section 425 of the
38 real property tax law shall be filed with the local assessor by the last
39 date on which a petition with respect to complaints of assessment may be
40 filed or not later than the sixtieth day after the effective date of
41 this act, whichever is later. The assessor shall approve or deny such
42 application as if it had been filed on or before the taxable status
43 date. If the assessor determines that the property is eligible for the
44 exemption, the assessor shall thereupon be authorized and directed to
45 correct the assessment roll accordingly, or, if another person has
46 custody or control of the assessment roll, to direct that person to make
47 the appropriate corrections. If the correction is not made before school
48 taxes are levied, the failure to take the exemption into account in the
49 computation of the tax shall be deemed a "clerical error" for purposes
50 of title 3 of article 5 of the real property tax law, or any comparable
51 laws governing the correction of administrative errors on assessment
52 rolls and tax rolls, and shall be corrected accordingly.
53 Notwithstanding any other provision of law to the contrary, the
54 commissioner of taxation and finance shall immediately notify local
55 assessors of the name and address of any taxpayer within their assessing
56 unit who qualified for the school tax relief (STAR) credit pursuant to
A. 5969--A 4
1 subsection (eee) of section 606 of the tax law for taxable year 2017, or
2 has applied for a credit for taxable year 2018 and any additional infor-
3 mation available that would assist the assessor in accurately determin-
4 ing the property's eligibility for the STAR exemption pursuant to
5 section 425 of the real property tax law. To the extent possible, the
6 local assessor shall determine the eligibility of the property for the
7 2018--2019 school year using information provided by the commissioner of
8 taxation and finance. Taxpayers who applied with the department of
9 taxation and finance for the STAR credit for the 2018--2019 school year
10 or received the STAR credit for the 2017--2018 school year, shall not be
11 required to file an application for an exemption in order to receive an
12 exemption on the same property for the 2018--2019 school year; however,
13 if a property's eligibility cannot be determined by using information
14 supplied by the department of taxation and finance, the assessor may
15 seek additional documentation from the taxpayer to prove his or her
16 eligibility. Such taxpayer shall have until the last date on which a
17 petition, with respect to complaints of assessment may be filed, to
18 supply proof of eligibility, or thirty days of such request, whichever
19 is later. The assessor shall mail notice of his or her determination to
20 such owner. If the assessor determines that the property is eligible for
21 the exemption, the assessor shall thereupon be authorized and directed
22 to correct the assessment roll accordingly, or, if another person has
23 custody or control of the assessment roll, to direct that person to make
24 the appropriate corrections. If the correction is not made before school
25 taxes are levied, the failure to take the exemption into account in the
26 computation of the tax shall be deemed a "clerical error" for purposes
27 of title 3 of article 5 of the real property tax law, or any comparable
28 laws governing the correction of administrative errors on assessment
29 rolls and tax rolls, and shall be corrected accordingly. Nothing within
30 this act shall preclude a taxpayer from seeking administrative and judi-
31 cial review of an assessor's denial of the exemption.
32 § 11. This act shall take effect immediately.