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A05969 Summary:

A05969 Actions:

A05969 Committee Votes:

Committee:REAL PROPERTY TAXATION   Chair:Galef      
DATE:03/01/2017AYE/NAY:8/0  Action: Favorable refer to committee Ways and Means        
Galef
Aye
Lalor
Aye
McDonald
Aye
Miller
Aye
Gjonaj
Excused
Pichardo
Aye
Dickens
Aye
Wallace
Aye
Barnwell
Aye

Committee:WAYS AND MEANS   Chair:Farrell      
DATE:03/01/2017AYE/NAY:30/0  Action: Favorable refer to committee Rules        
Farrell
Aye
Oaks
Aye
Lentol
Aye
Crouch
Aye
Schimminger
Aye
Barclay
Aye
Gantt
Excused
Fitzpatrick
Aye
Weinstein
Aye
Hawley
Aye
Glick
Excused
Malliotakis
Aye
Nolan
Excused
Walter
Aye
Pretlow
Aye
Montesano
Aye
Perry
Aye
Curran
Aye
Colton
Aye
Ra
Aye
Cook
Excused
Cahill
Aye
Aubry
Aye
Hooper
Aye
Thiele
Aye
Cusick
Aye
Ortiz
Aye
Benedetto
Aye
Moya
Aye
Weprin
Aye
Rodriguez
Aye
Ramos
Aye
Braunstein
Aye
McDonald
Excused
Rozic
Aye

Committee:RULES   Chair:Heastie      
DATE:03/01/2017AYE/NAY:28/0  Action: Favorable         
Heastie
Aye
Kolb
Aye
Gottfried
Aye
Oaks
Aye
Lentol
Aye
Butler
Aye
Farrell
Aye
Crouch
Aye
Gantt
Excused
Finch
Aye
Nolan
Excused
Barclay
Aye
Weinstein
Aye
Raia
Aye
Hooper
Aye
Hawley
Aye
Ortiz
Aye
Pretlow
Aye
Cook
Aye
Glick
Excused
Morelle
Aye
Aubry
Aye
Englebright
Aye
Dinowitz
Aye
Colton
Aye
Magnarelli
Aye
Perry
Aye
Galef
Aye
Paulin
Aye
Titus
Aye
Peoples-Stokes
Aye

A05969 Floor Votes:

A05969 Memo:

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.

A05969 Text:

 
                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.

A05969 LFIN:

 
NO LFIN