New York State Assembly

 
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A05969 Summary:

A05969 Actions:

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.