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OFFICE OF REAL PROPERTY SERVICES


                          Adjusted     Executive    Legislative                       
                           Approp.       Request        Approp.
                           2000-01       2001-02        2001-02       Change


STATE OPERATIONS
  General Fund          23,158,400    26,841,000     23,158,200   (3,682,800)
  Special Rev.-Other    16,302,000    16,660,000     16,660,000             0 
  Total for 
  STATE OPERATIONS:     39,460,400    43,501,000     39,818,200   (3,682,800)

AID TO LOCALITIES
  General Fund          18,600,000    26,000,000     24,000,000   (2,000,000)
  Total for 
  AID TO LOCALITIES:    18,600,000    26,000,000     24,000,000   (2,000,000) 

Agency Mission

The Office of Real Property Services (ORPS) is responsible for the supervision of local property tax administration in New York State. Accordingly, ORPS has programs to determine full market value of taxable property for more than 1,000 municipalities, to provide technical and financial assistance to local assessing units, and to assist State agencies with issues related to the property tax.

Year-to-Year Change

The Executive requests $69,501,000 for State Fiscal Year (SFY) 2001-02, an increase of $11,440,600 or 19.7 percent from SFY 2000-01. The proposed increase results primarily from proposals relating to assessment activities and to the Co-STAR Rebate Program. Specifically, the Executive proposes to create a Co-STAR Rebate Program for county taxes paid by the senior citizens and farmers, and includes $3,682,800 for administration of this Program. In addition, the Executive provides $2,700,000 in Aid to Localities funding to support local efforts in assessment accuracy.

Legislative Changes

Eliminate funding for administration of Co-STAR rebate program. $(3,682,800)   ST/GEN

The Assembly rejects the proposed Co-Star Program, and therefore, eliminates $3,682,800 for the administrative costs associated with the program.

The Assembly concurs with the Executive proposal to provide a cost of living adjustment for the enhanced STAR exemption.

The Assembly Plan also ensures that Mitchell Lama cooperatives received STAR benefits in the same manner as other cooperatives. The originial intent of the STAR Program was to provide these homeowners with STAR. The Executive has chosen to deny STAR benefits to these individuals.

Administrative Savings. $(2,000,000)   ATL/GEN

The Assembly reduces funding for the administration of the STAR Program due to expected efficiencies in the administration of the program. The STAR Program has been in operation for four years and local assessors have considerable experience and have become more efficient in administering the program.

In an effort to ensure that assessors have the tools to administer the STAR Program, the Assembly Plan allocates funds directly to assessors for administration of the STAR Program. In addition, the Assembly would allocate funds to establish an outreach program to increase STAR participation throughout the State, and to ensure that homeowners have increased access to local assessor's offices for the filing of STAR applications.

Legislative Proposals

Railroad Property Tax Relief

The Assembly concurs with the Executive proposal to provide $4,700,000 to fully compensate local governments for the revenue loss attributable to the proposed Rail Access Tax Incentive Program.