Suspends state support for the local enforcement of past-due property taxes until after the end of the COVID-19 state disaster emergency by allowing past-due property owners to continue to receive STAR credits or STAR exemptions.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A5374
SPONSOR: McMahon TITLE OF BILL:
An act to amend the tax law, in relation to suspending state support for
the local enforcement of past-due property taxes until after the end of
the COVID-19 state disaster emergency
PURPOSE OR GENERAL IDEA OF BILL:
To delay enforcement of a new statute removing eligibility for the Basic
STAR exemption from property owners who are past-due in paying their
taxes until the end of the COVID-19 state disaster emergency.
SUMMARY OF PROVISIONS:
Section 1 amends Section 171-w of the tax law by adding a new subdivi-
sion 12.
Section 2 is the effective date.
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
JUSTIFICATION:
State law includes over 200 real property tax exemptions. STAR is the
only exemption funded by New York State. Created in the 1990s, the STAR
program is the farthest-reaching exemption program, with nearly 3.3
million exemptions. Under a new statute passed in the 2020-21 budget, a
homeowner will lose their Basic STAR exemption if property taxes are
past-due. Fortunately, the Enhanced STAR benefit was carved out of the
disallowance statute. The state Department of Tax and Finance has imple-
mented this statute administratively for the 2020-21 school tax STAR
cycle. This disallowance should be delayed until the end of the COVID-19
state disaster emergency so that homeowners delinquent in their property
taxes due to the pandemic are not further penalized.
PRIOR LEGISLATIVE HISTORY:
New bill
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None to the state
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
5374
2021-2022 Regular Sessions
IN ASSEMBLY
February 16, 2021
___________
Introduced by M. of A. McMAHON -- read once and referred to the Commit-
tee on Real Property Taxation
AN ACT to amend the tax law, in relation to suspending state support for
the local enforcement of past-due property taxes until after the end
of the COVID-19 state disaster emergency
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 171-w of the tax law is amended by adding a new
2 subdivision 12 to read as follows:
3 (12) Notwithstanding any provision of this section to the contrary,
4 the commissioner shall extend the date by which any delinquent property
5 owner shall be required to pay his or her past-due property taxes in
6 full in order to receive STAR credits or STAR exemptions, until after
7 the end of the COVID-19 state disaster emergency declared by executive
8 order number two hundred two and any further amendments or modifications
9 thereto, and as may be further extended pursuant to section twenty-eight
10 of the executive law. The department shall notify all delinquent prop-
11 erty owners of such extension.
12 § 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09060-01-1
