NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A9943
SPONSOR: Galef TITLE OF BILL: An act to repeal part A of chapter 60 of the laws of
2016 amending the real property tax law and the tax law relating to
transitioning the school tax relief (STAR) exemption into a personal
income tax credit, relating thereto
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this legislation is to repeal part A of chapter 60 of the
laws of 2016, which provides for the transition of the school tax relief
property tax exemption to a personal income tax credit.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1. Part A of chapter 60 of the laws of 2016 amending the Real
Property Tax Law and the Tax Law relating to transitioning the school
tax relief (STAR) exemption into a personal income tax credit is
REPEALED.
Section 2. Establishes the effective date.
JUSTIFICATION:
The STAR program has historically been an exemption program, which
provides homeowners with immediate school tax relief by reducing their
school tax bills. Part A of Chapter 60 of the Laws of 2016 changed STAR
to a personal income tax program for new homeowners. These homeowners
will receive their full school tax bill, and then have to wait for a tax
credit from the Department of Taxation and Finance. New formulas will be
used to calculate the credit amounts for cooperatives and mobile homes,
which could mean some homeowners receiving the personal income tax cred-
it will receive a lesser benefit than their neighbors who are receiving.
This legislation would keep STAR as an exemption program and allow
future applicants to receive the same benefits in the same manner as
current STAR recipients.
PRIOR LEGISLATIVE HISTORY:
This is new legislation.
FISCAL IMPLICATIONS:
This legislation would eliminate the temporary cost savings of the
conversion, which was estimated by the New York State Division of Budget
to be about $100 million annually until full conversion was complete;
however the savings attributable to the conversion would ultimately have
been offset by lower income tax revenues to the State.
EFFECTIVE DATE:
This act shall take effect immediately.
