S T A T E   O F   N E W   Y O R K
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                                  7414

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                               May 4, 2011
                               ___________

Introduced by M. of A. THIELE, BURLING, CROUCH, GIGLIO, KOLB, J. MILLER,
  RAIA  --  Multi-Sponsored by -- M. of A. CONTE, SPANO -- read once and
  referred to the Committee on Real Property Taxation

AN ACT to amend the real property tax law, in relation to limiting  real
  property  assessment  increases  on  primary  residences  only  and to
  provide for senior tax deferral; to amend the tax law, in relation  to
  establishing  a  personal income tax credit for a cap on real property
  tax based off of a household's gross income; and to amend  the  educa-
  tion law, in relation to authorizing a school district to impose a cap
  on taxes

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The real property tax  law  is  amended  by  adding  a  new
section 307-b to read as follows:
  S  307-B.  LIMITATION  ON INCREASES OF ASSESSED VALUE OF PRIMARY RESI-
DENCES ONLY REAL PROPERTY SUBJECT TO TAXATION.  1.  NOTWITHSTANDING  ANY
PROVISION  OF  ANY  GENERAL,  SPECIAL  OR LOCAL LAW TO THE CONTRARY, THE
ASSESSOR FOR A MUNICIPAL CORPORATION SHALL NOT INCREASE  THE  ASSESSMENT
OF ANY PRIMARY RESIDENCES ONLY TAXABLE REAL PROPERTY AS DEFINED PURSUANT
TO  SECTION THREE HUNDRED OF THIS TITLE, AS MEASURED FROM THE FULL VALU-
ATION ASSESSMENT OF SUCH REAL PROPERTY  ON  DECEMBER  THIRTY-FIRST,  TWO
THOUSAND  ELEVEN, UNLESS THE PROPERTY IS SOLD, TRANSFERRED OR RENOVATED,
OR TO CORRECT AN ERROR. THREE YEARS FROM  THE  EFFECTIVE  DATE  OF  THIS
SECTION  AND  ONCE EVERY THREE YEARS THEREAFTER, A MUNICIPAL CORPORATION
SHALL BE ALLOWED TO INCREASE THE ASSESSMENT OF TAXABLE REAL PROPERTY  BY
THE  PERCENTAGE  INCREASE  IN  THE  CONSUMER PRICE INDEX OR FIVE PERCENT
WHICHEVER IS LESS, BUT NOT MORE THAN THE ACTUAL INCREASE IN VALUE.
  2. WHEN A PERSON SELLS OR TRANSFERS HIS OR HER PRIMARY RESIDENCE WITH-
IN THIS STATE AND WITHIN ONE YEAR ESTABLISHES IN THE SAME ASSESSING UNIT
ANOTHER PROPERTY AS HIS OR HER NEW PRIMARY RESIDENCE, THE  NEWLY  ESTAB-
LISHED  PRIMARY  RESIDENCE SHALL BE INITIALLY ASSESSED AT LESS THAN FAIR

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10943-01-1
              

A. 7414                             2

MARKET VALUE. THE DIFFERENCE BETWEEN THE NEW  PRIMARY  RESIDENCE'S  FAIR
MARKET  VALUE  AND ITS ASSESSED VALUE IN THE FIRST YEAR THE HOMESTEAD IS
ESTABLISHED SHALL BE THE DIFFERENCE BETWEEN THE PREVIOUS  PRIMARY  RESI-
DENCE'S FAIR MARKET VALUE AND ITS ASSESSED VALUE IN THE YEAR OF SALE. IN
ADDITION,  TO  BE ASSESSED AS PROVIDED IN THIS SUBDIVISION, THE ASSESSED
VALUE OF THE NEW PRIMARY RESIDENCE SHALL  BE  EQUAL  TO  OR  EXCEED  THE
ASSESSED  VALUE  OF  THE  PREVIOUS  PRIMARY RESIDENCE.   THEREAFTER, THE
PRIMARY RESIDENCE SHALL BE ASSESSED AS PROVIDED IN THIS SECTION.
  S 2. Section 606 of the tax law is amended by adding a new  subsection
(tt) to read as follows:
  (TT) CAP ON REAL PROPERTY TAX. (1) A TAXPAYER SHALL BE ALLOWED A CRED-
IT,  TO  BE  COMPUTED  AS  PROVIDED  IN THIS SUBSECTION, AGAINST THE TAX
IMPOSED BY THIS ARTICLE. A CAP ON REAL PROPERTY TAX SHALL BE ESTABLISHED
BASED ON A HOUSEHOLD'S GROSS INCOME AND INDEXED TO  THE  CONSUMER  PRICE
INDEX.
  (2)  THE  NET  REAL  PROPERTY  TAX FOR ANY TAXABLE YEAR ON A PARCEL OF
OWNER-OCCUPIED RESIDENTIAL REAL PROPERTY  SHALL  NOT  EXCEED  AN  AMOUNT
EQUAL TO THE FOLLOWING PERCENTAGE OF THE HOUSEHOLD GROSS INCOME:
HOUSEHOLD GROSS INCOME                      CAP ON REAL PROPERTY TAX
$200,000 OR LESS                            5% OF HOUSEHOLD GROSS INCOME
  (3)  A TAXPAYER SHALL FILE INCOME TAX RETURNS IN THE MANNER PRESCRIBED
BY THIS ARTICLE. ANY AMOUNT PAID OVER THE REAL PROPERTY TAX CAP SHALL BE
RETURNED TO THE TAXPAYER IN THE FORM OF A REFUNDABLE PERSONAL INCOME TAX
CREDIT. SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL  PROPERTY  TAX  LAW
SHALL NOT BE AFFECTED BY ANY PROVISION OF THIS SUBSECTION.
  (4) THE PERSONAL INCOME TAX CREDIT PURSUANT TO THIS SECTION SHALL ONLY
BE  AVAILABLE  TO NEW YORK STATE RESIDENTS FOR A PRIMARY RESIDENCE. SUCH
CREDIT SHALL BE CLAIMED ON  THE  NEW  YORK  STATE  RESIDENT  INCOME  TAX
RETURN, FORM IT-201.
  (5)  FOR  THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE
THE FOLLOWING MEANINGS:
  (A) A "HOMEOWNER" SHALL MEAN ANY PERSON:
  (I) WHO OCCUPIED THE SAME NEW YORK RESIDENCE FOR SIX MONTHS OR MORE;
  (II) WHO PAID REAL PROPERTY TAXES ON SUCH PERSON'S RESIDENCE;
  (III) WHO WAS A NEW YORK STATE RESIDENT FOR ALL OF THE TAX YEAR;
  (IV) WHO COULD NOT BE CLAIMED AS A  DEPENDENT  ON  ANOTHER  TAXPAYER'S
FEDERAL INCOME TAX RETURN;
  (V)  WHOSE  RESIDENCE  WAS  NOT COMPLETELY EXEMPTED FROM REAL PROPERTY
TAXES; AND
  (VI) WHOSE PRIMARY RESIDENCE IS IN NEW YORK STATE.
  (B) "MEMBERS OF A HOUSEHOLD" INCLUDE ALL WHO SHARE A RESIDENCE AND ITS
FURNISHINGS, FACILITIES, AND ACCOMMODATIONS  WHETHER  SUCH  PERSONS  ARE
RELATED OR NOT.
  HOWEVER,  TENANTS, SUBTENANTS, ROOMERS, OR BOARDERS ARE NOT MEMBERS OF
A HOUSEHOLD UNLESS SUCH PERSONS ARE RELATED  IN  ONE  OF  THE  FOLLOWING
WAYS:
  (I)  A  SON,  DAUGHTER,  OR  A DESCENDENT OF EITHER; (II) A STEPSON OR
STEPDAUGHTER; (III) A BROTHER, SISTER, STEPBROTHER, OR STEPSISTER;  (IV)
A  FATHER,  MOTHER,  OR AN ANCESTOR OF EITHER; (V) A STEPFATHER OR STEP-
MOTHER; (VI) A NIECE OR NEPHEW; (VII) AN AUNT  OR  UNCLE;  OR  (VIII)  A
SON-IN-LAW,      DAUGHTER-IN-LAW,      FATHER-IN-LAW,     MOTHER-IN-LAW,
BROTHER-IN-LAW, OR SISTER-IN-LAW.
  PROVIDED, FURTHER, THAT NO ONE CAN BE A MEMBER OF MORE THAN ONE HOUSE-
HOLD AT ONE TIME.

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  (C) "HOUSEHOLD GROSS INCOME" MEANS THE ANNUAL TOTAL OF  THE  FOLLOWING
INCOME  ITEMS  THAT  A HOMEOWNER AND ALL MEMBERS OF HIS OR HER HOUSEHOLD
RECEIVED DURING THE TAX YEAR;
  (I)  FEDERAL  ADJUSTED GROSS INCOME (EVEN IF SUCH PERSON DOES NOT HAVE
TO FILE A FEDERAL RETURN);
  (II) NEW YORK STATE ADDITIONS TO FEDERAL ADJUSTED GROSS INCOME. FOR  A
LIST  OF THESE ADDITIONS, SEE PUBLICATION 22, GENERAL INFORMATION ON NEW
YORK STATE'S REAL PROPERTY TAX CREDIT FOR HOMEOWNERS AND RENTERS, OR THE
INSTRUCTIONS FOR FORM IT-201. FOR FORM IT-200 FILERS, THE NEW YORK STATE
ADDITIONS TO FEDERAL ADJUSTED GROSS INCOME ARE  SHOWN  ON  FORM  IT-200,
LINE 9, PUBLIC EMPLOYEE 414(H) RETIREMENT CONTRIBUTIONS AND LINE 10, IRC
125  AMOUNTS FROM THE NEW YORK CITY FLEXIBLE BENEFITS PROGRAM.  FOR FORM
IT-201 FILERS, THE NEW YORK STATE ADDITIONS TO  FEDERAL  ADJUSTED  GROSS
INCOME ARE SHOWN ON FORM IT-201, LINES 19 THROUGH 22;
  (III) SUPPORT MONEY, INCLUDING FOSTER CARE SUPPORT PAYMENTS;
  (IV)  INCOME  EARNED  ABROAD  EXEMPTED  BY SECTION 911 OF THE INTERNAL
REVENUE CODE;
  (V) SUPPLEMENTAL SECURITY INCOME (SSI) PAYMENTS;
  (VI) NONTAXABLE INTEREST RECEIVED FROM NEW YORK STATE,  ITS  AGENCIES,
INSTRUMENTALITIES, PUBLIC CORPORATIONS, OR POLITICAL SUBDIVISIONS;
  (VII) WORKERS' COMPENSATION;
  (VIII)  THE  GROSS  AMOUNT OF LOSS-OF-TIME INSURANCE. (FOR EXAMPLE, AN
ACCIDENT OR HEALTH INSURANCE POLICY  AND  DISABILITY  BENEFITS  RECEIVED
UNDER A NO-FAULT AUTOMOBILE POLICY, ETC.);
  (IX)  CASH PUBLIC ASSISTANCE AND RELIEF, OTHER THAN MEDICAL ASSISTANCE
FOR THE NEEDY (FOR EXAMPLE, CASH GRANTS TO  CLIENTS,  EMERGENCY  AID  TO
ADULTS,  VALUE  OF  FOOD  VOUCHERS  RECEIVED  BY  CLIENTS, ETC.), EXCEPT
AMOUNTS RECEIVED FROM THE HOME ENERGY ASSISTANCE PROGRAM (HEAP);
  (X) NONTAXABLE STRIKE BENEFITS;
  (XI) THE GROSS AMOUNT OF PENSIONS AND  ANNUITIES,  INCLUDING  RAILROAD
RETIREMENT BENEFITS;
  (XII) ALL PAYMENTS RECEIVED UNDER THE SOCIAL SECURITY ACT AND VETERANS
DISABILITY  PENSIONS REDUCED BY ANY MEDICARE PREMIUMS DEDUCTED FROM YOUR
BENEFIT REPORTED ON  FEDERAL  FORM  SSA-1099,  SOCIAL  SECURITY  BENEFIT
STATEMENT.
  HOUSEHOLD  GROSS INCOME SHALL NOT INCLUDE FOOD STAMPS, MEDICARE, MEDI-
CAID, SCHOLARSHIPS, GRANTS, SURPLUS FOOD, OR OTHER RELIEF IN KIND.    IT
ALSO  SHALL  NOT  INCLUDE  PAYMENTS  MADE  TO VETERANS UNDER THE FEDERAL
VETERANS' DIOXIN  AND  RADIATION  EXPOSURE  COMPENSATION  STANDARDS  ACT
BECAUSE  OF  EXPOSURE TO HERBICIDES CONTAINING DIOXIN (AGENT ORANGE), OR
PURSUANT TO CERTAIN AGENT ORANGE PRODUCT LIABILITY LITIGATION.
  ALSO, HOUSEHOLD GROSS INCOME SHALL NOT INCLUDE PAYMENTS MADE TO  INDI-
VIDUALS  BECAUSE  OF  THEIR  STATUS  AS  VICTIMS  OF NAZI PERSECUTION AS
DEFINED IN FEDERAL PUBLIC LAW 103-286.
  (D) A "RESIDENCE" MEANS A DWELLING THAT A PERSON OWNS THAT IS  LOCATED
IN  NEW  YORK  STATE.  FOR PURPOSES OF THIS SUBPARAGRAPH, EACH RESIDENCE
WITHIN A MULTIPLE DWELLING UNIT MAY QUALIFY.  A CONDOMINIUM OR A COOPER-
ATIVE WITHIN A SINGLE DWELLING IS ALSO A RESIDENCE.
  A TRAILER OR MOBILE HOME THAT IS USED ONLY FOR RESIDENTIAL PURPOSES IS
ALSO A RESIDENCE IF THE TRAILER OR MOBILE  HOME  IS  ASSESSED  FOR  REAL
PROPERTY TAX PURPOSES.
  (E) "REAL PROPERTY TAXES PAID" ARE:
  (I)  ALL  CURRENT,  PRIOR, AND PREPAID REAL PROPERTY TAXES, SPECIAL AD
VALOREM LEVIES AND ASSESSMENTS LEVIED AND PAID UPON A RESIDENCE OWNED OR
PREVIOUSLY OWNED BY A QUALIFIED TAXPAYER (OR SPOUSE, IF THE SPOUSE OCCU-
PIED THE RESIDENCE FOR AT LEAST SIX MONTHS) DURING THE TAX YEAR.    SUCH

A. 7414                             4

PERSON  MAY  ELECT TO INCLUDE REAL PROPERTY TAXES THAT ARE EXEMPTED FROM
TAX UNDER SECTION FOUR HUNDRED SIXTY-SEVEN (FOR PERSONS  SIXTY-FIVE  AND
OLDER)  OF  THE  REAL PROPERTY TAX LAW (VETERANS' TAX EXEMPTION DOES NOT
QUALIFY).
  (II)  REAL  PROPERTY  TAXES  PAID  ALSO  INCLUDE ANY REAL ESTATE TAXES
ALLOWED (OR WHICH WOULD BE ALLOWABLE IF THE TAXPAYER HAD FILED A  RETURN
ON A CASH BASIS) AS A DEDUCTION FOR TENANT-STOCKHOLDERS IN A COOPERATIVE
HOUSING CORPORATION UNDER SECTION 216 OF THE INTERNAL REVENUE CODE.
  (III)  IF  ANY  PART OF A RESIDENCE WAS OWNED BY SOMEONE WHO WAS NOT A
MEMBER OF A HOUSEHOLD, INCLUDE ONLY THE REAL PROPERTY  TAXES  PAID  THAT
APPLY TO THE PART SUCH PERSON AND OTHER QUALIFIED MEMBERS OF A HOUSEHOLD
OWN.
  IF  A  RESIDENCE WAS PART OF A LARGER UNIT, INCLUDE ONLY THE AMOUNT OF
REAL PROPERTY TAXES PAID THAT CAN BE REASONABLY APPLIED TO SUCH PERSON'S
RESIDENCE.
  IF A HOMEOWNER OWNED AND OCCUPIED MORE THAN ONE RESIDENCE  DURING  THE
TAX YEAR, ADD TOGETHER THE PRORATED PART OF REAL PROPERTY TAXES PAID FOR
THE PERIOD YOU OCCUPIED EACH RESIDENCE.
  S  3.  Section  2022  of  the education law is amended by adding a new
subdivision 7 to read as follows:
  7. A. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, RULE  OR  REGULATION
TO  THE  CONTRARY, IN A COMMON, UNION FREE, CENTRAL, CENTRAL HIGH SCHOOL
DISTRICT OR CITY SCHOOL DISTRICT TO WHICH THIS ARTICLE APPLIES, UPON THE
FILING WITH THE TRUSTEES OR BOARD OF EDUCATION OF A PETITION PURSUANT TO
PARAGRAPH B OF THIS SUBDIVISION REQUESTING SUCH  OFFICERS  TO  SUBMIT  A
PROPOSITION  FOR THE PURPOSE OF IMPOSING A LIMITATION ON THE TAX RATE TO
THE  QUALIFIED  VOTERS  AT  THE  ANNUAL  DISTRICT  MEETING   SIGNED   BY
TWENTY-FIVE  PERCENT  OF THE NUMBER OF QUALIFIED VOTERS WHO VOTED IN THE
PREVIOUS ANNUAL DISTRICT MEETING, SAID NUMBER TO BE  DETERMINED  BY  THE
NUMBER  OF  PERSONS  RECORDED  ON  THE POLL LIST AS HAVING VOTED AT SUCH
DISTRICT MEETING, THE TRUSTEES OR BOARD OF EDUCATION SHALL  SUBMIT  SUCH
PROPOSITION TO THE QUALIFIED VOTERS.
  B.  SUCH  PETITION  RELATING  TO IMPOSITION OF A LIMITATION ON THE TAX
RATE SHALL BE SUBMITTED  AT  LEAST  THIRTY  DAYS  PRIOR  TO  THE  ANNUAL
DISTRICT  MEETING  AND  SHALL  SPECIFY  THE  PROPOSED MAXIMUM PERCENTAGE
CHANGE IN THE ESTIMATED TAX RATE, AS DEFINED BY  THE  COMMISSIONER  FROM
THE  ACTUAL  TAX  RATE THAT RESULTED FROM THE LEVYING OF SCHOOL TAXES IN
THE PRIOR SCHOOL YEAR THAT THE TRUSTEES OR BOARD OF EDUCATION MUST APPLY
IN DEVELOPING OR ADOPTING A BUDGET FOR THE SCHOOL YEAR  COMMENCING  WITH
THE BUDGET TO BE SUBMITTED AT THE NEXT ANNUAL DISTRICT MEETING FOLLOWING
VOTER  APPROVAL  OF SUCH PROPOSITION.   THE PROPOSITION PRESENTED TO THE
QUALIFIED VOTERS FOR APPROVAL MUST SPECIFY THE LIMIT ON  THE  PERCENTAGE
CHANGE IN THE ESTIMATED TAX RATE THAT THE PETITION PROPOSES TO IMPOSE.
  C. NOTWITHSTANDING THE PROVISIONS OF SECTION TWO THOUSAND TWENTY-THREE
OF  THIS  PART  OR ANY OTHER PROVISION OF LAW, RULE OR REGULATION TO THE
CONTRARY, UPON APPROVAL BY THE VOTERS OF A PROPOSITION IMPOSING A  LIMI-
TATION  ON TAX RATE CHANGES PURSUANT TO THIS SUBDIVISION, FOR THE SCHOOL
YEARS IN WHICH THE LIMITATION IS IN EFFECT  THE  TRUSTEES  OR  BOARD  OF
EDUCATION  SHALL  NOT DEVELOP AND SUBMIT A PROPOSED BUDGET TO THE VOTERS
AT THE ANNUAL DISTRICT MEETING OR A BUDGET REVOTE  THAT  IN  COMBINATION
WITH  ANY  SEPARATE  PROPOSITIONS  INVOLVING  THE  EXPENDITURE  OF MONEY
PROPOSED BY THE TRUSTEES OR BOARD OF EDUCATION AT SUCH  ANNUAL  DISTRICT
MEETING  OR BUDGET REVOTE, WOULD RESULT IN AN ESTIMATED TAX RATE, DETER-
MINED AT THE TIME THE PROPERTY TAX REPORT CARD IS PREPARED, THAT  IS  IN
EXCESS  OF THE MAXIMUM PERCENTAGE CHANGE IN SUCH ESTIMATED TAX RATE THAT
HAS BEEN APPROVED BY THE VOTERS, AND THE TRUSTEES OR BOARD OF  EDUCATION

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SHALL  NOT ADOPT A CONTINGENCY BUDGET FOR SUCH SCHOOL YEARS, IN COMBINA-
TION WITH ANY SUCH SEPARATE PROPOSITIONS PROPOSED  BY  THE  TRUSTEES  OR
BOARD  OF  EDUCATION THAT HAVE BEEN APPROVED BY THE VOTERS, WOULD RESULT
IN AN ESTIMATED TAX RATE IN EXCESS OF SUCH LIMITATION.
  S 4. 1. Notwithstanding any other provision of law, rule or regulation
to  the contrary, in a village, town, city, or county upon the filing of
a petition  pursuant to subdivision 2 of this section  with  the  county
board  of  elections  in  which  the  political subdivision which is the
subject of the petition is located, a proposition  for  the  purpose  of
imposing  a  limitation  on  the tax rate to the qualified voters at the
next general election or village general election,  if  the  proposition
relates  to  a  village  tax  rate, signed by twenty-five percent of the
number of qualified voters who voted in the previous general election or
village general election if the proposition relates  to  a  village  tax
rate, said number to be determined by respective board of elections such
proposition shall be submitted to the qualified voters.
  2. Such petition relating to the imposition of a limitation on the tax
rate  shall  be  submitted  at  least  thirty  days prior to the general
election or village general election if the  proposition  relates  to  a
village  tax  rate  and  shall  specify  the proposed maximum percentage
change in the estimated tax rate from the actual tax rate that  resulted
from  the  levying  of  property  taxes  in the prior year, for the year
commencing with the budget in the year following voter approval of  such
proposition.    The  proposition  presented  to the qualified voters for
approval must specify the limit on the percentage change  in  the  esti-
mated tax rate that the petition proposes to impose.
  S 5. The real property tax law is amended by adding eight new sections
1443, 1444, 1445, 1446, 1447, 1448, 1449 and 1450 to read as follows:
  S  1443.  SENIOR TAX DEFERRAL. 1. FOR THE PURPOSES OF THIS SECTION THE
FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (A) "HOUSEHOLD" MEANS A PERSON OR GROUP OF PERSONS LIVING TOGETHER  IN
A  ROOM  OR  GROUP  OF  ROOMS  AS  A HOUSING UNIT, BUT THE TERM DOES NOT
INCLUDE PERSONS BOARDING IN OR RENTING A PORTION OF THE DWELLING.
  (B) "INCOME" MEANS THE "ADJUSTED GROSS INCOME," AS DEFINED IN  SECTION
62  OF  THE  UNITED  STATES  INTERNAL  REVENUE CODE, OF ALL MEMBERS OF A
HOUSEHOLD.
  2. ANY PERSON WHO IS ENTITLED TO CLAIM ENHANCED STAR EXEMPTION  PURSU-
ANT  TO  SECTION  FOUR  HUNDRED TWENTY-FIVE OF THIS CHAPTER MAY ELECT TO
DEFER PAYMENT OF A PORTION OF THE COMBINED TOTAL OF THE AD VALOREM TAXES
AND ANY NON-AD VALOREM ASSESSMENTS NOT  TO  EXCEED  TWENTY-FIVE  HUNDRED
DOLLARS PER YEAR BY FILING AN ANNUAL APPLICATION FOR SENIOR TAX DEFERRAL
WITH  THE ASSESSOR ON OR BEFORE SEPTEMBER FIRST BEFORE THE YEAR IN WHICH
THE TAXES AND NON-AD VALOREM ASSESSMENTS ARE ASSESSED.  IT SHALL BE  THE
BURDEN  OF  EACH  APPLICANT TO AFFIRMATIVELY DEMONSTRATE COMPLIANCE WITH
THE REQUIREMENTS OF THIS SECTION.
  3. APPROVAL OF AN APPLICATION FOR SENIOR TAX DEFERRAL SHALL DEFER THAT
PORTION OF THE COMBINED TOTAL OF AD VALOREM TAXES AND ANY NON-AD VALOREM
ASSESSMENTS NOT TO EXCEED TWENTY-FIVE HUNDRED DOLLARS.
  4. NO SENIOR TAX DEFERRAL SHALL BE GRANTED:
  (A) IF THE TOTAL AMOUNT  OF  SENIOR  DEFERRED  TAXES,  NON-AD  VALOREM
ASSESSMENTS, AND INTEREST PLUS THE TOTAL AMOUNT OF ALL OTHER UNSATISFIED
LIENS ON THE HOMESTEAD EXCEEDS EIGHTY-FIVE PERCENT OF THE ASSESSED VALUE
OF THE HOMESTEAD, OR
  (B)  IF  THE  PRIMARY  MORTGAGE  FINANCING  ON THE HOMESTEAD IS FOR AN
AMOUNT WHICH EXCEEDS SEVENTY PERCENT OF THE ASSESSED VALUE OF THE  HOME-
STEAD.

A. 7414                             6

  5.  THE  AMOUNT  OF  TAXES,  NON-AD  VALOREM ASSESSMENTS, AND INTEREST
DEFERRED UNDER THIS ARTICLE SHALL ACCRUE INTEREST AT A RATE EQUAL TO THE
SEMIANNUALLY COMPOUNDED RATE OF ONE-HALF OF ONE PERCENT PLUS THE AVERAGE
YIELD TO MATURITY OF THE LONG-TERM FIXED-INCOME PORTION OF THE NEW  YORK
STATE  AND  LOCAL EMPLOYEES' RETIREMENT SYSTEM INVESTMENTS AS OF THE END
OF THE QUARTER PRECEDING THE DATE OF THE SALE OF  THE  DEFERRED  PAYMENT
TAX  CERTIFICATES;  HOWEVER,  THE  INTEREST  RATE  MAY  NOT EXCEED SEVEN
PERCENT.
  6. THE TAXES, NON-AD VALOREM ASSESSMENTS, AND INTEREST DEFERRED PURSU-
ANT TO THIS ARTICLE SHALL CONSTITUTE A PRIOR LIEN AND SHALL ATTACH AS OF
THE DATE AND IN THE SAME MANNER AND BE  COLLECTED  AS  OTHER  LIENS  FOR
TAXES,  AS  PROVIDED  FOR  UNDER  THIS CHAPTER, BUT SUCH SENIOR DEFERRED
TAXES, NON-AD VALOREM ASSESSMENTS, AND INTEREST SHALL ONLY BE DUE, PAYA-
BLE, AND DELINQUENT AS PROVIDED IN THIS ARTICLE.
  S 1444. SENIOR TAX DEFERRAL; APPLICATION.    1.  THE  APPLICATION  FOR
SENIOR  TAX  DEFERRAL  SHALL BE MADE UPON A FORM PRESCRIBED BY THE BOARD
AND FURNISHED BY THE ASSESSOR. THE APPLICATION FORM SHALL BE SIGNED UPON
OATH BY THE APPLICANT BEFORE AN  OFFICER  AUTHORIZED  BY  THE  STATE  TO
ADMINISTER  OATHS.  THE  ASSESSOR MAY, IN HIS OR HER DISCRETION, REQUIRE
THE APPLICANT TO SUBMIT SUCH OTHER EVIDENCE AND DOCUMENTATION AS  DEEMED
NECESSARY  BY  THE ASSESSOR IN CONSIDERING THE APPLICATION. THE APPLICA-
TION FORM SHALL ADVISE THE APPLICANT OF THE MANNER IN WHICH INTEREST  IS
COMPUTED.  EACH  APPLICATION  FORM  SHALL  CONTAIN AN EXPLANATION OF THE
CONDITIONS TO BE  MET  FOR  APPROVAL  AND  THE  CONDITIONS  UNDER  WHICH
DEFERRED  TAXES  AND  INTEREST BECOME DUE, PAYABLE, AND DELINQUENT. EACH
APPLICATION SHALL CLEARLY STATE THAT ALL SENIOR TAX  DEFERRALS  PURSUANT
TO THIS ARTICLE SHALL CONSTITUTE A LIEN ON THE APPLICANT'S HOMESTEAD.
  2.  (A) THE ASSESSOR SHALL CONSIDER EACH ANNUAL APPLICATION FOR SENIOR
TAX DEFERRAL WITHIN THIRTY DAYS OF THE DAY THE APPLICATION IS  FILED  OR
AS SOON AS PRACTICABLE THEREAFTER. AN ASSESSOR WHO FINDS THAT THE APPLI-
CANT  IS  ENTITLED TO THE SENIOR TAX DEFERRAL SHALL APPROVE THE APPLICA-
TION AND FILE THE APPLICATION IN THE PERMANENT RECORDS. AN ASSESSOR  WHO
FINDS  THE APPLICANT IS NOT ENTITLED TO THE DEFERRAL SHALL SEND A NOTICE
OF DISAPPROVAL WITHIN THIRTY DAYS OF  THE  FILING  OF  THE  APPLICATION,
GIVING REASONS THEREFOR TO THE APPLICANT, EITHER BY PERSONAL DELIVERY OR
BY  REGISTERED  MAIL  TO  THE MAILING ADDRESS GIVEN BY THE APPLICANT AND
SHALL MAKE RETURN IN THE MANNER IN WHICH SUCH NOTICE WAS SERVED UPON THE
APPLICANT UPON THE ORIGINAL NOTICE THEREOF AND FILE AMONG THE  PERMANENT
RECORDS  OF  THE ASSESSOR'S OFFICE.   THE ORIGINAL NOTICE OF DISAPPROVAL
SENT TO THE APPLICANT SHALL ADVISE THE APPLICANT OF THE RIGHT TO  APPEAL
THE DECISION OF THE ASSESSOR TO THE BOARD OF ASSESSMENT REVIEW AND SHALL
INFORM THE APPLICANT OF THE PROCEDURE FOR FILING SUCH AN APPEAL.
  (B) APPEALS OF THE DECISION OF THE ASSESSOR TO THE BOARD OF ASSESSMENT
REVIEW  SHALL  BE  IN  WRITING  ON  A  FORM  PRESCRIBED BY THE BOARD AND
FURNISHED BY THE ASSESSOR. SUCH APPEAL SHALL BE FILED WITH THE BOARD  OF
ASSESSMENT  REVIEW  WITHIN  TWENTY DAYS AFTER THE APPLICANT'S RECEIPT OF
THE NOTICE OF DISAPPROVAL. THE BOARD OF ASSESSMENT REVIEW  SHALL  REVIEW
THE  APPLICATION  AND  THE EVIDENCE PRESENTED TO THE BOARD OF ASSESSMENT
REVIEW UPON WHICH THE APPLICANT BASED HIS OR HER CLAIM  FOR  SENIOR  TAX
DEFERRAL AND, AT THE ELECTION OF THE APPLICANT, SHALL HEAR THE APPLICANT
IN  PERSON, OR BY AGENT ON THE APPLICANT'S BEHALF ON HIS OR HER RIGHT TO
SENIOR TAX DEFERRAL. THE BOARD OF ASSESSMENT REVIEW  SHALL  REVERSE  THE
DECISION OF THE ASSESSOR AND GRANT SENIOR TAX DEFERRAL TO THE APPLICANT,
IF  IN  ITS  JUDGMENT  THE  APPLICANT IS ENTITLED THERETO, OR AFFIRM THE
DECISION OF THE ASSESSOR. SUCH ACTION OF THE BOARD OF ASSESSMENT  REVIEW
SHALL  BE  FINAL  UNLESS  THE APPLICANT OR ASSESSOR OR OTHER LIENHOLDER,

A. 7414                             7

WITHIN FIFTEEN DAYS FROM THE DATE OF DISAPPROVAL OF THE  APPLICATION  BY
THE BOARD, FILES IN THE SUPREME COURT OF THE COUNTY IN WHICH THE PROPER-
TY IS LOCATED, AN ARTICLE SEVENTY-EIGHT PROCEEDING PURSUANT TO THE CIVIL
PRACTICE LAW AND RULES.
  3. EACH APPLICATION SHALL CONTAIN A LIST OF, AND THE CURRENT VALUE OF,
ALL OUTSTANDING LIENS ON THE APPLICANT'S HOMESTEAD.
  4.  FOR  APPROVED APPLICATIONS, THE DATE OF RECEIPT BY THE ASSESSOR OF
THE APPLICATION FOR SENIOR TAX DEFERRAL SHALL  BE  USED  IN  CALCULATING
TAXES DUE AND PAYABLE NET OF DISCOUNTS FOR EARLY PAYMENT.
  5. IF SUCH PROOF HAS NOT BEEN FURNISHED WITH A PRIOR APPLICATION, EACH
APPLICANT SHALL FURNISH PROOF OF FIRE AND EXTENDED COVERAGE INSURANCE IN
AN  AMOUNT  WHICH  IS  IN EXCESS OF THE SUM OF ALL OUTSTANDING LIENS AND
DEFERRED TAXES AND INTEREST WITH A LOSS PAYABLE CLAUSE TO THE ASSESSOR.
  6. THE ASSESSOR SHALL NOTIFY THE COLLECTING OFFICER.
  7. THE ASSESSOR  SHALL  PROMPTLY  NOTIFY  THE  COLLECTING  OFFICER  OF
DENIALS  OF APPLICATION AND CHANGES IN OWNERSHIP OF PROPERTIES THAT HAVE
BEEN GRANTED A SENIOR TAX DEFERRAL.
  S 1445. ANNUAL NOTIFICATION TO TAXPAYER. 1. THE ASSESSOR SHALL  NOTIFY
THE  TAXPAYER  OF  EACH PARCEL APPEARING ON THE REAL PROPERTY ASSESSMENT
ROLL OF THE RIGHT TO DEFER PAYMENT OF TAXES AND NON-AD  VALOREM  ASSESS-
MENTS PURSUANT TO THIS ARTICLE. SUCH NOTICE SHALL BE PRINTED ON THE BACK
OF  ENVELOPES  USED FOR MAILING THE NOTICE OF TAXES.  SUCH NOTICE OF THE
RIGHT TO DEFER PAYMENT OF TAXES AND  NON-AD  VALOREM  ASSESSMENTS  SHALL
READ:

                      NOTICE TO TAXPAYERS ENTITLED
                         TO SENIOR TAX DEFERRAL

  "IF  YOUR  INCOME  IS  LOW  ENOUGH TO MEET CERTAIN CONDITIONS, YOU MAY
QUALIFY FOR A DEFERRED TAX PAYMENT PLAN ON PRIMARY RESIDENTIAL PROPERTY.
AN APPLICATION TO DETERMINE ELIGIBILITY IS AVAILABLE IN  THE  ASSESSOR'S
OFFICE."
  2.  ON  OR  BEFORE APRIL FIRST OF EACH YEAR, THE ASSESSOR SHALL NOTIFY
EACH TAXPAYER TO WHOM A SENIOR TAX DEFERRAL HAS BEEN PREVIOUSLY  GRANTED
OF  THE  ACCUMULATED  SUM OF DEFERRED TAXES, NON-AD VALOREM ASSESSMENTS,
AND INTEREST OUTSTANDING.
  S 1446. DEFERRED PAYMENT TAX CERTIFICATES FOR PERSONS WHO QUALIFY  FOR
THE  ENHANCED  STAR  PROVISIONS.    THE  ASSESSOR SHALL NOTIFY THE LOCAL
GOVERNING BODY OF THE AMOUNT OF TAXES  AND  NON-AD  VALOREM  ASSESSMENTS
DEFERRED  WHICH  WOULD  OTHERWISE HAVE BEEN COLLECTED FOR SUCH GOVERNING
BODY.
  S 1447. CHANGE IN OWNERSHIP  OR  USE  OF  PROPERTY  OWNED  BY  PERSONS
SIXTY-FIVE  YEARS  OR OLDER.   1. IN THE EVENT THAT THERE IS A CHANGE IN
USE OF SENIOR TAX-DEFERRED PROPERTY SUCH THAT THE  OWNER  IS  NO  LONGER
ENTITLED  TO CLAIM SENIOR TAX DEFERRAL FOR SUCH PROPERTY, OR SUCH PERSON
FAILS TO MAINTAIN THE REQUIRED FIRE AND EXTENDED INSURANCE COVERAGE, THE
TOTAL AMOUNT OF SUCH DEFERRED TAXES AND INTEREST FOR ALL PREVIOUS  YEARS
SHALL  BE DUE AND PAYABLE DECEMBER FIRST OF THE YEAR IN WHICH THE CHANGE
IN USE OCCURS OR ON THE DATE FAILURE TO MAINTAIN  INSURANCE  OCCURS  AND
SHALL  BE  DELINQUENT  ON JANUARY THIRTY-FIRST OF THE YEAR FOLLOWING THE
YEAR IN WHICH THE CHANGE IN USE OR FAILURE TO MAINTAIN INSURANCE OCCURS.
  2. IN THE EVENT THAT THERE IS A CHANGE IN OWNERSHIP OF SENIOR  TAX-DE-
FERRED  PROPERTY,  THE  TOTAL AMOUNT OF SUCH DEFERRED TAXES AND INTEREST
FOR ALL PREVIOUS YEARS SHALL BE DUE AND PAYABLE ON THE DATE  THE  CHANGE
IN OWNERSHIP TAKES PLACE AND SHALL BE DELINQUENT ON JANUARY THIRTY-FIRST
FOLLOWING  SUCH  DATE.  WHEN,  HOWEVER,  THE CHANGE IN OWNERSHIP IS TO A

A. 7414                             8

SURVIVING SPOUSE AND SUCH SPOUSE IS ELIGIBLE TO CLAIM SENIOR TAX  DEFER-
RAL  ON  SUCH PROPERTY, SUCH SURVIVING SPOUSE MAY CONTINUE THE DEFERMENT
OF PREVIOUSLY DEFERRED TAXES AND INTEREST PURSUANT TO THE  PROVISION  OF
THIS ARTICLE.
  3. WHENEVER THE ASSESSOR DISCOVERS THAT THERE HAS BEEN A CHANGE IN THE
OWNERSHIP  OR USE OF PROPERTY WHICH HAS BEEN GRANTED A SENIOR TAX DEFER-
RAL, THE ASSESSOR SHALL NOTIFY THE COLLECTING OFFICER IN WRITING OF  THE
DATE  SUCH  CHANGE  OCCURS, AND THE COLLECTING OFFICER SHALL COLLECT ANY
TAXES AND INTEREST DUE OR DELINQUENT.
  4. DURING ANY YEAR IN WHICH THE TOTAL AMOUNT OF SENIOR DEFERRED TAXES,
INTEREST, AND ALL OTHER  UNSATISFIED  LIENS  ON  THE  PRIMARY  RESIDENCE
EXCEEDS  EIGHTY-FIVE  PERCENT OF THE ASSESSED VALUE OF THE PRIMARY RESI-
DENCE, THE ASSESSOR SHALL IMMEDIATELY NOTIFY THE OWNER OF  THE  PROPERTY
ON WHICH TAXES AND INTEREST HAVE BEEN DEFERRED THAT THE PORTION OF TAXES
AND  INTEREST WHICH EXCEEDS EIGHTY-FIVE PERCENT OF THE ASSESSED VALUE OF
THE PRIMARY RESIDENCE SHALL BE DUE AND PAYABLE  WITHIN  THIRTY  DAYS  OF
RECEIPT  OF  THE  NOTICE.  FAILURE TO PAY THE AMOUNT DUE SHALL CAUSE THE
TOTAL AMOUNT OF SENIOR DEFERRED TAXES AND INTEREST TO BECOME DELINQUENT.
  5. EACH YEAR, UPON NOTIFICATION,  EACH  OWNER  OF  PROPERTY  ON  WHICH
SENIOR  TAXES AND INTEREST HAVE BEEN DEFERRED SHALL SUBMIT TO THE ASSES-
SOR A LIST OF, AND THE CURRENT VALUE OF, ALL OUTSTANDING  LIENS  ON  THE
OWNER'S  PRIMARY  RESIDENCE.    FAILURE  TO RESPOND TO THIS NOTIFICATION
WITHIN THIRTY DAYS SHALL CAUSE THE TOTAL AMOUNT OF SENIOR DEFERRED TAXES
AND INTEREST TO BECOME PAYABLE WITHIN THIRTY DAYS.
  S 1448. PREPAYMENT AND DISTRIBUTION OF SENIOR DEFERRED TAXES.  1.  ALL
OR  PART  OF  THE  SENIOR DEFERRED TAXES AND ACCRUED INTEREST MAY AT ANY
TIME BE PAID TO THE COLLECTING OFFICER BY:
  (A) THE OWNER OF THE PROPERTY OR THE SPOUSE OF THE OWNER.
  (B) THE NEXT OF KIN OF THE OWNER, HEIR OF  THE  OWNER,  CHILD  OF  THE
OWNER, OR ANY PERSON HAVING OR CLAIMING A LEGAL OR EQUITABLE INTEREST IN
THE  PROPERTY,  PROVIDED NO OBJECTION IS MADE BY THE OWNER WITHIN THIRTY
DAYS AFTER THE COLLECTING OFFICER NOTIFIES THE OWNER OF  THE  FACT  THAT
SUCH PAYMENT HAS BEEN TENDERED.
  2.  ANY PARTIAL PAYMENT MADE PURSUANT TO THIS SECTION SHALL BE APPLIED
FIRST TO ACCRUED INTEREST.
  3. WHEN ANY SENIOR  DEFERRED  TAXES  OR  INTEREST  IS  COLLECTED,  THE
COLLECTING OFFICER SHALL MAINTAIN A RECORD OF THE PAYMENT, SETTING FORTH
A DESCRIPTION OF THE PROPERTY AND THE AMOUNT OF SENIOR TAXES OR INTEREST
COLLECTED  FOR  SUCH  PROPERTY.  THE COLLECTING OFFICER SHALL DISTRIBUTE
PAYMENTS RECEIVED IN ACCORDANCE WITH THE PROCEDURES FOR DISTRIBUTION  OF
AD VALOREM TAXES OR REDEMPTION MONEYS AS PRESCRIBED IN THIS ARTICLE.
  S  1449.  CONSTRUCTION.  NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO
PREVENT THE COLLECTION OF PERSONAL PROPERTY TAXES WHICH  BECOME  A  LIEN
AGAINST  SENIOR  TAX-DEFERRED PROPERTY, DEFER PAYMENT OF SPECIAL ASSESS-
MENTS TO BENEFITED PROPERTY OTHER THAN THOSE SPECIFICALLY ALLOWED TO  BE
DEFERRED,  OR  AFFECT  ANY PROVISION OF ANY MORTGAGE OR OTHER INSTRUMENT
RELATING TO PROPERTY REQUIRING A PERSON TO PAY AD VALOREM TAXES OR  NON-
AD VALOREM ASSESSMENTS.
  S  1450. PENALTIES. 1. THE FOLLOWING PENALTIES SHALL BE IMPOSED ON ANY
PERSON WHO WILLFULLY FILES INFORMATION FOR A SENIOR TAX DEFERRAL  PURSU-
ANT  TO SECTION FOURTEEN HUNDRED FORTY-THREE OF THIS ARTICLE REQUIRED BY
THIS ARTICLE WHICH IS INCORRECT:
  (A) SUCH PERSON SHALL PAY THE TOTAL AMOUNT OF SENIOR TAXES AND  INTER-
EST DEFERRED, WHICH AMOUNT SHALL IMMEDIATELY BECOME DUE;
  (B)  SUCH PERSON SHALL BE DISQUALIFIED FROM FILING A SENIOR TAX DEFER-
RAL APPLICATION FOR THE NEXT THREE YEARS; AND

A. 7414                             9

  (C) SUCH PERSON SHALL PAY A PENALTY  OF  TWENTY-FIVE  PERCENT  OF  THE
TOTAL AMOUNT OF SENIOR TAXES AND INTEREST DEFERRED.
  2.  ANY  PERSON  AGAINST WHOM THE PENALTIES PRESCRIBED IN THIS SECTION
HAVE BEEN IMPOSED MAY APPEAL THE  PENALTIES  IMPOSED  TO  THE  BOARD  OF
ASSESSMENT REVIEW WITHIN THIRTY DAYS AFTER SUCH PENALTIES ARE IMPOSED.
  S 6. This act shall take effect on the one hundred eightieth day after
it  shall have become a law. Effective immediately, the addition, amend-
ment and/or repeal of any rule or regulation necessary for the implemen-
tation of this act on its effective date is authorized to be made on  or
before such effective date.