NY State Senate Bill 2023-S2337

Senate Bill S2337

2023-2024 Legislative Session

Undoes 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; repealer

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Current Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to investigations and government operations
Jan 20, 2023	referred to investigations and government operations

co-Sponsors

2023-S2337 (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Real Property Tax Law
Laws Affected:: Amd §§425 & 496, rpld §425 sub 16, §1306-a sub 6, RPT L; rpld §606 sub§ (eee), amd §606, Tax L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S7531
2017-2018: S1374
2019-2020: S505
2021-2022: S4250

2023-S2337 (ACTIVE) - Summary

Prevents the transition of the school tax relief property tax exemption to a personal income tax credit.

2023-S2337 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2337

SPONSOR: SKOUFIS
 
TITLE OF BILL:

An act to amend the real property tax law and the tax law, in relation
to preventing the transitioning of the school tax relief (STAR)
exemption into a personal income tax credit; and repealing certain
provisions of the real property tax law and the tax law relating thereto

 
PURPOSE:

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 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REPEALED.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: Repeals subdivision 16 of section 425 of the real property
tax law.

Section 3: States an application to renounce an exemption shall be made
on a form prescribed by the commissioner and shall be filed with the
county director of real property tax services no later than ten years
after the levy of taxes upon the assessment roll on which the renounced
exemption appears. Outlines how the county director, after consulting
with the assessor as appropriate, shall compute the total amount owed on
account of the renounced exemption.

Section 4: Repeals subdivision 6 of section 1306-a of the real property
tax law.

Section 5: Repeals subsection (eee) of section 606 of the tax law.

Section 6: Amends Paragraph 2 of subsection (n-1) of section 606 of the
tax law, as amended by section 1 of part BB of chapter 59 of the laws of
2022 to require that a taxpayer (or taxpayer filing joint returns)must
own and primarily reside in real property receiving (either) the STAR
exemption authorized by section four hundred twenty-five of the real
property tax law and that they must must have had qualified gross income
no greater than two hundred fifty thousand dollars in tax year two thou-
sand twenty.

Section 7: 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.

 
LEGISLATIVE HISTORY:

Senate

2015-2016: S7531, Referred to Local Government

2017-2018: S1374, Referred to Investigations and Government Operations

2019-2020: S505, Referred to Investigations and Government Operations

2021-2022: S4250, Referred to Investigations and Government Operations

Assembly

2015-2016: A9943, Reported to Ways and Means

2017-2018: No Assembly Same-As 2019-2020: No Assembly Same-As

2021-2022: A7234, Referred to Real Property Taxation

 
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.

2023-S2337 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2337
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 20, 2023
                                ___________
 
 Introduced  by  Sen. SKOUFIS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the real property tax law and the tax law,  in  relation
   to  preventing  the  transitioning  of  the  school  tax relief (STAR)
   exemption into a personal income tax  credit;  and  repealing  certain
   provisions of the real property tax law and the tax law relating ther-
   eto
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (a) of subdivision 6 of section 425 of  the  real
 property tax law, as amended by section 1 of part A of chapter 60 of the
 laws of 2016, is amended to read as follows:
   (a) Generally. All owners of the property who primarily reside thereon
 [and  who  are  not  subject to the provisions of subdivision sixteen of
 this section] must jointly file an application for  exemption  with  the
 assessor on or before the appropriate taxable status date. Such applica-
 tion may be filed by mail if it is enclosed in a postpaid envelope prop-
 erly  addressed  to the appropriate assessor, deposited in a post office
 or official depository under the exclusive care  of  the  United  States
 postal service, and postmarked by the United States postal service on or
 before  the  applicable taxable status date. Each such application shall
 be made on a form prescribed by the commissioner,  which  shall  require
 the  applicant  or  applicants  to agree to notify the assessor if their
 primary  residence  changes  while  their  property  is  receiving   the
 exemption. The assessor may request that proof of residency be submitted
 with  the  application.  If  the  applicant  requests a receipt from the
 assessor as proof of submission of the application, the  assessor  shall
 provide  such  receipt.  If  such request is made by other than personal
 request, the applicant shall provide the assessor with a  self-addressed
 postpaid envelope in which to mail the receipt.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06501-01-3

 S. 2337                             2
 
   §  2.  Subdivision  16  of section 425 of the real property tax law is
 REPEALED.
   §  3.  Subdivision  2  of section 496 of the real property tax law, as
 amended by section 3 of part A of chapter 60 of the laws of 2016,  para-
 graph  (a)  as  amended  by  section  3  and paragraph (d) as amended by
 section 2 of part TT of chapter 59 of the laws of 2019,  is  amended  to
 read as follows:
   2.  An  application  to  renounce an exemption shall be made on a form
 prescribed by the commissioner and shall be filed with the county direc-
 tor of real property tax services no later than ten years after the levy
 of taxes upon the assessment  roll  on  which  the  renounced  exemption
 appears.  The  county  director,  after  consulting with the assessor as
 appropriate, shall compute the total  amount  owed  on  account  of  the
 renounced exemption as follows:
   (a) For each assessment roll on which the renounced exemption appears,
 the assessed value that was exempted shall be multiplied by the tax rate
 or  rates that were applied to that assessment roll, or in the case of a
 renounced STAR exemption, the tax savings calculated pursuant to  subdi-
 vision  two of section thirteen hundred six-a of this chapter.  Interest
 shall then be added to each such  product  at  the  rate  prescribed  by
 section  nine hundred twenty-four-a of this chapter or such other law as
 may be applicable for each month or portion thereon since  the  levy  of
 taxes upon such assessment roll.
   (b) The sum of the calculations made pursuant to paragraph (a) of this
 subdivision  with  respect  to  all  of the assessment rolls in question
 shall be determined.
   (c) A processing fee of five hundred dollars shall be added to the sum
 determined pursuant to paragraph (b) of this  subdivision[,  unless  the
 provisions of paragraph (d) of this subdivision are applicable.
   (d) If the applicant is renouncing a STAR exemption in order to quali-
 fy  for the personal income tax credit authorized by subsection (eee) of
 section six hundred six of the tax law,  and  no  other  exemptions  are
 being renounced on the same application, or if the applicant is renounc-
 ing a STAR exemption before school taxes have been levied on the assess-
 ment  roll upon which that exemption appears, no processing fee shall be
 applicable].
   § 4. Subdivision 6 of section 1306-a of the real property tax  law  is
 REPEALED.
   § 5. Subsection (eee) of section 606 of the tax law is REPEALED.
   § 6. Paragraph 2 of subsection (n-1) of section 606 of the tax law, as
 amended  by  section  1 of part BB of chapter 59 of the laws of 2022, is
 amended to read as follows:
   (2) To be eligible for the credit, the taxpayer (or  taxpayers  filing
 joint  returns)  (a)  must  own  and  primarily  reside in real property
 receiving [either] the STAR exemption authorized by section four hundred
 twenty-five of the real property tax law [or the school tax relief cred-
 it authorized by subsection (eee) of this section], and  (b)  must  have
 had  qualified  gross  income no greater than two hundred fifty thousand
 dollars in tax year two thousand twenty.
   § 7. This act shall take effect immediately.

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Senate Bill S2337

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Sponsored By

James Skoufis