Relates to creating a senior school tax freeze exemption for school tax purposes for certain persons sixty-five years of age or older

8 Co-sponsors

• John A. DeFrancisco
• Martin J. Golden
• Kemp Hannon
• William J. Larkin Jr.
• Tom Libous
• Frank Padavan
• Michael H. Ranzenhofer
• James L. Seward

Title of bill

An act to amend the real property tax law, in relation to creating a senior citizen school tax freeze exemption for school tax purposes for certain persons sixty-five years of age or over

Summary of bill

This bill amends the Real Property Tax Law by adding Section 467-g. Section 467-g states that citizens who are sixty-five years of age or over, have resided in the same school district for at least thirty years, and who have met the income eligibility for the Enhanced STAR program are eligible for a tax freeze exemption for school tax purposes.

For those seniors who qualify for this specific tax freeze exemption, the amount of taxes such person paid in the year in which they turned sixty-five shall be established as the taxpayer's base amount, and such base amount shall not be increased for the remained of such person's ownership of the real property.

The tax exemption is implemented in stages over a 10 year period in the following manner:

Number of Years After Qualifying For Real Property Tax Freeze Amount of Exemption

1 year 10% of the Taxpayer's Base Amount 2 years 20% of the Taxpayer's Base Amount 3 years 30% of the Taxpayer's Base Amount 4 years 40% of the Taxpayer's Base Amount 5 years 50% of the Taxpayer's Base Amount 6 years 60% of the Taxpayer's Base Amount 7 years 70% of the Taxpayer's Base Amount 8 years 80% of the Taxpayer's Base Amount 9 years 90% of the Taxpayer's Base Amount 10 years & every 100% of the Taxpayer's Base Amount year thereafter

The total tax savings provided by each school district pursuant to the senior school tax freeze exemption shall be a state charge wherein a school district seeking state aid shall submit an application to the state board.

Justification

This bill would allow those qualifying seniors who are sixty-five years of age or over to benefit from the security of a tax freeze exemption. There are many seniors living in this state who have resided in the same school districts for over thirty years and have consistently paid school taxes. This bill gives these seniors who are now on fixed incomes a certain level of economic stability and allows them the opportunity to continue living in their home and to afford medical and food expenses.

Legislative history

2008: S.7993 Finance Committee

Fiscal implications

Based on a median home value of $250,000, an average school tax rate of 1.5 percent, and a projected 980,000 eligible participants, it is estimated that the exemption would cost $2.0 billion in the initial year, and would likely grow by about $160 million to $200 million annually thereafter.

Effective date

This act shall take effect immediately and shall apply to assessment rolls prepared on the basis of taxable status dates occurring on or after the first of January next succeeding the date on which this act shall have become law.