Establishes a Co-STAR tax program for senior citizens and farmers

Summary of provisions

Section 1 of this bill amends the Real Property Tax Law by adding two new sections 425-b and 425-c. Section 425-b states that citizens who are eligible for enhanced STAR are also eligible for a CO-STAR assessment. The CO-STAR assessment is equal to the exempt amount determined by enhanced STAR.

Section 425-c states that farmers are eligible for a Co-STAR assessment if their property is receiving the basic STAR exemption, they own land which is their primary residence, and they fulfill the definition of an eligible farmer. The Co-STAR assessment is equal to the exempt amount determined for purposes of the basic STAR exemption. A farmer is eligible when he or she is eligible for and has claimed the farmers' school tax credit, or he or she owns a substantial interest in land which receives, or which is eligible to receive, an agricultural assessment. A person owns a substantial interest in such land if he or she, or his or her spouse: individually owns, or owns jointly with his or her spouse, at least a 25% interest in such land; or 2) is a partner with at least a 25% interest in a partnership which owns such land; or 3) owns at least 25% of the stock of a corporation which owns such land. Section 2 of this bill amends Article 8 of Tax Law by adding a new section, 177-a; providing for Co-STAR Tax Rebates for seniors and farmers. The amount of each such rebate shall equal the Co-STAR assessment associated with the parcel in question multiplied by the applicable county tax rate.

Section 3 of this bill dictates the processing of the Co-STAR assessments for senior citizens on the assessment roll. It directs the state board of real property services to identify the parcels which are receiving the enhanced STAR exemption, to ascertain the taxable assessed value for county purposes of each such parcel, and to forward such information to the department of taxation and finance, together with the maximum allowable Co-STAR assessments for each assessing unit.

Section 3-a of this bill dictates the processing of the Co-STAR assessments for farmers. For 2006, eligible farmers may submit applications for Co-STAR assessments until the 90th day after the effective date of this act. Each assessor has no longer than 120 days after the effective date to review such applications and to notify the applicant by certified mail if a Co-STAR application is denied. Applicants then have no longer than 10 days after the mailing of such notice to file a written complaint with the assessor. For year 2007, the Department of Taxation and Finance may presume that the qualified

owner-applicant or owner-applicants were the property owner or owners as shown on the assessment roll data file.

Section 4 of this bill amends subsection (e) of section 1310 of the Tax Law by re-lettering it subsection (g), and adding a new subsection (h), which establishes a City Co-STAR credit.

For married individuals filing joint returns and for a surviving spouse, all of whom turn 65 years old on or before the close of the taxable year, the credit will equal $120 for taxable year 2006 and thereafter. For all others-unmarried individual, head of household or married individual filing a separate return all of whom turn 65 years old on or before the close of the taxable year, the credit will equal $60 for taxable year 2006 and thereafter.

Section 5 of this bill amends subdivision (c) of the administrative code of the city of New York, section 11-1706, by re-lettering it to subdivision (e) and adding a new subdivision (f) which establishes a City Co-STAR credit.

For married individuals filing joint returns and for a surviving spouse, all of whom turn 65 years old on or before the close of the taxable year, the credit will equal $120 for taxable year 2006 and thereafter. For all others-unmarried individual, head of household or married individual filing a separate return-all of whom turn 65 years old on or before the close of the taxable year, the credit will equal $60 for taxable year 2006 and thereafter.

Section 6 of this bill amends the state Finance Law by adding a new section 85, which establishes a Co-STAR fund. This fund is under the custody of the commissioner of taxation and finance and shall consist of all monies credited or transferred from the general fund or any other fund or sources pursuant to law. The monies shall be available for payment of CoSTAR rebate checks that are issued and signed solely by the commissioner of taxation and finance.

Section 7 of this act shall take effect immediately, provided that section one of this act shall apply to assessment rolls filed in 2014, and that section two of this act shall apply to county fiscal years beginning in 2015 and thereafter.

Justification

Through the late 1990's the State of New York was committed to improving the economy and business climate of New York by cutting taxes by over $50 billion dollars. This continues that commitment to the individual taxpayer by reducing property taxes for seniors and farmers by way of a property tax rebate.

Legislative history

02/14/12 Recommit, enacting clause stricken

Fiscal implications

To be determined.

Effective date

This act shall take effect immediately, provided that section one of this act shall apply to assessment rolls filed in 2014 and that section two of this act shall apply to county fiscal years beginning in 2015 and thereafter.