Reinstates the Middle Class STAR rebate for the 2013-2014 school year and thereafter

4 Co-sponsors

• Martin J. Golden
• William J. Larkin Jr.
• Patty Ritchie
• James L. Seward

BILL NUMBER:S4901

Title of bill

An act to amend the real property tax law and the tax law, in relation to reinstating the "Middle Class STAR" rebate program

Purpose

To reinstate the "Middle Class STAR" rebate program.

Summary of provisions

Section 1 adds a new Real Property Tax Law Section 1306-b, entitled "Middle Class STAR" rebate program. This section provides that if a parcel is entitled to the enhanced STAR exemption pursuant to RPTL section 425 for the 2015-2016 school year and thereafter, a local real property tax rebate shall be provided to the owner or owners of such parcel. In addition, this section provides that if a parcel is entitled to the basic STAR exemption pursuant to RPTL section 425 for the 2016-2017; school year and thereafter, a local real property tax rebate shall be provided to the owner or owners of such parcel. The section sets forth the process by which such rebate shall be determined.

The "Middle Class STAR" rebate program provides rebate checks to eligi- ble star recipients utilizing three income brackets. Senior rebates checks based on the senior STAR exemption eligibility are already income based and do not utilize any income brackets.

For the downstate counties including Nassau, Suffolk, Rockland, West- chester, Putnam, Orange, Duchess, and New York City, the income bracket shall be as follows:

Income Bracket One Income Bracket Two Income Bracket Three $0 - $120,000 $120,001 - $175,000 $175,001 - $250,000

For the rest of State the following income brackets would be utilized:

Income Bracket One Income Bracket Two Income Bracket Three $0 - $90,000 $90,001 - $150,000 $150,001 - $250,000

Section 2 adds a new Tax law section 178 entitled "Middle Class STAR" rebate program. The section sets forth the mechanism by which the Department of taxation shall issue STAR Rebate checks to those entitled to receive such checks.

Section 3 adds a new subsection n-1 to section 606 of the Tax Law to allow for a property tax credit in any year when there is no appropri- ation for the payment of "Middle Class STAR" rebate checks, eligible recipients shall be provided an advanced credit in an equal amount to their respective middle class star rebate check.

Section 4 provides that this act shall take effect immediately.

Justification

Real property taxes are a serious burden for many homeowners, from young families to senior citizens. School taxes represent a substantial portion of the property taxes that homeowners pay. The Legislature has provided increasing state aid to school districts year after year, but school property taxes seem to rise anyway. Five years ago, the Legisla- ture gave additional assistance to hard-pressed homeowners through the STAR Rebate program. The STAR Rebate program was discontinued in the SFY 2009-10 Budget, but this is an important program that gives help to homeowners who are struggling to pay local property taxes. With homeown- ers also facing difficulties keeping their homes because of the current troubled economy, it is more important than ever to maintain the STAR Rebate Program.

Legislative history

2013-14 S.1558/A.1976; 2012 S.7447

Fiscal implications

Enactment of this legislation would cost the State $250 million dollars in the 2015-16 State fiscal year.

Effective date

This act shall take effect immediately.