What's happening
This bill requires financial institutions to notify local assessors when taking possession of STAR-exempt property, ending the exemption and imposing penalties for non-compliance.
Why it matters
Helps prevent improper tax breaks for banks and lenders. By requiring financial institutions to notify local assessors when they take possession of a property with a STAR exemption, the bill stops banks from unintentionally (or intentionally) benefiting from a tax break meant only for homeowners.
Aims to keep tax rolls accurate and fair. Immediate discontinuation of the STAR exemption ensures that local governments and school districts collect the correct amount of property tax revenue, which supports public services and education funding.
Introduces real financial consequences for non-compliance. Imposing up to a $5,000 civil penalty on financial institutions creates a deterrent against neglect or delay in reporting, increasing accountability for major property holders.
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Who cares
Headline styles
Notify Assessors of Property Takeover
Plain English, a few words. Used as the page title.
Sponsors
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History
- Referred to real property taxation
- Referred to real property taxation
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Notify Assessors on STAR Changes
In Senate Committee · Finance · Sponsor Kenneth P. LaValle
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
S. 1602 A. 941
2017-2018 Regular Sessions
SENATE - ASSEMBLY
January 10, 2017
IN SENATE -- Introduced by Sens. LAVALLE, MARCHIONE, RITCHIE, SEWARD -read twice and ordered printed, and when printed to be committed to the Committee on Local Government
IN ASSEMBLY -- Introduced by M. of A. THIELE -- read once and referred to the Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to school tax relief (STAR) exemptions
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 425 of the real property tax law is amended by adding a new subdivision 17 to read as follows:
17. Financial institution. (a) Whenever a financial institution, as defined by paragraph (e) of subdivision two of section 5-1501 of the general obligations law, takes possession of real property which qualifies for an exemption pursuant to this section, such financial institution shall notify the assessor or other person having custody of the assessment roll in the locality in which such real property is located within thirty days of taking such possession, upon which such exemption shall be immediately discontinued.
(b) Any financial institution that violates any provision of paragraph (a) of this subdivision shall be liable for a civil penalty not to exceed five thousand dollars.
§ 2. This act shall take effect on the thirtieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02101-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.