What's happening
This bill changes the STAR property tax exemption by adjusting income eligibility limits and creating a tiered exemption amount based on income.
Why it matters
Shifts STAR exemption benefits toward lower- and middle-income homeowners. , as the new tiered structure gives higher exemption amounts to households with lower incomes, potentially reducing property tax burdens more for those with less ability to pay.
Reduces the maximum income eligibility for the STAR exemption from $500,000 to $300,000. , meaning some higher-income households will lose eligibility for this property tax relief, which could impact budgeting and housing affordability for affected residents.
Introduces a graduated exemption system. those earning under $100,000 get the largest exemption ($50,000), those earning $100,000–$200,000 get a moderate exemption ($40,000), and those earning $200,000–$300,000 get the smallest ($30,000)—which makes the benefit more progressive and better targeted.
May increase administrative complexity for both taxpayers and local governments. due to the need to verify income brackets and calculate exemption amounts more precisely, potentially leading to more paperwork and oversight needs.
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Who cares
Headline styles
Adjust STAR Tax Exemption
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to local government
- Referred to local government
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1168
2017-2018 Regular Sessions
IN SENATE
January 6, 2017
Introduced by Sen. CARLUCCI -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government
AN ACT to amend the real property tax law, in relation to the school tax relief (STAR) exemption
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Clause (B) of subparagraph (vi) of paragraph (b) of subdivision 2 of section 425 of the real property tax law, as added by section 1 of part D-1 of chapter 57 of the laws of 2007, is amended to read as follows:
(B) The base figure for the basic STAR exemption shall be [thirty thousand dollars.] in accordance with the following schedule:
AFFILIATED INCOME, PURSUANT TO PARAGRAPH (b-1) OF SUBDIVISION 3 OF THIS SECTION BASE FIGURE
More than $200,000 but
less than $300,000 $30,000 More than $100,000 but
less than $200,000 $40,000 Less than $100,000 $50,000
§ 2. Paragraph (b-1) of subdivision 3 of section 425 of the real property tax law, as added by section 1 of part FF of chapter 57 of the laws of 2010, is amended to read as follows:
(b-1) Income. For final assessment rolls to be used for the levy of taxes for the two thousand eleven-two thousand twelve school year and thereafter, the parcel's affiliated income may be no greater than [five] three hundred thousand dollars, as determined by the commissioner of taxation and finance pursuant to section one hundred seventy-one-u of
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01845-01-7
S. 1168 2
the tax law, in order to be eligible for the basic exemption authorized by this section. As used herein, the term "affiliated income" shall mean the combined income of all of the owners of the parcel who resided primarily thereon on the applicable taxable status date, and of any owners' spouses residing primarily thereon. For exemptions on final assessment rolls to be used for the levy of taxes for the two thousand eleven-two thousand twelve school year, affiliated income shall be determined based upon the parties' incomes for the income tax year ending in two thousand nine. In each subsequent school year, the applicable income tax year shall be advanced by one year. The term "income" as used herein shall have the same meaning as in subdivision four of this section.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the real property tax law, in relation to the school tax relief (STAR) exemption
Purpose
To lower the income limitation in order to qualify for the school tax relief (STAR) program and implement a progressive base exemption amount based on income.
Summary of provisions
Section 1. Amends clause (B) of subparagraph (vi) of paragraph (b) of subdivision 2 of section 425 of the real property tax law to provide an increasing STAR base exemption based on income. The existing $30,000 base exemption is retained for those with incomes of more than $200,000 but less than $300,000. The base exemption would increase to $40,000 for those whose incomes are more than $100,000 but less than $200,000, and would increase further to $50,000 for those whose incomes are less than $100,000.
Section 2. Amends paragraph (b-1) of subdivision 3 of section 425 of the real property tax law to reduce the income limitation to qualify for the STAR program from $500,000 to $300,000.
Section 3. Effective date.
Justification
New York state has some of the highest property taxes in the nation, and more and more middle class New Yorkers are struggling to afford to stay in their homes. The STAR program provides New Yorkers with important relief from those property taxes but, other than the imposition in 2010 of an income limit to qualify for the program, the program has remained essentially the same since its inception. Over the years, however, the value of the STAR benefit has been diminished by ever rising property tax rates, and the time has come for a reevaluation of the program. By reducing the income limit to qualify for the program and providing an increasing base exemption amount based on income, the state can better target the relief provided by the STAR program to those New Yorkers who are most in need.
Legislative history
2015-16: S2017 - Aging
Fiscal implications
To be determined.
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.