What's happening
This bill requires financial institutions to notify local assessors when they take possession of STAR-exempt property, ending the exemption and imposing penalties for noncompliance.
Why it matters
Prevents banks from benefiting from property tax exemptions. By requiring financial institutions to notify assessors and end the STAR exemption upon taking possession, the bill ensures these tax breaks are only used by qualified homeowners, not banks or lenders after foreclosure.
Protects local tax revenue for schools and municipalities. When STAR exemptions are promptly removed from bank-owned properties, local governments avoid unintended revenue losses that could otherwise occur if these properties remained exempt.
Holds financial institutions accountable. The bill introduces a civil penalty (up to $5,000) for banks that fail to promptly notify assessors, creating a strong incentive for compliance and deterring negligence.
Improves transparency in property status changes. Timely notifications mean local authorities have more accurate, up-to-date information on property ownership and exemption status, reducing administrative errors and potential disputes.
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Who cares
Headline styles
Notify Assessors on STAR Changes
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
History
- Reported and committed to finance
- Referred to local government
- Returned to senate
- Died in assembly
- Referred to real property taxation
- Delivered to assembly
- Passed senateVote 61–1
- Advanced to third reading
- 2nd report cal.
- 1st report cal.743
- Reported and committed to finance
- Referred to local government
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 of Property Takeover
In Assembly Committee · Real Property Taxation · Sponsor Fred Thiele
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.
Sponsor's memo
Title of bill
An act to amend the real property tax law, in relation to school tax relief (STAR) exemptions
Purpose
To provide that financial institutions who take possession of residential properties notify the local assessor within thirty days in order that STAR exemption on the property may be terminated and provide for a civil penalty for failure to make timely notification.
Summary of provisions
Section 1. Adds a new subdivision 17 to section 425 of the Real Property Tax Law to provide that whenever a financial institution takes possession of real property that would qualify for the STAR exemption, that the institution, within thirty days of taking possession, must notify the local assessor or other person having custody of the assessment roll. The exemption shall be immediately discontinued. Failure to make such notification shall be subject to a $5,000 civil fine.
Justification
When residential properties are abandoned by the individuals who claimed a STAR exemption, the exemption should cease. It has been reported that this is not the case in situations where financial institutions who have mortgage interests take over the possession of properties. This legislation would require those institutions to notify the property locality that the individual who qualified for the exemption was no longer at that address so the exemption could be extinguished and the proper school tax will be paid.
Legislative history
2015-16 S.326A/A.155A; 2014 S.7485/A.9675.
Fiscal implications
None to the State.
Effective date
Thirtieth day after is shall have become law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.