What's happening
This bill requires STAR program payments to be sent on time, imposes late fees for delays, and ensures prompt correction of payment errors.
Why it matters
Shifting STAR payment deadlines to earlier in the year means recipients may receive their relief before school tax bills are due, making it easier to pay taxes on time and reducing financial stress or the need to front money.
Imposing automatic late fees on the state for delayed payments incentivizes timely processing by the government, potentially reducing bureaucratic delays and making the program more reliable for homeowners.
The bill also addresses underpayment or incorrect payments by requiring late fees if a corrected payment is needed, ensuring taxpayers are compensated for errors and not disadvantaged by administrative mistakes.
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Who cares
STAR credit recipients
Advance payments would have to be postmarked at least 15 days before the interest-free school tax payment period ends or within 90 days of application receipt, whichever is later.
Taxpayers returning incorrect STAR payments
The bill would add a five percent late fee to their credit, plus one percent per month thereafter until payment is reissued in the correct amount.
New York State tax commissioner
The bill would move the eligibility determination target to September 1, or as soon thereafter as practicable, and require late fees on payments postmarked after the applicable deadline.
Headline styles
Speed Up STAR Payments
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to local government
- Print number 3038a
- Amend (t) and recommit to finance
- 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.
Speed Up STAR Payments
In Assembly Committee · Real Property Taxation · Sponsor Sandy Galef
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3038--A
2017-2018 Regular Sessions
IN SENATE
January 19, 2017
Introduced by Sens. CARLUCCI, LATIMER -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government -- reported favorably from said committee and committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the tax law, in relation to requiring STAR program payments to be issued timely
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subparagraph (B) of paragraph 10 of subsection (eee) of section 606 of the tax law, as amended by section 8 of part A of chapter 73 of the laws of 2016, is amended and a new subparagraph (F) is added to read as follows:
(B) On or before September [fifteenth] first of each year, or as soon thereafter as practicable, the commissioner shall determine the eligibility of taxpayers for this credit utilizing the information available to him or her as obtained from the applications submitted [on or before July first of that year, or such later date as may have been prescribed by the commissioner for that purpose,] and from such other sources as the commissioner deems reliable and appropriate. For those taxpayers whom the commissioner has determined eligible for this credit, the commissioner shall advance a payment in the amount specified in paragraph three, four or six of this subsection, whichever is applicable. Such payment shall be [issued by September thirtieth] postmarked no later than fifteen days prior to the expiration of the interest free period to pay school taxes of the year the credit is allowed, or [as soon thereafter as is practicable] no later than ninety days after the receipt of an application for the credit, whichever is later. [Nothing contained herein shall be deemed to preclude the commissioner from issuing payments after September thirtieth to qualified taxpayers whose
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07549-05-7
S. 3038--A 2
applications were made after July first of that year, or such later date as may have been prescribed by the commissioner for such purpose.]
(F) In the event that an advanced payment is postmarked after the dates prescribed under subparagraph (B) of this paragraph the commissioner shall apply to such credit a late fee of five percent, with an additional one percent per month thereafter until such credit is postmarked. In the event that an advanced payment is issued in an incorrect amount and a taxpayer must return the advanced payment, the commissioner shall apply to such credit a late fee of five percent, with an additional one percent per month thereafter until such credit is reissued in the correct amount.
§ 2. This act shall take effect immediately, and shall apply to taxable years beginning on and after 2017.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to requiring STAR program payments to be issued timely
Purpose or general idea of bill
The purpose of this legislation is to ensure that those who pay property tax in New York State are reimbursed their STAR credit in a timely manner by creating a system of penalties for every credit that is mailed out late.
Summary of provisions
Section 1. Subparagraph (B) of paragraph 10 of subsection (eee) of section 606 of the Tax Law, as amended by section 8 of part A of chapter 73 of the laws of 2016, is amended to read as follows: On or before September first of each year, or as soon thereafter as practicable, the commissioner shall determine the eligibility of taxpayers for this cred- it utilizing the information available to him or her as obtained from the applications submitted and from such other sources as the commis- sioner deems reliable and appropriate. For those taxpayers whom the commission has determined eligible for this credit, the commissioner shall advance a payment in the amount specified in paragraph three, four or six of this subsection, whichever is applicable. Such payment shall be postmarked no later than fifteen days prior to the expiration of the interest free period to pay school taxes of the year the credit is allowed, or no later than ninety days after the receipt of an applica- tion for the credit, whichever is later. A new subparagraph (F) is added, and reads as follows: In the event that an advanced payment is postmarked after the dates prescribed under subparagraph (B) of this paragraph the commissioner shall apply to such credit a late fee of 5%, with an additional 1% per month thereafter until such credit is post- marked. In the event that an advanced payment is issued in an incorrect amount and a taxpayer must return the advanced payment, the commissioner shall apply to such credit a late fee of 5%, with an additional 1% per month thereafter until such credit is reissued in the correct amount.
Section 2. Establishes the effective date.
Justification
The New York State Tax Relief Program (STAR) is a school tax rebate program aimed at reducing school district property taxes on the primary residences of New York residents. Since April of 2016, the exemption has now turned into a cash credit, mailed from the Department of Taxation and Finance to each new homeowner. Currently, for STAR credit checks there is a deadline by which the State must issue the checks: on or before September 30th, or as soon as practical. Reports indicate that 3-5% of checks were mailed late or with an incorrect amount. This legislation would create a system of penalties for any check not mailed by the new deadline, and not in the correct amount.
Prior legislative history
This is new legislation.
Fiscal implications for state and local governments
There could be minimal fiscal implications associated with the passage of this legislation.
Effective date
This act shall take effect immediately, and shall apply to taxable years beginning on and after 2017.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.