What's happening
This bill creates a "Middle Class STAR" property tax rebate and circuit breaker tax credit for eligible New York homeowners and renters, and imposes new limitations on school district tax levies.
Why it matters
The new "Middle Class STAR" rebate targets senior homeowners (age 65+) with incomes up to $150,000, offering direct property tax relief beyond existing STAR exemptions. This is a focused approach to property tax relief, prioritizing older adults with moderate incomes who may be most affected by tax burdens, but excludes younger homeowners and higher-income seniors.
A "circuit breaker" tax credit is created for both homeowners and renters, linking property tax or rent burdens to household income. This means that if your property taxes or rent (as determined by a set formula) exceed a certain percentage of your income, you may receive a state income tax credit for a portion of the excess, helping those whose housing costs are disproportionately high relative to their earnings.
The bill imposes new, formula-based limits on how much school districts (except those in large cities) can increase their property tax levies each year, with voter override provisions. This is designed to keep annual property tax growth in check, though districts and voters retain the option to approve lower tax caps ("underrides") or, with supermajority support, higher levies, potentially balancing tax relief with local funding needs for schools.
Transparency and voter engagement are enhanced by requiring school district tax levy proposals and any proposed overrides to be presented as distinct ballot propositions, including detailed notices and public reporting. This could increase public understanding and involvement in school budget decisions, but may also make the budget process more complex and contentious.
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Who cares
STAR homeowners age 65 and older
The bill would provide property tax rebates to eligible owners with combined owner-and-spouse income of $150,000 or less.
Homeowners and renters with high housing tax burdens
Those who have lived in their residence for at least three years could qualify for a refundable credit covering 30% of property taxes, or the specified rent-based equivalent, above income-based thresholds.
New York City taxpayers age 65 and older
Those with household gross income below $150,000 would qualify for city income tax credits of $335 for joint filers and surviving spouses or $167.50 for other filers, with annual inflation adjustments.
School boards and school district voters
The bill would establish levy limits, replace budget votes with tax levy propositions and let voters petition for a more restrictive levy limit for one school year.
Headline styles
Expand Middle Class Tax Rebates
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to real property taxation
- Referred to real property taxation
Full text
27 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4038
2019-2020 Regular Sessions
IN ASSEMBLY
January 31, 2019
Introduced by M. of A. ENGLEBRIGHT -- read once and referred to the Committee on Real Property Taxation
AN ACT to amend the real property tax law and the tax law, in relation to the "Middle Class STAR" rebate program; to amend the tax law, in relation to creating the middle class circuit breaker tax credit; to amend the administrative code of the city of New York, in relation to an enhanced personal income tax credit in such city; and to amend the education law, in relation to establishing limitations upon school district tax levies
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The real property tax law is amended by adding two new sections 1306-b and 1307 to read as follows:
§ 1306-b. "Middle Class STAR" rebate program. 1. Tax rebates. (a) If a parcel is entitled to the basic or enhanced STAR exemption authorized by section four hundred twenty-five of this chapter for the two thousand nineteen--two thousand twenty school year and each year thereafter, except as provided in paragraph (g) of subdivision three of this section, a local property tax rebate shall be provided to the owner or owners of such parcel as shown on the final assessment roll for such year, in an amount computed as prescribed by this section and section one hundred seventy-eight of the tax law.
(b) It shall be the responsibility of the department to issue such tax rebates to such owners in the manner provided by section one hundred seventy-eight of the tax law. Nothing in this section shall be construed as permitting partial or installment payments of taxes in a jurisdiction which has not authorized the same pursuant to law.
2. Procedure. (a) On or before August fifteenth each year, the department, or on or before July first each year, in the case of a city with a population of one million or more, the commissioner of finance of such city, or his or her designee, shall provide to the commissioner a report
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07085-01-9
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in a mutually agreeable format concerning those parcels which have been granted an exemption authorized by section four hundred twenty-five of this chapter on the assessment rolls used to generate the school tax bills for the two thousand nineteen--two thousand twenty school tax year and for each year thereafter; except as provided in paragraph (g) of subdivision three of this section, provided however the information to be provided on such report shall be obtained from the final assessment roll data files used to generate the two thousand nineteen--two thousand twenty school tax bills and each year thereafter, filed with the department pursuant to section fifteen hundred ninety of this chapter on or before July thirty-first of such year. Such report shall set forth the names and mailing addresses of the owners of such parcels as shown on such assessment roll data files, the identification numbers of such parcels as shown on such assessment roll data files, and such other information in the possession of the department, or in the case of a city with a population of one million or more, the commissioner of finance of such city, as the commissioner may deem necessary for the effective administration of this program, including information regarding cooperative apartment buildings and mobile home parks or similar property. It shall be the responsibility of the assessor or assessors of each assessing unit to ensure that the names and mailing addresses of such owners are accurately recorded on such rolls and files to the best of his or her ability, based upon the information contained in his or her office. Nothing contained in this subdivision shall be construed as affecting in any way the validity or enforceability of a real property tax, or the applicability of interest or penalties with respect thereto, when an owner's name or mailing address has not been accurately recorded.
(b) (i) Notwithstanding the provisions of paragraph (a) of this subdivision, where an assessing unit contains one or more properties which are receiving such exemption in relation to a prior year assessment roll pursuant to paragraph (d) of subdivision six of section four hundred twenty-five of this chapter, or contains one or more parcels with respect to which such exemption was duly added or removed after the filing of the final assessment roll pursuant to the provisions of title three of article five of this chapter, the department may require the assessor to file with it, on or before July thirty-first each year, or such later date as the department may specify, a supplemental report relating to such property or properties, so that information pertaining to the owners thereof may be included in the report to be made to the commissioner pursuant to this paragraph. When any information required by this paragraph is received by the department after July thirty-first each year, such information shall be transmitted as soon as reasonably practicable to the commissioner for use in issuing local property tax rebates pursuant to section one hundred seventy-eight of the tax law.
(ii) Where the ownership of a parcel that had been eligible for a rebate pursuant to this section changes or an exemption under section four hundred twenty-five of this chapter has been granted or removed, the assessor shall notify the department of the change no later than August first of the following year.
3. Rebate base. (a) The department shall calculate the rebate base and certify the same no later than July first each year.
(b) Two rebate bases for the basic STAR exemption shall be determined for each segment for the two thousand nineteen--two thousand twenty and subsequent school years. Such rebate bases shall be computed by determining the exempt amount established for the segment for purposes of the
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basic STAR exemption for the two thousand nineteen--two thousand twenty and subsequent school years, multiplying that amount by the school district tax rate applicable within that segment for purposes of the two thousand nineteen--two thousand twenty and subsequent school years, as reported by the school district. For the two thousand nineteen--two thousand twenty and subsequent school years, such rebate bases shall be computed by multiplying the product by sixty percent and forty-five percent, respectively. The results shall be associated with the first and second income brackets, respectively, that are applicable within that segment.
(b-1) (i) The first income bracket shall be up to and including one hundred twenty thousand dollars; the second income bracket shall be over one hundred twenty thousand dollars up to and including one hundred fifty thousand dollars.
(ii) Such brackets are subject to indexing for inflation pursuant to subdivision fifteen of section one hundred seventy-eight of the tax law.
(c) One rebate base for the enhanced STAR exemption shall be determined for each segment for the two thousand nineteen--two thousand twenty and subsequent school years. Such rebate bases shall be computed by determining the exempt amount established for the segment for purposes of the enhanced STAR exemption for the two thousand nineteen--two thousand twenty school year. Such rebate bases shall be computed by multiplying that amount by the school district tax rate applicable within that segment for purposes of that school year, as reported by the school district, and then multiplying the product.
(d) For purposes of this section, the term "segment" means the part of a city or town that is within a school district.
(e) In the case of school districts within special assessing units as defined in section eighteen hundred one of this chapter, the school district tax rate to be used for this purpose shall be the tax rate applicable to class one properties as defined in article eighteen of this chapter, as reported by the school district and the exempt amount shall be established for the segment. In the case of school districts within approved assessing units as defined in section nineteen hundred one of this chapter which have adopted the provisions of section nineteen hundred three of this chapter, the school district tax rate to be used for this purpose shall be the tax rate applicable to the homestead class, as defined in article nineteen of this chapter, as reported by the school district.
(f) Where the provisions of subparagraph (iv) of paragraph (k) of subdivision two of section four hundred twenty-five of this chapter are applicable, the applicable rebate amount shall be one-third of the otherwise applicable rebate amount set forth in paragraph (b) or (c) of this subdivision. The department shall calculate and certify the rebate amounts applicable in such cases, along with the certification required by paragraph (a) of this subdivision.
(g) For the purposes of the two thousand nineteen--two thousand twenty school year and each year thereafter, tax rebates authorized pursuant to this section shall apply only to those owners who:
(i) have attained the age of sixty-five years or older; and
(ii) have "affiliated income" as defined in paragraph (b) of subdivision six of section one hundred seventy-eight of the tax law equal to or less than one hundred fifty thousand dollars.
§ 1307. Limitations upon school district tax levies. 1. Generally. Unless otherwise provided by law, the amount of taxes that may be levied by or on behalf of any school district, other than a city school
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district of a city with one hundred twenty-five thousand inhabitants or more, shall not exceed the tax levy limitations established pursuant to section two thousand twenty-three-c of the education law. It shall be the responsibility of the commissioner of education to annually determine the tax levy limit of each school district in accordance with the provisions of this section.
2. Definitions. As used in this section:
(a) "Available carryover" means the sum of the amounts by which the tax levy for each school year from the two thousand nineteen--two thousand twenty school year through the prior school year was below the applicable tax levy limit for such school year, if any.
(b) "Capital local expenditures" means the taxes associated with budgeted expenditures resulting from the construction, acquisition, reconstruction, rehabilitation or improvement of school buildings, including debt service and lease expenditures, subject to the approval of the qualified voters where required by law.
(c) "Capital tax levy" means the tax levy necessary to support capital local expenditures, if any.
(d) "Coming school year" means the school year for which tax levy limits are being determined pursuant to this section.
(e) "Inflation factor" means the percentage that represents the product of one hundred and the quotient of: (i) the average of the national consumer price indexes determined by the United States department of labor for the twelve month period preceding January first of the current year minus the average of the national consumer price indexes determined by the United States department of labor for the twelve-month period preceding January first of the prior year, divided by: (ii) the average of the national consumer price indexes determined by the United States department of labor for the twelve-month period preceding January first of the prior year, with the result expressed as a decimal to two places.
(f) "Levy growth factor" shall be the lesser of: (i) four percent; or (ii) one hundred twenty percent of the inflation factor.
(g) "Prior school year" means the school year immediately preceding the coming school year.
(h) "School district" means a common school district, union free school district, central school district, central high school district or a city school district in a city with less than one hundred twentyfive thousand inhabitants.
(i) "Tax levy base" means the amount of taxes a school district would be authorized to levy without the addition of any available carryover amount.
(j) "Tax levy limit" means the amount of taxes a school district is authorized to levy pursuant to this section, provided, however, that the tax levy limit shall not include the district's capital tax levy, if any.
3. Tax base growth factor. (a) No later than March first of each year, the department shall identify those school districts for which tax base growth factors must be determined for the coming school year, and shall notify the commissioner of education of the tax base growth factors so determined, if any.
(b) The department shall calculate a quantity change factor for each school district for the coming school year based upon the physical or quantity change, as defined by section twelve hundred twenty of this chapter, reported to the department by the assessor or assessors pursuant to section five hundred seventy-five of this chapter. The quantity change factor shall show the percentage by which the full value of the
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taxable real property in the school district has changed due to physical or quantity change between the second final assessment roll or rolls preceding the final assessment roll or rolls upon which taxes are to be levied, and the final assessment roll or rolls immediately preceding the final assessment roll or rolls upon which taxes are to be levied.
(c) After determining the quantity change factor for a school district, the department shall proceed as follows:
(i) If the quantity change factor is negative, the department shall not determine a tax base growth factor for the school district.
(ii) If the quantity change factor is positive, the department shall determine a tax base growth factor for the school district which is equal to the quantity change factor, provided that in no case shall a tax base growth factor be in excess of ten percent.
4. Computation of tax levy limits. (a) The tax levy base for each school year shall be determined as follows:
(i) Ascertain the total amount of taxes levied for the prior school year.
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