What's happening
This bill requires purchasers of property with an enhanced STAR exemption to reimburse municipalities if they are not eligible for the exemption.
Why it matters
Helps prevent improper tax benefits. By requiring purchasers to reimburse municipalities if they aren't eligible for the enhanced STAR exemption, the bill ensures that only qualified homeowners get this significant property tax break, reducing abuse or accidental retention of benefits meant for seniors.
Protects municipal budgets. Municipalities rely on accurate tax revenue forecasting. This bill closes a loophole that could cause shortfalls if ineligible purchasers continue to receive the enhanced exemption, ensuring local governments aren't left with unexpected revenue gaps.
Shifts responsibility to new homeowners. The legislation makes buyers, not sellers or municipalities, responsible for verifying their eligibility and covering any tax difference, which encourages diligence during property transactions and can prevent costly surprises later.
Encourages smoother property transfers. By clarifying financial obligations at the time of sale, the bill reduces confusion and potential disputes between buyers, sellers, and local governments over property tax liabilities related to STAR exemptions.
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Who cares
Buyers ineligible for enhanced STAR
Those purchasing a property with the exemption would have to pay the municipality a prorated amount reflecting the difference between the seller’s tax liability and their own.
Municipal governments
The bill would require ineligible purchasers to make the municipality whole for the tax difference when a property with enhanced STAR is sold.
Homeowners with enhanced STAR
Selling their property to a buyer who does not qualify would trigger the buyer’s obligation to pay the prorated tax difference.
Headline styles
Buyers Pay STAR Tax Difference
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 38
No co-sponsors yet.
History
- Referred to aging
- Reported and committed to finance
- Referred to aging
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3531
2019-2020 Regular Sessions
IN SENATE
February 8, 2019
Introduced by Sen. CARLUCCI -- read twice and ordered printed, and when printed to be committed to the Committee on Aging
AN ACT to amend the real property tax law, in relation to certain calculations for enhanced STAR
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 9-b of section 425 of the real property tax law is amended by adding a new paragraph (c) to read as follows:
(c) Notwithstanding the foregoing provisions of this subdivision, at the time of sale of a parcel of real property with the enhanced STAR exemption, if a purchaser is not entitled to such exemption, then such purchaser shall make the municipality whole by paying the difference between the seller's tax liability and that due from the purchaser based on such purchaser's tax liability. The purchaser shall pay the pro-rated portion of the non-enhanced STAR exemption tax liability.
§ 2. This act shall take effect immediately. Effective immediately the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized to be made and completed on or before such date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06257-01-9
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 certain calculations for enhanced STAR
Purpose
This bill will require home owners who do not qualify for the enhanced STAR exemption, and who purchase property from an qualified enhanced STAR individual, to pay back the pro-rata share of the exemption they are not qualified for.
Summary of provisions
Section 1. Amends subdivision 9-b of section 425 of the real property tax law to provide that if a parcel of real property currently receiving the enhanced STAR exemption is sold to a purchaser who is not entitled to such exemption, the purchaser must pay the pro-rated portion of the exemption that is due back to the municipality.
Section 2. Effective date.
Justification
Qualified seniors in New York receive the Enhanced STAR exemption, providing them with significant real property tax savings. However, when a non-qualified individual purchases real property from a senior who is receiving Enhanced STAR, they are reaping a benefit they are not quali- fied for. In order to make the municipality whole, this benefit should be returned to the municipality, at a pro-rata rate, by a purchaser who does not qualify for this benefit. This is already being done with the basic STAR exemption.
Legislative history
2017-18: 6699 - AGING 2015-16: S1746 - Aging 2013-14: S.2196 - Finance Committee 2012:S.6245 - Aging Committee
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.