What's happening
This bill allows school districts to cap school property tax rates for homeowners aged 70 or older who qualify for the enhanced STAR exemption.
Why it matters
Direct property tax relief for qualifying seniors. By allowing school districts to cap school property tax rates for residents aged 70+ who qualify for the enhanced STAR exemption, the bill may help seniors on fixed incomes remain in their homes longer by limiting unexpected or unaffordable tax increases.
Local control with state reimbursement. The program is optional for school districts (not mandated), but if adopted, the state Department of Education will reimburse districts for 100% of the direct costs, reducing local fiscal concerns and encouraging participation.
Requires annual application and proactive notification. Eligible seniors must apply each year and provide proof of age; school districts are required to notify property owners about the availability of this benefit, which could increase awareness and participation among those who need it most.
Potential impact on local school revenues and state budget. While seniors benefit from capped rates, the law could shift some school funding responsibility from local taxpayers to the state, affecting both local school budgets and state education spending, especially in areas with high senior populations.
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Who cares
Headline styles
Cap School Taxes for Seniors
Plain English, a few words. Used as the page title.
Sponsors
History
- Referred to aging
- Referred to aging
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.
Cap School Taxes for Seniors
In Assembly Committee · Real Property Taxation · Sponsor Steven Englebright
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3769
2019-2020 Regular Sessions
IN SENATE
February 14, 2019
Introduced by Sens. LAVALLE, GALLIVAN, RITCHIE, SERINO, SEWARD, YOUNG -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 establishing a capped real property school tax rate for persons seventy years of age or older who meet the eligibility requirements for the enhanced STAR exemption
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 a new section 431 to read as follows:
§ 431. Persons seventy years of age or over; capped real property school tax rate. 1. (a) Residential real property owned and occupied by one or more persons, each of whom is seventy years of age or over and meets each of the requirements for the enhanced exemption for senior citizens set forth in section four hundred twenty-five of this title, or residential real property owned and occupied by husband and wife, one of whom is seventy years of age or over and meets each of the requirements for the enhanced exemption for senior citizens set forth in section four hundred twenty-five of this title, shall be eligible for the capped real property school tax rate set forth in this section, provided the school district, after public hearing, adopts a resolution providing therefor.
(b) For purposes of this section, the term "capped real property school tax rate" shall mean the lower of:
(i) the real property school tax rate established on the taxable status date next succeeding the date on which an eligible person attains the age of seventy years; or
(ii) the real property school tax rate established on any taxable status date subsequent to the date on which an eligible person attains the age of seventy years, which is lower than the real property school tax rate established pursuant to subparagraph (i) of this paragraph.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06998-01-9
S. 3769 2
(c) The capped real property school tax rate shall be determined annually for each eligible person seventy years of age or older in accordance with the provisions of paragraphs (a) and (b) of this subdivision.
2. Any person eligible for the capped real property school tax rate shall apply annually for such capped rate. Such application shall be made in a manner and form determined by the state board and shall require proof of the applicant's age. Such application shall be filed with the local assessor on or before the taxable status date for such district.
3. Every school district shall notify, or cause to be notified, each person owning residential real property in the school district of the provisions of this section. The provisions of this subdivision may be met by a notice sent to such persons in substantially the following form: "Residential real property owned by persons seventy years of age or older may be eligible for a capped real property school tax rate. To receive such capped rate, eligible owners of qualifying property must file an application with their local assessor on or before the applicable taxable status date. For further information, please contact your local assessor."
4. A school district which provides a capped real property school tax rate for persons seventy years of age or over pursuant to this section shall be eligible for reimbursement by the department of education, as approved by the commissioner of education, in consultation with the commissioner of taxation and finance, for one hundred percent of the direct cost to such school district resulting from the implementation of this section. Such direct cost shall be calculated pursuant to regulations of the commissioner of education, in consultation with the commissioner of taxation and finance. A claim for such reimbursement shall be made by such school district in a manner and form prescribed by the commissioner of education.
§ 2. This act shall take effect on the first of January next succeeding the date on which it shall have become a law and shall apply to assessment rolls prepared on the basis of taxable status dates occurring on or after such date.
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 establishing a capped real property school tax rate for persons seventy years of age or older who meet the eligibility requirements for the enhanced STAR exemption
Purpose
To create a fixed real property school tax rate for real property owners seventy (70) years of age or older who qualify for the enhanced STAR exemption.
Summary of provisions
This bill amends the real property tax law by establishing a fixed real property school tax rate for persons seventy years of age or over who meet the requirements for the enhanced STAR exemption. The enhanced STAR exemption is available for the primary residences of senior citi- zens with yearly household incomes not exceeding the state-wide stand- ard.
1: (a) Under the bill, residential real property owned and occupied by: individuals who are seventy years of age or over; or by husband and wife, one of whom is seventy years of age or over and meets each of the requirements for the enhanced STAR exemption, shall be eligible for a fixed real property school tax rate; (b) Under the bill, "fixed real property school tax rate" shall mean the lower of:
(i) the real property school tax rate established on the taxable status date immediately following the date on which an eligible person attains the age of seventy years; or (ii) the real property school tax rate established on any taxable status date after an eligible person attains the age of seventy years (c) Under the bill the fixed real property school tax rate shall be determined annually for each eligible person.
2: The bill requires eligible persons to apply annually for the fixed rate in a manner and form determined by the school district. The bill also requires eligible persons to submit proof of age.
3: Every school district shall notify residential real property owners of the provisions of this bill.
Justification
By the time New Yorkers attain the age of seventy, they typically no longer have dependents in the New York State school system. This bill is designed to benefit New York's senior citizens who are seventy years of age or older by freezing real property school tax rates. By providing a fixed school tax rate to persons aged seventy or older, this bill ensures some tax relief to persons no longer reaping the benefits that the real property school tax provides.
Legislative history
2017-18 S.3195/A.2533; 2015-16 S.1480/A.1472; 2013 -14 S.1767/A.1212; 2011-12 S.2998; 2009-10 S.2051; 2007-08, S.3533.
Fiscal implications
To be determined.
Effective date
This Act shall take effect on the first of January next succeeding the date on which it shall have become a law and shall apply to assessment rolls prepared on the basis of taxable status dates occurring on or after such date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.