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S505Senate2019-2020 Session

Restore School Tax Exemption

Official title

“Repeals part A of chapter 60 of the laws of 2016, which provides for the transition of the school tax relief property tax exemption to a personal income tax credit”

Sponsor David CarlucciSD-38+4 co-sponsorsAffects Legal
Status
In Senate Committee
Investigations And Government Operations
Impact
7/10
Significant
Passage
0%

Bill progress

Step 2 of 7

In committee · Investigations And Government Operations

What's happening

This bill repeals the 2016 law that transitioned the STAR property tax exemption into a personal income tax credit.

Why it matters

  1. Restores the original STAR property tax exemption system. By repealing the 2016 law, this bill would reinstate direct property tax relief for homeowners, rather than having them wait to receive a credit through their personal income tax returns.

  2. Potentially improves cash flow for homeowners. Homeowners would see immediate savings on their property tax bills, rather than receiving a refund months later, which could be particularly important for those on fixed incomes.

  3. Addresses administrative and confusion issues. The transition to a tax credit created confusion and administrative burdens for both taxpayers and local governments; reverting to the exemption could simplify the process and reduce errors or delays.

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Who cares

Headline styles

Restore School Tax Exemption

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
David Carlucci

Senator · Senate District 38

Chair, Mental Health And Developmental Disabilities

History

  1. Referred to investigations and government operations
  2. Referred to investigations and government operations

Full text

1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

505

2019-2020 Regular Sessions

IN SENATE (Prefiled)

January 9, 2019

Introduced by Sens. CARLUCCI, BOYLE, GALLIVAN, HELMING, RITCHIE -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations

AN ACT to repeal part A of chapter 60 of the laws of 2016 amending the real property tax law and the tax law relating to transitioning the school tax relief (STAR) exemption into a personal income tax credit, relating thereto

The People of the State of New York, represented in Senate and Assembly, do enact as follows:

Section 1. Part A of chapter 60 of the laws of 2016 amending the real property tax law and the tax law relating to transitioning the school tax relief (STAR) exemption into a personal income tax credit is REPEALED.

§ 2. This act shall take effect immediately.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD06315-01-9

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

Sponsor's memo

Title of bill

An act to repeal part A of chapter 60 of the laws of 2016 amending the real property tax law and the tax law relating to transitioning the school tax relief (STAR) exemption into a personal income tax credit, relating thereto

Purpose or general idea of bill

The purpose of this legislation is to repeal part A of chapter 60 of the laws of 2016, which provides for the transition of the school tax relief property tax exemption to a personal income tax credit.

Summary of specific provisions

Section 1. Part A of chapter 60 of the laws of 2016 amending the Real Property Tax Law and the Tax Law relating to transitioning the school tax relief (STAR) exemption into a personal income tax credit is REPEALED.

Section 2. Establishes the effective date.

Justification

The STAR program has historically been an exemption program, which provides homeowners with immediate school tax relief by reducing their school tax bills. Part A of Chapter 60 of the Laws of 2016 changed STAR to a personal income tax program for new homeowners. These homeowners will receive their full school tax bill, and then have to wait for a tax credit from the Department of Taxation and Finance. New formulas will be used to calculate the credit amounts for cooperatives and mobile homes, which could mean some homeowners receiving the personal income tax cred- it will receive a lesser benefit than their neighbors who are receiving. This legislation would keep STAR as an exemption program and allow future applicants to receive the same benefits in the same manner as current STAR recipients.

Legislative history

2017-18: S1374 - 2015-16: S7531/A9943 - Local Government/ways and means

Fiscal implications

This legislation would eliminate the temporary cost savings of the conversion, which was estimated by the New York State Division of Budget to be about $100 million annually until full conversion was complete; however the savings attributable to the conversion would ultimately have been offset by lower income tax revenues to the State.

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.