N.Y. Real Property Tax Law § 1306-a: Effect of school tax relief (STAR) exemption upon school district taxes; state aid

§ 1306-a. Effect of school tax relief (STAR) exemption upon school

district taxes; state aid. 1. Levy of taxes; determination of taxes due.

The amount of taxes to be levied for any school year shall be determined

without regard to the fact that state aid will be payable pursuant to

this section. In addition, the tax rate for any school year shall be

determined as if no parcels were exempt from taxation pursuant to

section four hundred twenty five of this chapter. However, the tax rate

so determined shall be applied to the taxable assessed value of each

parcel after accounting for all applicable exemptions, including the

exemption authorized by section four hundred twenty-five of this

chapter.

2. Tax savings. (a) (i) The tax savings for each parcel receiving the

exemption authorized by section four hundred twenty-five of this chapter

shall be computed by subtracting the amount actually levied against the

parcel from the amount that would have been levied if not for the

exemption, provided however, that for the two thousand eleven-two

thousand twelve through two thousand eighteen-two thousand nineteen

school years, the tax savings applicable to any "portion" (which as used

herein shall mean that part of an assessing unit located within a school

district) shall not exceed the tax savings applicable to that portion in

the prior school year multiplied by one hundred two percent, with the

result rounded to the nearest dollar; and provided further that

beginning with the two thousand nineteen-two thousand twenty school

year: (A) for purposes of the exemption authorized by section four

hundred twenty-five of this chapter, the tax savings applicable to any

portion shall not exceed the tax savings for the prior year, and (B) for

purposes of the credit authorized by subsection (eee) of section six

hundred six of the tax law, the tax savings applicable to any portion

shall not exceed the tax savings applicable to that portion in the prior

school year multiplied by one hundred two percent, with the result

rounded to the nearest dollar. The tax savings attributable to the basic

and enhanced exemptions shall be calculated separately. It shall be the

responsibility of the commissioner to calculate tax savings limitations

for purposes of this subdivision.

(ii) The tax savings applicable to a portion for the two thousand

ten-two thousand eleven school year shall be determined by multiplying

the exempt amount applicable to the portion for the two thousand ten-two

thousand eleven school year by the tax rate applicable to the portion

for the two thousand ten-two thousand eleven school year, with separate

calculations for the basic and enhanced exemptions.

(iii) Where a school tax rate was changed in the midst of the prior

school year, an annualized school tax rate shall be used for this

purpose. The annualized tax rate for this purpose shall be determined by

calculating the average of the tax rates in effect at various times

during the school year, weighted according to the length of time during

which they were respectively applicable.

(b) A statement shall then be placed on the tax bill for the parcel in

substantially the following form: "Your tax savings this year resulting

from the New York state school tax relief (STAR) program is $_______."

3. State aid. (a) The total tax savings duly provided by each school

district pursuant to this section shall be a state charge, which shall

be payable as provided herein.

(b) A school district seeking state aid pursuant to this section shall

submit an application therefor to the commissioner. The application

shall include such information as the commissioner shall require.

(c) Upon approving an application for state aid pursuant to this

section, the commissioner shall compute and certify to the commissioner

of education the amounts payable to the school district. Such state aid

shall be payable upon the audit and warrant of the state comptroller

from vouchers certified and approved by the commissioner of education,

as provided by section thirty-six hundred nine-e of the education law,

as applicable.

(d) The commissioner may audit an application for state aid pursuant

to this section within one year after authorizing payment thereon. If

the commissioner should discover that a school district has received a

greater or lesser amount of such aid than it should have received, the

commissioner shall so notify the school district, and shall cause the

next payment of such aid to the school district to be adjusted

accordingly.

(e) When an improperly granted exemption has been revoked in the

manner provided by section four hundred twenty-five of this chapter, the

aid payable to the school district pursuant to this section shall be

reduced by the amount of the taxes attributable to the revoked

exemption.

4. Installment payments. When school taxes are payable in installments

pursuant to law, the tax savings provided by this section shall be

applied proportionally against the respective installments.

5. Untimely payment of taxes. (a) When taxes on a property receiving

the exemption authorized by section four hundred twenty-five of this

chapter are not paid in a timely manner, interest, penalties and any

other applicable charges shall be imposed only against the balance due

after the tax savings provided by this section have been deducted from

the taxes owed.

(b) When a county, city or town is required by section thirteen

hundred thirty or thirteen hundred thirty-two of this chapter, or by any

other general or special law, to make a payment to a school district on

account of unpaid school taxes, the tax savings provided by this section

shall be deducted from the amount so payable.

6. When the commissioner determines, at least twenty days prior to the

levy of school district taxes, that an advance credit of the personal

income tax credit authorized by subsection (eee) of section six hundred

six of the tax law will be provided to the owners of a parcel in that

school district, he or she shall so notify the assessor, the county

director of real property tax services, and the authorities of the

school district, who shall cause a statement to be placed on the tax

bill for the parcel in substantially the following form: "An estimated

STAR check has been or will be mailed to you by the NYS Tax Department.

Any overpayment or underpayment can be reconciled on your next tax

return or STAR credit check."

Notwithstanding any provision of law to the contrary, in the event

that the parcel in question had been granted a STAR exemption on the

assessment roll upon which school district taxes are to be levied, such

exemption shall be deemed null and void, shall be removed from the

assessment roll, and shall be disregarded when the parcel's tax

liability is determined. The assessor or other local official or

officials having custody and control of the data file used to generate

school district tax rolls and tax bills shall be authorized and directed

to change such file as necessary to enable the school district

authorities to discharge the duties imposed upon them by this

subdivision.

7. Inconsistent laws superseded. The provisions of this section shall

apply to all school districts, notwithstanding any provision of law to

the contrary.