Relates to calculations of enhanced STAR upon sale of a parcel of real property with such exemption.
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 an enhanced STAR exemption, and buy property from an qualified enhanced STAR individual to pay back, pro-rata, the exemption they are not qualified for.
SUMMARY OF PROVISIONS:
Section 1. Provides that if a parcel of real property with 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.
JUSTIFICATION: The municipalities provide qualified seniors with an Enhanced STAR exemption from real property taxes, however, when a nonqualified purchaser buys the parcel of land from the qualified senior they are reaping benefit they are not qualified for. In order to make the municipality whole this benefit should be returned to the municipality at a pro-rata rate. This is already being done for the basic STAR exemption.
LEGISLATIVE HISTORY: 2011-2012: S.6245 - Referred to Aging
FISCAL IMPLICATIONS: Needs to be determined.
EFFECTIVE DATE: Shall take effect immediately.
STATE OF NEW YORK ________________________________________________________________________ 2196 2013-2014 Regular Sessions IN SENATE January 14, 2013 ___________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 calcu- lations for enhanced STAR THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, 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 (e) to read as follows: (E) 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. S 2. This act shall take effect immediately; provided, however, that effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effec- tive date is authorized and directed to be made and completed on or before such effective date.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD05325-01-3