S2338A-2011 Actions

• Jan 17, 2012: PRINT NUMBER 2338A
• Jan 17, 2012: AMEND AND RECOMMIT TO LOCAL GOVERNMENT
• Jan 4, 2012: REFERRED TO LOCAL GOVERNMENT
• Jan 19, 2011: REFERRED TO LOCAL GOVERNMENT

S2338A-2011 Memo

BILL NUMBER:S2338

TITLE OF BILL:
An act
to amend the real property tax law, in relation to school tax relief
program (STAR) savings
calculation

PURPOSE OF THE BILL:
To give equal STAR relief to homeowners who pay
their school taxes in part through sales tax revenue

SUMMARY OF SPECIFIC PROVISIONS:
This bill amends subdivision 2 of
section 1306-a of the Real Property Tax Law by adding a new section
(b) which provides that STAR tax savings shall be calculated to
include any sales tax revenue shared by a county with a school
district.
Any such sales tax revenue shall be added to each residential tax
parcel eligible for STAR exemption in its pro rata percentage as an
additional tax levy, prior to calculating the STAR tax savings. The
first sentence of existing subdivision 2 is lettered as (a) and the
second sentence in existing subdivision 2 is lettered as (c).

JUSTIFICATION:
There are currently five counties that
share sales tax
revenues with their school districts. In effect, each resident is
paying part of his or her school taxes through sales taxes. Current
STAR law considers only the school taxes paid on the real property
tax bill in calculating the STAR rebate, unfairly reducing the STAR
and Senior STAR rebates to residents in these counties. This bill
would add the sales taxes paid to school districts into the amount
used to calculate the STAR savings.

PRIOR LEGISLATIVE HISTORY:
2010 - S.2641/A.4844 -- LOCAL GOV'T/Real Propeliy
2008 - S.2333-A/A.6485-A -- FINANCE/Real Property Taxation
2007 - S.2333/A.6485 -- FINANCE/Real Property Taxation

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
This act shall take effect immediately and apply to
real propel1y taxes levied for fiscal years commencing on or after
January 1, 2012.

S2338A-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 2338--A
 2011-2012 Regular Sessions
 I N  SENATE
 January 19, 2011
 
 Introduced  by  Sens.  RANZENHOFER, ALESI, DeFRANCISCO, LARKIN, MAZIARZ,
 ROBACH -- read twice and ordered  printed,  and  when  printed  to  be
 committed  to  the Committee on Local Government -- recommitted to the
 Committee on Local Government in accordance with Senate Rule 6, sec. 8
 -- committee discharged, bill amended, ordered  reprinted  as  amended
 and recommitted to said committee
 AN  ACT  to  amend  the real property tax law, in relation to school tax
 relief program (STAR) savings calculation
 THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section  1.  Subdivision  2 of section 1306-a of the real property tax
 law, as amended by section 6 of part N of chapter  58  of  the  laws  of
 2011, is amended to read as follows:

 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  beginning  with  the  two  thousand
 eleven-two  thousand  twelve  school year, 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.  The
 tax  savings  attributable to the basic and enhanced exemptions shall be
 calculated separately. It shall be the responsibility of the commission
 er to calculate tax savings limitations for purposes  of  this  subdivi
 sion.
 (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
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD02333-02-2
 
       S. 2338--A                          2
 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)  FOR PURPOSES OF THIS SUBDIVISION, TAX SAVINGS SHALL BE CALCULATED
 TO INCLUDE ANY SALES TAX REVENUE  SHARED  BY  A  COUNTY  WITH  A  SCHOOL
 DISTRICT.  SUCH  SALES  TAX  REVENUE  SHALL BE ADDED ON A PRO RATA BASIS
 EQUAL TO THE PERCENTAGE THAT EACH PARCEL RECEIVING AN  EXEMPTION  IS  TO
 THE ENTIRE TAX LEVY, AS AN ADDITIONAL TAX LEVY, PRIOR TO CALCULATING THE
 SAVINGS.
 (C) 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 $."
 

S 2. This act shall take effect immediately and shall  apply  to  real
 property  taxes  levied for fiscal years commencing on and after January
 1, 2013.

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