Provides for the inclusion of sales tax revenue shared by a county with the school district in the STAR savings calculation.
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: 2011 - S.2338 - Local Government 2010 - S.2641/A.4844 - Local Government/Real Property 2008 - S.2333A/A.6485 - 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 property taxes levied for fiscal years commencing on or after January 1, 2012.
STATE OF NEW YORK ________________________________________________________________________ 2338--A 2011-2012 Regular Sessions IN 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 portionEXPLANATION--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.