Requires financial institutions to notify real property tax assessors when they take possession of real property receiving a STAR exemption.
Ayes (57): Addabbo, Avella, Bonacic, Boyle, Breslin, Carlucci, DeFrancisco, Diaz, Dilan, Farley, Felder, Flanagan, Gallivan, Gianaris, Gipson, Golden, Griffo, Grisanti, Hannon, Hoylman, Kennedy, Klein, Krueger, Lanza, Larkin, Latimer, LaValle, Libous, Little, Marcellino, Marchione, Martins, Maziarz, Montgomery, Nozzolio, O'Brien, O'Mara, Parker, Peralta, Perkins, Ranzenhofer, Ritchie, Rivera, Robach, Sampson, Sanders, Savino, Serrano, Seward, Skelos, Squadron, Stavisky, Stewart-Cousins, Tkaczyk, Valesky, Young, Zeldin
Nays (1): Ball
Excused (3): Espaillat, Hassell-Thomps, Smith
TITLE OF BILL: An act to amend the real property tax law, in relation to school tax relief (STAR) exemptions
PURPOSE: To provide that financial institutions who take possession of residential properties notify the local assessor within thirty days in order that STAR exemption on the property may be terminated and provide for a civil penalty for failure to make timely notification.
SUMMARY OF PROVISIONS:
Section 1. Adds a new subdivision 15 to section 425 of the Real Property Tax Law to provide that whenever a financial institution takes possession of real property that would qualify for the STAR exemption, that the institution, within thirty days of taking possession, must notify the local assessor or other person having custody of the assessment roll. The exemption shall be immediately discontinued. Failure to make such notification shall be subject to a $5,000 civil fine.
JUSTIFICATION: When residential properties are abandoned by the individuals who claimed a STAR exemption, the exemption should cease. It has been reported that this is not the case in situations where financial institutions who have mortgage interests take over the possession of properties. This legislation would require those institutions to notify the property locality that the individual who qualified for the exemption was no longer at that address so the exemption could be extinguished and the proper school tax will be paid.
LEGISLATIVE HISTORY: New bill.
FISCAL IMPLICATIONS: None to the State.
EFFECTIVE DATE: Thirtieth day after is shall have become law.
STATE OF NEW YORK ________________________________________________________________________ S. 7485 A. 9675 S E N A T E - A S S E M B L Y May 15, 2014 ___________IN SENATE -- Introduced by Sen. LAVALLE -- read twice and ordered print- ed, and when printed to be committed to the Committee on Local Govern- ment IN ASSEMBLY -- Introduced by M. of A. THIELE -- read once and referred to the Committee on Real Property Taxation AN ACT to amend the real property tax law, in relation to school tax relief (STAR) exemptions THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 425 of the real property tax law is amended by adding a new subdivision 15 to read as follows: 15. (A) WHENEVER A FINANCIAL INSTITUTION, AS DEFINED BY PARAGRAPH (E) OF SUBDIVISION TWO OF SECTION 5-1501 OF THE GENERAL OBLIGATIONS LAW, TAKES POSSESSION OF REAL PROPERTY WHICH QUALIFIES FOR AN EXEMPTION PURSUANT TO THIS SECTION, SUCH FINANCIAL INSTITUTION SHALL NOTIFY THE ASSESSOR OR OTHER PERSON HAVING CUSTODY OF THE ASSESSMENT ROLL IN THE LOCALITY IN WHICH SUCH REAL PROPERTY IS LOCATED WITHIN THIRTY DAYS OF TAKING SUCH POSSESSION, UPON WHICH SUCH EXEMPTION SHALL BE IMMEDIATELY DISCONTINUED. (B) ANY FINANCIAL INSTITUTION THAT VIOLATES ANY PROVISION OF PARAGRAPH (A) OF THIS SUBDIVISION SHALL BE LIABLE FOR A CIVIL PENALTY NOT TO EXCEED FIVE THOUSAND DOLLARS. S 2. This act shall take effect on the thirtieth day after it shall have become a law.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15013-02-4