S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1558

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sens.  LAVALLE,  FUSCHILLO,  GRISANTI,  KENNEDY, LARKIN,
  MARTINS, RANZENHOFER, SEWARD -- read twice and  ordered  printed,  and
  when printed to be committed to the Committee on Local Government

AN  ACT  to amend the real property tax law and the tax law, in relation
  to reinstating the "Middle Class STAR" rebate program

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.    The  real  property  tax law is amended by adding a new
section 1306-b to read as follows:
  S 1306-B. "MIDDLE CLASS STAR" REBATE PROGRAM. 1. TAX REBATES. (A)  FOR
THE  TWO  THOUSAND  THIRTEEN--TWO THOUSAND FOURTEEN SCHOOL YEAR AND EACH
YEAR THEREAFTER IF A PARCEL IS ENTITLED TO THE ENHANCED  STAR  EXEMPTION
AUTHORIZED  BY SECTION FOUR HUNDRED TWENTY-FIVE OF THIS CHAPTER, A LOCAL
PROPERTY TAX REBATE SHALL BE PROVIDED TO THE OWNER  OR  OWNERS  OF  SUCH
PARCEL AS SHOWN ON THE FINAL ASSESSMENT ROLL FOR SUCH YEAR, IN AN AMOUNT
COMPUTED  AS PRESCRIBED BY THIS SECTION AND SECTION ONE HUNDRED SEVENTY-
EIGHT OF THE TAX LAW.
  (B) FOR THE TWO THOUSAND FOURTEEN--TWO THOUSAND  FIFTEEN  SCHOOL  YEAR
AND  EACH  YEAR  THEREAFTER  IF  A  PARCEL IS ENTITLED TO THE BASIC STAR
EXEMPTION AUTHORIZED BY SECTION FOUR HUNDRED TWENTY-FIVE OF  THIS  CHAP-
TER,  A  LOCAL  PROPERTY  TAX  REBATE  SHALL BE PROVIDED TO THE OWNER OR
OWNERS OF SUCH PARCEL AS SHOWN ON THE FINAL  ASSESSMENT  ROLL  FOR  SUCH
YEAR,  IN  AN  AMOUNT COMPUTED AS PRESCRIBED BY THIS SECTION AND SECTION
ONE HUNDRED SEVENTY-EIGHT OF THE TAX LAW.
  (C) IT SHALL BE THE RESPONSIBILITY OF THE STATE DEPARTMENT OF TAXATION
AND FINANCE TO ISSUE SUCH TAX REBATES  TO  SUCH  OWNERS  IN  THE  MANNER
PROVIDED  BY  SECTION  ONE HUNDRED SEVENTY-EIGHT OF THE TAX LAW. NOTHING
CONTAINED HEREIN SHALL BE CONSTRUED AS PERMITTING PARTIAL OR INSTALLMENT
PAYMENTS OF TAXES IN A JURISDICTION WHICH HAS NOT  AUTHORIZED  THE  SAME
PURSUANT TO LAW.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD03493-01-3

S. 1558                             2

  2. PROCEDURE. (A) ON OR BEFORE AUGUST FIFTEENTH, TWO THOUSAND THIRTEEN
AND  EACH  YEAR THEREAFTER, THE COMMISSIONER OF TAXATION AND FINANCE, OR
HIS OR HER DESIGNEE, SHALL CREATE  A  REPORT  CONCERNING  THOSE  PARCELS
WHICH  HAVE BEEN GRANTED AN EXCEPTION AUTHORIZED BY SECTION FOUR HUNDRED
TWENTY-FIVE  OF  THIS  CHAPTER, OR ON OR BEFORE JULY FIRST, TWO THOUSAND
THIRTEEN AND EACH YEAR THEREAFTER, IN THE CASE OF A CITY  WITH  A  POPU-
LATION  OF  ONE  MILLION OR MORE, THE COMMISSIONER OF FINANCE, OR HIS OR
HER DESIGNEE, SHALL PROVIDE TO THE COMMISSIONER OF TAXATION AND  FINANCE
A  REPORT  IN A MUTUALLY AGREEABLE FORMAT CONCERNING THOSE PARCELS WHICH
HAVE BEEN GRANTED AN EXEMPTION AUTHORIZED BY SECTION FOUR HUNDRED  TWEN-
TY-FIVE  OF  THIS  CHAPTER  ON THE ASSESSMENT ROLLS USED TO GENERATE THE
SCHOOL TAX BILLS FOR THE TWO THOUSAND  THIRTEEN--TWO  THOUSAND  FOURTEEN
SCHOOL  TAX  YEAR  AND  FOR  EACH  YEAR THEREAFTER; PROVIDED HOWEVER THE
INFORMATION TO BE PROVIDED ON SUCH REPORT SHALL  BE  OBTAINED  FROM  THE
FINAL ASSESSMENT ROLL DATA FILES USED TO GENERATE THE TWO THOUSAND THIR-
TEEN--TWO  THOUSAND  FOURTEEN SCHOOL TAX BILLS AND EACH YEAR THEREAFTER,
FILED WITH THE DEPARTMENT OF TAXATION AND FINANCE  PURSUANT  TO  SECTION
FIFTEEN HUNDRED NINETY OF THIS CHAPTER ON OR BEFORE JULY THIRTY-FIRST OF
SUCH  YEAR.  SUCH REPORT SHALL SET FORTH THE NAMES AND MAILING ADDRESSES
OF THE OWNERS OF SUCH PARCELS AS SHOWN  ON  SUCH  ASSESSMENT  ROLL  DATA
FILES,  THE  IDENTIFICATION  NUMBERS  OF  SUCH  PARCELS AS SHOWN ON SUCH
ASSESSMENT ROLL DATA FILES, AND SUCH OTHER INFORMATION IN THE POSSESSION
OF THE DEPARTMENT OF TAXATION AND FINANCE, OR IN THE CASE OF A CITY WITH
A POPULATION OF ONE MILLION OR MORE, THE COMMISSIONER OF FINANCE, AS THE
COMMISSIONER OF TAXATION AND FINANCE MAY DEEM NECESSARY FOR  THE  EFFEC-
TIVE  ADMINISTRATION  OF  THIS  PROGRAM, INCLUDING INFORMATION REGARDING
COOPERATIVE APARTMENT BUILDINGS AND MOBILE HOME PARKS OR SIMILAR PROPER-
TY. IT SHALL BE THE RESPONSIBILITY OF THE ASSESSOR OR ASSESSORS OF  EACH
ASSESSING  UNIT  TO  ENSURE THAT THE NAMES AND MAILING ADDRESSES OF SUCH
OWNERS ARE ACCURATELY RECORDED ON SUCH ROLLS AND FILES TO  THE  BEST  OF
HIS  OR  HER ABILITY, BASED UPON THE INFORMATION CONTAINED IN HIS OR HER
OFFICE. NOTHING CONTAINED IN THIS  SUBDIVISION  SHALL  BE  CONSTRUED  AS
AFFECTING  IN  ANY WAY THE VALIDITY OR ENFORCEABILITY OF A REAL PROPERTY
TAX, OR THE APPLICABILITY OF INTEREST OR PENALTIES WITH RESPECT THERETO,
WHEN AN  OWNER'S  NAME  OR  MAILING  ADDRESS  HAS  NOT  BEEN  ACCURATELY
RECORDED.
  (B)  NOTWITHSTANDING  THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDIVI-
SION, WHERE AN ASSESSING UNIT CONTAINS ONE OR MORE PROPERTIES WHICH  ARE
RECEIVING  SUCH  EXEMPTION  IN  RELATION TO A PRIOR YEAR ASSESSMENT ROLL
PURSUANT TO PARAGRAPH (D) OF SUBDIVISION SIX  OF  SECTION  FOUR  HUNDRED
TWENTY-FIVE  OF  THIS  CHAPTER,  OR  CONTAINS  ONE  OR MORE PARCELS WITH
RESPECT TO WHICH SUCH EXEMPTION WAS DULY  ADDED  OR  REMOVED  AFTER  THE
FILING  OF THE FINAL ASSESSMENT ROLL PURSUANT TO THE PROVISIONS OF TITLE
THREE OF ARTICLE FIVE OF THIS CHAPTER, THE DEPARTMENT  OF  TAXATION  AND
FINANCE  MAY  REQUIRE  THE  ASSESSOR  TO FILE WITH IT, ON OR BEFORE JULY
THIRTY-FIRST, TWO THOUSAND THIRTEEN AND EACH YEAR  THEREAFTER,  OR  SUCH
LATER DATE AS SUCH OFFICE MAY SPECIFY, A SUPPLEMENTAL REPORT RELATING TO
SUCH  PROPERTY  OR  PROPERTIES,  SO  THAT  INFORMATION PERTAINING TO THE
OWNERS THEREOF MAY BE INCLUDED IN THE REPORT TO BE MADE TO  THE  COMMIS-
SIONER  OF  TAXATION  AND  FINANCE  PURSUANT TO THIS PARAGRAPH. WHEN ANY
INFORMATION REQUIRED BY THIS PARAGRAPH IS RECEIVED BY THE DEPARTMENT  OF
TAXATION  AND FINANCE AFTER JULY THIRTY-FIRST, TWO THOUSAND THIRTEEN AND
EACH YEAR THEREAFTER, SUCH INFORMATION SHALL BE TRANSMITTED AS  SOON  AS
REASONABLY  PRACTICABLE  FOR  USE  IN ISSUING LOCAL PROPERTY TAX REBATES
PURSUANT TO SECTION ONE HUNDRED SEVENTY-EIGHT OF THE TAX LAW.

S. 1558                             3

  3. REBATE BASE.   (A) THE DEPARTMENT OF  TAXATION  AND  FINANCE  SHALL
CALCULATE  THE  REBATE  BASE  AS PROVIDED HEREIN AND CERTIFY THE SAME NO
LATER THAN JULY FIRST, TWO THOUSAND FOURTEEN.
  (B)  THREE  REBATE  BASES FOR THE BASIC STAR EXEMPTION SHALL BE DETER-
MINED FOR EACH SEGMENT  FOR  THE  TWO  THOUSAND  FOURTEEN--TWO  THOUSAND
FIFTEEN AND SUBSEQUENT SCHOOL YEARS. SUCH REBATE BASES SHALL BE COMPUTED
BY  DETERMINING  THE  EXEMPT  AMOUNT  ESTABLISHED  FOR  THE  SEGMENT FOR
PURPOSES OF THE BASIC STAR EXEMPTION FOR THE TWO THOUSAND  THIRTEEN--TWO
THOUSAND  FOURTEEN  SCHOOL  YEAR,  MULTIPLYING THAT AMOUNT BY THE SCHOOL
DISTRICT TAX RATE APPLICABLE WITHIN THAT SEGMENT FOR PURPOSES OF THE TWO
THOUSAND THIRTEEN--TWO THOUSAND FOURTEEN SCHOOL YEAR, AS REPORTED BY THE
SCHOOL DISTRICT, AND THEN MULTIPLYING THE PRODUCT BY THE FOLLOWING:
  (I) FOR PURPOSES OF THE TWO THOUSAND  FOURTEEN--TWO  THOUSAND  FIFTEEN
SCHOOL  YEAR  AND  THE TWO THOUSAND FIFTEEN--TWO THOUSAND SIXTEEN SCHOOL
YEAR, BY SIXTY PERCENT FOR THE FIRST INCOME BRACKET, FORTY-FIVE  PERCENT
FOR  THE  SECOND  INCOME BRACKET AND THIRTY PERCENT FOR THE THIRD INCOME
BRACKET.
  (II) FOR PURPOSES OF THE TWO THOUSAND SIXTEEN--TWO THOUSAND  SEVENTEEN
SCHOOL  YEAR, BY SEVENTY PERCENT FOR THE FIRST INCOME BRACKET, FIFTY-TWO
AND ONE-HALF PERCENT FOR THE  SECOND  INCOME  BRACKET,  AND  THIRTY-FIVE
PERCENT FOR THE THIRD INCOME BRACKET.
  (III)  FOR  PURPOSES OF THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGH-
TEEN AND SUBSEQUENT SCHOOL YEARS, BY EIGHTY PERCENT FOR THE FIRST INCOME
BRACKET, SIXTY PERCENT FOR THE SECOND INCOME BRACKET, AND FORTY  PERCENT
FOR THE THIRD INCOME BRACKET.
  (IV) INCOME BRACKETS. (A) IN THE CITY OF NEW YORK, AND THE COUNTIES OF
NASSAU, SUFFOLK, ROCKLAND, WESTCHESTER, PUTNAM, ORANGE AND DUTCHESS, THE
FIRST  INCOME  BRACKET  SHALL  BE UP TO AND INCLUDING ONE HUNDRED TWENTY
THOUSAND DOLLARS; THE SECOND INCOME BRACKET SHALL BE  OVER  ONE  HUNDRED
TWENTY  THOUSAND  DOLLARS  UP  TO AND INCLUDING ONE HUNDRED SEVENTY-FIVE
THOUSAND DOLLARS; AND THE THIRD INCOME BRACKET SHALL BE OVER ONE HUNDRED
SEVENTY-FIVE THOUSAND DOLLARS UP TO  AND  INCLUDING  TWO  HUNDRED  FIFTY
THOUSAND DOLLARS.
  (B) IN ALL OTHER COUNTIES IN THE STATE, THE FIRST INCOME BRACKET SHALL
BE UP TO AND INCLUDING NINETY THOUSAND DOLLARS; THE SECOND INCOME BRACK-
ET  SHALL  BE  OVER  NINETY THOUSAND DOLLARS AND UP TO AND INCLUDING ONE
HUNDRED FIFTY THOUSAND DOLLARS; AND THE THIRD INCOME  BRACKET  SHALL  BE
OVER  ONE  HUNDRED  FIFTY  THOUSAND  DOLLARS AND UP TO AND INCLUDING TWO
HUNDRED FIFTY THOUSAND DOLLARS.
  (C) SUCH BRACKETS SHALL BE SUBJECT TO INDEXING FOR INFLATION  PURSUANT
TO  SUBDIVISION FOURTEEN OF SECTION ONE HUNDRED SEVENTY-EIGHT OF THE TAX
LAW.
  (C) ONE REBATE BASE FOR THE ENHANCED STAR EXEMPTION  SHALL  BE  DETER-
MINED FOR EACH SEGMENT FOR THE TWO THOUSAND THIRTEEN--TWO THOUSAND FOUR-
TEEN AND SUBSEQUENT SCHOOL YEARS. SUCH REBATE BASES SHALL BE COMPUTED BY
DETERMINING  THE  EXEMPT AMOUNT ESTABLISHED FOR THE SEGMENT FOR PURPOSES
OF THE ENHANCED STAR EXEMPTION FOR THE TWO THOUSAND TWELVE--TWO THOUSAND
THIRTEEN SCHOOL YEAR, MULTIPLYING THAT AMOUNT BY THE SCHOOL DISTRICT TAX
RATE APPLICABLE WITHIN THAT SEGMENT FOR PURPOSES OF THAT SCHOOL YEAR, AS
REPORTED BY THE SCHOOL DISTRICT, AND THEN MULTIPLYING THE PRODUCT BY THE
FOLLOWING:
  (I) FOR PURPOSES OF THE TWO THOUSAND THIRTEEN--TWO  THOUSAND  FOURTEEN
SCHOOL YEAR, BY TWENTY-FIVE PERCENT.
  (II)  FOR  PURPOSES OF THE TWO THOUSAND FOURTEEN--TWO THOUSAND FIFTEEN
AND SUBSEQUENT SCHOOL YEARS, BY THIRTY-FIVE PERCENT.

S. 1558                             4

  (D) FOR PURPOSES OF THIS SECTION, THE TERM "SEGMENT" MEANS THE PART OF
A CITY OR TOWN THAT IS WITHIN A SCHOOL DISTRICT.
  (E)  IN THE CASE OF SCHOOL DISTRICTS WITHIN SPECIAL ASSESSING UNITS AS
DEFINED IN SECTION EIGHTEEN HUNDRED ONE  OF  THIS  CHAPTER,  THE  SCHOOL
DISTRICT  TAX  RATE  TO  BE  USED FOR THIS PURPOSE SHALL BE THE TAX RATE
APPLICABLE TO CLASS ONE PROPERTIES AS DEFINED  IN  ARTICLE  EIGHTEEN  OF
THIS  CHAPTER,  AS REPORTED BY THE SCHOOL DISTRICT AND THE EXEMPT AMOUNT
SHALL BE ESTABLISHED FOR THE SEGMENT. IN THE CASE  OF  SCHOOL  DISTRICTS
WITHIN  APPROVED  ASSESSING UNITS AS DEFINED IN SECTION NINETEEN HUNDRED
ONE OF THIS CHAPTER WHICH HAVE ADOPTED THE PROVISIONS OF  SECTION  NINE-
TEEN  HUNDRED  THREE OF THIS CHAPTER, THE SCHOOL DISTRICT TAX RATE TO BE
USED FOR THIS PURPOSE SHALL BE THE TAX RATE APPLICABLE TO THE  HOMESTEAD
CLASS,  AS  DEFINED  IN ARTICLE NINETEEN OF THIS CHAPTER, AS REPORTED BY
THE SCHOOL DISTRICT.
  (F) WHERE THE PROVISIONS OF SUBPARAGRAPH  (IV)  OF  PARAGRAPH  (K)  OF
SUBDIVISION  TWO OF SECTION FOUR HUNDRED TWENTY-FIVE OF THIS CHAPTER ARE
APPLICABLE, THE APPLICABLE REBATE  AMOUNT  SHALL  BE  ONE-THIRD  OF  THE
OTHERWISE  APPLICABLE REBATE AMOUNT SET FORTH IN PARAGRAPH (B) OR (C) OF
THIS SUBDIVISION. THE DEPARTMENT OF TAXATION AND FINANCE SHALL CALCULATE
AND CERTIFY THE REBATE AMOUNTS APPLICABLE IN SUCH CASES, ALONG WITH  THE
CERTIFICATION REQUIRED BY PARAGRAPH (A) OF THIS SUBDIVISION.
  S  2.  The  tax  law is amended by adding a new section 178 to read as
follows:
  S 178. "MIDDLE CLASS STAR" REBATE PROGRAM. 1. THE  COMMISSIONER  SHALL
ISSUE  THE  LOCAL  PROPERTY  TAX  REBATES AUTHORIZED BY SECTION THIRTEEN
HUNDRED SIX-B OF THE REAL PROPERTY TAX LAW. FOR PURPOSES OF THIS SECTION
THE REBATE SHALL BE CALCULATED USING THE COMPUTATION FORMULA  SET  FORTH
IN SUBDIVISION THREE OF SECTION THIRTEEN HUNDRED SIX-B OF THE REAL PROP-
ERTY TAX LAW. PROVIDED, HOWEVER, SUCH REBATES SHALL NOT BE ISSUED IN ANY
YEAR IN WHICH AN APPROPRIATION TO PAY SUCH REBATES HAS NOT BEEN INCLUDED
IN THE ENACTED STATE BUDGET FOR SUCH YEAR.
  2.  ON OR BEFORE AUGUST FIFTEENTH, TWO THOUSAND THIRTEEN AND EACH YEAR
THEREAFTER, THE COMMISSIONER, OR HIS OR HER  DESIGNEE,  SHALL  CREATE  A
REPORT  CONCERNING THOSE PARCELS WHICH SATISFY THE CRITERIA SET FORTH IN
SECTION THIRTEEN HUNDRED SIX-B OF THE REAL PROPERTY TAX LAW,  OR  ON  OR
BEFORE JULY FIRST, TWO THOUSAND THIRTEEN AND EACH YEAR THEREAFTER IN THE
CASE OF A CITY WITH A POPULATION OF ONE MILLION OR MORE, THE COMMISSION-
ER  OF FINANCE, SHALL PROVIDE TO THE COMMISSIONER A REPORT IN A MUTUALLY
AGREEABLE FORMAT CONCERNING THOSE PARCELS WHICH SATISFY THE CRITERIA SET
FORTH IN SECTION THIRTEEN HUNDRED SIX-B OF THE REAL PROPERTY TAX LAW.
  3. THE COMMISSIONER IN CONSULTATION WITH THE COMMISSIONER OF  FINANCE,
FOR  A  CITY  WITH A POPULATION OF ONE MILLION OR MORE, IS AUTHORIZED TO
DEVELOP PROCEDURES NECESSARY TO PROVIDE FOR THE ISSUANCE OF LOCAL  PROP-
ERTY  TAX  REBATES  TO  QUALIFYING PROPERTY OWNERS, AND THOSE QUALIFYING
PROPERTY OWNERS THAT DID NOT RECEIVE THEM INITIALLY. IF THE COMMISSIONER
IS NOT SATISFIED THAT THE PROPERTY OWNER  IS  QUALIFIED  FOR  THE  LOCAL
PROPERTY TAX REBATE, THE COMMISSIONER SHALL NOT ISSUE SUCH REBATE.
  4.  BY DEPOSITING A REBATE ISSUED PURSUANT TO THIS SECTION AND AUTHOR-
IZED BY SECTION THIRTEEN HUNDRED SIX-B OF THE REAL PROPERTY TAX LAW, THE
PAYEE  IS  CERTIFYING THAT HE OR SHE IS THE PROPERTY OWNER, AND THAT THE
PRIMARY RESIDENCE OF SUCH PROPERTY OWNER IS NOT SUBJECT  TO  ANY  DELIN-
QUENT SCHOOL TAXES.
  5.  VERIFICATION OF "AFFILIATED INCOME" FOR "MIDDLE CLASS STAR" REBATE
PROGRAM. (A) THE DETERMINATION OF THE "AFFILIATED INCOME" OF PARCELS FOR
PURPOSES OF THE "MIDDLE CLASS STAR"  REBATE  PROGRAM  AS  AUTHORIZED  BY

S. 1558                             5

SUBDIVISION THREE OF SECTION THIRTEEN HUNDRED SIX-B OF THE REAL PROPERTY
TAX LAW SHALL BE MADE AS PROVIDED BY THIS SECTION.
  (B) FOR PURPOSES OF THIS SUBDIVISION, THE TERM "INCOME" SHALL HAVE THE
SAME  MEANING  AS  SET  FORTH  IN  SUBPARAGRAPH (II) OF PARAGRAPH (B) OF
SUBDIVISION FOUR OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPER-
TY TAX LAW. THE TERM "AFFILIATED INCOME" SHALL MEAN THE COMBINED  INCOME
OF  ALL OF THE OWNERS OF THE PARCEL WHO RESIDED PRIMARILY THEREON ON THE
TAXABLE STATUS DATE FOR THE ASSESSMENT ROLL USED TO GENERATE THE  APPLI-
CABLE  SCHOOL  TAX  BILLS,  AND OF ANY OWNERS' SPOUSES FILING JOINTLY OR
SPOUSES RESIDING PRIMARILY THEREON IN THE CASES OF SPOUSES FILING  SEPA-
RATE  RETURNS  ON  SUCH  TAXABLE  STATUS DATE AND SHALL BE DETERMINED AS
FOLLOWS:
  (I) FOR THE TWO THOUSAND FOURTEEN--TWO THOUSAND FIFTEEN  SCHOOL  YEAR,
AFFILIATED  INCOME  SHALL  BE DETERMINED BASED UPON THE PARTIES' INCOMES
FOR THE INCOME TAX YEAR ENDING IN TWO THOUSAND TWELVE.  IN  EACH  SUBSE-
QUENT  YEAR,  THE  APPLICABLE  INCOME  TAX YEAR SHALL BE ADVANCED BY ONE
YEAR.
  (II) THE DEPARTMENT SHALL DETERMINE THE  AFFILIATED  INCOME  FOR  EACH
PARCEL  AND SHALL ASSIGN A REBATE AMOUNT FOR EACH PARCEL BASED UPON SUCH
DETERMINATION. IN ANY CASE WHERE AFFILIATED INCOME CANNOT BE DETERMINED,
A REBATE SHALL NOT BE ISSUED.
  6. NOTIFICATION REQUIREMENT. THE  DEPARTMENT  SHALL  MAIL  INFORMATION
CONCERNING  THE  "MIDDLE CLASS STAR" REBATE PROGRAM TO OWNERS OF PARCELS
RECEIVING A BASIC STAR EXEMPTION ON THE ASSESSMENT ROLL USED TO GENERATE
THE TWO THOUSAND FOURTEEN--TWO THOUSAND FIFTEEN SCHOOL  TAX  BILL.  SUCH
NOTIFICATION  SHALL  EXPLAIN THAT PROPERTY OWNERS MUST FILE APPLICATIONS
WITH THE DEPARTMENT IN ORDER TO OBTAIN THE REBATE  AVAILABLE  UNDER  THE
"MIDDLE  CLASS  STAR"  REBATE PROGRAM. SUCH NOTICE SHALL FURTHER EXPLAIN
HOW TO OBTAIN THE APPLICATION.
  7. APPLICATIONS. (A) IN ORDER TO OBTAIN THE BENEFITS  OF  THE  "MIDDLE
CLASS  STAR"  REBATE PROGRAM, THE PROPERTY OWNER MUST SUBMIT AN APPLICA-
TION TO THE DEPARTMENT NO LATER THAN DECEMBER THIRTY-FIRST, TWO THOUSAND
FOURTEEN. THE APPLICANT SHALL PROVIDE THE DEPARTMENT WITH SUCH  INFORMA-
TION  AS  MAY  BE NECESSARY TO DETERMINE THE PARCEL'S AFFILIATED INCOME.
THE PERSONS OTHER THAN THE APPLICANT WHOSE INCOMES ARE NECESSARY TO  THE
DETERMINATION  OF THE PARCEL'S AFFILIATED INCOME SHALL BE REFERRED TO IN
THIS SECTION AS "AFFILIATED PERSONS." RECIPIENTS OF  THE  ENHANCED  STAR
EXEMPTION SHALL NOT FILE AN APPLICATION TO RECEIVE A REBATE. THE DEPART-
MENT SHALL MAIL ENHANCED STAR REBATE RECIPIENTS THEIR REBATES IN A TIME-
LY MANNER.
  (B)  IF  THE  APPLICANT OR ANY AFFILIATED PERSONS WERE NOT REQUIRED TO
FILE NEW YORK STATE INCOME TAX  RETURNS  FOR  THE  TWO  THOUSAND  ELEVEN
INCOME  TAX  YEAR  BECAUSE  THEIR  INCOMES WERE BELOW THE THRESHOLD THAT
NECESSITATED SUCH FILING, THE APPLICATION SHALL SO INDICATE.
  (C) IF THE APPLICANT OR ANY AFFILIATED PERSONS WERE  NOT  REQUIRED  TO
FILE  NEW  YORK  STATE  INCOME  TAX  RETURNS FOR THE TWO THOUSAND TWELVE
INCOME TAX YEAR BECAUSE THEY DID NOT RESIDE IN NEW YORK  STATE  IN  SUCH
TAXABLE  YEAR,  THE  APPLICATION  SHALL  SO INDICATE. SUCH PERSONS SHALL
PROVIDE WITH THE APPLICATION ANY INFORMATION THAT THE DEPARTMENT  DETER-
MINES IS NECESSARY TO CALCULATE THE PARCEL'S AFFILIATED INCOME UNDER THE
"MIDDLE CLASS STAR" REBATE PROGRAM.
  (D)  AFTER  TWO THOUSAND FOURTEEN, APPLICATIONS SHALL BE REQUIRED ONLY
WHEN A NEW APPLICATION FOR A BASIC  STAR  EXEMPTION  FOR  REAL  PROPERTY
TAXATION  IS  FILED  PURSUANT TO SECTION FOUR HUNDRED TWENTY-FIVE OF THE
REAL PROPERTY TAX LAW, OR WHEN THERE IS A CHANGE OF OWNERSHIP WHICH DOES
NOT NECESSITATE THE FILING  OF  A  NEW  APPLICATION  FOR  A  BASIC  STAR

S. 1558                             6

EXEMPTION.  IN EITHER INSTANCE, AN APPLICATION SHALL BE SUBMITTED TO THE
DEPARTMENT ON A TIMELY BASIS.
  (E)  IF  AN  APPLICATION  FOR A "MIDDLE CLASS STAR" REBATE IS RECEIVED
AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND FOURTEEN, AN OTHERWISE  ELIGI-
BLE  PROPERTY  OWNER  SHALL NOT RECEIVE A REBATE FOR SUCH YEAR. HOWEVER,
SUCH APPLICATION SHALL BE CONSIDERED TIMELY FILED FOR A REBATE IN SUBSE-
QUENT YEARS PROVIDED THE OWNERSHIP OF THE PARCEL REMAINS UNCHANGED.
  8. PROCESSING OF APPLICATIONS. (A) AFTER RECEIVING A  TIMELY  APPLICA-
TION, THE DEPARTMENT SHALL ATTEMPT TO DETERMINE THE AFFILIATED INCOME OF
THE  PARCEL  AND  THE  REBATE AMOUNT TO WHICH THE PARCEL IS ENTITLED, IF
ANY.
  (B) IN THE CASE OF AN APPLICATION WHICH INDICATES THAT  THE  APPLICANT
AND  ANY  AFFILIATED  PERSONS  WERE  NOT REQUIRED TO FILE NEW YORK STATE
INCOME TAX RETURNS FOR THE TWO THOUSAND TWELVE INCOME TAX  YEAR  BECAUSE
THEIR  INCOMES WERE BELOW THE THRESHOLD WHICH NECESSITATED THE FILING OF
A STATE INCOME TAX RETURN, THE DEPARTMENT MAY, SUBJECT TO AUDIT, ISSUE A
REBATE EQUAL TO THE HIGHEST AMOUNT AVAILABLE FOR  THAT  SCHOOL  DISTRICT
SEGMENT.
  (C)  IN  THE CASE OF AN APPLICATION WHICH INDICATES THAT THE APPLICANT
AND ANY AFFILIATED PERSONS WERE NOT REQUIRED  TO  FILE  NEW  YORK  STATE
INCOME  TAX  RETURNS FOR THE TWO THOUSAND TWELVE INCOME TAX YEAR BECAUSE
THEY DID NOT RESIDE IN NEW YORK STATE IN SUCH TAXABLE YEAR,  THE  APPLI-
CANT  SHALL PROVIDE SUCH INFORMATION REGARDING INCOME AS IS REQUESTED BY
THE DEPARTMENT. THE DEPARTMENT SHALL  ISSUE  A  REBATE  BASED  UPON  THE
INFORMATION PROVIDED BY THE APPLICANT AND ANY OTHER INFORMATION TO WHICH
THE  DEPARTMENT  MAY HAVE ACCESS CONCERNING THE INCOME OF SUCH PERSON OR
PERSONS.
  9. RECONSIDERATION OF REBATE AMOUNT. IN THE EVENT  THE  DEPARTMENT  IS
UNABLE TO DETERMINE THE AFFILIATED INCOME FOR A PARCEL OR THE DEPARTMENT
DETERMINES  THAT  A REBATE SHALL NOT BE ISSUED FOR A PARCEL, THE DEPART-
MENT SHALL NOTIFY THE APPLICANT OF THAT FACT. A PROPERTY OWNER MAY  SEEK
RECONSIDERATION OF THE REBATE AMOUNT DETERMINATION FOR HIS OR HER PARCEL
ON  THE GROUNDS THAT THE PARCEL'S AFFILIATED INCOME WAS DETERMINED ERRO-
NEOUSLY. A PROPERTY OWNER MAY ALSO SEEK RECONSIDERATION IF NO REBATE WAS
ISSUED BECAUSE THE  PARCEL'S  AFFILIATED  INCOME  WAS  UNDETERMINED.  AN
APPLICATION  FOR  RECONSIDERATION  OF  REBATE  AMOUNT SHALL BE MADE IN A
MANNER PRESCRIBED BY THE DEPARTMENT, AND SHALL BE  ACCOMPANIED  BY  SUCH
DOCUMENTATION  AS  THE DEPARTMENT MAY REQUIRE. SUCH APPLICATION SHALL BE
FILED NO LATER THAN MARCH THIRTY-FIRST, TWO  THOUSAND  FIFTEEN.  IF  THE
DEPARTMENT  FINDS  AFTER  REVIEWING  SUCH AN APPLICATION THAT THE REBATE
AMOUNT DETERMINATION FOR A PARCEL SHOULD BE CORRECTED, IT SHALL ISSUE AN
AMENDED OR INITIAL REBATE CHECK. IF THE DEPARTMENT FINDS AFTER REVIEWING
SUCH AN APPLICATION THAT THE REBATE AMOUNT DETERMINATION FOR THE  PARCEL
WAS CORRECTLY DETERMINED, IT SHALL SO NOTIFY THE APPLICANT. SUCH NOTIFI-
CATION  SHALL INCLUDE AN EXPLANATION OF THE DEPARTMENT'S FINDINGS, INDI-
CATE THAT THE APPLICANT HAS THE RIGHT  TO  A  PROCEEDING  UNDER  ARTICLE
SEVENTY-EIGHT  OF  THE  CIVIL  PRACTICE  LAW AND RULES, AND INDICATE THE
STATUTE OF LIMITATIONS ASSOCIATED WITH SUCH  PROCEEDINGS.  SUCH  FINDING
SHALL  BE  SUBJECT TO REVIEW PURSUANT ONLY TO A PROCEEDING UNDER ARTICLE
SEVENTY-EIGHT OF THE CIVIL PRACTICE LAW AND RULES.
  10. SPECIAL PROVISIONS RELATING TO CO-OPERATIVE  APARTMENT  UNITS  AND
MOBILE  HOMES. THE DEPARTMENT'S DETERMINATION OF AFFILIATED INCOME SHALL
BE MADE WITH RESPECT TO THE TENANT-SHAREHOLDERS OR OWNERS OF THE UNIT IN
QUESTION RATHER THAN OF THE PARCEL.
  11. SUBSEQUENT YEARS. IN EACH YEAR SUBSEQUENT TO  TWO  THOUSAND  FOUR-
TEEN,  AFFILIATED INCOMES SHALL CONTINUE TO BE DETERMINED AS PROVIDED BY

S. 1558                             7

THIS SECTION FOR PURPOSES OF THE "MIDDLE  CLASS  STAR"  REBATE  PROGRAM,
EXCEPT THAT:
  (A)  THE  NOTIFICATION  REQUIREMENT OF SUBDIVISION SIX OF THIS SECTION
SHALL NOT BE APPLICABLE;
  (B) APPLICATIONS SHALL BE REQUIRED ONLY  AS  PROVIDED  IN  SUBDIVISION
SEVEN OF THIS SECTION; AND
  (C) IN EACH SUBSEQUENT YEAR, THE APPLICABLE INCOME TAX YEAR FOR DETER-
MINATIONS  UNDER  THIS  SECTION  SHALL  BE  ADVANCED ONE YEAR. ALL OTHER
APPLICABLE DATES AND DEADLINES WHICH REFERENCE A DATE  IN  TWO  THOUSAND
FOURTEEN  SHALL  BE  ADVANCED  AND SHALL BE DEEMED TO REFERENCE DATES IN
THAT SUBSEQUENT YEAR, EXCEPT THAT APPLICATIONS  FOR  RECONSIDERATION  OF
REBATE  AMOUNT  DETERMINATIONS  SHALL  BE  SUBMITTED NO LATER THAN MARCH
THIRTY-FIRST OF THE ENSUING YEAR.
  12.  CONFIDENTIAL  INFORMATION;  DISCLOSURE  PROHIBITION.  INFORMATION
REGARDING  REBATES ISSUED TO INDIVIDUALS SHALL NOT BE SUBJECT TO DISCLO-
SURE; INCLUDING NAMES, ADDRESSES, AND DOLLAR AMOUNTS  OF  REBATES.    IN
ADDITION, ALL APPLICATIONS SUBMITTED FOR REBATES SHALL NOT BE SUBJECT TO
DISCLOSURE.
  13.  DEADLINE.  IF  ANY  APPLICABLE DEADLINE SHALL FALL ON A SATURDAY,
SUNDAY OR LEGAL HOLIDAY, SUCH DEADLINE SHALL BE  ADVANCED  TO  THE  NEXT
BUSINESS DAY.
  14.  AFFILIATED INCOME BRACKETS; INDEXING. THE DEPARTMENT SHALL ESTAB-
LISH THE AFFILIATED INCOME BRACKETS TO BE  ASSOCIATED  WITH  THE  REBATE
AMOUNTS  FOR  THE  TWO  THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN SCHOOL
YEAR AND EACH SCHOOL YEAR THEREAFTER BY APPLYING  THE  INFLATION  FACTOR
SET  FORTH  IN  THIS  SUBDIVISION TO THE FIGURES THAT DEFINED THE INCOME
BRACKETS THAT WERE APPLICABLE TO THE TWO THOUSAND SIXTEEN--TWO  THOUSAND
SEVENTEEN  SCHOOL YEAR, AND ROUNDING EACH RESULT TO THE NEAREST MULTIPLE
OF  ONE  HUNDRED  DOLLARS.    FOR  PURPOSES  OF  THIS  SUBDIVISION,  THE
"INFLATION  FACTOR"  FOR  EACH INCOME BRACKET SHALL BE DETERMINED BY THE
PERCENTAGE INCREASE IN THE CONSUMER PRICE INDEX FOR URBAN  WAGE  EARNERS
AND  CLERICAL  WORKERS (CPI-W) PUBLISHED BY THE UNITED STATES DEPARTMENT
OF LABOR, BUREAU OF LABOR STATISTICS,  FOR  THE  THIRD  QUARTER  OF  THE
CALENDAR  YEAR  PRECEDING THE APPLICABLE SCHOOL YEAR, AS COMPARED TO THE
THIRD QUARTER OF THE PRIOR CALENDAR YEAR. IF A BASE FIGURE AS SO  DETER-
MINED  IS  NOT  EXACTLY  EQUAL  TO A MULTIPLE OF ONE HUNDRED DOLLARS, IT
SHALL BE ROUNDED TO THE NEAREST MULTIPLE OF ONE HUNDRED DOLLARS. IN EACH
SUBSEQUENT SCHOOL YEAR,  THE  PRIOR  YEAR'S  INCOME  BRACKETS  SHALL  BE
INDEXED USING THE ABOVE FORMULA WITH EACH YEAR ADVANCED BY ONE YEAR.
  S  3. Section 606 of the tax law is amended by adding a new subsection
(n-1) to read as follows:
  (N-1) SCHOOL DISTRICT PROPERTY TAX CREDIT. (1) IN ANY TAXABLE YEAR  IN
WHICH  TAXPAYERS ARE NOT ELIGIBLE TO RECEIVE REBATES PURSUANT TO SECTION
ONE HUNDRED SEVENTY-EIGHT OF THIS CHAPTER SOLELY  BECAUSE  AN  APPROPRI-
ATION  TO PAY SUCH REBATES WAS NOT INCLUDED IN THE ENACTED STATE BUDGET,
FOR SUCH YEAR, THE CREDIT ALLOWED BY THIS SUBSECTION SHALL APPLY.
  (2) FOR TAXABLE YEARS BEGINNING ON OR AFTER JANUARY FIRST,  TWO  THOU-
SAND THIRTEEN IF THE CREDIT IS APPLICABLE IN SUCH YEAR, A TAXPAYER SHALL
BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE IN AN AMOUNT
EQUAL  TO  THE  REBATE  CHECK CALCULATED PURSUANT TO SECTION ONE HUNDRED
SEVENTY-EIGHT OF THIS CHAPTER.
  (3) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR  ANY
TAXABLE  YEAR  SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS
SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED  IN
ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.

S. 1558                             8

  (4)  (A)  TAXPAYERS WHO WOULD HAVE QUALIFIED FOR THE CREDIT UNDER THIS
SUBSECTION FOR TAXABLE YEAR TWO THOUSAND TWELVE, HAD  SUCH  CREDIT  BEEN
AUTHORIZED  IN  SUCH  TAXABLE  YEAR,  SHALL  BE TREATED AS HAVING MADE A
PAYMENT AGAINST THE TAX IMPOSED BY THIS ARTICLE FOR SUCH TAXABLE YEAR IN
AN AMOUNT EQUAL TO SUCH CREDIT FOR SUCH TAXABLE YEAR. SUCH PAYMENT SHALL
BE  TREATED AS AN OVERPAYMENT OF TAX TO BE REFUNDED AS SOON AS PRACTICA-
BLE, BUT NOT LONGER THAN FORTY-FIVE DAYS  FROM  FILING  A  CLAIM  FOR  A
REFUND,  IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHT-
Y-SIX OF THIS ARTICLE, PROVIDED, HOWEVER THAT NO INTEREST SHALL BE  PAID
THEREON.  ALL  QUALIFIED  TAXPAYERS  MAY  SUBMIT  A CLAIM FOR AN ADVANCE
PAYMENT OF SUCH REFUND ON FORMS PREPARED  BY  THE  DEPARTMENT,  PROVIDED
SUCH   FORMS   ARE  FILED  WITH  THE  DEPARTMENT  ON  OR  BEFORE  AUGUST
THIRTY-FIRST, TWO THOUSAND THIRTEEN.
  (B) THE AMOUNT OF THE CREDIT WHICH IS ALLOWED  UNDER  THIS  SUBSECTION
FOR THE TAXPAYER'S TAXABLE YEAR BEGINNING IN TWO THOUSAND THIRTEEN SHALL
BE  REDUCED  BY THE PAYMENTS MADE TO THE TAXPAYER UNDER THIS SUBSECTION.
ANY FAILURE TO SO REDUCE THE CREDIT SHALL BE TREATED AS ARISING OUT OF A
MATHEMATICAL OR CLERICAL ERROR AND ASSESSED ACCORDING TO SUBSECTION  (D)
OF SECTION SIX HUNDRED EIGHTY-ONE OF THIS ARTICLE.
  (C)  ANY  FAILURE  TO  APPLY FOR AN ADVANCE PAYMENT SHALL NOT IMPAIR A
TAXPAYER'S ABILITY TO APPLY FOR THE CREDIT UPON FILING THEIR RETURN  FOR
SUCH TAX YEAR.
  (5)  IF  THE  COMMISSIONER  DETERMINES  IT  TO BE NECESSARY FOR PROPER
ADMINISTRATION OF THE CREDIT ALLOWED UNDER THIS SUBSECTION,  THE  COUNTY
DIRECTOR  OF REAL PROPERTY TAX SERVICES OF ANY COUNTY, OR IN THE CASE OF
A CITY WITH A POPULATION OF ONE MILLION OR  MORE,  THE  COMMISSIONER  OF
FINANCE,  UPON THE REQUEST OF THE COMMISSIONER, SHALL FILE A REPORT WITH
THE OFFICE OF REAL PROPERTY SERVICES  IDENTIFYING  ALL  PARCELS  IN  THE
COUNTY  OR  IN  THE CITY ON WHICH SCHOOL TAXES FOR THE PRIOR SCHOOL YEAR
REMAINED UNPAID AS OF JUNE THIRTIETH OF SUCH PRIOR SCHOOL YEAR, PROVIDED
THAT PARCELS NOT RECEIVING THE BASIC OR ENHANCED STAR EXEMPTION SHALL BE
EXCLUDED FROM SUCH LIST.  SUCH COUNTY DIRECTOR SHALL OBTAIN FROM THE TAX
COLLECTING OFFICERS AND TAX ENFORCEMENT OFFICERS WITHIN THE COUNTY  SUCH
INFORMATION  AS HE OR SHE MAY NEED TO PREPARE SUCH LIST. SUCH LIST SHALL
BE PREPARED IN A FORMAT PRESCRIBED BY THE COMMISSIONER.
  (6) IF THE SCHOOL PROPERTY TAXES TO WHICH THE CREDIT RELATES  ARE  NOT
PAID,  THE  CREDIT  ALLOWED  WITH RESPECT TO SUCH PROPERTY TAXES MUST BE
ADDED BACK IN THE TAX YEAR IN WHICH SUCH CREDIT WAS CLAIMED.
  (7) ONLY ONE CREDIT PER RESIDENCE SHALL BE ALLOWED  PER  TAXABLE  YEAR
UNDER  THIS SUBSECTION. WHEN TWO OR MORE MEMBERS OF A RESIDENCE ARE ABLE
TO MEET THE QUALIFICATIONS FOR A QUALIFIED TAXPAYER, THE CREDIT SHALL BE
EQUALLY DIVIDED BETWEEN OR AMONG SUCH INDIVIDUALS.
  HUSBAND AND WIFE. IN THE CASE OF A HUSBAND AND WIFE WHO FILE  A  JOINT
FEDERAL  RETURN  BUT  WHO ARE REQUIRED TO DETERMINE THEIR NEW YORK TAXES
SEPARATELY, THE CREDIT  ALLOWED  PURSUANT  TO  THIS  SUBSECTION  MAY  BE
APPLIED  AGAINST  THE  TAX OF EITHER OR DIVIDED BETWEEN THEM AS THEY MAY
ELECT.
  S 4. This act shall take effect immediately.