senate Bill S2545A

2013-2014 Legislative Session

Reinstates the Middle Class STAR rebate for the 2015-2016 school year and thereafter

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Senate Actions - UPPERCASE
Jan 27, 2014 print number 2545a
amend and recommit to local government
Jan 08, 2014 referred to local government
Jan 18, 2013 referred to local government

Bill Amendments

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S2545 - Bill Details

Current Committee:
Senate Local Government
Law Section:
Real Property Tax Law
Laws Affected:
Add §1306-b, RPT L; add §178, amd §606, Tax L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S4338A
2009-2010: S5248A

S2545 - Bill Texts

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Reinstates the Middle Class STAR rebate for the 2015-2016 school year and thereafter; sets out amounts per year; authorizes commissioner of taxation to develop procedures for the implementation of such program.

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BILL NUMBER:S2545

TITLE OF BILL: An act to amend the real property tax law and the tax
law, in relation to reinstating the "Middle Class STAR" rebate program

SUMMARY OF PROVISIONS: This bill would reinstate the Middle Class STAR
rebate program.

Section 1 adds a new Real Property Tax Law Section 1306-B, entitled
"Middle Class STAR" rebate program. This section provides that if a
parcel is entitled to the basic or enhanced STAR exemption pursuant to
RPTL section 425 for the 2014-2015 school year and thereafter, a local
real property tax rebate shall be provided to the owner or owners of
such parcel. The section sets forth the process by which such rebate
shall be determined.

Section 2 adds a new Tax law section 178 entitled "Middle Class STAR"
rebate program. The section sets forth the mechanism by which the
Department of taxation shall issue STAR Rebate checks to those entitled
to receive such checks.

Section 4 provides that this act shall take effect immediately.

PURPOSE AND JUSTIFICATION: Real property taxes are a serious burden for
many homeowners, from young, families to senior citizens. School taxes
represent a substantial portion of the property taxes that homeowners
pay. The Legislature has provided increasing state aid to school
districts year after year, but school property taxes seem to rise
anyway. Several years ago, the Legislature gave additional assistance to
bard-pressed homeowners through the STAR Rebate program. The STAR Rebate
program was discontinued in the SFY 2009-10 Budget, but this is an
important program that gives help to homeowners who are struggling to
pay local property taxes. With homeowners also facing difficulties keep-
ing their homes because of the current troubled economy, it is more
important than ever to maintain the STAR Rebate program.

EXISTING LAW: Currently, eligible homeowners receive either basic or
enhanced exemptions on their school tax bills which reduce the amount of
such taxes.

PRIOR LEGISLATIVE HISTORY: 2009-2010 - S.5248-A - LOCAL GOV'T
2011-2012- S.4338-A -- LOCAL GOV'T

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect immediately.

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

                                  2545

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 18, 2013
                               ___________

Introduced  by  Sens.  RANZENHOFER,  DeFRANCISCO, LARKIN, O'MARA, YOUNG,
  ZELDIN -- 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) IF A
PARCEL IS ENTITLED TO THE BASIC OR ENHANCED STAR EXEMPTION AUTHORIZED BY
SECTION FOUR HUNDRED TWENTY-FIVE OF THIS CHAPTER FOR  THE  TWO  THOUSAND
SIX--TWO  THOUSAND  SEVEN  SCHOOL YEAR AND EACH YEAR THEREAFTER, 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) 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.
  2. PROCEDURE. (A) ON OR BEFORE AUGUST FIFTEENTH, TWO THOUSAND FOURTEEN
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
FOURTEEN  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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05161-01-3

S. 2545                             2

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 FOURTEEN--TWO THOUSAND FIFTEEN
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 FOUR-
TEEN--TWO THOUSAND FIFTEEN 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) (I) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDI-
VISION, 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  FOURTEEN 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 FOURTEEN  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.
  (II)  WHERE  THE  OWNERSHIP  OF  A PARCEL THAT HAD BEEN ELIGIBLE FOR A
REBATE PURSUANT TO THIS SECTION CHANGES OR AN  EXEMPTION  UNDER  SECTION
FOUR  HUNDRED  TWENTY-FIVE  OF THIS CHAPTER HAS BEEN GRANTED OR REMOVED,
THE ASSESSOR SHALL NOTIFY THE DEPARTMENT OF TAXATION AND FINANCE OF  THE
CHANGE NO LATER THAN AUGUST FIRST OF THE FOLLOWING YEAR.
  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.

S. 2545                             3

  (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, FORTY-FIVE PERCENT AND THIRTY PERCENT, RESPEC-
TIVELY. THE RESULTS SHALL BE ASSOCIATED WITH THE FIRST, SECOND AND THIRD
INCOME BRACKETS, RESPECTIVELY, THAT ARE APPLICABLE WITHIN THAT SEGMENT.
  (II) FOR PURPOSES OF THE TWO THOUSAND SIXTEEN--TWO THOUSAND  SEVENTEEN
SCHOOL  YEAR,  BY  SEVENTY  PERCENT,  FIFTY-TWO AND ONE-HALF PERCENT AND
THIRTY-FIVE PERCENT, RESPECTIVELY. THE RESULTS SHALL BE ASSOCIATED  WITH
THE  FIRST,  SECOND  AND  THIRD  INCOME BRACKETS, RESPECTIVELY, THAT ARE
APPLICABLE WITHIN THAT SEGMENT.
  (III) FOR PURPOSES OF THE TWO THOUSAND SEVENTEEN--TWO  THOUSAND  EIGH-
TEEN  AND  SUBSEQUENT SCHOOL YEARS, BY EIGHTY PERCENT, SIXTY PERCENT AND
FORTY PERCENT, RESPECTIVELY. THE RESULTS SHALL BE  ASSOCIATED  WITH  THE
FIRST, SECOND AND THIRD INCOME BRACKETS, RESPECTIVELY, THAT ARE APPLICA-
BLE WITHIN THAT SEGMENT.
  (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 ARE 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 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   ENHANCED  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 THAT SCHOOL YEAR, AS REPORTED BY THE SCHOOL DISTRICT, AND THEN MULTI-
PLYING THE PRODUCT BY THE FOLLOWING:
  (I)  FOR  PURPOSES  OF THE TWO THOUSAND FOURTEEN--TWO THOUSAND FIFTEEN
SCHOOL YEAR, BY TWENTY-FIVE PERCENT.
  (II) FOR PURPOSES OF THE TWO THOUSAND  FIFTEEN--TWO  THOUSAND  SIXTEEN
AND SUBSEQUENT SCHOOL YEARS, BY THIRTY-FIVE PERCENT.
  (D) FOR PURPOSES OF THIS SECTION, THE TERM "SEGMENT" MEANS THE PART OF
A CITY OR TOWN THAT IS WITHIN A SCHOOL DISTRICT.

S. 2545                             4

  (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 FOURTEEN 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 FOURTEEN 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
SUBDIVISION THREE OF SECTION THIRTEEN HUNDRED SIX-B OF THE REAL PROPERTY
TAX LAW SHALL BE MADE AS PROVIDED BY THIS SECTION.

S. 2545                             5

  (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  TWELVE
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
EXEMPTION.  IN EITHER INSTANCE, AN APPLICATION SHALL BE SUBMITTED TO THE
DEPARTMENT ON A TIMELY BASIS.

S. 2545                             6

  (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
THIS  SECTION  FOR  PURPOSES  OF THE "MIDDLE CLASS STAR" REBATE PROGRAM,
EXCEPT THAT:

S. 2545                             7

  (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.
  15. BEGINNING  IN  FISCAL  YEAR  TWO  THOUSAND  FIFTEEN--TWO  THOUSAND
SIXTEEN,  THE DEPARTMENT SHALL DETERMINE WHICH PROGRAM PROVIDES A LARGER
BENEFIT TO A TAXPAYER, THE "MIDDLE CLASS  STAR"  REBATE  PROGRAM  IMPLE-
MENTED BY SECTION THIRTEEN HUNDRED SIX-B OF THE REAL PROPERTY TAX LAW OR
THE  MAXIMUM  RESIDENTIAL  SCHOOL  TAX  CREDIT  AUTHORIZED  PURSUANT  TO
SUBSECTION (VV) OF SECTION SIX HUNDRED SIX OF THIS  CHAPTER,  AND  SHALL
ENSURE  THAT  THE  TAXPAYER RECEIVES THAT AMOUNT OF BENEFIT IN ANY GIVEN
TAXABLE YEAR.
  S 3.  Section 606 of the tax law is amended by adding a new subsection
(vv) to read as follows:
  (VV) MAXIMUM RESIDENTIAL SCHOOL TAX CREDIT. (1) DEFINITIONS.  FOR  THE
PURPOSES OF THIS SUBSECTION:
  (A)  "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL OF THE STATE WHO
OWNS THE RESIDENTIAL REAL PROPERTY IN WHICH HE OR SHE RESIDES.
  (B) "HOUSEHOLD" MEANS THE TAXPAYER OR TAXPAYERS AND ALL OTHER PERSONS,
NOT NECESSARILY RELATED, WHO ALL RESIDE IN THE RESIDENTIAL REAL PROPERTY
OWNED BY THE TAXPAYER OR TAXPAYERS, AND SHARE ITS  FURNISHINGS,  FACILI-
TIES AND ACCOMMODATIONS; PROVIDED THAT NO PERSON MAY BE A MEMBER OF MORE
THAN ONE HOUSEHOLD AT ONE TIME.

S. 2545                             8

  (C) "HOUSEHOLD GROSS INCOME" MEANS THE AGGREGATE ADJUSTED GROSS INCOME
OF  ALL  MEMBERS  OF  THE HOUSEHOLD FOR THE TAXABLE YEAR AS REPORTED FOR
FEDERAL INCOME TAX PURPOSES, OR WHICH  WOULD  BE  REPORTED  AS  ADJUSTED
GROSS  INCOME  IF A FEDERAL INCOME TAX RETURN WERE REQUIRED TO BE FILED,
WITH  THE  MODIFICATIONS IN SUBSECTION (B) OF SECTION SIX HUNDRED TWELVE
OF THIS ARTICLE BUT WITHOUT THE MODIFICATIONS IN SUBSECTION (C) OF  SUCH
SECTION, PLUS ANY PORTION OF THE GAIN FROM THE SALE OR EXCHANGE OF PROP-
ERTY  OTHERWISE  EXCLUDED  FROM  SUCH AMOUNT; EARNED INCOME FROM SOURCES
WITHOUT THE UNITED  STATES  EXCLUDABLE  FROM  FEDERAL  GROSS  INCOME  BY
SECTION  NINE HUNDRED ELEVEN OF THE INTERNAL REVENUE CODE; SUPPORT MONEY
NOT INCLUDED IN  ADJUSTED  GROSS  INCOME;  NONTAXABLE  STRIKE  BENEFITS;
SUPPLEMENTAL  SECURITY  INCOME PAYMENTS; THE GROSS AMOUNT OF ANY PENSION
OR ANNUITY BENEFITS TO THE EXTENT NOT INCLUDED IN  SUCH  ADJUSTED  GROSS
INCOME  (INCLUDING, BUT NOT LIMITED TO, RAILROAD RETIREMENT BENEFITS AND
ALL PAYMENTS RECEIVED UNDER THE FEDERAL SOCIAL SECURITY ACT  AND  VETER-
ANS'  DISABILITY  PENSIONS); NONTAXABLE INTEREST RECEIVED FROM THE STATE
OF NEW YORK, ITS AGENCIES, INSTRUMENTALITIES,  PUBLIC  CORPORATIONS,  OR
POLITICAL  SUBDIVISIONS (INCLUDING A PUBLIC CORPORATION CREATED PURSUANT
TO AGREEMENT OR COMPACT WITH ANOTHER STATE OR CANADA); WORKERS'  COMPEN-
SATION;  THE GROSS AMOUNT OF "LOSS-OF-TIME" INSURANCE; AND THE AMOUNT OF
CASH PUBLIC ASSISTANCE AND RELIEF, OTHER THAN MEDICAL ASSISTANCE FOR THE
NEEDY, PAID TO OR FOR THE BENEFIT OF THE QUALIFIED TAXPAYER  OR  MEMBERS
OF  HIS  OR  HER  HOUSEHOLD.  HOUSEHOLD  GROSS  INCOME SHALL NOT INCLUDE
SURPLUS FOODS OR OTHER RELIEF IN KIND OR PAYMENTS  MADE  TO  INDIVIDUALS
BECAUSE  OF  THEIR  STATUS  AS VICTIMS OF NAZI PERSECUTION AS DEFINED IN
PUBLIC LAW 103-286.   PROVIDED, FURTHER, HOUSEHOLD  GROSS  INCOME  SHALL
ONLY  INCLUDE  ALL  SUCH INCOME RECEIVED BY ALL MEMBERS OF THE HOUSEHOLD
WHILE MEMBERS OF SUCH HOUSEHOLD. FOR  FARM  FAMILIES  EARNING  AT  LEAST
FIFTY  PERCENT  OF  THEIR  INCOME  FROM FARMING, "ADJUSTED GROSS INCOME"
SHALL BE REPLACED WITH "MODIFIED ADJUSTED GROSS INCOME" FOR FEDERAL  TAX
PURPOSES  AS  REPORTED  ON  THE APPLICANT'S FEDERAL AND STATE INCOME TAX
RETURNS FOR THE APPLICABLE INCOME TAX YEAR.
  (D) "NET SCHOOL TAX" MEANS THE SCHOOL TAXES ASSESSED ON  THE  RESIDEN-
TIAL REAL PROPERTY OWNED AND OCCUPIED BY THE TAXPAYER OR TAXPAYERS AFTER
ANY  EXEMPTION  OR  ABATEMENT RECEIVED PURSUANT TO THE REAL PROPERTY TAX
LAW.  SUCH NET SCHOOL TAX SHALL INCLUDE ANY  SCHOOL  TAXES  ASSESSED  ON
FARM  DWELLINGS  NOT  OWNED  BY  THE RESIDENT IF THE LEGAL TITLE TO SUCH
DWELLING IS HELD BY A PARTNERSHIP AND THE DWELLING SERVES AS THE PRIMARY
RESIDENCE OF ONE OR MORE OF THE PARTNERS, OR  IF  LEGAL  TITLE  TO  SUCH
DWELLING  IS  HELD  BY  AN  S-CORPORATION  OR BY A C-CORPORATION AND THE
DWELLING SERVES AS THE PRIMARY RESIDENCE OF A SHAREHOLDER OF SUCH CORPO-
RATION.
  (2) CREDIT. A QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE
TAXES IMPOSED BY THIS ARTICLE, EQUAL TO SEVENTY PERCENT  OF  THE  AMOUNT
WHICH  THE  TAXPAYER'S  NET  SCHOOL  TAX  EXCEEDS THE TAXPAYER'S MAXIMUM
SCHOOL TAX, AS DETERMINED BY PARAGRAPH THREE OF THIS SUBSECTION. IF SUCH
CREDIT EXCEEDS THE TAX FOR SUCH TAXABLE YEAR, AS REDUCED  BY  THE  OTHER
CREDITS  PERMITTED  BY THIS ARTICLE, THE QUALIFIED TAXPAYER MAY RECEIVE,
AND THE COMPTROLLER, SUBJECT TO A CERTIFICATE OF THE  DEPARTMENT,  SHALL
PAY  AS AN OVERPAYMENT, WITHOUT INTEREST, ANY EXCESS BETWEEN SUCH TAX AS
SO REDUCED AND THE AMOUNT OF THE CREDIT. IF A QUALIFIED TAXPAYER IS  NOT
REQUIRED  TO  FILE A RETURN PURSUANT TO SECTION SIX HUNDRED FIFTY-ONE OF
THIS ARTICLE, A QUALIFIED TAXPAYER  MAY  NEVERTHELESS  RECEIVE  AND  THE
COMPTROLLER, SUBJECT TO A CERTIFICATE OF THE DEPARTMENT, SHALL PAY AS AN
OVERPAYMENT THE FULL AMOUNT OF THE CREDIT, WITHOUT INTEREST.

S. 2545                             9

  (3)  MAXIMUM SCHOOL TAX. (A) A QUALIFIED TAXPAYER'S MAXIMUM SCHOOL TAX
SHALL BE DETERMINED AS FOLLOWS:
  (I)  IN  THE  CITY  OF  NEW YORK, AND THE COUNTIES OF NASSAU, SUFFOLK,
ROCKLAND, WESTCHESTER, PUTNAM, ORANGE AND DUTCHESS:

HOUSEHOLD GROSS INCOME               MAXIMUM SCHOOL TAX
ONE HUNDRED TWENTY THOUSAND          SIX PERCENT OF THE
DOLLARS OR LESS                      HOUSEHOLD GROSS INCOME
MORE THAN ONE HUNDRED                SEVEN PERCENT OF
TWENTY THOUSAND DOLLARS,             THE HOUSEHOLD GROSS INCOME
BUT LESS THAN OR EQUAL TO
ONE HUNDRED SEVENTY-FIVE
THOUSAND DOLLARS
MORE THAN ONE HUNDRED                EIGHT PERCENT OF
SEVENTY-FIVE THOUSAND                THE HOUSEHOLD GROSS INCOME
DOLLARS, BUT LESS THAN
OR EQUAL TO TWO HUNDRED
FIFTY THOUSAND DOLLARS
MORE THAN TWO HUNDRED                NO LIMITATION.
FIFTY THOUSAND
DOLLARS
  (II) IN ALL OTHER COUNTIES IN THE STATE:
HOUSEHOLD GROSS INCOME               MAXIMUM SCHOOL TAX
NINETY THOUSAND                      SIX PERCENT OF THE
DOLLARS OR LESS                      HOUSEHOLD GROSS INCOME
MORE THAN NINETY                     SEVEN PERCENT OF
THOUSAND DOLLARS, BUT                THE HOUSEHOLD
LESS THAN OR EQUAL TO                GROSS INCOME
ONE HUNDRED FIFTY
THOUSAND DOLLARS
MORE THAN ONE HUNDRED                EIGHT PERCENT OF
FIFTY THOUSAND DOLLARS,              THE HOUSEHOLD
BUT LESS THAN OR EQUAL               GROSS INCOME
TO TWO HUNDRED FIFTY
THOUSAND DOLLARS
MORE THAN TWO HUNDRED FIFTY          NO LIMITATION.
THOUSAND DOLLARS
  (B) THE THRESHOLDS OF HOUSEHOLD GROSS INCOME FOR ELIGIBILITY  FOR  THE
MAXIMUM SCHOOL TAX CREDIT, ESTABLISHED BY SUBPARAGRAPH (A) OF THIS PARA-
GRAPH, SHALL BE INDEXED FOR INFLATION.
  (4) EXCLUSIONS FROM ELIGIBILITY. NO CREDIT SHALL BE GRANTED UNDER THIS
SUBSECTION  IF  THE  QUALIFIED  TAXPAYER  CLAIMS  THE  REAL PROPERTY TAX
CIRCUIT BREAKER CREDIT, PURSUANT TO  SUBSECTION  (E)  OF  THIS  SECTION,
DURING THE TAXABLE YEAR.
  (5) FOR PURPOSES OF THIS SUBSECTION, IN THE CITIES OF BUFFALO, ROCHES-
TER,  YONKERS, AND SYRACUSE, A TAXPAYER'S NET SCHOOL TAX SHALL BE DETER-
MINED BY MULTIPLYING SUCH TAXPAYER'S TOTAL REAL  PROPERTY  TAX  BILL  BY
SIXTY-SEVEN  PERCENT.  IN  THE CITY OF NEW YORK, A TAXPAYER'S NET SCHOOL
TAX SHALL BE DETERMINED BY MULTIPLYING SUCH TAXPAYER'S TOTAL REAL  PROP-
ERTY TAX BILL BY FIFTY PERCENT.
  S 4. This act shall take effect immediately.

Co-Sponsors

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S2545A (ACTIVE) - Bill Details

Current Committee:
Senate Local Government
Law Section:
Real Property Tax Law
Laws Affected:
Add §1306-b, RPT L; add §178, amd §606, Tax L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S4338A
2009-2010: S5248A

S2545A (ACTIVE) - Bill Texts

view summary

Reinstates the Middle Class STAR rebate for the 2015-2016 school year and thereafter; sets out amounts per year; authorizes commissioner of taxation to develop procedures for the implementation of such program.

view sponsor memo
BILL NUMBER:S2545A

TITLE OF BILL: An act to amend the real property tax law and the tax
law, in relation to reinstating the "Middle Class STAR" rebate program

SUMMARY OF PROVISIONS:

This bill would reinstate the Middle Class STAR rebate program.

Section 1 adds a new Real Property Tax Law Section 1306-B, entitled
"Middle Class STAR" rebate program. This section provides that if a
parcel is entitled to the basic or enhanced STAR exemption pursuant to
RPTL section 425 for the 2015-2016 school year and thereafter, a local
real property tax rebate shall be provided to the owner or owners of
such parcel. The section sets forth the process by which such rebate
shall be determined.

Section 2 adds a new Tax law section 178 entitled "Middle Class STAR"
rebate program. The section sets forth the mechanism by which the
Department of taxation shall issue STAR Rebate checks to those
entitled to receive such checks.

Section 4 provides that this act shall take effect immediately.

PURPOSE AND JUSTIFICATION:

Real property taxes are a serious burden for many homeowners, from
young families to senior citizens. School taxes represent a
substantial portion of the property taxes that homeowners pay. The
Legislature has provided increasing state aid to school districts year
after year, but school property taxes seem to rise anyway. Several
years ago, the Legislature gave additional assistance to hard-pressed
homeowners through the STAR Rebate program. The STAR Rebate program
was discontinued in the SFY 2009-10 Budget, but this is an important
program that gives help to homeowners who are struggling to pay local
property taxes. With homeowners also facing difficulties keeping their
homes because of the current troubled economy, it is more important
than ever to maintain the STAR Rebate program.

EXISTING LAW:

Currently, eligible homeowners receive either basic or enhanced
exemptions on their school tax bills which reduce the amount of such
taxes.

PRIOR LEGISLATIVE HISTORY:

2009-2010 - S.5248-A -- LOCAL GOV'T
2011-2012- S.4338-A -- LOCAL GOV'T
2013 - S.2545 - LOCAL GOV'T

FISCAL IMPLICATIONS:

To be determined.

EFFECTIVE DATE:


This act shall take effect immediately.

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

                                 2545--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 18, 2013
                               ___________

Introduced  by  Sens.  RANZENHOFER,  DeFRANCISCO, LARKIN, O'MARA, YOUNG,
  ZELDIN -- 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 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) IF A
PARCEL IS ENTITLED TO THE BASIC OR ENHANCED STAR EXEMPTION AUTHORIZED BY
SECTION FOUR HUNDRED TWENTY-FIVE OF THIS CHAPTER FOR  THE  TWO  THOUSAND
SIX--TWO  THOUSAND  SEVEN  SCHOOL YEAR AND EACH YEAR THEREAFTER, 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) 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.
  2.  PROCEDURE. (A) ON OR BEFORE AUGUST FIFTEENTH, TWO THOUSAND FIFTEEN
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
FIFTEEN 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05161-02-4

S. 2545--A                          2

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 FIFTEEN--TWO THOUSAND SIXTEEN
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
FIFTEEN--TWO THOUSAND SIXTEEN 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) (I) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (A) OF THIS SUBDI-
VISION, 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  FIFTEEN  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  FIFTEEN  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.
  (II)  WHERE  THE  OWNERSHIP  OF  A PARCEL THAT HAD BEEN ELIGIBLE FOR A
REBATE PURSUANT TO THIS SECTION CHANGES OR AN  EXEMPTION  UNDER  SECTION
FOUR  HUNDRED  TWENTY-FIVE  OF THIS CHAPTER HAS BEEN GRANTED OR REMOVED,
THE ASSESSOR SHALL NOTIFY THE DEPARTMENT OF TAXATION AND FINANCE OF  THE
CHANGE NO LATER THAN AUGUST FIRST OF THE FOLLOWING YEAR.
  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 FIFTEEN.

S. 2545--A                          3

  (B)  THREE  REBATE  BASES FOR THE BASIC STAR EXEMPTION SHALL BE DETER-
MINED FOR EACH  SEGMENT  FOR  THE  TWO  THOUSAND  FIFTEEN--TWO  THOUSAND
SIXTEEN 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 FOURTEEN--TWO
THOUSAND FIFTEEN SCHOOL YEAR, MULTIPLYING  THAT  AMOUNT  BY  THE  SCHOOL
DISTRICT TAX RATE APPLICABLE WITHIN THAT SEGMENT FOR PURPOSES OF THE TWO
THOUSAND  FOURTEEN--TWO THOUSAND FIFTEEN SCHOOL YEAR, AS REPORTED BY THE
SCHOOL DISTRICT, AND THEN MULTIPLYING THE PRODUCT BY THE FOLLOWING:
  (I) FOR PURPOSES OF THE TWO  THOUSAND  FIFTEEN--TWO  THOUSAND  SIXTEEN
SCHOOL  YEAR AND THE TWO THOUSAND SIXTEEN--TWO THOUSAND SEVENTEEN SCHOOL
YEAR, BY SIXTY PERCENT, FORTY-FIVE PERCENT AND THIRTY  PERCENT,  RESPEC-
TIVELY. THE RESULTS SHALL BE ASSOCIATED WITH THE FIRST, SECOND AND THIRD
INCOME BRACKETS, RESPECTIVELY, THAT ARE APPLICABLE WITHIN THAT SEGMENT.
  (II) FOR PURPOSES OF THE TWO THOUSAND SEVENTEEN--TWO THOUSAND EIGHTEEN
SCHOOL  YEAR,  BY  SEVENTY  PERCENT,  FIFTY-TWO AND ONE-HALF PERCENT AND
THIRTY-FIVE PERCENT, RESPECTIVELY. THE RESULTS SHALL BE ASSOCIATED  WITH
THE  FIRST,  SECOND  AND  THIRD  INCOME BRACKETS, RESPECTIVELY, THAT ARE
APPLICABLE WITHIN THAT SEGMENT.
  (III) FOR PURPOSES OF THE TWO THOUSAND EIGHTEEN--TWO THOUSAND NINETEEN
AND SUBSEQUENT SCHOOL YEARS, BY EIGHTY PERCENT, SIXTY PERCENT AND  FORTY
PERCENT,  RESPECTIVELY.  THE RESULTS SHALL BE ASSOCIATED WITH THE FIRST,
SECOND AND THIRD INCOME  BRACKETS,  RESPECTIVELY,  THAT  ARE  APPLICABLE
WITHIN THAT SEGMENT.
  (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 ARE 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 FIFTEEN--TWO THOUSAND
SIXTEEN 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
FOURTEEN--TWO THOUSAND FIFTEEN 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 MULTI-
PLYING THE PRODUCT BY THE FOLLOWING:
  (I)  FOR  PURPOSES  OF  THE TWO THOUSAND FIFTEEN--TWO THOUSAND SIXTEEN
SCHOOL YEAR, BY TWENTY-FIVE PERCENT.
  (II) FOR PURPOSES OF THE TWO THOUSAND SIXTEEN--TWO THOUSAND  SEVENTEEN
AND SUBSEQUENT SCHOOL YEARS, BY THIRTY-FIVE PERCENT.
  (D) FOR PURPOSES OF THIS SECTION, THE TERM "SEGMENT" MEANS THE PART OF
A CITY OR TOWN THAT IS WITHIN A SCHOOL DISTRICT.

S. 2545--A                          4

  (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 FIFTEEN 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 FIFTEEN 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
SUBDIVISION THREE OF SECTION THIRTEEN HUNDRED SIX-B OF THE REAL PROPERTY
TAX LAW SHALL BE MADE AS PROVIDED BY THIS SECTION.

S. 2545--A                          5

  (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 FIFTEEN--TWO THOUSAND  SIXTEEN  SCHOOL  YEAR,
AFFILIATED  INCOME  SHALL  BE DETERMINED BASED UPON THE PARTIES' INCOMES
FOR THE INCOME TAX YEAR ENDING IN TWO THOUSAND THIRTEEN.  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  FIFTEEN--TWO  THOUSAND SIXTEEN 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
FIFTEEN.  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 THIRTEEN
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  THIRTEEN
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 FIFTEEN, 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
EXEMPTION.  IN EITHER INSTANCE, AN APPLICATION SHALL BE SUBMITTED TO THE
DEPARTMENT ON A TIMELY BASIS.

S. 2545--A                          6

  (E) IF AN APPLICATION FOR A "MIDDLE CLASS  STAR"  REBATE  IS  RECEIVED
AFTER DECEMBER THIRTY-FIRST, TWO THOUSAND FIFTEEN, AN OTHERWISE ELIGIBLE
PROPERTY  OWNER  SHALL NOT RECEIVE A REBATE FOR SUCH YEAR. HOWEVER, SUCH
APPLICATION SHALL BE CONSIDERED TIMELY FILED FOR A REBATE IN  SUBSEQUENT
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 THIRTEEN 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 THIRTEEN 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 SIXTEEN. 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 FIFTEEN,
AFFILIATED  INCOMES  SHALL CONTINUE TO BE DETERMINED AS PROVIDED BY THIS
SECTION FOR PURPOSES OF THE "MIDDLE CLASS STAR" REBATE  PROGRAM,  EXCEPT
THAT:

S. 2545--A                          7

  (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
FIFTEEN 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 EIGHTEEN--TWO THOUSAND NINETEEN SCHOOL YEAR
AND  EACH  SCHOOL  YEAR  THEREAFTER BY APPLYING THE INFLATION FACTOR SET
FORTH IN THIS SUBDIVISION TO THE FIGURES THAT DEFINED THE INCOME  BRACK-
ETS  THAT  WERE  APPLICABLE  TO THE TWO THOUSAND SEVENTEEN--TWO THOUSAND
EIGHTEEN 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.
  15. BEGINNING IN FISCAL YEAR TWO THOUSAND SIXTEEN--TWO THOUSAND SEVEN-
TEEN, THE DEPARTMENT SHALL DETERMINE WHICH  PROGRAM  PROVIDES  A  LARGER
BENEFIT  TO  A  TAXPAYER,  THE "MIDDLE CLASS STAR" REBATE PROGRAM IMPLE-
MENTED BY SECTION THIRTEEN HUNDRED SIX-B OF THE REAL PROPERTY TAX LAW OR
THE  MAXIMUM  RESIDENTIAL  SCHOOL  TAX  CREDIT  AUTHORIZED  PURSUANT  TO
SUBSECTION  (XX)  OF  SECTION SIX HUNDRED SIX OF THIS CHAPTER, AND SHALL
ENSURE THAT THE TAXPAYER RECEIVES THAT AMOUNT OF BENEFIT  IN  ANY  GIVEN
TAXABLE YEAR.
  S  3.  Subsections  (yy)  and  (zz)  of section 606 of the tax law, as
relettered by section 5 of part H of chapter 1 of the laws of 2003,  are
relettered subsections (yyy) and (zzz) and a new subsection (xx) to read
as follows:
  (XX)  MAXIMUM  RESIDENTIAL SCHOOL TAX CREDIT. (1) DEFINITIONS. FOR THE
PURPOSES OF THIS SUBSECTION:
  (A) "QUALIFIED TAXPAYER" MEANS A RESIDENT INDIVIDUAL OF THE STATE  WHO
OWNS THE RESIDENTIAL REAL PROPERTY IN WHICH HE OR SHE RESIDES.
  (B) "HOUSEHOLD" MEANS THE TAXPAYER OR TAXPAYERS AND ALL OTHER PERSONS,
NOT NECESSARILY RELATED, WHO ALL RESIDE IN THE RESIDENTIAL REAL PROPERTY
OWNED  BY  THE TAXPAYER OR TAXPAYERS, AND SHARE ITS FURNISHINGS, FACILI-

S. 2545--A                          8

TIES AND ACCOMMODATIONS; PROVIDED THAT NO PERSON MAY BE A MEMBER OF MORE
THAN ONE HOUSEHOLD AT ONE TIME.
  (C) "HOUSEHOLD GROSS INCOME" MEANS THE AGGREGATE ADJUSTED GROSS INCOME
OF  ALL  MEMBERS  OF  THE HOUSEHOLD FOR THE TAXABLE YEAR AS REPORTED FOR
FEDERAL INCOME TAX PURPOSES, OR WHICH  WOULD  BE  REPORTED  AS  ADJUSTED
GROSS  INCOME  IF A FEDERAL INCOME TAX RETURN WERE REQUIRED TO BE FILED,
WITH THE MODIFICATIONS IN SUBSECTION (B) OF SECTION SIX  HUNDRED  TWELVE
OF  THIS ARTICLE BUT WITHOUT THE MODIFICATIONS IN SUBSECTION (C) OF SUCH
SECTION, PLUS ANY PORTION OF THE GAIN FROM THE SALE OR EXCHANGE OF PROP-
ERTY OTHERWISE EXCLUDED FROM SUCH AMOUNT;  EARNED  INCOME  FROM  SOURCES
WITHOUT  THE  UNITED  STATES  EXCLUDABLE  FROM  FEDERAL  GROSS INCOME BY
SECTION NINE HUNDRED ELEVEN OF THE INTERNAL REVENUE CODE; SUPPORT  MONEY
NOT  INCLUDED  IN  ADJUSTED  GROSS  INCOME;  NONTAXABLE STRIKE BENEFITS;
SUPPLEMENTAL SECURITY INCOME PAYMENTS; THE GROSS AMOUNT OF  ANY  PENSION
OR  ANNUITY  BENEFITS  TO THE EXTENT NOT INCLUDED IN SUCH ADJUSTED GROSS
INCOME (INCLUDING, BUT NOT LIMITED TO, RAILROAD RETIREMENT BENEFITS  AND
ALL  PAYMENTS  RECEIVED UNDER THE FEDERAL SOCIAL SECURITY ACT AND VETER-
ANS' DISABILITY PENSIONS); NONTAXABLE INTEREST RECEIVED FROM  THE  STATE
OF  NEW  YORK,  ITS AGENCIES, INSTRUMENTALITIES, PUBLIC CORPORATIONS, OR
POLITICAL SUBDIVISIONS (INCLUDING A PUBLIC CORPORATION CREATED  PURSUANT
TO  AGREEMENT OR COMPACT WITH ANOTHER STATE OR CANADA); WORKERS' COMPEN-
SATION; THE GROSS AMOUNT OF "LOSS-OF-TIME" INSURANCE; AND THE AMOUNT  OF
CASH PUBLIC ASSISTANCE AND RELIEF, OTHER THAN MEDICAL ASSISTANCE FOR THE
NEEDY,  PAID  TO OR FOR THE BENEFIT OF THE QUALIFIED TAXPAYER OR MEMBERS
OF HIS OR HER  HOUSEHOLD.  HOUSEHOLD  GROSS  INCOME  SHALL  NOT  INCLUDE
SURPLUS  FOODS  OR  OTHER RELIEF IN KIND OR PAYMENTS MADE TO INDIVIDUALS
BECAUSE OF THEIR STATUS AS VICTIMS OF NAZI  PERSECUTION  AS  DEFINED  IN
PUBLIC  LAW  103-286.    PROVIDED, FURTHER, HOUSEHOLD GROSS INCOME SHALL
ONLY INCLUDE ALL SUCH INCOME RECEIVED BY ALL MEMBERS  OF  THE  HOUSEHOLD
WHILE  MEMBERS  OF  SUCH  HOUSEHOLD.  FOR FARM FAMILIES EARNING AT LEAST
FIFTY PERCENT OF THEIR INCOME  FROM  FARMING,  "ADJUSTED  GROSS  INCOME"
SHALL  BE REPLACED WITH "MODIFIED ADJUSTED GROSS INCOME" FOR FEDERAL TAX
PURPOSES AS REPORTED ON THE APPLICANT'S FEDERAL  AND  STATE  INCOME  TAX
RETURNS FOR THE APPLICABLE INCOME TAX YEAR.
  (D)  "NET  SCHOOL TAX" MEANS THE SCHOOL TAXES ASSESSED ON THE RESIDEN-
TIAL REAL PROPERTY OWNED AND OCCUPIED BY THE TAXPAYER OR TAXPAYERS AFTER
ANY EXEMPTION OR ABATEMENT RECEIVED PURSUANT TO THE  REAL  PROPERTY  TAX
LAW.    SUCH  NET  SCHOOL TAX SHALL INCLUDE ANY SCHOOL TAXES ASSESSED ON
FARM DWELLINGS NOT OWNED BY THE RESIDENT IF  THE  LEGAL  TITLE  TO  SUCH
DWELLING IS HELD BY A PARTNERSHIP AND THE DWELLING SERVES AS THE PRIMARY
RESIDENCE  OF  ONE  OR  MORE  OF THE PARTNERS, OR IF LEGAL TITLE TO SUCH
DWELLING IS HELD BY AN S-CORPORATION  OR  BY  A  C-CORPORATION  AND  THE
DWELLING SERVES AS THE PRIMARY RESIDENCE OF A SHAREHOLDER OF SUCH CORPO-
RATION.
  (2) CREDIT. A QUALIFIED TAXPAYER SHALL BE ALLOWED A CREDIT AGAINST THE
TAXES  IMPOSED  BY  THIS ARTICLE, EQUAL TO SEVENTY PERCENT OF THE AMOUNT
WHICH THE TAXPAYER'S NET  SCHOOL  TAX  EXCEEDS  THE  TAXPAYER'S  MAXIMUM
SCHOOL TAX, AS DETERMINED BY PARAGRAPH THREE OF THIS SUBSECTION. IF SUCH
CREDIT  EXCEEDS  THE  TAX FOR SUCH TAXABLE YEAR, AS REDUCED BY THE OTHER
CREDITS PERMITTED BY THIS ARTICLE, THE QUALIFIED TAXPAYER  MAY  RECEIVE,
AND  THE COMPTROLLER, SUBJECT TO A CERTIFICATE OF THE  DEPARTMENT, SHALL
PAY AS AN OVERPAYMENT, WITHOUT INTEREST, ANY EXCESS BETWEEN SUCH TAX  AS
SO  REDUCED AND THE AMOUNT OF THE CREDIT. IF A QUALIFIED TAXPAYER IS NOT
REQUIRED TO FILE A RETURN PURSUANT TO SECTION SIX HUNDRED  FIFTY-ONE  OF
THIS  ARTICLE,  A  QUALIFIED  TAXPAYER  MAY NEVERTHELESS RECEIVE AND THE

S. 2545--A                          9

COMPTROLLER, SUBJECT TO A CERTIFICATE OF THE DEPARTMENT, SHALL PAY AS AN
OVERPAYMENT THE FULL AMOUNT OF THE CREDIT, WITHOUT INTEREST.
  (3)  MAXIMUM SCHOOL TAX. (A) A QUALIFIED TAXPAYER'S MAXIMUM SCHOOL TAX
SHALL BE DETERMINED AS FOLLOWS:
  (I) IN THE CITY OF NEW YORK, AND  THE  COUNTIES  OF  NASSAU,  SUFFOLK,
ROCKLAND, WESTCHESTER, PUTNAM, ORANGE AND DUTCHESS:

HOUSEHOLD GROSS INCOME               MAXIMUM SCHOOL TAX
ONE HUNDRED TWENTY THOUSAND          SIX PERCENT OF THE
DOLLARS OR LESS                      HOUSEHOLD GROSS INCOME
MORE THAN ONE HUNDRED                SEVEN PERCENT OF
TWENTY THOUSAND DOLLARS,             THE HOUSEHOLD GROSS INCOME
BUT LESS THAN OR EQUAL TO
ONE HUNDRED SEVENTY-FIVE
THOUSAND DOLLARS
MORE THAN ONE HUNDRED                EIGHT PERCENT OF
SEVENTY-FIVE THOUSAND                THE HOUSEHOLD GROSS INCOME
DOLLARS, BUT LESS THAN
OR EQUAL TO TWO HUNDRED
FIFTY THOUSAND DOLLARS
MORE THAN TWO HUNDRED                NO LIMITATION.
FIFTY THOUSAND
DOLLARS
  (II) IN ALL OTHER COUNTIES IN THE STATE:
HOUSEHOLD GROSS INCOME               MAXIMUM SCHOOL TAX
NINETY THOUSAND                      SIX PERCENT OF THE
DOLLARS OR LESS                      HOUSEHOLD GROSS INCOME
MORE THAN NINETY                     SEVEN PERCENT OF
THOUSAND DOLLARS, BUT                THE HOUSEHOLD
LESS THAN OR EQUAL TO                GROSS INCOME
ONE HUNDRED FIFTY
THOUSAND DOLLARS
MORE THAN ONE HUNDRED                EIGHT PERCENT OF
FIFTY THOUSAND DOLLARS,              THE HOUSEHOLD
BUT LESS THAN OR EQUAL               GROSS INCOME
TO TWO HUNDRED FIFTY
THOUSAND DOLLARS
MORE THAN TWO HUNDRED FIFTY          NO LIMITATION.
THOUSAND DOLLARS
  (B)  THE  THRESHOLDS OF HOUSEHOLD GROSS INCOME FOR ELIGIBILITY FOR THE
MAXIMUM SCHOOL TAX CREDIT, ESTABLISHED BY SUBPARAGRAPH (A) OF THIS PARA-
GRAPH, SHALL BE INDEXED FOR INFLATION.
  (4) EXCLUSIONS FROM ELIGIBILITY. NO CREDIT SHALL BE GRANTED UNDER THIS
SUBSECTION IF THE  QUALIFIED  TAXPAYER  CLAIMS  THE  REAL  PROPERTY  TAX
CIRCUIT  BREAKER  CREDIT,  PURSUANT  TO  SUBSECTION (E) OF THIS SECTION,
DURING THE TAXABLE YEAR.
  (5) FOR PURPOSES OF THIS SUBSECTION, IN THE CITIES OF BUFFALO, ROCHES-
TER, YONKERS, AND SYRACUSE, A TAXPAYER'S NET SCHOOL TAX SHALL BE  DETER-
MINED  BY  MULTIPLYING  SUCH  TAXPAYER'S TOTAL REAL PROPERTY TAX BILL BY
SIXTY-SEVEN PERCENT. IN THE CITY OF NEW YORK, A  TAXPAYER'S  NET  SCHOOL
TAX  SHALL BE DETERMINED BY MULTIPLYING SUCH TAXPAYER'S TOTAL REAL PROP-
ERTY TAX BILL BY FIFTY PERCENT.
  S 4. This act shall take effect immediately.

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