Senate Bill S7531

                                 BILL NUMBER:  S7531

 TITLE OF BILL :

An act to repeal part A of chapter 60 of the laws of 2016 amending the
real property tax law and the tax law relating to transitioning the
school tax relief (STAR) exemption into a personal income tax credit,
relating thereto

 PURPOSE OR GENERAL IDEA OF BILL :

The purpose of this legislation is to repeal part A of chapter 60 of
the laws of 2016, which provides for the transition of the school tax
relief property tax exemption to a personal income tax credit.

 SUMMARY OF SPECIFIC PROVISIONS :

Section 1. Part A of chapter 60 of the laws of 2016 amending the Real
Property Tax Law and the Tax Law relating to transitioning the school
tax relief (STAR) exemption into a personal income tax credit is
REPEALED.

Section 2. Establishes the effective date.

 JUSTIFICATION :

              

The STAR program has historically been an exemption program, which
provides homeowners with immediate school tax relief by reducing their
school tax bills. Part A of Chapter 60 of the Laws of 2016 changed
STAR to a personal income tax program for new homeowners.  These
homeowners will receive their full school tax bill, and then have to
wait for a tax credit from the Department of Taxation and Finance. New
formulas will be used to calculate the credit amounts for cooperatives
and mobile homes, which could mean some homeowners receiving the
personal income tax credit will receive a lesser benefit than their
neighbors who are receiving. This legislation would keep STAR as an
exemption program and allow future applicants to receive the same
benefits in the same manner as current STAR recipients.

 PRIOR LEGISLATIVE HISTORY :

This is new legislation.

 FISCAL IMPLICATIONS :

This legislation would eliminate the temporary cost savings of the
conversion, which was estimated by the New York State Division of
Budget to be about $100 million annually until full conversion was
complete; however the savings attributable to the conversion would
ultimately have been offset by lower income tax revenues to the State.

 EFFECTIVE DATE :
This act shall take effect immediately.