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This entry was published on 2019-04-19
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SECTION 1306-A
Effect of school tax relief (STAR) exemption upon school district taxes; state aid
Real Property Tax (RPT) CHAPTER 50-A, ARTICLE 13
§ 1306-a. Effect of school tax relief (STAR) exemption upon school
district taxes; state aid. 1. Levy of taxes; determination of taxes due.
The amount of taxes to be levied for any school year shall be determined
without regard to the fact that state aid will be payable pursuant to
this section. In addition, the tax rate for any school year shall be
determined as if no parcels were exempt from taxation pursuant to
section four hundred twenty five of this chapter. However, the tax rate
so determined shall be applied to the taxable assessed value of each
parcel after accounting for all applicable exemptions, including the
exemption authorized by section four hundred twenty-five of this
chapter.

2. Tax savings. (a) (i) The tax savings for each parcel receiving the
exemption authorized by section four hundred twenty-five of this chapter
shall be computed by subtracting the amount actually levied against the
parcel from the amount that would have been levied if not for the
exemption, provided however, that for the two thousand eleven-two
thousand twelve through two thousand eighteen-two thousand nineteen
school years, the tax savings applicable to any "portion" (which as used
herein shall mean that part of an assessing unit located within a school
district) shall not exceed the tax savings applicable to that portion in
the prior school year multiplied by one hundred two percent, with the
result rounded to the nearest dollar; and provided further that
beginning with the two thousand nineteen-two thousand twenty school
year: (A) for purposes of the exemption authorized by section four
hundred twenty-five of this chapter, the tax savings applicable to any
portion shall not exceed the tax savings for the prior year, and (B) for
purposes of the credit authorized by subsection (eee) of section six
hundred six of the tax law, the tax savings applicable to any portion
shall not exceed the tax savings applicable to that portion in the prior
school year multiplied by one hundred two percent, with the result
rounded to the nearest dollar. The tax savings attributable to the basic
and enhanced exemptions shall be calculated separately. It shall be the
responsibility of the commissioner to calculate tax savings limitations
for purposes of this subdivision.

(ii) The tax savings applicable to a portion for the two thousand
ten-two thousand eleven school year shall be determined by multiplying
the exempt amount applicable to the portion for the two thousand ten-two
thousand eleven school year by the tax rate applicable to the portion
for the two thousand ten-two thousand eleven school year, with separate
calculations for the basic and enhanced exemptions.

(iii) Where a school tax rate was changed in the midst of the prior
school year, an annualized school tax rate shall be used for this
purpose. The annualized tax rate for this purpose shall be determined by
calculating the average of the tax rates in effect at various times
during the school year, weighted according to the length of time during
which they were respectively applicable.

(b) A statement shall then be placed on the tax bill for the parcel in
substantially the following form: "Your tax savings this year resulting
from the New York state school tax relief (STAR) program is $_______."

3. State aid. (a) The total tax savings duly provided by each school
district pursuant to this section shall be a state charge, which shall
be payable as provided herein.

(b) A school district seeking state aid pursuant to this section shall
submit an application therefor to the commissioner. The application
shall include such information as the commissioner shall require.

(c) Upon approving an application for state aid pursuant to this
section, the commissioner shall compute and certify to the commissioner
of education the amounts payable to the school district. Such state aid
shall be payable upon the audit and warrant of the state comptroller
from vouchers certified and approved by the commissioner of education,
as provided by section thirty-six hundred nine-e of the education law,
as applicable.

(d) The commissioner may audit an application for state aid pursuant
to this section within one year after authorizing payment thereon. If
the commissioner should discover that a school district has received a
greater or lesser amount of such aid than it should have received, the
commissioner shall so notify the school district, and shall cause the
next payment of such aid to the school district to be adjusted
accordingly.

(e) When an improperly granted exemption has been revoked in the
manner provided by section four hundred twenty-five of this chapter, the
aid payable to the school district pursuant to this section shall be
reduced by the amount of the taxes attributable to the revoked
exemption.

4. Installment payments. When school taxes are payable in installments
pursuant to law, the tax savings provided by this section shall be
applied proportionally against the respective installments.

5. Untimely payment of taxes. (a) When taxes on a property receiving
the exemption authorized by section four hundred twenty-five of this
chapter are not paid in a timely manner, interest, penalties and any
other applicable charges shall be imposed only against the balance due
after the tax savings provided by this section have been deducted from
the taxes owed.

(b) When a county, city or town is required by section thirteen
hundred thirty or thirteen hundred thirty-two of this chapter, or by any
other general or special law, to make a payment to a school district on
account of unpaid school taxes, the tax savings provided by this section
shall be deducted from the amount so payable.

6. When the commissioner determines, at least twenty days prior to the
levy of school district taxes, that an advance credit of the personal
income tax credit authorized by subsection (eee) of section six hundred
six of the tax law will be provided to the owners of a parcel in that
school district, he or she shall so notify the assessor, the county
director of real property tax services, and the authorities of the
school district, who shall cause a statement to be placed on the tax
bill for the parcel in substantially the following form: "An estimated
STAR check has been or will be mailed to you by the NYS Tax Department.
Any overpayment or underpayment can be reconciled on your next tax
return or STAR credit check."

Notwithstanding any provision of law to the contrary, in the event
that the parcel in question had been granted a STAR exemption on the
assessment roll upon which school district taxes are to be levied, such
exemption shall be deemed null and void, shall be removed from the
assessment roll, and shall be disregarded when the parcel's tax
liability is determined. The assessor or other local official or
officials having custody and control of the data file used to generate
school district tax rolls and tax bills shall be authorized and directed
to change such file as necessary to enable the school district
authorities to discharge the duties imposed upon them by this
subdivision.

7. Inconsistent laws superseded. The provisions of this section shall
apply to all school districts, notwithstanding any provision of law to
the contrary.