BILL NUMBER: S1559
SPONSOR: PALUMBO
 
TITLE OF BILL:
An act to amend the real property tax law, in relation to increasing the
base figure for the STAR exemption (Part A); and to amend the tax law,
in relation to adjusting certain rates for the imposition of personal
income tax (Part B)
 
PURPOSE:
This bill enacts reforms designed to lower the tax burden on individuals
in New York State. Specifically, this legislation doubles the current
School Tax Relief (STAR) exemption and lowers the income tax rate on
middle-income taxpayers by two percent.
 
SUMMARY OF PROVISIONS:
Section 1. Contains the title the "Affordable NY Act".
Part A
Section 1. Ends the current base figure for the enhanced and basic STAR
exemptions at the end of the 2025-2026 school years.
Section 2. Doubles the base figure for the enhanced and basic STAR
exemptions from the current level. Section 3. Makes necessary changes in
law to allow for the doubling of the STAR exemption.
Section 4. States the effective date.
Part B
Sections 1-3. Permanently reduces the tax rates on middle- and lower-in-
come taxpayers by 2% for taxable years beginning in 2026. The rates will
range from 2% to a maximum of 4.6% for married taxpayers with incomes of
$300,000 or less, for head of household taxpayers with incomes of
$250,000 or less, and single taxpayers with incomes of $200,000 or less.
Currently the tax rates for these taxpayers range from 4% to 6.8%.
Section 4 States the effective date.
 
JUSTIFICATION:
For far too long, the taxpayers of New York State have had too much of
their hard-earned money taken from them through taxation. Whether it is
through property taxes or income taxes, the tax burden on New Yorkers
has reached its breaking point. Over 800,000 residents have moved to
other states since 2020 as many taxpayers can no longer afford to stay
in the State.
When looking at property taxes, it is clear why so many have decided to
uproot their family and leave the State. Long Island residents continue
to pay some of the highest property taxes in the nation. This is not
acceptable.
Tackling this issue and changing the trend of high taxation will take
bold ideas that challenge the status quo. That is why this legislation
will double the STAR exemption and lower the income tax rate on middle-
income taxpayers by two percent. This will put money directly back into
the hands of those who have earned it and will force the government to
do what families across this State have had to do for decades: Live
within their means.
 
LEGISLATIVE HISTORY:
2024 S.4801/A.2747; 2022 S.4325/A.6552; 2015 A.6935; 2014 A.8756
 
FISCAL IMPLICATIONS:
TBD
 
EFFECTIVE DATE:
Immediately

Statutes affected:
S1559: 1306-a real property tax law, 1306-a(2) real property tax law