BILL NUMBER: S3082
SPONSOR: HELMING
 
TITLE OF BILL:
An act to amend the real property tax law, in relation to the term
"income" for purposes of the school tax relief exemption
 
PURPOSE:
To expand the categories of retirement income which are not included in
the income calculation for purposes of qualifying for the STAR
exemption.
 
SUMMARY OF PROVISIONS:
Section 1: Amends subparagraph 2 of paragraph b, subdivision 4 of
section 425 of the real property tax law excluding from the income
calculation a distribution from an account established under section
401-K or 403-B of the United States Internal Revenue Code of 1986 as
amended or a simplified employee pension plan established pursuant to
the United States Internal Revenue Code of 1986 as amended.
Section 2: Establishes the effective date.
 
JUSTIFICATION:
When the STAR real property tax relief law was introduced, the calcu-
lation of adjusted gross income for qualification allowed an individual
to exempt their distribution from an individual retirement account.
However, distributions from other tax-qualified accounts under the
Internal Revenue Code were not excluded. Consequently, many individuals
who have saved substantial amounts of money in individual retirement
accounts are allowed to exclude distributions those while individuals
who may have saved in plans established under section 401K, 403-8, etc.,
are required to include those distributions in their calculation of
income. In some circumstances, this statutory scheme has an unfair
impact on individuals who have saved under particular retirement
accounts at the expense of those who saved under other types of retire-
ment accounts.
 
LEGISLATIVE HISTORY:
2023-2024: referred to Aging/A.1257 referred to Real Property Taxation
2022: S.2570 referred to Aging/A.9396 referred to Real Property Taxation
2021: S.2570 referred to Aging
2020: S.270 referred to Aging/A.4087 referred to Real Property Taxation
2019: S.270 referred to Aging/A.4087 referred to Real Property Taxation
2018: S.2568 referred to Rules/A.9575-A referred to Real Property Taxa-
tion
2017: S.2568 passed Senate 62-0
2015-2016: S.4595 referred to Local Government
2014: S.7472 referred to Local Government
 
FISCAL IMPLICATIONS:
Undetermined.
 
EFFECTIVE DATE:
This act shall take effect January 1, following the date upon which it
becomes law.

Statutes affected:
S3082: 425 real property tax law, 425(4) real property tax law