BILL NUMBER: S4652
SPONSOR: ASHBY
 
TITLE OF BILL:
An act to amend the real property tax law, in relation to adjusting the
school tax relief (STAR) exemption for homes located outside a city with
a population greater than one million (Part A); to amend the tax law,
the education law and the general municipal law, in relation to a real
property tax freeze (Part B); and to amend the state finance law, in
relation to providing supplemental state assistance to local governments
that are compliant with certain property tax levy limits (Part C)
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill increases the Enhanced Star exemption to half of the median
home value outside of New York City; resurrects the Property Tax Freeze
Credit that is linked to local government efficiencies; and increases
AIM funding for tax cap-compliant municipalities.
 
SUMMARY OF PROVISIONS:
Part A increases the Enhanced STAR exemption for seniors to 50* percent
of the median assessed value of all homes outside NYC, as calculated by
the comptroller and the commissioner.
Part B resurrects a two-year tax relief program that reimburses qualify-
ing NYS homeowners for increases in local property taxes on their prima-
ry residences. In order for the credit to be available to the homeown-
ers, the jurisdiction must comply with the NYS property tax cap and,
after the first year must also have an approved Government Efficiency
Plan. Such a plan can include shared services, consolidations, or merg-
ers (including operational efficiencies). The credit is equal to the
actual increase in the homeowner's tax bill or the previous year's tax
bill multiplied by the inflation factor.
Part C would increase the aid to municipalities (AIM) funding to munici-
palities who abided by the property tax cap. The increase would bring
funding back to 2009 levels-the highest it reached-and would be indexed
to inflation.
 
JUSTIFICATION:
According to the nonpartisan Tax Foundation, New Yorkers bear the high-
est state and local tax burden in the country. A natural consequence is
NYS also leads the nation in outmigration. This legislation aims to
reverse this by providing: property tax credits to all seniors through
the Enhanced Star Program; tax relief program for certain homeowners
through resurrecting the Property Tax Freeze Credit; and increases AIM
funding for tax compliant municipalities. This is coupled with local
government and school district incentives to achieve long-lasting
savings through government efficiency plans.
When residents leave NYS, they are taking their tax dollars and economic
impact with them. Thus, NYS literally can't afford to lose any more
residents. This legislation is needed to reverse course and stop outmi-
gration. Enhanced Star, the Property Tax Freeze Credit and AIM are
successful programs with the mechanisms already in place to implement.
 
PRIOR LEGISLATIVE HISTORY:
2023-24: S.7685-B - referred to Aging
 
FISCAL IMPLICATIONS:
The cost to the state will be offset by budgetary considerations and
outmigration reversal.
 
EFFECTIVE DATE:
Parts A, B and C shall take effect immediately

Statutes affected:
S4652: 606 tax law