§ 1306-A — Effect of school tax relief (STAR) exemption upon school district taxes; state aid

§ 1306-a. Effect of school tax relief (STAR) exemption upon school\ndistrict taxes; state aid. 1. Levy of taxes; determination of taxes due.\nThe amount of taxes to be levied for any school year shall be determined\nwithout regard to the fact that state aid will be payable pursuant to\nthis section. In addition, the tax rate for any school year shall be\ndetermined as if no parcels were exempt from taxation pursuant to\nsection four hundred twenty five of this chapter. However, the tax rate\nso determined shall be applied to the taxable assessed value of each\nparcel after accounting for all applicable exemptions, including the\nexemption authorized by section four hundred twenty-five of this\nchapter.\n 2. Tax savings. (a) (i) The tax savings for each parcel receiving the\nexemption authorized by section four hundred twenty-five of this chapter\nshall be computed by subtracting the amount actually levied against the\nparcel from the amount that would have been levied if not for the\nexemption, provided however, that for the two thousand eleven-two\nthousand twelve through two thousand eighteen-two thousand nineteen\nschool years, the tax savings applicable to any "portion" (which as used\nherein shall mean that part of an assessing unit located within a school\ndistrict) shall not exceed the tax savings applicable to that portion in\nthe prior school year multiplied by one hundred two percent, with the\nresult rounded to the nearest dollar; and provided further that\nbeginning with the two thousand nineteen-two thousand twenty school\nyear: (A) for purposes of the exemption authorized by section four\nhundred twenty-five of this chapter, the tax savings applicable to any\nportion shall not exceed the tax savings for the prior year, and (B) for\npurposes of the credit authorized by subsection (eee) of section six\nhundred six of the tax law, the tax savings applicable to any portion\nshall not exceed the tax savings applicable to that portion in the prior\nschool year multiplied by one hundred two percent, with the result\nrounded to the nearest dollar. The tax savings attributable to the basic\nand enhanced exemptions shall be calculated separately. It shall be the\nresponsibility of the commissioner to calculate tax savings limitations\nfor purposes of this subdivision.\n (ii) The tax savings applicable to a portion for the two thousand\nten-two thousand eleven school year shall be determined by multiplying\nthe exempt amount applicable to the portion for the two thousand ten-two\nthousand eleven school year by the tax rate applicable to the portion\nfor the two thousand ten-two thousand eleven school year, with separate\ncalculations for the basic and enhanced exemptions.\n (iii) Where a school tax rate was changed in the midst of the prior\nschool year, an annualized school tax rate shall be used for this\npurpose. The annualized tax rate for this purpose shall be determined by\ncalculating the average of the tax rates in effect at various times\nduring the school year, weighted according to the length of time during\nwhich they were respectively applicable.\n (b) A statement shall then be placed on the tax bill for the parcel in\nsubstantially the following form: "Your tax savings this year resulting\nfrom the New York state school tax relief (STAR) program is $_______."\n 3. State aid. (a) The total tax savings duly provided by each school\ndistrict pursuant to this section shall be a state charge, which shall\nbe payable as provided herein.\n (b) A school district seeking state aid pursuant to this section shall\nsubmit an application therefor to the commissioner. The application\nshall include such information as the commissioner shall require.\n (c) Upon approving an application for state aid pursuant to this\nsection, the commissioner shall compute and certify to the commissioner\nof education the amounts payable to the school district. Such state aid\nshall be payable upon the audit and warrant of the state comptroller\nfrom vouchers certified and approved by the commissioner of education,\nas provided by section thirty-six hundred nine-e of the education law,\nas applicable.\n (d) The commissioner may audit an application for state aid pursuant\nto this section within one year after authorizing payment thereon. If\nthe commissioner should discover that a school district has received a\ngreater or lesser amount of such aid than it should have received, the\ncommissioner shall so notify the school district, and shall cause the\nnext payment of such aid to the school district to be adjusted\naccordingly.\n (e) When an improperly granted exemption has been revoked in the\nmanner provided by section four hundred twenty-five of this chapter, the\naid payable to the school district pursuant to this section shall be\nreduced by the amount of the taxes attributable to the revoked\nexemption.\n 4. Installment payments. When school taxes are payable in installments\npursuant to law, the tax savings provided by this section shall be\napplied proportionally against the respective installments.\n 5. Untimely payment of taxes. (a) When taxes on a property receiving\nthe exemption authorized by section four hundred twenty-five of this\nchapter are not paid in a timely manner, interest, penalties and any\nother applicable charges shall be imposed only against the balance due\nafter the tax savings provided by this section have been deducted from\nthe taxes owed.\n (b) When a county, city or town is required by section thirteen\nhundred thirty or thirteen hundred thirty-two of this chapter, or by any\nother general or special law, to make a payment to a school district on\naccount of unpaid school taxes, the tax savings provided by this section\nshall be deducted from the amount so payable.\n 6. When the commissioner determines, at least twenty days prior to the\nlevy of school district taxes, that an advance credit of the personal\nincome tax credit authorized by subsection (eee) of section six hundred\nsix of the tax law will be provided to the owners of a parcel in that\nschool district, he or she shall so notify the assessor, the county\ndirector of real property tax services, and the authorities of the\nschool district, who shall cause a statement to be placed on the tax\nbill for the parcel in substantially the following form: "An estimated\nSTAR check has been or will be mailed to you by the NYS Tax Department.\nAny overpayment or underpayment can be reconciled on your next tax\nreturn or STAR credit check."\n Notwithstanding any provision of law to the contrary, in the event\nthat the parcel in question had been granted a STAR exemption on the\nassessment roll upon which school district taxes are to be levied, such\nexemption shall be deemed null and void, shall be removed from the\nassessment roll, and shall be disregarded when the parcel's tax\nliability is determined. The assessor or other local official or\nofficials having custody and control of the data file used to generate\nschool district tax rolls and tax bills shall be authorized and directed\nto change such file as necessary to enable the school district\nauthorities to discharge the duties imposed upon them by this\nsubdivision.\n 7. Inconsistent laws superseded. The provisions of this section shall\napply to all school districts, notwithstanding any provision of law to\nthe contrary.\n