§ 425 — School tax relief (STAR) exemption

New York § 425

• Jurisdiction: New York
• Law RPT: Real Property Tax
• Title 2: Private Property
• Art. 4: Exemptions

Text

§ 425. School tax relief (STAR) exemption. 1. Generally. Real property\nwhich satisfies the requirements of this section shall be exempt from\ntaxation for school purposes as provided herein.\n 2. Exempt amount. (a) Overview. There shall be two variations of the\nexemption authorized by this section: an exemption for property owned by\npersons who satisfy the criteria set forth in subdivision three of this\nsection, which shall be known as the "basic" STAR exemption, and an\nexemption for property owned by senior citizens who satisfy the criteria\nset forth in both subdivisions three and four of this section, which\nshall be known as the "enhanced" STAR exemption. The exempt amount for\neach assessing unit shall be determined annually as set forth in this\nsubdivision, by multiplying the "base figure" by the locally-applicable\n"sales price differential factor," if any, multiplying the product by\nthe appropriate "equalization factor" for the assessing unit, and, if\nnecessary, increasing the result to equal the applicable "floor." The\nresult is then rounded to the nearest multiple of ten dollars.\n (b) Base figure. Subject to the adjustments prescribed below, the base\nfigure for the exemption shall be as follows:\n (i) For the nineteen hundred ninety-eight--ninety-nine school year,\nthe base figure shall be fifty thousand dollars for eligible senior\ncitizens; no exemption shall be allowed for other persons.\n (ii) For the nineteen hundred ninety-nine--two thousand school year,\nthe base figure shall be fifty thousand dollars for eligible senior\ncitizens, and ten thousand dollars for other eligible persons.\n (iii) For the two thousand--two thousand one school year, the base\nfigure shall be fifty thousand dollars for eligible senior citizens, and\ntwenty thousand dollars for other eligible persons.\n (iv) For the two thousand one--two thousand two school year through\nthe two thousand five--two thousand six school year, inclusive, the base\nfigure shall be fifty thousand dollars for eligible senior citizens, and\nthirty thousand dollars for other eligible persons.\n (v) For the two thousand six--two thousand seven school year through\nthe two thousand eight--two thousand nine school year, inclusive, the\nbase figure for the enhanced STAR exemption shall be fifty-six thousand\neight hundred dollars, and the base figure for the basic STAR exemption\nshall be thirty thousand dollars.\n (vi) For the two thousand nine--two thousand ten school year and\nthereafter:\n (A) The base figure for the enhanced STAR exemption shall equal the\nprior year's base figure multiplied by the percentage increase in the\nconsumer price index for urban wage earners and clerical workers (CPI-W)\npublished by the United States department of labor, bureau of labor\nstatistics, for the third quarter of the calendar year preceding the\napplicable school year, as compared to the third quarter of the prior\ncalendar year. If a base figure as so determined is not exactly equal to\na multiple of one hundred dollars, it shall be rounded to the nearest\nmultiple of one hundred dollars. It shall be the responsibility of the\ncommissioner to annually determine such base figures.\n (B) The base figure for the basic STAR exemption shall be thirty\nthousand dollars.\n (c) Sales price adjustment. (i) The base figure specified in paragraph\n(b) of this subdivision shall be increased for the counties and cities\nspecified herein by multiplying that figure by the locally-applicable\n"sales price differential factor" determined by the commissioner. In no\ncase shall the base figure specified in paragraph (b) of this\nsubdivision be decreased as the result of this adjustment. A separate\nsales price differential factor shall be determined for each county in\nwhich the median sales price of residential real property exceeds the\nstatewide median sales price of such property as determined herein,\nexcept that in the case of a county wholly contained within the\nboundaries of a city, a sales price differential factor shall be\ndetermined for the city as a whole rather than for any individual county\ntherein. This factor shall be determined as provided herein.\n (ii) In the case of a county, the median sales price of residential\nreal property sold within the county in each of the three preceding\ncalendar years shall be determined, and the average of those three\nmedians shall be calculated. The data used for this purpose shall be\nbased upon arm's length transfers within the county reported pursuant to\nsection three hundred thirty-three of the real property law, excluding\nsales data which the commissioner finds to be unreliable, and including\nthose adjustments requested by local assessors which the commissioner\nfinds warranted.\n (iii) In the case of a city which includes one or more entire counties\nwithin its boundaries, the median sales price of residential real\nproperty sold within the city in each of the three preceding calendar\nyears shall be determined, and the average of those three medians shall\nbe determined. The data used for this purpose shall be based upon\ntransfers reported to the city pursuant to a special or local law,\nexcluding sales data which the commissioner finds to be unreliable, and\nincluding those adjustments requested by the local assessor which the\ncommissioner finds warranted.\n (iv) The median sales price of residential real property based on\ntransactions reported pursuant to section three hundred thirty-three of\nthe real property law in each of those same three calendar years shall\nbe determined, subject to the exclusions and adjustments described\nabove, and the average of those three medians shall be calculated.\n (v) The average determined in subparagraph (ii) or (iii) of this\nparagraph, whichever is applicable, shall be divided by the average\ndetermined in subparagraph (iv) of this paragraph; provided that in no\nevent shall the result be less than one.\n (vi) The sales price of property which is held in condominium or\ncooperative form of ownership shall not be considered when determining\nmedian sales prices pursuant to this paragraph.\n (d) Equalization adjustment. To account for the variance in the level\nof assessment among assessing units, the figure determined in paragraph\n(c) of this subdivision shall be multiplied by an "equalization factor,"\nwhich shall be the appropriate state equalization rate or special\nequalization rate established by the commissioner. Provided, that in the\ncase of a special assessing unit, (i) the equalization factor for class\none in each school district portion shall be the class equalization rate\nfor class one in the portion, and (ii) the equalization factor for class\ntwo in each school district portion shall be the equalization factor for\nclass one in the portion, multiplied by the latest tax rate for class\none in the portion, and then divided by the latest tax rate for class\ntwo in the portion. Provided further, that in any instance when school\ndistrict taxes are levied upon an assessment roll which predates the\nlatest final assessment roll, the equalization factor shall be the state\nequalization rate for the assessment roll upon which school district\ntaxes are to be levied.\n (e) Application of "floor". (i) For the two thousand eight--two\nthousand nine school year, the result obtained in paragraph (d) of this\nsubdivision may not be less than ninety percent of the exempt amount\ndetermined for the prior levy, unless the level of assessment in the\nassessing unit, or in class one in a special assessing unit, has changed\nby five percent or more, in which case the result obtained in paragraph\n(d) of this subdivision for the assessing unit, or for class one in a\nspecial assessing unit, may not be less than ninety percent of the\nproduct of the exempt amount determined for the prior levy multiplied by\nthe applicable change in level of assessment factor.\n (ii) For the two thousand nine--two thousand ten and subsequent school\nyears, the result obtained in paragraph (d) of this subdivision may not\nbe less than eighty-nine percent of the exempt amount determined for the\nprior levy, unless the level of assessment in the assessing unit, or in\nclass one in a special assessing unit, has changed by five percent or\nmore, in which case the result obtained in paragraph (d) of this\nsubdivision for the assessing unit, or for class one in a special\nassessing unit, may not be less than eighty-nine percent of the product\nof the exempt amount determined for the prior levy multiplied by the\napplicable change in level of assessment factor.\n (f) Rounding. The result obtained in paragraph (d) or (e) of this\nsubdivision, whichever is applicable, shall be rounded to the nearest\nmultiple of ten dollars, and shall thereupon be the exempt amount for\nthe assessing unit for the levy of school district taxes on the\ncorresponding assessment roll.\n (g) Computation and certification by commissioner. It shall be the\nresponsibility of the commissioner to compute the exempt amount for each\nassessing unit in each county in the manner provided herein, and to\ncertify the same to the assessor of each assessing unit and to the\ncounty director of real property tax services of each county. Such\ncertification shall be made at least twenty days before the last date\nprescribed by law for the filing of the tentative assessment roll.\nProvided, however, that where school taxes are levied on a prior year\nassessment roll, or on a final assessment roll that was filed more than\none year after the tentative roll was filed, such certification shall be\nmade no later than fifteen days after the publication of the data needed\nto compute the base figure for the enhanced STAR exemption pursuant to\nclause (A) of subparagraph (vi) of paragraph (b) of this subdivision,\nand provided further, that upon receipt of such certification, the\nassessor shall thereupon be authorized and directed to correct the\nassessment roll to reflect the exempt amount so certified, or, if\nanother person has custody or control of the assessment roll, to direct\nthat person to make the appropriate corrections.\n (h) Recertification required in certain cases. If the commissioner\ndetermines that an exempt amount calculated pursuant to this section\ndiffers from the exempt amount that should have been so calculated by\nfive percent or more, due to a change in level of assessment, inaccurate\nor incomplete data, or other causes, it shall recompute the exempt\namount for that assessing unit and shall certify the recomputed exempt\namount to the assessor and the county director of real property tax\nservices. The assessor shall thereupon be authorized and directed to\ncorrect the assessment roll accordingly, or, if another person has\ncustody or control of the assessment roll, to direct that person to make\nthe appropriate corrections. If the corrections are not made before\nschool taxes are levied, the difference between the original exempt\namount and the recertified exempt amount for each affected parcel shall\nbe deemed a "clerical error" for purposes of title three of article five\nof this chapter, and shall be corrected accordingly.\n (i) Villages. No exempt amount shall be determined under this section\nfor a village, unless the boundaries of the village are coterminous with\nthose of a union free school district.\n (j) Certain city school districts. The commissioner shall adjust the\nexempt amount for each city containing a school district which is\nsubject to article fifty-two of the education law, to account for the\nfact that the school district is fiscally dependent upon the city. This\nadjustment shall be made by multiplying the exempt amount that would\notherwise be determined for the city by sixty-seven percent, or, in the\ncase of a city with a population of one million or more, by fifty\npercent. The exempt amount resulting from this calculation shall be\napplied both to the assessed value for city school district purposes and\nto the assessed value for general city purposes, and state aid shall be\npayable on the combined tax savings in the manner provided by section\nthirteen hundred six-a of this chapter.\n (k) Cooperative apartment corporations. (i) For the purposes of this\nsection, title to that portion of real property owned by a cooperative\napartment corporation in which a tenant-stockholder of such corporation\nresides, and which is represented by his or her share or shares of stock\nin such corporation as determined by its or their proportional\nrelationship to the total outstanding stock of the corporation,\nincluding that owned by the corporation, shall be deemed to be vested in\nsuch tenant-stockholder.\n (ii) That proportion of the assessment of such real property owned by\na cooperative apartment corporation determined by the relationship of\nsuch real property vested in such tenant-stockholder to such entire\nparcel and the buildings thereon owned by such cooperative apartment\ncorporation in which such tenant-stockholder resides shall be subject to\nexemption from taxation pursuant to this section and any exemption so\ngranted shall be credited by the appropriate taxing authority against\nthe assessed valuation of such real property. Upon the completion of the\nfinal assessment roll, or as soon thereafter as is practicable, the\nassessor shall forward to the cooperative apartment corporation a\nstatement setting forth the exemption attributable to each eligible\ntenant-stockholder. The reduction in real property taxes attributable to\neach eligible tenant-stockholder shall be credited by the cooperative\napartment corporation against the amount of such taxes otherwise payable\nby or chargeable to such tenant-stockholder. The assessor shall also\nforward to the commissioner, at the time and in the manner prescribed by\nthe commissioner, a statement setting forth the taxable assessed value\nattributable to each tenant-stockholder, without regard to the\nexemption, and such other information as the commissioner shall deem\nnecessary to properly calculate the STAR credit authorized by subsection\n(eee) of section six hundred six of the tax law for those\ntenant-stockholders who qualify for it.\n (iii) (A) Every cooperative apartment corporation, upon receiving an\nexemption pursuant to this section, shall provide to each eligible\ntenant-stockholder a written statement detailing: the full amount of the\nexemption to be credited to such tenant-stockholder, including\ninformation on how such amount was calculated pursuant to subparagraph\n(ii) of this paragraph, and how the exemption is being credited to such\neligible tenant-stockholder, pursuant to the requirements of clause (B)\nof this subparagraph. Such written statement shall be mailed to each\neligible tenant-stockholder no later than sixty days after such\ncooperative apartment corporation receives such exemption.\n (B) Every cooperative apartment corporation, upon receiving an\nexemption pursuant to this section, shall credit the full amount of the\nSTAR exemption to each eligible tenant-stockholder in one of the\nfollowing ways:\n (I) A full credit against the fees and charges of any single month\nwithin the current assessment cycle with any balance to be so credited\nin full for the following month or months until exhausted;\n (II) A proportional credit over six months during the current\nassessment cycle;\n (III) A proportional credit over the twelve months during the current\nassessment cycle;\n (IV) A payment of the total savings to the tenant-stockholder as an\nup-front, lump sum payment.\n Such exemption shall be fully credited to each tenant-stockholder\nduring the assessment cycle for which each tenant-stockholder was\neligible for STAR.\n (iv) Notwithstanding the provisions of subparagraph (ii) of this\nparagraph, when a cooperative apartment corporation is incorporated as a\nmutual company pursuant to the private housing finance law, and the\ngranting of an exemption pursuant to this section would not inure to the\nbenefit of eligible tenant-stockholders because the real property of\nsuch corporation is subject to an exemption from taxation pursuant to\nsection thirty-three, ninety-three, one hundred twenty-five or five\nhundred fifty-six of the private housing finance law, an alternative\nbenefit shall be provided to such corporation and passed through to\neligible tenant-stockholders in the manner provided by this subdivision.\nSuch alternative benefit shall consist of a reduction in the real\nproperty taxes or payments in lieu of taxes that would otherwise be\npayable on account of such real property. The total amount of such\nreduction shall be the sum of the "STAR savings" for all of the\ncooperative apartment units that are occupied by one or more eligible\ntenant-stockholders. The STAR savings for each such unit shall be equal\nto one-third of the exempt amount determined pursuant to paragraph (a)\nof this subdivision for purposes of the basic or enhanced exemption, as\nthe case may be, multiplied by the applicable school tax rate, or in the\ncase of a school district described in paragraph (j) of this\nsubdivision, by the applicable city tax rate. Provided, however, in no\ncase shall the STAR savings for any individual unit exceed the amount\npayable by or chargeable to the unit on account of real property taxes\nor payments in lieu of taxes. The STAR savings so determined for each\nunit shall be credited by the cooperative apartment corporation against\nthe real property taxes or payments in lieu of taxes otherwise payable\nby or chargeable to the eligible tenant-stockholders. The total of the\nalternative benefits provided pursuant to this subparagraph shall be a\nstate charge which shall be payable in the same manner that school\ndistricts are compensated pursuant to section thirteen hundred six-a of\nthis chapter for tax savings attributable to exemptions granted pursuant\nto this section.\n (l) Trailers and mobile homes. (i) When the value of a trailer or\nmobile home has been included in the assessment of the land on which it\nis located pursuant to paragraph (g) of subdivision twelve of section\none hundred two of this chapter, the provisions of this paragraph shall\napply.\n (ii) If the owner of the trailer or mobile home also owns the land, he\nor she may apply for exemption pursuant to this section in the same\nmanner as any other homeowner.\n (iii) If the owner of the trailer or mobile home does not own the\nland, he or she may apply for exemption pursuant to this section only\nupon the trailer or mobile home. If granted, only the portion of the\nassessment of the parcel attributable to the trailer or mobile home\nshall be subject to exemption from taxation pursuant to this section. In\nno event shall the exemption exceed the total assessed value\nattributable to the trailer or mobile home. The exemption shall be\ncredited by the appropriate taxing authority against the assessed\nvaluation of the parcel. Upon the completion of the final assessment\nroll, or as soon thereafter as is practicable, the assessor shall\nforward to the landowner a statement setting forth the exemption\nattributable to each eligible trailer or mobile home. The reduction in\nreal property taxes attributable to each eligible trailer or mobile home\nshall be credited by the landowner against the rent payable on account\nof such trailer or mobile home, subject to the provisions of subdivision\nw of section two hundred thirty-three of the real property law.\n (iv) Beginning with assessment rolls used to levy school district\ntaxes for the two thousand twenty-two--two thousand twenty-three school\nyear, no exemption shall be granted pursuant to this section to a mobile\nhome that is described in this paragraph. Owners of such property may\nclaim the credit authorized by subsection (eee) of section six hundred\nsix of the tax law in the manner prescribed therein. The commissioner\nshall develop a process to automatically switch qualified exemption\nrecipients into the STAR credit, and to request additional information\nfrom those exemption recipients whose credit eligibility cannot be\nindependently confirmed. Each affected individual shall be notified of\nthe switch as soon as practicable. Once the individual receives a STAR\ncredit check and deposits or endorses it, he or she shall be deemed to\nhave consented to the switch and shall not be permitted to switch back\nto the exemption.\n 3. Eligibility requirements. (a) Property use. To qualify for\nexemption pursuant to this section, the property must be a one, two or\nthree family residence, a farm dwelling or residential property held in\ncondominium or cooperative form of ownership. If the property is not an\neligible type of property, but a portion of the property is partially\nused by the owner as a primary residence, that portion which is so used\nshall be entitled to the exemption provided by this section; provided\nthat in no event shall the exemption exceed the assessed value\nattributable to that portion.\n (b) Primary residence. The property must serve as the primary\nresidence of one or more of the owners thereof.\n (b-1) Income. For final assessment rolls to be used for the levy of\ntaxes for the two thousand eleven-two thousand twelve through two\nthousand eighteen-two thousand nineteen school years, the parcel's\naffiliated income may be no greater than five hundred thousand dollars,\nas determined by the commissioner pursuant to subdivision fourteen of\nthis section or section one hundred seventy-one-u of the tax law, in\norder to be eligible for the basic exemption authorized by this section.\nBeginning with the two thousand nineteen-two thousand twenty school\nyear, for purposes of the exemption authorized by this section, the\nparcel's affiliated income may be no greater than two hundred fifty\nthousand dollars, as so determined. As used herein, the term "affiliated\nincome" shall mean the combined income of all of the owners of the\nparcel who resided primarily thereon on the applicable taxable status\ndate, and of any owners' spouses residing primarily thereon. For\nexemptions on final assessment rolls to be used for the levy of taxes\nfor the two thousand eleven-two thousand twelve school year, affiliated\nincome shall be determined based upon the parties' incomes for the\nincome tax year ending in two thousand nine. In each subsequent school\nyear, the applicable income tax year shall be advanced by one year. The\nterm "income" as used herein shall have the same meaning as in\nsubdivision four of this section, and the provisions of clause (B) of\nsubparagraph (ii) of paragraph (b) of subdivision four of this section\nshall be equally applicable to the basic exemption.\n (c) Trusts. If legal title to the property is held by one or more\ntrustees, the beneficial owner or owners shall be deemed to own the\nproperty for purposes of this subdivision.\n (d) Farm dwellings not owned by the resident. (i) If legal title to\nthe farm dwelling is held by an S-corporation or by a C-corporation, the\nexemption shall be granted if the property serves as the primary\nresidence of a shareholder of such corporation.\n (ii) If the legal title to the farm dwelling is held by a partnership,\nthe exemption shall be granted if the property serves as the primary\nresidence of one or more of the partners.\n (iii) If the legal title to the farm dwelling is held by a limited\nliability company, the exemption shall be granted if the property serves\nas the primary residence of one or more of the owners.\n (iv) Any information deemed necessary to establish shareholder,\npartner or owner status for eligibility purposes shall be considered\nconfidential and exempt from the freedom of information law.\n (e) Dwellings owned by limited partnerships. (i) If legal title to a\ndwelling is held by a limited partnership, the exemption shall be\ngranted if the property serves as the primary residence of one or more\nof the partners, provided that the limited partnership which holds title\nto the property does not engage in any commercial activity, that the\nlimited partnership was lawfully created to hold title solely for estate\nplanning and asset protection purposes, and that the partner or partners\nwho primarily reside thereon personally pay all of the real property\ntaxes and other costs associated with the property's ownership.\n (ii) Any information deemed necessary to establish partner status for\neligibility purposes shall be considered confidential and exempt from\nthe freedom of information law.\n 4. Senior citizens. The enhanced exemption for property owned by\nsenior citizens shall be provided where all of the following\nrequirements are satisfied:\n (a) Age. (i) At least one of the owners who resides primarily on the\nproperty must be sixty-five years of age or older as of the date\nspecified herein. For the two thousand--two thousand one school year,\neligibility for the exemption shall be based upon age as of December\nthirty-first, two thousand. For each subsequent school year, the\napplicable date shall be advanced by one year.\n (ii) In the case of property owned by a married couple, if only one of\nthe spouses is sixty-five years of age or over, the exemption, once\ngranted, shall not be rescinded solely because of the death of the older\nspouse so long as the surviving spouse is at least sixty-two years of\nage as of the date specified in this paragraph.\n (b) Income. (i) The combined income of all of the owners who primarily\nreside on the property, and of any owners' spouses primarily residing on\nthe property, may not exceed the applicable income standard specified\nherein.\n (A) For final assessment rolls to be completed prior to two thousand\nthree, eligibility for the exemption shall be based upon income for the\nincome tax year immediately preceding the date of making application for\nthe exemption, and the income standard shall be sixty thousand dollars.\n (B) For final assessment rolls to be completed in two thousand three,\neligibility for the exemption shall be based upon income for the income\ntax year ending in two thousand one, and the income standard shall be\nthe previously-applicable income standard of sixty thousand dollars\nincreased by the cost-of-living-adjustment percentage for two thousand\none. For purposes of this computation, the cost-of-living-adjustment\npercentage for two thousand one shall be equal to the "applicable\nincrease percentage" used by the United States commissioner of social\nsecurity to determine monthly social security benefits payable in two\nthousand one to individuals, as provided by subsection (i) of section\nfour hundred fifteen of title forty-two of the United States code.\n (C) For final assessment rolls to be completed in each ensuing year,\nthe applicable income tax year, cost-of-living-adjustment percentage and\napplicable increase percentage shall all be advanced by one year, and\nthe income standard shall be the previously-applicable income standard\nincreased by the new cost-of-living-adjustment percentage. If there\nshould be a year for which there is no applicable increase percentage\ndue to a general benefit increase as defined by subdivision three of\nsubsection (i) of section four hundred fifteen of title forty-two of the\nUnited States code, the applicable increase percentage for purposes of\nthis computation shall be deemed to be the percentage which would have\nyielded that general benefit increase.\n (C-1) Notwithstanding the provisions of clause (C) of this\nsubparagraph, in the event that a senior citizen, as a result of the\ndeath of his or her spouse, experiences a decrease in income such that\nhe or she would qualify for the enhanced exemption if his or her\neligibility were based upon his or her income for the income tax year\nimmediately subsequent to the income tax year that would otherwise be\napplicable pursuant to clause (C) of this subparagraph, then the\neligibility of such senior citizen for the enhanced exemption on the\napplicable taxable status date shall be determined based upon his or her\nincome for such later income tax year; provided that the income tax\nreturn for such year has been filed with the appropriate state or\nfederal agency and a copy thereof has been filed with the assessor on or\nbefore the applicable taxable status date, or other documentation of\nincome eligibility has been filed with the assessor on or before the\napplicable taxable status date.\n (D) In no case shall an income standard be decreased from one\nassessment roll to the next.\n (E) If the income standard initially computed for an assessment roll\nis not exactly equal to a multiple of fifty dollars, it shall be rounded\nup to the next higher multiple of fifty dollars.\n (F) It shall be the responsibility of the commissioner to annually\ndetermine all income standards pursuant to this subdivision beginning\nwith final assessment rolls to be completed in two thousand three, to\ncause notice thereof to be published in the state register, to\ndisseminate notice thereof to assessors, county directors of real\nproperty tax services, and such other parties as it may deem\nappropriate, and to post notice thereof on its website.\n (ii) The term "income" as used herein shall mean the "adjusted gross\nincome" for federal income tax purposes as reported on the applicant's\nfederal or state income tax return for the applicable income tax year,\nsubject to any subsequent amendments or revisions, reduced by\ndistributions, to the extent included in federal adjusted gross income,\nreceived from an individual retirement account and an individual\nretirement annuity; provided that if no such return was filed for the\napplicable income tax year, "income" shall mean the amount that would\nhave been so reported if such a return had been filed. Provided further,\nthat:\n (A) Effective with exemption applications for final assessment rolls\nto be completed in two thousand nineteen, where an income-eligibility\ndetermination is wholly or partly based upon the income of one or more\nindividuals who did not file a return for the applicable income tax\nyear, then in order for the application to be considered complete, each\nsuch individual must file a statement with the department showing the\nsource or sources of such individual's income for that income tax year,\nand the amount or amounts thereof, that would have been reported on such\na return if one had been filed. Such statement shall be filed at such\ntime, and in such form and manner, as may be prescribed by the\ndepartment, and shall be subject to the secrecy provisions of the tax\nlaw to the same extent that a personal income tax return would be. The\ndepartment shall make such forms and instructions available for the\nfiling of such statements. The local assessor shall upon the request of\na taxpayer assist such taxpayer in the filing of the statement with the\ndepartment.\n (B) Notwithstanding the foregoing provisions of this subparagraph,\nwhere property is owned solely by a person or persons who received the\nexemption for three consecutive years without having filed returns for\nthe applicable income tax years, but who demonstrated their eligibility\nfor the exemption to the commissioner's satisfaction by filing\nstatements pursuant to clause (A) of this subparagraph, such person or\npersons shall be presumed to satisfy the applicable income-eligibility\nrequirements each year thereafter and shall not be required to continue\nto file such statements in the absence of a specific request therefor\nfrom the commissioner. Nothing contained herein shall be construed to\nprevent the commissioner from denying an exemption pursuant to this\nsection when the commissioner determines that a property owner has a\nsource of income that renders that owner ineligible for that exemption.\n (iii) Any information or documentation submitted by the applicant in\nconnection with applications for or renewal of the exemption authorized\nunder this section to verify income, shall be deemed confidential, and\nthe assessor, any municipal officer or municipal employees are\nprohibited from disclosing any such information, except for any\ndisclosure necessary in the performance of their official duties, and\nexcept as authorized by subparagraph (v) of this paragraph. Any\nunauthorized disclosure of such information shall be deemed a violation\nof section eight hundred five-a of the general municipal law.\n (iv) (A) Effective with applications for the enhanced exemption on\nfinal assessment rolls to be completed in two thousand nineteen, the\napplication form shall indicate that all owners of the property and any\nowners' spouses residing on the premises must have their income\neligibility verified annually by the department and must furnish their\ntaxpayer identification numbers in order to facilitate matching with\nrecords of the department. The income eligibility of such persons shall\nbe verified annually by the department, and the assessor shall not\nrequest income documentation from them. All applicants for the enhanced\nexemption and all assessing units shall be required to participate in\nthis program, which shall be known as the STAR income verification\nprogram. The commissioner may, in his or her discretion, extend the\nenrollment period of the STAR income verification program for property\nowners whose property received the enhanced exemption on the final\nassessment roll completed in two thousand eighteen but who failed to\nenroll in sufficient time to have the exemption continued on the final\nassessment roll completed in two thousand nineteen. Where appropriate,\nthe commissioner is further authorized to remit directly to such a\nproperty owner a payment in an amount equal to the difference between\nthe school tax bill that the property owner actually received and the\nschool tax bill that the property owner would have received had he or\nshe enrolled in a timely manner.\n (B) Effective with final assessment rolls to be completed in two\nthousand twenty, the commissioner shall also annually verify the\neligibility of such persons for the enhanced exemption on the basis of\nage and residency as well as income.\n (C) When the commissioner determines that property is ineligible for a\nSTAR exemption, notice of such determination and an opportunity for\nreview thereof shall be provided in the manner set forth in subdivision\nfour-b of this section.\n (c) Absence from residence. An exemption may be granted pursuant to\nthis subdivision notwithstanding the fact that an owner is absent from\nthe residence while receiving health-related care as an inpatient of a\nresidential health care facility, as defined in section twenty-eight\nhundred one of the public health law, provided that during such\nconfinement such property is not occupied by anyone other than the\nspouse or co-owner of such owner.\n 4-a. Special situations. (a) Married couples with two or more\nresidences. A husband and wife may receive an exemption pursuant to this\nsection on no more than one residence, unless living apart due to legal\nseparation.\n (b) Parcels with two or more separate residences thereon. When a\nparcel includes two or more physically separate residences, an exemption\nmay be granted pursuant to this section to each residence which (i)\nserves as the primary residence of at least one of the owners of the\nparcel, and (ii) would be eligible for an exemption pursuant to this\nsection if it were separately assessed and owned exclusively by the\nowner or owners who reside therein, provided that only one such\nexemption may be applied to the land included within the parcel.\n (c) Residences split by municipal boundaries. When an applicant's\nprimary residence is located in two or more municipal corporations, each\nportion of the residence shall be eligible for the exemption provided by\nthis section if the eligibility requirements are otherwise satisfied,\nprovided that the exemption shall be pro-rated in the same manner as the\nfull value of the property was apportioned to each municipal corporation\nby the respective assessors, so that the total tax savings resulting\nfrom the exemption does not exceed the tax savings that would be\nreceived if the residence were contained entirely within one municipal\ncorporation. The provisions of this paragraph shall not apply when the\nland associated with a residential structure is located in more than one\nmunicipal corporation, but the residential structure itself is located\nentirely within one of those municipal corporations.\n 4-b. Authority of the commissioner in relation to eligibility\ndeterminations. (a) (i) Notwithstanding any provision of this section to\nthe contrary, it shall be the responsibility of the commissioner to\ndetermine eligibility for the basic and enhanced STAR exemptions\nauthorized by this section, in consultation with local assessors as\nnecessary.\n (ii) The commissioner's eligibility determinations shall be based upon\ndata the commissioner has obtained from local assessment rolls, personal\nincome tax returns, the STAR registration program, the STAR income\nverification program and such other data sources as may be available to\nthe commissioner.\n (iii) The process followed by the commissioner to verify eligibility\nfor the basic and enhanced STAR exemptions shall be the same, except to\nthe extent that differences are required by law.\n (b) If the commissioner should determine that a parcel that has a\nbasic STAR exemption is eligible for an enhanced STAR exemption, the\ncommissioner shall so notify the assessor. The assessor shall thereupon\ngrant the parcel an enhanced STAR exemption without requesting a new\napplication from the owner.\n (c) If the commissioner determines that property is not eligible for a\nSTAR exemption it has been receiving, the provisions of this subdivision\nshall be applicable.\n (i) The commissioner shall provide the property owners with notice and\nan opportunity to show the commissioner that the property is eligible to\nreceive the exemption. If the owners fail to respond to such notice\nwithin forty-five days from the mailing thereof, or if their response\ndoes not show to the commissioner's satisfaction that the property is\neligible for the exemption, the commissioner shall direct the assessor\nor other person having custody or control of the assessment roll or tax\nroll to remove or deny the exemption, and to correct the roll\naccordingly. Such a directive shall be binding upon the assessor or\nother person having custody or control of the assessment roll or tax\nroll, and shall be implemented by such person without the need for\nfurther documentation or approval.\n (ii) Neither an assessor nor a board of assessment review has the\nauthority to consider an objection to the removal or denial of an\nexemption pursuant to this subdivision, nor may such an action be\nreviewed in a proceeding to review an assessment pursuant to title one\nor one-A of article seven of this chapter. Such an action may only be\nchallenged before the department of taxation and finance. If a taxpayer\nis dissatisfied with the department's final determination, the taxpayer\nmay appeal that determination to the state board of real property tax\nservices in a form and manner to be prescribed by the commissioner. Such\nappeal shall be filed within forty-five days from the issuance of the\ndepartment's final determination. If dissatisfied with the state board\nof real property tax services' determination, the taxpayer may seek\njudicial review thereof pursuant to article seventy-eight of the civil\npractice law and rules. The taxpayer shall otherwise have no right to\nchallenge such final determination in a court action, administrative\nproceeding or any other form of legal recourse against the commissioner,\nthe department of taxation and finance, the state board of real property\ntax services, the assessor or other person having custody or control of\nthe assessment roll or tax roll regarding such action.\n 5. Notice requirement. (a) Generally. Every school district shall\nnotify, or cause to be notified, each person owning residential real\nproperty in the school district of the provisions of this section. The\nprovisions of this subdivision may be met by a notice sent to such\npersons in substantially the following form: "Residential real property\nmay qualify for a partial exemption from school district taxes under the\nNew York state school tax relief (STAR) program. To receive such\nexemption, owners of qualifying property must file an application with\ntheir local assessor on or before the applicable taxable status date.\nFor further information, please contact your local assessor."\n (d) Third party notice. (i) A senior citizen eligible for the enhanced\nexemption may request that a notice be sent to an adult third party.\nSuch request shall be made on a form prescribed by the commissioner and\nshall be submitted to the assessor of the assessing unit in which the\neligible taxpayer resides no later than sixty days before the first\ntaxable status date to which it is to apply. Such form shall provide a\nsection whereby the designated third party shall consent to such\ndesignation. Such request shall be effective upon receipt by the\nassessor. The assessor shall maintain a list of all eligible property\nowners who have requested notices pursuant to this paragraph and shall\nfurnish a copy of such list to the department upon request.\n (ii) A notice shall be sent to the designated third party whenever the\nassessor or department sends a notice to the senior citizen regarding\nthe possible removal of the enhanced STAR exemption. When the exemption\nis subject to removal because the commissioner has determined that the\nincome eligibility requirement is not satisfied, such notice shall be\nsent to the third party by the department. When the exemption is subject\nto removal because the assessor has determined that any other\neligibility requirement is not satisfied, such notice shall be sent to\nthe third party by the assessor. Such notice shall read substantially as\nfollows:\n "On behalf of (identify senior citizen or citizens), you are advised\nthat his, her, or their enhanced STAR exemption is at risk of being\nremoved. You are encouraged to make sure that he, she or they are aware\nof that fact, and to offer assistance if needed, although you are under\nno legal obligation to do so. Your cooperation and assistance are\ngreatly appreciated."\n (iii) The obligation to mail such notices shall cease if the eligible\ntaxpayer cancels the request or ceases to qualify for the enhanced STAR\nexemption.\n (e) Notice not mailed or received. Failure to mail any notice required\nby this subdivision, or the failure of a party to receive same, shall\nnot affect the validity of the levy, collection, or enforcement of taxes\non property owned by such person, or in the case of a third party\nnotice, on property owned by the senior citizen.\n 6. Application procedure. (a) Generally. All owners of the property\nwho primarily reside thereon and who are not subject to the provisions\nof subdivision sixteen of this section must jointly file an application\nfor exemption with the assessor on or before the appropriate taxable\nstatus date. Such application may be filed by mail if it is enclosed in\na postpaid envelope properly addressed to the appropriate assessor,\ndeposited in a post office or official depository under the exclusive\ncare of the United States postal service, and postmarked by the United\nStates postal service on or before the applicable taxable status date.\nEach such application shall be made on a form prescribed by the\ncommissioner, which shall require the applicant or applicants to agree\nto notify the assessor if their primary residence changes while their\nproperty is receiving the exemption. The assessor may request that proof\nof residency be submitted with the application. If the applicant\nrequests a receipt from the assessor as proof of submission of the\napplication, the assessor shall provide such receipt. If such request is\nmade by other than personal request, the applicant shall provide the\nassessor with a self-addressed postpaid envelope in which to mail the\nreceipt.\n (a-1) Final date for exemption application in the city of New York.\nNotwithstanding the provisions of this section or any other provision of\nlaw, in the city of New York, applications for the exemption authorized\npursuant to this section shall be considered timely filed if they are\nfiled on or before the fifteenth day of March of the appropriate year\nand in such city all references in this section to taxable status date\nshall be deemed to refer to the fifteenth day of March of the\nappropriate year.\n (a-2) Notwithstanding any provision of law to the contrary, where an\napplication for the "enhanced" STAR exemption authorized by subdivision\nfour of this section has not been filed on or before the taxable status\ndate, and the owner believes that good cause existed for the failure to\nfile the application by that date, the owner may, no later than the last\nday for paying school taxes without incurring interest or penalty,\nsubmit a written request to the commissioner asking him or her to extend\nthe filing deadline and grant the exemption. Such request shall contain\nan explanation of why the deadline was missed, and shall be accompanied\nby an application, reflecting the facts and circumstances as they\nexisted on the taxable status date. After consulting with the assessor,\nthe commissioner may extend the filing deadline and grant the exemption\nif the commissioner is satisfied that (i) good cause existed for the\nfailure to file the application by the taxable status date, and that\n(ii) the applicant is otherwise entitled to the exemption. The\ncommissioner shall mail notice of his or her determination to such owner\nand the assessor. If the determination states that the commissioner has\ngranted the exemption, the assessor shall thereupon be authorized and\ndirected to correct the assessment roll accordingly, or, if another\nperson has custody or control of the assessment roll, to direct that\nperson to make the appropriate corrections. Provided, however, that if\nthe assessment roll cannot be corrected in time for the exemption to\nappear on the applicant's school tax bill, the commissioner shall be\nauthorized to remit directly to the applicant the tax savings that the\nSTAR exemption would have yielded if it had appeared on the applicant's\ntax bill. The amounts so payable shall be paid from the account\nestablished for the payment of STAR benefits to late registrants\npursuant to subparagraph (iii) of paragraph (a) of subdivision fourteen\nof this section.\n (b) Approval or denial of application. If the assessor is satisfied\nthat the applicant or applicants are entitled to an exemption pursuant\nto this section, he or she shall approve the application and such real\nproperty shall thereafter be exempt from school district taxation as\nprovided herein. If the assessor determines that the applicant or\napplicants are not entitled to an exemption pursuant to this section, he\nor she shall, not later than ten days prior to the date for hearing\ncomplaints in relation to assessments, mail to each applicant not\nentitled to the exemption a notice of denial of that application for the\nexemption herein for that year; except that in the city of New York,\nsuch notice shall be mailed not later than thirty days prior to the\nfinal date for filing an assessment appeal as set forth in paragraph\n(b-1) of this subdivision. The notice of denial shall specify each\nreason for such denial and shall be sent on a form prescribed by the\ncommissioner. Failure to mail any such notice of denial or the failure\nof any person to receive such notice shall not prevent the levy,\ncollection and enforcement of the taxes on property owned by such\nperson.\n (b-1) Final date for filing assessment appeal in the city of New York.\nNotwithstanding any other provision of law, in the city of New York, the\nfinal date for filing an assessment appeal with respect to the denial of\napplications pursuant to this section only shall be the thirty-first day\nof May of the appropriate year. With respect to assessment appeals filed\npursuant to this paragraph after the final date for filing an assessment\nappeal as set forth in chapter seven of the New York city charter, the\nonly issues that will be determined by the tax commission are those that\nrelate to the denial of an application for exemption pursuant to this\nsection.\n (d) Prior year assessment rolls. (i) Where school district taxes are\nlevied upon prior year assessment rolls, the assessing unit may adopt a\nlocal law allowing STAR applications for each school year to be\nsubmitted on or before the taxable status date of the current year's\nassessment roll. Such local law shall apply to assessment rolls based\nupon taxable status dates occurring on or after the effective date of\nsuch local law and shall remain applicable thereafter unless and until\nit should be repealed or rescinded.\n (ii) When such a local law is in effect the eligibility of property\nfor a STAR exemption for a school year shall be based upon the condition\nof the property as of the taxable status date of the prior year's\nassessment roll, and the ownership of the property as of the taxable\nstatus date of the current year's assessment roll. When a STAR\napplication is approved, the prior year's assessment roll shall be\nrevised accordingly. When a STAR application is denied, the applicant\nmay seek administrative and judicial review of the denial, subject to\nthe same timing constraints that apply to persons seeking review of\nassessments appearing on the current year's assessment roll.\n (iii) For purposes of this paragraph, the term "current year's\nassessment roll" means the final assessment roll which is required by\nlaw to be completed in the calendar year that contains the first day of\nthe school year in question, and the term "prior year's assessment roll"\nmeans the final assessment roll which was required by law to be\ncompleted in the calendar year immediately preceding the calendar year\nthat contains the first day of the school year in question.\n (e) Except in the city of New York, notwithstanding the provisions of\nparagraph (a) of this subdivision, an application for such exemption may\nbe filed with the assessor after the appropriate taxable status date but\nnot later than the last date on which a petition with respect to\ncomplaints of assessment may be filed, where failure to file a timely\napplication resulted from: (i) a death of the applicant's spouse, child,\nparent, brother or sister; or (ii) an illness of the applicant or of the\napplicant's spouse, child, parent, brother or sister, which actually\nprevents the applicant from filing on a timely basis, as certified by a\nlicensed physician. The assessor shall approve or deny such application\nas if it had been filed on or before the taxable status date.\n 7. Entry on assessment roll. (a) The assessed value of any exemption\ngranted pursuant to this section shall be entered by the assessor on the\nassessment roll with the taxable property, with the amount of the\nexemption entered in a separate column.\n (b) The exemption provided by this section shall be applied after all\nother exemptions allowed by law have been subtracted from the total\nassessed value of the parcel, notwithstanding the provisions of any law\nto the contrary.\n (c) In no event shall the exemption authorized by this section exceed\nthe total assessed value of the parcel less all other exemptions allowed\nby law.\n (d) Where a person is the owner of a present interest in a parcel\nunder a life estate, or is a vendee in possession under an installment\ncontract of sale, or is a beneficial owner under a trust, or resides\nprimarily in a dwelling which is owned by a corporation or partnership\nbut is nonetheless eligible for exemption pursuant to paragraph (d) or\n(e) of subdivision three of this section, and that person has applied\nfor and been granted an exemption pursuant to this section, that person\nshall be deemed to be the owner of the parcel for purposes of this\nsection and section five hundred two of this chapter. Provided that\nduplicate tax statements shall be sent upon request to the remainderman,\nvendor, trustee, or corporation or partnership that owns the dwelling,\nwhichever is applicable; provided further that the provisions of section\nnine hundred twenty-three of this chapter regarding the issuance of\nduplicate tax statements in certain cases shall apply to such requests\nso far as practicable. Nothing contained in this subdivision shall be\nconstrued as affecting in any way the validity or enforceability of a\nreal property tax, or the applicability of interest or penalties with\nrespect thereto, when an owner's name has not been accurately recorded\nor when a duplicate tax statement is not sent or received.\n 8. Effect of exemption. The exemption authorized by this section shall\nhave the effect specified in section one thousand three hundred six-a of\nthis chapter. The exemption shall not be considered when determining\nstate aid to education pursuant to section thirty-six hundred two of the\neducation law, when determining school district debt limits pursuant to\nlaw, when determining the amount of taxes to be levied by or on behalf\nof a school district, when calculating tax rates for a school district,\nwhen apportioning taxes between or among school districts, when\napportioning taxes among classes in a special assessing unit under\narticle eighteen of this chapter, or when apportioning taxes between\nclasses in an approved assessing unit under article nineteen of this\nchapter.\n 9-a. Duration of exemption; basic exemption. The basic exemption, once\ngranted, shall remain in effect until discontinued in the manner\nprovided in this section.\n 9-b. Duration of exemption; enhanced exemption. (a) The enhanced\nexemption, once granted, shall remain in effect until discontinued in\nthe manner provided in this section.\n (b) The assessor shall review the continued compliance of recipients\nof the enhanced exemption with the applicable ownership and residency\nrequirements to the same extent as if they were receiving a basic STAR\nexemption.\n 10. Proof of residency. (a) Requests. From time to time, the assessor\nmay request proof of residency from the owner or owners of any property\nwhich is exempt pursuant to this section. In addition, the assessor\nshall request proof of residency from any such owner or owners when\nrequested to do so by the commissioner.\n (b) Timing. A request for proof of residency shall be mailed at least\nsixty days prior to the ensuing taxable status date. The owner or owners\nshall submit proof of their residency to the assessor on or before the\nensuing taxable status date.\n (c) Review of submission. The burden shall be on the owner or owners\nto establish that the property is their primary residence. If they\nsubmit proof of residency on or before the ensuing taxable status date,\nand the submission demonstrates to the assessor's satisfaction that the\nproperty is the primary residence of one or more of the owners thereof,\nand if the requirements of this section are otherwise satisfied, the\nexemption shall continue in effect on the ensuing tentative assessment\nroll. Otherwise, the assessor shall discontinue the exemption on the\nnext ensuing tentative assessment roll as provided herein, and, where\nappropriate, shall proceed as further provided herein.\n 11. Discontinuance of exemption. (a) Generally. The assessor shall\ndiscontinue any exemption granted pursuant to this section if it appears\nthat: (i) the property may not be the primary residence of the owner or\nowners who applied for the exemption, (ii) title to the property has\nbeen transferred to a new owner or owners, or (iii) the property\notherwise may no longer be eligible for the exemption.\n (b) Rights of owners. Upon determining that an exemption granted\npursuant to this section should be discontinued, the assessor shall mail\na notice so stating to the owner or owners thereof at the time and in\nthe manner provided by section five hundred ten of this chapter. Such\nowner or owners shall be entitled to seek administrative and judicial\nreview of such action in the manner provided by law, provided, that the\nburden shall be on such owner or owners to establish eligibility for the\nexemption.\n (c) Transfers of title. When the assessor has received a report\npursuant to section five hundred seventy-four of this chapter of a\ntransfer of title to real property which is exempt pursuant to this\nsection, the assessor shall discontinue the exemption as required by\nsubdivision sixteen of this section. The assessor shall not implement\nthe provisions of section five hundred twenty of this chapter upon such\na transfer, except to the extent that the property may also be receiving\none or more other exemptions.\n (d) Notice not mailed or received. The failure to mail any such notice\nor application, or the failure of the owner or owners to receive the\nsame, shall not prevent the levy, collection and enforcement of the\npayment of the taxes on such real property.\n 12. Revocation of prior exemptions. (a) Generally. In addition to\ndiscontinuing the exemption on the next ensuing tentative assessment\nroll, if the assessor determines that the property improperly received\nthe exemption on one or more of the six preceding assessment rolls,\nprovided that final assessment rolls that were filed prior to April\nfirst, two thousand ten shall not be subject to the provisions of this\nsubdivision, or is advised by the department that the applicable income\nstandard was not satisfied with regard to a property which received the\nenhanced exemption on one or more of those rolls, he or she shall\nproceed to revoke the improperly granted prior exemption or exemptions.\nIf the assessor is advised that the department was unable to verify the\nincome eligibility of one or more participants in the income\nverification program, the assessor shall mail that person or those\npersons a notice in a form prescribed by the department requesting that\nthe person or persons document their income in the same manner and to\nthe same extent as if the person or persons were submitting an initial\napplication for the enhanced STAR exemption. If such income\ndocumentation is not provided within forty-five days of such request, or\nif the documentation provided does not establish the eligibility of the\nperson or persons to the assessor's satisfaction, the assessor shall\ntreat the exemption as an improperly granted exemption and proceed in\nthe manner provided by this subdivision.\n (b) Procedure. The assessed value attributable to each such improperly\ngranted exemption shall be entered separately on the next ensuing\ntentative or final assessment roll. The provisions of section five\nhundred fifty-one or five hundred fifty-three of this chapter, relating\nto the entry by the assessor of omitted real property on a tentative or\nfinal assessment roll, shall apply so far as practicable to the\nrevocation procedure in this subdivision, except that:\n (i) the tax rate to be applied to any revoked exemption shall be the\ntax rate that was applied to the corresponding assessment roll,\n (ii) interest shall then be added to each such product at the rate\nprescribed by section nine hundred twenty-four-a of this chapter or such\nother law as may be applicable for each month or portion thereon since\nthe levy of taxes upon the assessment roll or rolls upon which the\nexemption was granted, and\n (iii) for improperly granted STAR exemptions occurring on assessment\nrolls filed on and after April first, two thousand thirteen, a\nprocessing fee of five hundred dollars shall be added. Such processing\nfee imposed pursuant to this subdivision shall be retained by the\nassessing unit and the state shall be entitled to no part thereof.\n (c) Rights of owners. Each owner or owners shall be given notice of\nthe possible revocation under this subdivision of their exemption or\nexemptions at the time and in the manner provided by section five\nhundred ten or five hundred fifty-three of this chapter, and shall be\nentitled to seek administrative and judicial review of such action in\nthe manner provided by law.\n (d) Applicability. The provisions of this subdivision shall not be\napplicable to the extent that the prior exemptions shall have been\nrenounced pursuant to section four hundred ninety-six of this article.\n (e) Records retention. Nothing in this section shall be construed to\nimpose upon an assessor a duty to retain records for a period longer\nthan the period prescribed pursuant to the arts and cultural affairs\nlaw, or to require an assessor to conduct a review of a taxpayer's\neligibility when the assessor has disposed of the relevant records in\naccordance with such law.\n 13. Penalty for material misstatements. (a) Generally. If the assessor\nshould determine that there was a material misstatement on an\napplication for exemption pursuant to this section that was filed on or\nafter October first, two thousand ten, he or she shall proceed to impose\na penalty tax against the property. If the application was filed prior\nto October first, two thousand thirteen, the penalty tax shall be one\nhundred dollars, provided that the assessor's determination must be made\nwithin three years of the filing of the application. If the application\nwas filed on or after October first, two thousand thirteen, the penalty\ntax shall be either one hundred dollars or twenty percent of the\nimproperly received tax savings, whichever is greater not to exceed two\nthousand five hundred dollars, provided further that the assessor's\ndetermination must be made within six years of the filing of the\napplication. An application shall be deemed to contain a material\nmisstatement for this purpose when either:\n (i) the applicant or applicants claimed that the property was their\nprimary residence, when it was not; or\n (ii) the applicant or applicants claimed that they had relinquished\nthe STAR exemption on their former primary residence, when they knew\nthey had not; or\n (iii) in the case of an application for the enhanced exemption for\nproperty owned by senior citizens, the applicant or applicants\nmisrepresented their age or income so as to appear eligible for such\nexemption, when they were not.\n (b) Procedure. When the assessor determines that a penalty tax should\nbe imposed, the penalty tax shall be entered on the next ensuing\ntentative or final assessment roll. The procedures set forth in section\nfive hundred fifty-one or five hundred fifty-three of this chapter,\nrelating to the entry by the assessor of omitted real property on a\ntentative or final assessment roll, shall apply so far as practicable\nwhen imposing a penalty tax pursuant to this subdivision. Each owner or\nowners shall be given notice of the possible imposition of a penalty tax\nat the time and in the manner provided by section five hundred ten or\nfive hundred fifty-three of this chapter, and shall be entitled to seek\nadministrative and judicial review of such action in the manner provided\nby law. Any penalty tax imposed pursuant to this subdivision shall be\nretained by the assessing unit and the state shall be entitled to no\npart thereof.\n (c) Additional consequences. A penalty tax may be imposed pursuant to\nthis subdivision whether or not the improper exemption has been revoked\nin the manner provided by this section. In addition, a person or persons\nwho are found to have made a material misstatement shall be disqualified\nfrom further exemption pursuant to this section, and if such\nmisstatement appears on an application filed on or after April first,\ntwo thousand nineteen, from the credit authorized by subsection (eee) of\nsection six hundred six of the tax law, for a period of six years. In\naddition, such person or persons may be subject to prosecution pursuant\nto the penal law.\n (d) Applicability. The provisions of this subdivision shall not be\napplicable to the extent that the prior exemptions shall have been\nrenounced pursuant to section four hundred ninety-six of this article.\n (e) Records retention. Nothing in this section shall be construed to\nimpose upon an assessor a duty to retain records for a period longer\nthan the period prescribed pursuant to the arts and cultural affairs\nlaw, or to require an assessor to conduct a review of a taxpayer's\neligibility when the assessor has disposed of the relevant records in\naccordance with such law.\n (f) Assessor notification. The assessor shall inform the commissioner\nwhenever a person or persons is found to have made a material\nmisstatement on an application for the exemption authorized by this\nsection.\n 14. STAR registration program. (a) The commissioner shall establish\nand implement a program under which all owners of properties initially\napplying for and those receiving a basic STAR exemption shall be\nrequired to be registered with the commissioner in the manner, at such\nintervals, and by the date or dates prescribed by the commissioner,\nprovided that:\n (i) Owners of properties that are receiving the basic STAR exemption\nduring the two thousand twelve--two thousand thirteen school year shall\nbe required to initially register with the commissioner no later than\nApril first, two thousand fourteen;\n (ii) The commissioner shall provide written notice of the registration\nrequirement to such owners at least sixty days before the registration\ndeadline established pursuant to subparagraph (i) of this paragraph;\n (iii) An owner who fails to register by the registration deadline so\nestablished shall be permitted to file a petition with the commissioner\nrequesting that the commissioner excuse such failure and accept a late\nregistration, provided that such petition shall explain why such failure\noccurred and shall be filed no later than one year after such deadline,\nand provided further that if the commissioner accepts a late\nregistration after having directed the removal of the Basic STAR\nexemption from the property to which the registration pertains, then in\nlieu of directing the exemption to be restored, the commissioner is\nauthorized in his or her discretion to remit directly to the property\nowner or owners the tax savings that the exemption would have yielded\nhad it not been removed, and to further direct the assessor to restore\nthe exemption on a prospective basis without a new application unless\nthe assessor has reason to believe that the property owner is no longer\neligible for reasons other than a failure to register;\n (iv) After the initial registration program has been implemented, the\ncommissioner shall endeavor to confirm the continuing eligibility of\nSTAR recipients through means other than re-registration, such as by\nreviewing the relevant data appearing on personal income tax returns.\nThe commissioner may reinstate the registration requirement, provided\nthat in no event may the commissioner require registered STAR recipients\nto re-register more than once in a three-year period if their primary\naddresses have not changed.\n (b) Notwithstanding any provision of law to the contrary, the\ncommissioner shall direct the removal or denial of a STAR exemption if\nhe or she finds that one or more of the following conditions exist:\n (i) all owners of the property have not been registered by the\nprescribed date and no acceptable justification has been presented for\nsuch failure;\n (ii) the owners of the property are improperly receiving multiple STAR\nexemptions;\n (iii) the property does not serve as the primary residence of any of\nits owners;\n (iv) the applicable income limitation has been exceeded; or\n (v) the property is otherwise ineligible for the STAR exemption.\n (c) Prior to directing that a STAR exemption be removed or denied\npursuant to this subdivision, the commissioner shall provide the\nproperty owners with notice and an opportunity to show the commissioner\nthat the property is eligible to receive the exemption. If the owners\nfail to respond to such notice within forty-five days from the mailing\nthereof, or if their response does not show to the commissioner's\nsatisfaction that the property is eligible for the exemption, the\ncommissioner shall direct the assessor or other person having custody or\ncontrol of the assessment roll or tax roll to remove or deny the\nexemption, and to correct the roll accordingly. Such a directive shall\nbe binding upon the assessor or other person having custody or control\nof the assessment roll or tax roll, and shall be implemented by such\nperson without the need for further documentation or approval.\n (d) Notwithstanding the provisions of paragraph (b) of subdivision six\nof this section, neither an assessor nor a board of assessment review\nhas the authority to consider an objection to the removal or denial of\nan exemption pursuant to this subdivision, nor may such an action be\nreviewed in a proceeding to review an assessment pursuant to title one\nor one-A of article seven of this chapter. Such an action may only be\nchallenged before the department of taxation and finance. If a taxpayer\nis dissatisfied with the department's final determination, the taxpayer\nmay appeal that determination to the state board of real property tax\nservices in a form and manner to be prescribed by the commissioner. Such\nappeal shall be filed within forty-five days from the issuance of the\ndepartment's final determination. If dissatisfied with the state board's\ndetermination, the taxpayer may seek judicial review thereof pursuant to\narticle seventy-eight of the civil practice law and rules. The taxpayer\nshall otherwise have no right to challenge such final determination in a\ncourt action, administrative proceeding or any other form of legal\nrecourse against the commissioner, the department of taxation and\nfinance, the state board of real property tax services, the assessor or\nother person having custody or control of the assessment roll or tax\nroll regarding such action.\n (e) The commissioner shall be entitled to utilize information from any\nfilings of a taxpayer with the department of taxation and finance in\nconjunction with the STAR registration program.\n 14-a. Implementation of certain eligibility determinations. When a\ntaxpayer's eligibility for exemption under this section for a school\nyear is affected by a determination made in accordance with subparagraph\n(iv) of paragraph (b) of subdivision four of this section or paragraph\n(c) or (d) of subdivision fourteen of this section, and the\ndetermination is made after the school district taxes for that school\nyear have been levied, the provisions of this subdivision shall be\napplicable.\n (a) If the determination restores or increases the taxpayer's\nexemption for that school year, the commissioner is authorized to remit\nthe excess directly to the property owner upon receiving confirmation\nthat the taxpayer's original school tax bill has been paid in full. The\namounts payable by the commissioner under this paragraph shall be paid\nfrom the account established for the payment of STAR benefits to late\nregistrants pursuant to subparagraph (iii) of paragraph (a) of\nsubdivision fourteen of this section. When the commissioner implements\nthe determination in this manner, he or she shall so notify the assessor\nand county director of real property tax services, but no correction\nshall be made to the assessment roll or tax roll for that school year,\nand no refund shall be issued by the school authorities to the property\nowner or his or her agent for the excessive amount of school taxes paid\nfor that school year.\n (b) If the determination removes, denies or decreases the taxpayer's\nexemption for that school year, the commissioner is authorized to\ncollect the shortfall directly from the owners of the property, together\nwith interest, by utilizing any of the procedures for collection, levy,\nand lien of personal income tax set forth in article twenty-two of the\ntax law, and any other relevant procedures referenced within the\nprovisions of such article. When the commissioner implements the\ndetermination in this manner, he or she shall so notify the assessor and\ncounty director of real property tax services, but no correction shall\nbe made to the assessment roll or tax roll for that school year, and no\ncorrected school tax bill shall be sent to the taxpayer for that school\nyear.\n 15. Recoupment of exemptions by commissioner. (a) Generally. If the\ncommissioner should determine, based upon data collected under the STAR\nregistration program, that property improperly received the basic STAR\nexemption in the current school year or one or more of the three\npreceding school years, the commissioner shall treat the exemption as an\nimproperly granted exemption and proceed in the manner provided by this\nsubdivision; provided that final assessment rolls that were filed prior\nto April first, two thousand eleven shall not be subject to the\nprovisions of this subdivision.\n (b) Procedure. The tax savings attributable to each such improperly\ngranted exemption shall be collected from the owners whose property\nimproperly received the exemption for the applicable year, together with\ninterest as specified in this subdivision, by utilizing any of the\nprocedures for collection, levy, and lien of personal income tax set\nforth in article twenty-two of the tax law, any other relevant\nprocedures referenced within the provisions of that article, and any\nother law as may be applicable, so far as practicable when recouping the\nexemption amount pursuant to this subdivision, except that:\n (i) in order for the recoupment procedure to be considered timely, the\nnotice required by subparagraph (ii) of this paragraph must be mailed no\nlater than three years after the conclusion of the school year for which\nthe exemption in question was granted, or in the case of an exemption\nthat was granted for the two thousand twelve--two thousand thirteen\nschool year, no later than September thirtieth, two thousand sixteen;\n (ii) prior to directing that an improperly granted exemption be\nrecouped pursuant to this subdivision, the commissioner shall provide\nthe owners with notice and an opportunity to show the commissioner that\nthe exemption was properly granted. If the owners fail to respond to\nsuch notice within forty-five days from the mailing thereof, or if their\nresponse does not show to the commissioner's satisfaction that the\neligibility requirements were in fact satisfied, the commissioner shall\nproceed with the recoupment of the improperly granted exemption in\naccordance with the provisions of this subdivision; and\n (iii) notwithstanding the provisions of paragraph (b) of subdivision\nsix of this section, neither an assessor nor a board of assessment\nreview has the authority to consider an objection to the recoupment of\nan exemption pursuant to this subdivision, nor may such an action be\nreviewed in a proceeding to review an assessment pursuant to title one\nor one-A of article seven of this chapter. Such an action may only be\nchallenged before the department. If an owner is dissatisfied with the\ndepartment's final determination, the owner may appeal that\ndetermination to the board in a form and manner to be prescribed by the\ncommissioner. Such appeal shall be filed within forty-five days from the\nissuance of the department's final determination. If dissatisfied with\nthe board's determination, the owner may seek judicial review thereof\npursuant to article seventy-eight of the civil practice law and rules.\nThe owner shall otherwise have no right to challenge such final\ndetermination in a court action, administrative proceeding, including\nbut not limited to an administrative proceeding pursuant to article\nforty of the tax law, or any other form of legal recourse against the\ncommissioner, the department, the board, the assessor, or any other\nperson, state agency, or local government.\n (c) The amount to be recouped for each improperly received exemption\nshall have interest added at the rate prescribed by section nine hundred\ntwenty-four-a of this chapter or such other law as may be applicable for\neach month or portion thereof since the levy of school taxes upon such\nassessment roll.\n (d) In the event that a revocation of prior exemption pursuant to\nsubdivision twelve of this section or a voluntary renunciation of the\nSTAR exemption pursuant to section four hundred ninety-six of this\narticle has occurred, the provisions of this subdivision shall not be\napplicable to the exemptions so revoked or voluntarily renounced.\n 15-a. Direct payments. Notwithstanding any provision of law to the\ncontrary, when the commissioner finds that a property owner was eligible\nfor the STAR exemption authorized by this section on an assessment roll,\nbut the exemption was not taken into account in the calculation of the\nproperty owner's school tax bill due to an administrative error, and the\nproperty owner or his or her agent paid an excessive amount of school\ntaxes on the property as a result, the commissioner is authorized to\nremit directly to the property owner the tax savings that the STAR\nexemption would have yielded if the STAR exemption had been taken into\naccount in the calculation of that taxpayer's school tax bill. The\namounts payable under this section shall be paid from the account\nestablished for the payment of STAR benefits to late registrants\npursuant to subparagraph (iii) of paragraph (a) of subdivision fourteen\nof this section. Where such a payment has been made, neither the\nproperty owner nor his or her agent shall be entitled to a refund of the\nexcessive amount of school taxes paid on account of the administrative\nerror.\n 16. Transition to personal income tax credit. (a) Beginning with\nassessment rolls used to levy school district taxes for the two thousand\nsixteen--two thousand seventeen school year, no application for an\nexemption under this section may be approved unless at least one of the\napplicants held title to the property on the taxable status date of the\nassessment roll that was used to levy school district taxes for the two\nthousand fifteen--two thousand sixteen school year and the property was\ngranted an exemption pursuant to this section on that assessment roll.\nIn the event that an application is submitted to the assessor that\ncannot be approved due to this restriction, the assessor shall notify\nthe applicant that he or she is required by law to deny the application,\nbut that, in lieu of a STAR exemption, the applicant may claim the\npersonal income tax credit authorized by subsection (eee) of section six\nhundred six of the tax law if eligible, and that the applicant may\ncontact the department of taxation and finance for further information.\nThe commissioner shall provide a form for assessors to use, at their\noption, when making this notification. No STAR exemption may be granted\non the basis of an application that is not approvable due to this\nrestriction.\n (b) Where property received an exemption pursuant to this section on\nan assessment roll used to levy school district taxes for the two\nthousand fifteen--two thousand sixteen school year, and at least one of\nits owners held title to the property on the taxable status date of such\nassessment roll, the exemption shall continue to be granted on\nsubsequent assessment rolls without regard to the provisions of this\nsubdivision as long as all applicable requirements of this section are\nsatisfied. In addition, such exemption shall be subject to modification\nas follows:\n (i) A basic STAR exemption shall be changed to an enhanced STAR\nexemption if the owners and spouses primarily residing on the property\nfile a timely application showing that their ages and incomes meet the\nrequirements of subdivision four of this section.\n (ii) An enhanced STAR exemption shall be changed to a basic STAR\nexemption if the combined income of the owners and spouses primarily\nresiding on the property increases above the limit set by subdivision\nfour of this section, subject to the provisions of subparagraph (iii) of\nthis paragraph, provided that if their combined income falls below the\nlimit set by subdivision four of this section in the future, their\nenhanced STAR exemption may be resumed upon timely application.\n (iii) A STAR exemption shall be discontinued if the combined income of\nthe owners and spouses primarily residing on the property increases\nabove the limit set by subdivision three of this section, provided that\nif their income falls below such limit in the future, their STAR\nexemption may be resumed upon timely application.\n (iv) A STAR exemption shall be permanently discontinued if the owners\nfail to satisfy the applicable residency or ownership requirement, or\nboth.\n (c) If the owners of a parcel that is receiving the STAR exemption\nauthorized by this section want to claim the personal income tax credit\nauthorized by subsection (eee) of section six hundred six of the tax law\nin lieu of such exemption, they may do so by switching to the credit in\nthe manner provided by subdivision seventeen of this section.\nAlternatively, they may renounce that exemption and make any required\npayments in the manner provided by section four hundred ninety-six of\nthis chapter. Any such switch to the credit or renunciation shall be\nirrevocable.\n (d) Notwithstanding the foregoing provisions of this subdivision,\nwhere a property served as the primary residence of a married couple on\nthe taxable status date of the assessment roll that was used to levy\nschool district taxes for the two thousand fifteen--two thousand sixteen\nschool year, but only one of the spouses held title to the property on\nthat taxable status date, and that spouse has since died and his or her\ninterest in the property has been inherited by his or her surviving\nspouse, the surviving spouse shall be entitled to apply for and receive\nan exemption under this section to the same extent as if he or she had\nheld title to the property on that taxable status date.\n (e) The provisions of this subdivision shall apply to all applications\nfor STAR exemptions beginning with assessment rolls used to levy school\ndistrict taxes for the two thousand sixteen--two thousand seventeen\nschool year, including those submitted prior to the effective date of\nthis subdivision. If any application was approved prior to the effective\ndate of this subdivision that is not approvable hereunder, such approval\nshall be deemed void, and the assessor shall provide the applicant with\nthe notice required by paragraph (a) of this subdivision, provided that\nif a STAR exemption is granted on a tentative or final assessment roll\nor tax roll on the basis of an application that is not approvable\nhereunder, the assessor, or other local official or officials having\ncustody and control of such roll, is hereby authorized and directed to\nremove such exemption from such roll without regard to the provisions of\ntitle three of article five of this chapter or any comparable laws\ngoverning the correction of administrative errors on assessment rolls\nand tax rolls, notwithstanding any provision of law to the contrary. If\nan application was submitted prior to the effective date of this\nsubdivision but is not approvable hereunder, the applicant may apply for\nadvance payment of the personal income tax credit authorized by\nsubsection (eee) of section six hundred six of the tax law for the two\nthousand sixteen taxable year, if eligible, in the manner provided by\nparagraph ten of such subsection, even if the property was acquired\nprior to January first of the taxable year.\n 17. Switching to the STAR credit. (a) The commissioner shall develop\nprocedures to enable property owners to switch from the STAR exemption\nto the STAR credit in as simple and expeditious a manner as practicable.\n (b) Such procedures may allow STAR exemption recipients to switch to\nthe STAR credit in the course of applying for the STAR credit. When an\napplicant does so, the commissioner shall advise the appropriate\nassessor as soon as practicable that such individual is switching or has\nswitched to the STAR credit, that no further STAR exemptions may be\ngranted to the property in question after the switch takes effect, and\nif appropriate, that the property's STAR exemption should be removed\nfrom the most recently filed assessment roll and/or the forthcoming\nassessment roll. The assessor or other party having custody and control\nof the assessment roll shall thereupon be authorized and directed to\nproceed accordingly.\n (c) Such procedures may also set forth instances under which the\ncommissioner may direct such a switch to the STAR credit to be deferred\nfor one year, with the resulting differential, if any, to be added to\nthe applicant's initial STAR credit. As used in this subdivision, the\nterm "resulting differential" means the amount by which the STAR credit\nthat the applicant did not receive due to the deferral of the switch\nexceeds the STAR exemption tax savings that the applicant did receive\ndue to the deferral of the switch. The commissioner is specifically\nauthorized to direct a switch to the STAR credit to be so deferred under\nthe following circumstances:\n (i) A STAR credit switch may be deferred if the application for the\ncredit is submitted after a cutoff date set by the commissioner. When\nsetting a cutoff date, the commissioner shall take into account the time\nrequired to ensure that the STAR exemptions of all STAR credit\napplicants in the assessing unit will be removed before school tax bills\nare prepared. The commissioner shall specify the applicable cutoff dates\nafter taking into account local assessment calendars, provided that\ndifferent cutoff dates may be set for municipalities with different\nassessment calendars, and provided further that any such cutoff date may\nbe no earlier than the fifteenth day prior to the date on which the\napplicable final assessment roll is required by law to be completed and\nfiled.\n (ii) A STAR credit switch may be deferred if the application is\nsubmitted after school tax bills have been prepared, but before the\nfirst day of January of the following year, or such later date as the\ncommissioner shall establish.\n (iii) A STAR credit switch may be deferred if the applicant's STAR\nexemption is not removed from the applicable assessment roll in a timely\nmanner due to inadvertence or other reasons.\n (d) Such procedures may also provide that Basic STAR exemption\nrecipients whose incomes exceeds the limit applicable to that exemption\nmay be automatically enrolled in and switched to the Basic STAR credit\nif their incomes do not exceed the limit applicable to that credit. Each\naffected individual shall be notified of the switch as soon as\npracticable. Each such notice shall also advise the individual either\nthat the commissioner has determined that the individual is eligible for\nthe credit, or that the individual must furnish additional information\nto enable the commissioner to determine the individual's eligibility, as\nthe case may be. In either case, once the individual receives a STAR\ncredit check and deposits or endorses it, he or she shall be deemed to\nhave consented to the switch and shall not be permitted to switch back\nto the exemption.\n