NY Real Prop Tax L § 425 (2021)
2021 New York Laws RPT - Real Property Tax Article 4 - Exemptions Title 2 - Private Property 425 - School Tax Relief (Star) Exemption.

§ 425. School tax relief (STAR) exemption. 1. Generally. Real property which  satisfies  the  requirements of this section shall be exempt from taxation for school purposes as provided herein.   2. Exempt amount. (a) Overview. There shall be two variations  of  the exemption authorized by this section: an exemption for property owned by persons  who satisfy the criteria set forth in subdivision three of this section, which shall be known as the  "basic"  STAR  exemption,  and  an exemption for property owned by senior citizens who satisfy the criteria set  forth  in  both  subdivisions three and four of this section, which shall be known as the "enhanced" STAR exemption. The exempt  amount  for each  assessing  unit  shall be determined annually as set forth in this subdivision, by multiplying the "base figure" by the  locally-applicable "sales  price  differential  factor," if any, multiplying the product by the appropriate "equalization factor" for the assessing  unit,  and,  if necessary,  increasing  the  result to equal the applicable "floor." The result is then rounded to the nearest multiple of ten dollars.  (b) Base figure. Subject to the adjustments prescribed below, the base figure for the exemption shall be as follows:  (i) For the nineteen hundred  ninety-eight--ninety-nine  school  year, the  base  figure  shall  be  fifty thousand dollars for eligible senior citizens; no exemption shall be allowed for other persons.  (ii) For the nineteen hundred ninety-nine--two thousand  school  year, the  base  figure  shall  be  fifty thousand dollars for eligible senior citizens, and ten thousand dollars for other eligible persons.  (iii) For the two thousand--two thousand one  school  year,  the  base figure shall be fifty thousand dollars for eligible senior citizens, and twenty thousand dollars for other eligible persons.  (iv)  For  the  two thousand one--two thousand two school year through the two thousand five--two thousand six school year, inclusive, the base figure shall be fifty thousand dollars for eligible senior citizens, and thirty thousand dollars for other eligible persons.  (v) For the two thousand six--two thousand seven school  year  through the  two  thousand  eight--two thousand nine school year, inclusive, the base figure for the enhanced STAR exemption shall be fifty-six  thousand eight  hundred dollars, and the base figure for the basic STAR exemption shall be thirty thousand dollars.  (vi) For the two thousand  nine--two  thousand  ten  school  year  and thereafter:  (A)  The  base  figure for the enhanced STAR exemption shall equal the prior year's base figure multiplied by the percentage  increase  in  the consumer price index for urban wage earners and clerical workers (CPI-W) published  by  the  United  States  department of labor, bureau of labor statistics, for the third quarter of the  calendar  year  preceding  the applicable  school  year,  as compared to the third quarter of the prior calendar year. If a base figure as so determined is not exactly equal to a multiple of one hundred dollars, it shall be rounded  to  the  nearest multiple  of  one hundred dollars. It shall be the responsibility of the commissioner to annually determine such base figures.  (B) The base figure for the  basic  STAR  exemption  shall  be  thirty thousand dollars.  (c) Sales price adjustment. (i) The base figure specified in paragraph (b)  of  this subdivision shall be increased for the counties and cities specified herein by multiplying that figure  by  the  locally-applicable "sales  price differential factor" determined by the commissioner. In no case  shall  the  base  figure  specified  in  paragraph  (b)  of   this subdivision  be  decreased  as the result of this adjustment. A separate sales price differential factor shall be determined for each  county  in which  the  median  sales price of residential real property exceeds the  statewide median sales price of  such  property  as  determined  herein, except  that  in  the  case  of  a  county  wholly  contained within the boundaries of a  city,  a  sales  price  differential  factor  shall  be determined for the city as a whole rather than for any individual county therein. This factor shall be determined as provided herein.  (ii)  In  the  case of a county, the median sales price of residential real property sold within the county in  each  of  the  three  preceding calendar  years  shall  be  determined,  and  the average of those three medians shall be calculated. The data used for  this  purpose  shall  be based upon arm's length transfers within the county reported pursuant to section  three  hundred thirty-three of the real property law, excluding sales data which the commissioner finds to be unreliable, and  including those  adjustments  requested  by local assessors which the commissioner finds warranted.  (iii) In the case of a city which includes one or more entire counties within its boundaries,  the  median  sales  price  of  residential  real property  sold  within  the city in each of the three preceding calendar years shall be determined, and the average of those three medians  shall be  determined.  The  data  used  for  this  purpose shall be based upon transfers reported to the city pursuant  to  a  special  or  local  law, excluding  sales data which the commissioner finds to be unreliable, and including those adjustments requested by the local  assessor  which  the commissioner finds warranted.  (iv)  The  median  sales  price  of residential real property based on transactions reported pursuant to section three hundred thirty-three  of the  real  property law in each of those same three calendar years shall be determined, subject  to  the  exclusions  and  adjustments  described above, and the average of those three medians shall be calculated.  (v)  The  average  determined  in  subparagraph  (ii) or (iii) of this paragraph, whichever is applicable, shall  be  divided  by  the  average determined  in  subparagraph (iv) of this paragraph; provided that in no event shall the result be less than one.  (vi) The sales price of property  which  is  held  in  condominium  or cooperative  form  of ownership shall not be considered when determining median sales prices pursuant to this paragraph.  (d) Equalization adjustment. To account for the variance in the  level of  assessment among assessing units, the figure determined in paragraph (c) of this subdivision shall be multiplied by an "equalization factor," which shall be  the  appropriate  state  equalization  rate  or  special equalization rate established by the commissioner. Provided, that in the case  of a special assessing unit, (i) the equalization factor for class one in each school district portion shall be the class equalization rate for class one in the portion, and (ii) the equalization factor for class two in each school district portion shall be the equalization factor for class one in the portion, multiplied by the latest tax  rate  for  class one  in  the  portion, and then divided by the latest tax rate for class two in the portion. Provided further, that in any instance  when  school district  taxes  are  levied  upon an assessment roll which predates the latest final assessment roll, the equalization factor shall be the state equalization rate for the assessment roll  upon  which  school  district taxes are to be levied.  (e)  Application  of  "floor".  (i)  For  the  two thousand eight--two thousand nine school year, the result obtained in paragraph (d) of  this subdivision  may  not  be  less than ninety percent of the exempt amount determined for the prior levy, unless the level  of  assessment  in  the assessing unit, or in class one in a special assessing unit, has changed by  five percent or more, in which case the result obtained in paragraph (d) of this subdivision for the assessing unit, or for class  one  in  a  special  assessing  unit,  may  not  be  less than ninety percent of the product of the exempt amount determined for the prior levy multiplied by the applicable change in level of assessment factor.  (ii) For the two thousand nine--two thousand ten and subsequent school years,  the result obtained in paragraph (d) of this subdivision may not be less than eighty-nine percent of the exempt amount determined for the prior levy, unless the level of assessment in the assessing unit, or  in class  one  in  a special assessing unit, has changed by five percent or more, in which case  the  result  obtained  in  paragraph  (d)  of  this subdivision  for  the  assessing  unit,  or  for  class one in a special assessing unit, may not be less than eighty-nine percent of the  product of  the  exempt  amount  determined for the prior levy multiplied by the applicable change in level of assessment factor.  (f) Rounding. The result obtained in paragraph  (d)  or  (e)  of  this subdivision,  whichever  is  applicable, shall be rounded to the nearest multiple of ten dollars, and shall thereupon be the  exempt  amount  for the  assessing  unit  for  the  levy  of  school  district  taxes on the corresponding assessment roll.  (g) Computation and certification by commissioner.  It  shall  be  the responsibility of the commissioner to compute the exempt amount for each assessing  unit  in  each  county  in the manner provided herein, and to certify the same to the assessor of  each  assessing  unit  and  to  the county  director  of  real  property  tax  services of each county. Such certification shall be made at least twenty days before  the  last  date prescribed  by  law  for  the  filing  of the tentative assessment roll. Provided, however, that where school taxes are levied on  a  prior  year assessment  roll, or on a final assessment roll that was filed more than one year after the tentative roll was filed, such certification shall be made no later than fifteen days after the publication of the data needed to compute the base figure for the enhanced STAR exemption  pursuant  to clause  (A)  of  subparagraph (vi) of paragraph (b) of this subdivision, and provided further, that  upon  receipt  of  such  certification,  the assessor  shall  thereupon  be  authorized  and  directed to correct the assessment roll to reflect  the  exempt  amount  so  certified,  or,  if another  person has custody or control of the assessment roll, to direct that person to make the appropriate corrections.  (h) Recertification required in certain  cases.  If  the  commissioner determines  that  an  exempt  amount calculated pursuant to this section differs from the exempt amount that should have been  so  calculated  by five percent or more, due to a change in level of assessment, inaccurate or  incomplete  data,  or  other  causes,  it shall recompute the exempt amount for that assessing unit and shall certify the  recomputed  exempt amount  to  the  assessor  and  the county director of real property tax services. The assessor shall thereupon be  authorized  and  directed  to correct  the  assessment  roll  accordingly,  or,  if another person has custody or control of the assessment roll, to direct that person to make the appropriate corrections. If the  corrections  are  not  made  before school  taxes  are  levied,  the  difference between the original exempt amount and the recertified exempt amount for each affected parcel  shall be deemed a "clerical error" for purposes of title three of article five of this chapter, and shall be corrected accordingly.  (i)  Villages. No exempt amount shall be determined under this section for a village, unless the boundaries of the village are coterminous with those of a union free school district.  (j) Certain city school districts. The commissioner shall  adjust  the exempt  amount  for  each  city  containing  a  school district which is subject to article fifty-two of the education law, to  account  for  the fact  that the school district is fiscally dependent upon the city. This  adjustment shall be made by multiplying the  exempt  amount  that  would otherwise  be determined for the city by sixty-seven percent, or, in the case of a city with a population  of  one  million  or  more,  by  fifty percent.  The  exempt  amount  resulting  from this calculation shall be applied both to the assessed value for city school district purposes and to the assessed value for general city purposes, and state aid shall  be payable  on  the  combined tax savings in the manner provided by section thirteen hundred six-a of this chapter.  (k) Cooperative apartment corporations. (i) For the purposes  of  this section,  title  to that portion of real property owned by a cooperative apartment corporation in which a tenant-stockholder of such  corporation resides, and which is represented by his or her share or shares of stock in   such  corporation  as  determined  by  its  or  their  proportional relationship  to  the  total  outstanding  stock  of  the   corporation, including that owned by the corporation, shall be deemed to be vested in such tenant-stockholder.  (ii)  That proportion of the assessment of such real property owned by a cooperative apartment corporation determined by  the  relationship  of such  real  property  vested  in  such tenant-stockholder to such entire parcel and the buildings thereon owned  by  such  cooperative  apartment corporation in which such tenant-stockholder resides shall be subject to exemption  from  taxation  pursuant to this section and any exemption so granted shall be credited by the appropriate  taxing  authority  against the assessed valuation of such real property. Upon the completion of the final  assessment  roll,  or  as  soon thereafter as is practicable, the assessor shall  forward  to  the  cooperative  apartment  corporation  a statement  setting  forth  the  exemption  attributable to each eligible tenant-stockholder. The reduction in real property taxes attributable to each eligible tenant-stockholder shall be credited  by  the  cooperative apartment corporation against the amount of such taxes otherwise payable by  or  chargeable  to  such tenant-stockholder. The assessor shall also forward to the commissioner, at the time and in the manner prescribed by the commissioner, a statement setting forth the taxable  assessed  value attributable   to   each   tenant-stockholder,  without  regard  to  the exemption, and such other information as  the  commissioner  shall  deem necessary to properly calculate the STAR credit authorized by subsection (eee)   of   section   six   hundred  six  of  the  tax  law  for  those tenant-stockholders who qualify for it.  (iii) (A) Every cooperative apartment corporation, upon  receiving  an exemption  pursuant  to  this  section,  shall  provide to each eligible tenant-stockholder a written statement detailing: the full amount of the exemption  to  be  credited  to   such   tenant-stockholder,   including information  on  how such amount was calculated pursuant to subparagraph (ii) of this paragraph, and how the exemption is being credited to  such eligible  tenant-stockholder, pursuant to the requirements of clause (B) of this subparagraph. Such written statement shall  be  mailed  to  each eligible   tenant-stockholder  no  later  than  sixty  days  after  such cooperative apartment corporation receives such exemption.  (B)  Every  cooperative  apartment  corporation,  upon  receiving   an exemption  pursuant to this section, shall credit the full amount of the STAR exemption  to  each  eligible  tenant-stockholder  in  one  of  the following ways:  (I)  A  full  credit  against the fees and charges of any single month within the current assessment cycle with any balance to be  so  credited in full for the following month or months until exhausted;  (II)  A  proportional  credit  over  six  months  during  the  current assessment cycle;  (III) A proportional credit over the twelve months during the  current assessment cycle;  (IV)  A  payment  of the total savings to the tenant-stockholder as an up-front, lump sum payment.   Such exemption shall be  fully  credited  to  each  tenant-stockholder during  the  assessment  cycle  for  which  each  tenant-stockholder was eligible for STAR.  (iv) Notwithstanding the  provisions  of  subparagraph  (ii)  of  this paragraph, when a cooperative apartment corporation is incorporated as a mutual  company  pursuant  to  the  private housing finance law, and the granting of an exemption pursuant to this section would not inure to the benefit of eligible tenant-stockholders because  the  real  property  of such  corporation  is  subject to an exemption from taxation pursuant to section thirty-three, ninety-three,  one  hundred  twenty-five  or  five hundred  fifty-six  of  the  private housing finance law, an alternative benefit shall be provided to such  corporation  and  passed  through  to eligible tenant-stockholders in the manner provided by this subdivision. Such  alternative  benefit  shall  consist  of  a  reduction in the real property taxes or payments in lieu of  taxes  that  would  otherwise  be payable  on  account  of  such  real  property. The total amount of such reduction shall be the  sum  of  the  "STAR  savings"  for  all  of  the cooperative  apartment  units  that are occupied by one or more eligible tenant-stockholders. The STAR savings for each such unit shall be  equal to  one-third  of the exempt amount determined pursuant to paragraph (a) of this subdivision for purposes of the basic or enhanced exemption,  as the case may be, multiplied by the applicable school tax rate, or in the case   of   a  school  district  described  in  paragraph  (j)  of  this subdivision, by the applicable city tax rate. Provided, however,  in  no case  shall  the  STAR savings for any individual unit exceed the amount payable by or chargeable to the unit on account of real  property  taxes or  payments  in  lieu of taxes. The STAR savings so determined for each unit shall be credited by the cooperative apartment corporation  against the  real  property taxes or payments in lieu of taxes otherwise payable by or chargeable to the eligible tenant-stockholders. The total  of  the alternative  benefits  provided pursuant to this subparagraph shall be a state charge which shall be payable  in  the  same  manner  that  school districts  are compensated pursuant to section thirteen hundred six-a of this chapter for tax savings attributable to exemptions granted pursuant to this section.  (l) Trailers and mobile homes. (i) When the  value  of  a  trailer  or mobile  home has been included in the assessment of the land on which it is located pursuant to paragraph (g) of subdivision  twelve  of  section one  hundred two of this chapter, the provisions of this paragraph shall apply.  (ii) If the owner of the trailer or mobile home also owns the land, he or she may apply for exemption pursuant to  this  section  in  the  same manner as any other homeowner.  (iii)  If  the  owner  of  the trailer or mobile home does not own the land, he or she may apply for exemption pursuant to  this  section  only upon  the  trailer  or  mobile home. If granted, only the portion of the assessment of the parcel attributable to  the  trailer  or  mobile  home shall be subject to exemption from taxation pursuant to this section. In no   event   shall   the  exemption  exceed  the  total  assessed  value attributable to the trailer or  mobile  home.  The  exemption  shall  be credited  by  the  appropriate  taxing  authority  against  the assessed valuation of the parcel. Upon the completion  of  the  final  assessment roll,  or  as  soon  thereafter  as  is  practicable, the assessor shall forward to  the  landowner  a  statement  setting  forth  the  exemption  attributable  to  each eligible trailer or mobile home. The reduction in real property taxes attributable to each eligible trailer or mobile home shall be credited by the landowner against the rent payable  on  account of such trailer or mobile home, subject to the provisions of subdivision w of section two hundred thirty-three of the real property law.  (iv)  Beginning  with  assessment  rolls  used to levy school district taxes for the two thousand twenty-two--two thousand twenty-three  school year, no exemption shall be granted pursuant to this section to a mobile home  that  is  described in this paragraph. Owners of such property may claim the credit authorized by subsection (eee) of section  six  hundred six  of  the  tax law in the manner prescribed therein. The commissioner shall develop a process  to  automatically  switch  qualified  exemption recipients  into  the STAR credit, and to request additional information from those exemption  recipients  whose  credit  eligibility  cannot  be independently  confirmed.  Each affected individual shall be notified of the switch as soon as practicable. Once the individual receives  a  STAR credit  check  and deposits or endorses it, he or she shall be deemed to have consented to the switch and shall not be permitted to  switch  back to the exemption.   3.   Eligibility  requirements.  (a)  Property  use.  To  qualify  for exemption pursuant to this section, the property must be a one,  two  or three  family residence, a farm dwelling or residential property held in condominium or cooperative form of ownership. If the property is not  an eligible  type  of  property, but a portion of the property is partially used by the owner as a primary residence, that portion which is so  used shall  be  entitled  to the exemption provided by this section; provided that  in  no  event  shall  the  exemption  exceed  the  assessed  value attributable to that portion.  (b)  Primary  residence.  The  property  must  serve  as  the  primary residence of one or more of the owners thereof.  (b-1) Income. For final assessment rolls to be used for  the  levy  of taxes  for  the  two  thousand  eleven-two  thousand  twelve through two thousand eighteen-two  thousand  nineteen  school  years,  the  parcel's affiliated  income may be no greater than five hundred thousand dollars, as determined by the commissioner pursuant to  subdivision  fourteen  of this  section  or  section  one hundred seventy-one-u of the tax law, in order to be eligible for the basic exemption authorized by this section. Beginning with the two  thousand  nineteen-two  thousand  twenty  school year,  for  purposes  of  the  exemption authorized by this section, the parcel's affiliated income may be no  greater  than  two  hundred  fifty thousand dollars, as so determined. As used herein, the term "affiliated income"  shall  mean  the  combined  income  of all of the owners of the parcel who resided primarily thereon on the  applicable  taxable  status date,  and  of  any  owners'  spouses  residing  primarily  thereon. For exemptions on final assessment rolls to be used for the  levy  of  taxes for  the two thousand eleven-two thousand twelve school year, affiliated income shall be determined based  upon  the  parties'  incomes  for  the income  tax  year ending in two thousand nine. In each subsequent school year, the applicable income tax year shall be advanced by one year.  The term  "income"  as  used  herein  shall  have  the  same  meaning  as in subdivision four of this section.  (c) Trusts. If legal title to the property is  held  by  one  or  more trustees,  the  beneficial  owner  or  owners shall be deemed to own the property for purposes of this subdivision.  (d) Farm dwellings not owned by the resident. (i) If  legal  title  to the farm dwelling is held by an S-corporation or by a C-corporation, the exemption  shall  be  granted  if  the  property  serves  as the primary residence of a shareholder of such corporation.  (ii) If the legal title to the farm dwelling is held by a partnership, the exemption shall be granted if the property  serves  as  the  primary residence of one or more of the partners.  (iii)  If  the  legal  title to the farm dwelling is held by a limited liability company, the exemption shall be granted if the property serves as the primary residence of one or more of the owners.  (iv)  Any  information  deemed  necessary  to  establish  shareholder, partner  or  owner  status  for eligibility purposes shall be considered confidential and exempt from the freedom of information law.  (e) Dwellings owned by limited partnerships. (i) If legal title  to  a dwelling  is  held  by  a  limited  partnership,  the exemption shall be granted if the property serves as the primary residence of one  or  more of the partners, provided that the limited partnership which holds title to  the  property  does  not engage in any commercial activity, that the limited partnership was lawfully created to hold title solely for estate planning and asset protection purposes, and that the partner or partners who primarily reside thereon personally pay all  of  the  real  property taxes and other costs associated with the property's ownership.  (ii)  Any information deemed necessary to establish partner status for eligibility purposes shall be considered confidential  and  exempt  from the freedom of information law.   4.  Senior  citizens.  The  enhanced  exemption  for property owned by senior  citizens  shall  be  provided  where  all   of   the   following requirements are satisfied:  (a)  Age.  (i)  All of the owners must be at least sixty-five years of age or older as of the date specified herein, or in the case of property owned by husband and wife or by siblings, one of the owners must  be  at least  sixty-five  years  of  age  as of that date and the property must serve as the primary residence of that owner. For the two  thousand--two thousand  one  school year, eligibility for the exemption shall be based upon age as of December thirty-first, two thousand. For each  subsequent school year, the applicable date shall be advanced by one year.  (ii) The term "siblings" as used herein shall have the same meaning as set forth in section four hundred sixty-seven of this article.  (iii)  In  the case of property owned by husband and wife, one of whom is sixty-five years of age or over, the exemption, once  granted,  shall not be rescinded solely because of the death of the older spouse so long as  the  surviving  spouse  is at least sixty-two years of age as of the date specified in this paragraph.  (b) Income. (i) The combined income of all of the owners, and  of  any owners'  spouses residing on the premises, may not exceed the applicable income standard specified herein.  (A) For final assessment rolls to be completed prior to  two  thousand three,  eligibility for the exemption shall be based upon income for the income tax year immediately preceding the date of making application for the exemption, and the income standard shall be sixty thousand dollars.  (B) For final assessment rolls to be completed in two thousand  three, eligibility  for the exemption shall be based upon income for the income tax year ending in two thousand one, and the income  standard  shall  be the  previously-applicable  income  standard  of  sixty thousand dollars increased by the cost-of-living-adjustment percentage for  two  thousand one.  For  purposes  of  this computation, the cost-of-living-adjustment percentage for two thousand  one  shall  be  equal  to  the  "applicable increase  percentage"  used  by the United States commissioner of social security to determine monthly social security benefits  payable  in  two thousand  one  to  individuals, as provided by subsection (i) of section four hundred fifteen of title forty-two of the United States code.  (C) For final assessment rolls to be completed in each  ensuing  year, the applicable income tax year, cost-of-living-adjustment percentage and applicable  increase  percentage  shall all be advanced by one year, and the income standard shall be the previously-applicable  income  standard increased  by  the  new  cost-of-living-adjustment  percentage. If there should be a year for which there is no  applicable  increase  percentage due  to  a  general  benefit increase as defined by subdivision three of subsection (i) of section four hundred fifteen of title forty-two of the United States code, the applicable increase percentage for  purposes  of this  computation  shall be deemed to be the percentage which would have yielded that general benefit increase.  (C-1)  Notwithstanding  the  provisions  of   clause   (C)   of   this subparagraph,  in  the  event  that a senior citizen, as a result of the death of his or her spouse, experiences a decrease in income  such  that he  or  she  would  qualify  for  the  enhanced  exemption if his or her eligibility were based upon his or her income for the  income  tax  year immediately  subsequent  to  the income tax year that would otherwise be applicable pursuant  to  clause  (C)  of  this  subparagraph,  then  the eligibility  of  such  senior  citizen for the enhanced exemption on the applicable taxable status date shall be determined based upon his or her income for such later income tax year;  provided  that  the  income  tax return  for  such  year  has  been  filed  with the appropriate state or federal agency and a copy thereof has been filed with the assessor on or before the applicable taxable status date,  or  other  documentation  of income  eligibility  has  been  filed with the assessor on or before the applicable taxable status date.  (D) In no  case  shall  an  income  standard  be  decreased  from  one assessment roll to the next.  (E)  If  the income standard initially computed for an assessment roll is not exactly equal to a multiple of fifty dollars, it shall be rounded up to the next higher multiple of fifty dollars.  (F) It shall be the responsibility of  the  commissioner  to  annually determine  all  income  standards pursuant to this subdivision beginning with final assessment rolls to be completed in two  thousand  three,  to cause  notice  thereof  to  be  published  in  the  state  register,  to disseminate notice  thereof  to  assessors,  county  directors  of  real property   tax   services,  and  such  other  parties  as  it  may  deem appropriate, and to post notice thereof on its website.  (ii) The term "income" as used herein shall mean the  "adjusted  gross income"  for  federal income tax purposes as reported on the applicant's federal or state income tax return for the applicable income  tax  year, subject   to   any   subsequent  amendments  or  revisions,  reduced  by distributions, to the extent included in federal adjusted gross  income, received  from  an  individual  retirement  account  and  an  individual retirement annuity; provided that if no such return was  filed  for  the applicable  income  tax  year,  "income"  shall  mean the adjusted gross income that would have been so reported if such a return had been filed. Provided further, that effective with exemption applications  for  final assessment  rolls  to  be  completed  in two thousand nineteen, where an income-eligibility determination is wholly  or  partly  based  upon  the income  of  one  or  more  individuals who did not file a return for the applicable income tax year, then in order  for  the  application  to  be considered complete, each such individual must file a statement with the department  showing  the source or sources of his or her income for that income tax year, and the amount or amounts thereof, that would have been reported on such a return if one had been filed. Such statement shall be filed at such time, and in such form and manner, as may be prescribed by the department, and shall be subject to the secrecy  provisions  of  the  tax  law  to the same extent that a personal income tax return would be. The department shall make such forms and instructions available for  the filing  of such statements. The local assessor shall upon the request of a  taxpayer assist such taxpayer in the filing of the statement with the department.  (iii) Any information or documentation submitted by the  applicant  in connection  with applications for or renewal of the exemption authorized under this section to verify income, shall be deemed  confidential,  and the   assessor,   any  municipal  officer  or  municipal  employees  are prohibited  from  disclosing  any  such  information,  except  for   any disclosure  necessary  in  the performance of their official duties, and except  as  authorized  by  subparagraph  (v)  of  this  paragraph.  Any unauthorized  disclosure of such information shall be deemed a violation of section eight hundred five-a of the general municipal law.  (iv) (A) Effective with applications for  the  enhanced  exemption  on final  assessment  rolls  to  be completed in two thousand nineteen, the application form shall indicate that all owners of the property and  any owners'  spouses  residing  on  the  premises  must  have  their  income eligibility verified annually by the department and must  furnish  their taxpayer  identification  numbers  in  order to facilitate matching with records of the department. The income eligibility of such persons  shall be  verified  annually  by  the  department,  and the assessor shall not request income documentation from them. All applicants for the  enhanced exemption  and  all  assessing units shall be required to participate in this program, which shall be  known  as  the  STAR  income  verification program.  The  commissioner  may,  in  his or her discretion, extend the enrollment period of the STAR income verification program  for  property owners  whose  property  received  the  enhanced  exemption on the final assessment roll completed in two thousand eighteen  but  who  failed  to enroll  in  sufficient time to have the exemption continued on the final assessment roll completed in two thousand nineteen.  Where  appropriate, the  commissioner  is  further  authorized  to  remit directly to such a property owner a payment in an amount equal to  the  difference  between the  school  tax  bill that the property owner actually received and the school tax bill that the property owner would have received  had  he  or she enrolled in a timely manner.  (B)  Effective  with  final  assessment  rolls  to be completed in two thousand  twenty,  the  commissioner  shall  also  annually  verify  the eligibility  of  such persons for the enhanced exemption on the basis of age and residency as well as income.  (C) Where the commissioner finds that the enhanced exemption should be replaced with a basic exemption because the property  is  only  eligible for  a basic exemption, he or she shall provide the property owners with notice and an opportunity to submit to the commissioner evidence to  the contrary.  Where  the  commissioner  finds  that  the enhanced exemption should be  removed  or  denied  without  being  replaced  with  a  basic exemption  because the property is not eligible for either exemption, he or she shall provide the property owners with notice and an  opportunity to  submit to the commissioner evidence to the contrary. In either case, if the owners fail to respond to such notice within forty-five days from the mailing  thereof,  or  if  their  response  does  not  show  to  the commissioner's  satisfaction  that  the  property  is  eligible  for the exemption claimed, the commissioner shall direct the assessor  or  other person  having  custody or control of the assessment roll or tax roll to either replace the enhanced exemption with  a  basic  exemption,  or  to remove  or deny the enhanced exemption without replacing it with a basic exemption, as appropriate. The commissioner shall  further  direct  such person  to  correct  the  roll  accordingly.  Such  a directive shall be  binding upon the assessor or other person having custody or  control  of the assessment roll or tax roll, and shall be implemented by such person without the need for further documentation or approval.  (D)  Notwithstanding  any provision of law to the contrary, neither an assessor nor a board of assessment review has the authority to  consider an  objection  to  the  replacement or removal or denial of an exemption pursuant to this subdivision, nor may such an action be  reviewed  in  a proceeding  to  review  an  assessment pursuant to title one or one-A of article seven of this chapter. Such an action  may  only  be  challenged before   the   department.  If  a  taxpayer  is  dissatisfied  with  the department's  final  determination,  the  taxpayer   may   appeal   that determination to the state board of real property tax services in a form and  manner  to  be prescribed by the commissioner. Such appeal shall be filed within forty-five days from the issuance of the department's final determination. If dissatisfied with the state board's determination, the taxpayer  may  seek  judicial  review  thereof   pursuant   to   article seventy-eight  of  the  civil practice law and rules. The taxpayer shall otherwise have no right to challenge such final determination in a court action, administrative proceeding or any other form  of  legal  recourse against  the  commissioner,  the  department,  the  state  board of real property tax services, the assessor or other person  having  custody  or control of the assessment roll or tax roll regarding such action.  (c)  Absence  from  residence. An exemption may be granted pursuant to this subdivision notwithstanding the fact that an owner is  absent  from the  residence  while receiving health-related care as an inpatient of a residential health care facility, as  defined  in  section  twenty-eight hundred  one  of  the  public  health  law,  provided  that  during such confinement such property is not  occupied  by  anyone  other  than  the spouse or co-owner of such owner.   4-a.  Special  situations.  (a)  Married  couples  with  two  or  more residences. A husband and wife may receive an exemption pursuant to this section on no more than one residence, unless living apart due to  legal separation.  (b)  Parcels  with  two  or  more  separate residences thereon. When a parcel includes two or more physically separate residences, an exemption may be granted pursuant to this section  to  each  residence  which  (i) serves  as  the  primary  residence of at least one of the owners of the parcel, and (ii) would be eligible for an  exemption  pursuant  to  this section  if  it  were  separately  assessed and owned exclusively by the owner or  owners  who  reside  therein,  provided  that  only  one  such exemption may be applied to the land included within the parcel.  (c)  Residences  split  by  municipal  boundaries. When an applicant's primary residence is located in two or more municipal corporations, each portion of the residence shall be eligible for the exemption provided by this section if the eligibility requirements  are  otherwise  satisfied, provided that the exemption shall be pro-rated in the same manner as the full value of the property was apportioned to each municipal corporation by  the  respective  assessors,  so that the total tax savings resulting from the exemption does  not  exceed  the  tax  savings  that  would  be received  if  the residence were contained entirely within one municipal corporation. The provisions of this paragraph shall not apply  when  the land associated with a residential structure is located in more than one municipal  corporation,  but the residential structure itself is located entirely within one of those municipal corporations.   5. Notice requirement. (a)  Generally.  Every  school  district  shall notify,  or  cause  to  be notified, each person owning residential real property in the school district of the provisions of this  section.  The provisions  of  this  subdivision  may  be  met by a notice sent to such  persons in substantially the following form: "Residential real  property may qualify for a partial exemption from school district taxes under the New  York  state  school  tax  relief  (STAR)  program.  To receive such exemption,  owners  of qualifying property must file an application with their local assessor on or before the applicable  taxable  status  date. For further information, please contact your local assessor."  (d) Third party notice. (i) A senior citizen eligible for the enhanced exemption  may  request  that  a notice be sent to an adult third party. Such request shall be made on a form prescribed by the commissioner  and shall  be  submitted  to the assessor of the assessing unit in which the eligible taxpayer resides no later than  sixty  days  before  the  first taxable  status  date to which it is to apply. Such form shall provide a section whereby  the  designated  third  party  shall  consent  to  such designation.  Such  request  shall  be  effective  upon  receipt  by the assessor. The assessor shall maintain a list of  all  eligible  property owners  who  have requested notices pursuant to this paragraph and shall furnish a copy of such list to the department upon request.  (ii) A notice shall be sent to the designated third party whenever the assessor or department sends a notice to the  senior  citizen  regarding the  possible removal of the enhanced STAR exemption. When the exemption is subject to removal because the commissioner has determined  that  the income  eligibility  requirement  is not satisfied, such notice shall be sent to the third party by the department. When the exemption is subject to  removal  because  the  assessor  has  determined  that   any   other eligibility  requirement  is not satisfied, such notice shall be sent to the third party by the assessor. Such notice shall read substantially as follows:   "On behalf of (identify senior citizen or citizens), you  are  advised that  his,  her,  or  their  enhanced STAR exemption is at risk of being removed. You are encouraged to make sure that he, she or they are  aware of  that fact, and to offer assistance if needed, although you are under no legal obligation to  do  so.  Your  cooperation  and  assistance  are greatly appreciated."  (iii)  The obligation to mail such notices shall cease if the eligible taxpayer cancels the request or ceases to qualify for the enhanced  STAR exemption.  (e) Notice not mailed or received. Failure to mail any notice required by  this  subdivision,  or the failure of a party to receive same, shall not affect the validity of the levy, collection, or enforcement of taxes on property owned by such person, or  in  the  case  of  a  third  party notice, on property owned by the senior citizen.   6.  Application  procedure.  (a) Generally. All owners of the property who primarily reside thereon and who are not subject to  the  provisions of  subdivision sixteen of this section must jointly file an application for exemption with the assessor on or  before  the  appropriate  taxable status  date. Such application may be filed by mail if it is enclosed in a postpaid envelope properly  addressed  to  the  appropriate  assessor, deposited  in  a  post office or official depository under the exclusive care of the United States postal service, and postmarked by  the  United States  postal  service on or before the applicable taxable status date. Each such application  shall  be  made  on  a  form  prescribed  by  the commissioner,  which  shall require the applicant or applicants to agree to notify the assessor if their primary residence  changes  while  their property is receiving the exemption. The assessor may request that proof of  residency  be  submitted  with  the  application.  If  the applicant requests a receipt from the assessor  as  proof  of  submission  of  the application, the assessor shall provide such receipt. If such request is made  by  other  than  personal request, the applicant shall provide the  assessor with a self-addressed postpaid envelope in which  to  mail  the receipt.  (a-1)  Final  date  for exemption application in the city of New York. Notwithstanding the provisions of this section or any other provision of law, in the city of New York, applications for the exemption  authorized pursuant  to  this  section shall be considered timely filed if they are filed on or before the fifteenth day of March of  the  appropriate  year and  in  such city all references in this section to taxable status date shall be  deemed  to  refer  to  the  fifteenth  day  of  March  of  the appropriate year.  (a-2)  Notwithstanding  any provision of law to the contrary, where an application for the "enhanced" STAR exemption authorized by  subdivision four  of this section has not been filed on or before the taxable status date, and the owner believes that good cause existed for the failure  to file the application by that date, the owner may, no later than the last day  for  paying  school  taxes  without  incurring interest or penalty, submit a written request to the commissioner asking him or her to extend the filing deadline and grant the exemption. Such request shall  contain an  explanation of why the deadline was missed, and shall be accompanied by an application,  reflecting  the  facts  and  circumstances  as  they existed  on the taxable status date. After consulting with the assessor, the commissioner may extend the filing deadline and grant the  exemption if  the  commissioner  is  satisfied that (i) good cause existed for the failure to file the application by the taxable  status  date,  and  that (ii)   the  applicant  is  otherwise  entitled  to  the  exemption.  The commissioner shall mail notice of his or her determination to such owner and the assessor. If the determination states that the commissioner  has granted  the  exemption,  the assessor shall thereupon be authorized and directed to correct the assessment  roll  accordingly,  or,  if  another person  has  custody  or  control of the assessment roll, to direct that person to make the appropriate corrections. If  the  correction  is  not made  before  school  taxes  are levied, the school district authorities shall be authorized and directed to take account of the  fact  that  the commissioner has granted the exemption by correcting the applicant's tax bill and/or issuing a refund accordingly.  (b)  Approval  or  denial of application. If the assessor is satisfied that the applicant or applicants are entitled to an  exemption  pursuant to  this  section, he or she shall approve the application and such real property shall thereafter be exempt from  school  district  taxation  as provided  herein.  If  the  assessor  determines  that  the applicant or applicants are not entitled to an exemption pursuant to this section, he or she shall, not later than ten days prior  to  the  date  for  hearing complaints  in  relation  to  assessments,  mail  to  each applicant not entitled to the exemption a notice of denial of that application for the exemption herein for that year; except that in the  city  of  New  York, such  notice  shall  be  mailed  not later than thirty days prior to the final date for filing an assessment appeal as  set  forth  in  paragraph (b-1)  of  this  subdivision.  The  notice  of denial shall specify each reason for such denial and shall be sent on a  form  prescribed  by  the commissioner.  Failure  to mail any such notice of denial or the failure of any person to  receive  such  notice  shall  not  prevent  the  levy, collection  and  enforcement  of  the  taxes  on  property owned by such person.  (b-1) Final date for filing assessment appeal in the city of New York. Notwithstanding any other provision of law, in the city of New York, the final date for filing an assessment appeal with respect to the denial of applications pursuant to this section only shall be the thirty-first day of May of the appropriate year. With respect to assessment appeals filed  pursuant to this paragraph after the final date for filing an assessment appeal as set forth in chapter seven of the New York city  charter,  the only issues that will be determined by the tax commission are those that relate  to  the  denial of an application for exemption pursuant to this section.  (d) Prior year assessment rolls. (i) Where school district  taxes  are levied  upon prior year assessment rolls, the assessing unit may adopt a local law  allowing  STAR  applications  for  each  school  year  to  be submitted  on  or  before  the taxable status date of the current year's assessment roll. Such local law shall apply to  assessment  rolls  based upon  taxable  status  dates occurring on or after the effective date of such local law and shall remain applicable thereafter unless  and  until it should be repealed or rescinded.  (ii)  When  such  a local law is in effect the eligibility of property for a STAR exemption for a school year shall be based upon the condition of the property as of the  taxable  status  date  of  the  prior  year's assessment  roll,  and  the  ownership of the property as of the taxable status  date  of  the  current  year's  assessment  roll.  When  a  STAR application  is  approved,  the  prior  year's  assessment roll shall be revised accordingly. When a STAR application is  denied,  the  applicant may  seek  administrative  and judicial review of the denial, subject to the same timing constraints that apply  to  persons  seeking  review  of assessments appearing on the current year's assessment roll.  (iii)  For  purposes  of  this  paragraph,  the  term  "current year's assessment roll" means the final assessment roll which  is  required  by law  to be completed in the calendar year that contains the first day of the school year in question, and the term "prior year's assessment roll" means the final  assessment  roll  which  was  required  by  law  to  be completed  in  the calendar year immediately preceding the calendar year that contains the first day of the school year in question.  (e) Except in the city of New York, notwithstanding the provisions  of paragraph (a) of this subdivision, an application for such exemption may be filed with the assessor after the appropriate taxable status date but not  later  than  the  last  date  on  which  a petition with respect to complaints of assessment may be filed, where failure to  file  a  timely application resulted from: (i) a death of the applicant's spouse, child, parent, brother or sister; or (ii) an illness of the applicant or of the applicant's  spouse,  child,  parent,  brother or sister, which actually prevents the applicant from filing on a timely basis, as certified by  a licensed  physician. The assessor shall approve or deny such application as if it had been filed on or before the taxable status date.   7. Entry on assessment roll. (a) The assessed value of  any  exemption granted pursuant to this section shall be entered by the assessor on the assessment  roll  with  the  taxable  property,  with  the amount of the exemption entered in a separate column.  (b) The exemption provided by this section shall be applied after  all other  exemptions  allowed  by  law  have been subtracted from the total assessed value of the parcel, notwithstanding the provisions of any  law to the contrary.  (c)  In no event shall the exemption authorized by this section exceed the total assessed value of the parcel less all other exemptions allowed by law.  (d) Where a person is the owner of a  present  interest  in  a  parcel under  a  life estate, or is a vendee in possession under an installment contract of sale, or is a beneficial owner under  a  trust,  or  resides primarily  in  a dwelling which is owned by a corporation or partnership but is nonetheless eligible for exemption pursuant to paragraph  (d)  or (e)  of  subdivision  three of this section, and that person has applied  for and been granted an exemption pursuant to this section, that  person shall  be  deemed  to  be  the  owner of the parcel for purposes of this section and section five hundred two  of  this  chapter.  Provided  that duplicate tax statements shall be sent upon request to the remainderman, vendor,  trustee,  or corporation or partnership that owns the dwelling, whichever is applicable; provided further that the provisions of section nine hundred twenty-three of this  chapter  regarding  the  issuance  of duplicate  tax  statements in certain cases shall apply to such requests so far as practicable. Nothing contained in this  subdivision  shall  be construed  as  affecting  in any way the validity or enforceability of a real property tax, or the applicability of interest  or  penalties  with respect  thereto,  when an owner's name has not been accurately recorded or when a duplicate tax statement is not sent or received.   8. Effect of exemption. The exemption authorized by this section shall have the effect specified in section one thousand three hundred six-a of this chapter. The exemption shall not  be  considered  when  determining state aid to education pursuant to section thirty-six hundred two of the education  law, when determining school district debt limits pursuant to law, when determining the amount of taxes to be levied by or  on  behalf of  a school district, when calculating tax rates for a school district, when  apportioning  taxes  between  or  among  school  districts,   when apportioning  taxes  among  classes  in  a  special assessing unit under article eighteen of this chapter, or  when  apportioning  taxes  between classes  in  an  approved  assessing unit under article nineteen of this chapter.   9-a. Duration of exemption; basic exemption. The basic exemption, once granted, shall  remain  in  effect  until  discontinued  in  the  manner provided in this section.   9-b.  Duration  of  exemption;  enhanced  exemption.  (a) The enhanced exemption, once granted, shall remain in effect  until  discontinued  in the manner provided in this section.  (b)  The  assessor shall review the continued compliance of recipients of the enhanced exemption with the applicable  ownership  and  residency requirements  to  the same extent as if they were receiving a basic STAR exemption.   10. Proof of residency. (a) Requests. From time to time, the  assessor may  request proof of residency from the owner or owners of any property which is exempt pursuant to this  section.  In  addition,  the  assessor shall  request  proof  of  residency  from any such owner or owners when requested to do so by the commissioner.  (b) Timing. A request for proof of residency shall be mailed at  least sixty days prior to the ensuing taxable status date. The owner or owners shall  submit  proof of their residency to the assessor on or before the ensuing taxable status date.  (c) Review of submission. The burden shall be on the owner  or  owners to  establish  that  the  property  is  their primary residence. If they submit proof of residency on or before the ensuing taxable status  date, and  the submission demonstrates to the assessor's satisfaction that the property is the primary residence of one or more of the owners  thereof, and  if  the  requirements  of this section are otherwise satisfied, the exemption shall continue in effect on the ensuing  tentative  assessment roll.    Otherwise,  the assessor shall discontinue the exemption on the next ensuing tentative assessment roll as provided  herein,  and,  where appropriate, shall proceed as further provided herein.   11.  Discontinuance  of  exemption.  (a) Generally. The assessor shall discontinue any exemption granted pursuant to this section if it appears that: (i) the property may not be the primary residence of the owner  or owners  who  applied  for  the exemption, (ii) title to the property has  been transferred to a  new  owner  or  owners,  or  (iii)  the  property otherwise may no longer be eligible for the exemption.  (b)  Rights  of  owners.  Upon  determining  that an exemption granted pursuant to this section should be discontinued, the assessor shall mail a notice so stating to the owner or owners thereof at the  time  and  in the  manner  provided  by section five hundred ten of this chapter. Such owner or owners shall be entitled to seek  administrative  and  judicial review  of such action in the manner provided by law, provided, that the burden shall be on such owner or owners to establish eligibility for the exemption.  (c) Transfers of title.  When  the  assessor  has  received  a  report pursuant  to  section  five  hundred  seventy-four  of this chapter of a transfer of title to real property which  is  exempt  pursuant  to  this section,  the  assessor  shall  discontinue the exemption as required by subdivision sixteen of this section. The assessor  shall  not  implement the  provisions of section five hundred twenty of this chapter upon such a transfer, except to the extent that the property may also be receiving one or more other exemptions.  (d) Notice not mailed or received. The failure to mail any such notice or application, or the failure of the owner or  owners  to  receive  the same,  shall  not  prevent  the  levy, collection and enforcement of the payment of the taxes on such real property.   12. Revocation of prior exemptions.  (a)  Generally.  In  addition  to discontinuing  the  exemption  on  the next ensuing tentative assessment roll, if the assessor determines that the property  improperly  received the  exemption  on  one  or  more of the six preceding assessment rolls, provided that final assessment rolls that  were  filed  prior  to  April first,  two  thousand ten shall not be subject to the provisions of this subdivision, or is advised by the department that the applicable  income standard  was not satisfied with regard to a property which received the enhanced exemption on one or more  of  those  rolls,  he  or  she  shall proceed  to revoke the improperly granted prior exemption or exemptions. If the assessor is advised that the department was unable to verify  the income   eligibility   of   one  or  more  participants  in  the  income verification program, the assessor  shall  mail  that  person  or  those persons  a notice in a form prescribed by the department requesting that the person or persons document their income in the same  manner  and  to the  same  extent as if the person or persons were submitting an initial application  for  the  enhanced   STAR   exemption.   If   such   income documentation is not provided within forty-five days of such request, or if  the documentation provided does not establish the eligibility of the person or persons to the assessor's  satisfaction,  the  assessor  shall treat  the  exemption  as an improperly granted exemption and proceed in the manner provided by this subdivision.  (b) Procedure. The assessed value attributable to each such improperly granted exemption shall  be  entered  separately  on  the  next  ensuing tentative  or  final  assessment  roll.  The  provisions of section five hundred fifty-one or five hundred fifty-three of this chapter,  relating to  the entry by the assessor of omitted real property on a tentative or final assessment  roll,  shall  apply  so  far  as  practicable  to  the revocation procedure in this subdivision, except that:  (i)  the  tax rate to be applied to any revoked exemption shall be the tax rate that was applied to the corresponding assessment roll,  (ii) interest shall then be added to each such  product  at  the  rate prescribed by section nine hundred twenty-four-a of this chapter or such other  law  as may be applicable for each month or portion thereon since the levy of taxes upon the assessment  roll  or  rolls  upon  which  the exemption was granted, and  (iii)  for  improperly granted STAR exemptions occurring on assessment rolls  filed  on  and  after  April  first,  two  thousand  thirteen,  a processing  fee  of five hundred dollars shall be added. Such processing fee imposed pursuant to  this  subdivision  shall  be  retained  by  the assessing unit and the state shall be entitled to no part thereof.  (c)  Rights  of  owners. Each owner or owners shall be given notice of the possible revocation under this subdivision  of  their  exemption  or exemptions  at  the  time  and  in  the  manner provided by section five hundred ten or five hundred fifty-three of this chapter,  and  shall  be entitled  to  seek  administrative and judicial review of such action in the manner provided by law.  (d) Applicability. The provisions of this  subdivision  shall  not  be applicable  to  the  extent  that  the  prior exemptions shall have been renounced pursuant to section four hundred ninety-six of this article.  (e) Records retention. Nothing in this section shall be  construed  to impose  upon  an  assessor  a duty to retain records for a period longer than the period prescribed pursuant to the  arts  and  cultural  affairs law,  or  to  require  an  assessor  to conduct a review of a taxpayer's eligibility when the assessor has disposed of the  relevant  records  in accordance with such law.   13. Penalty for material misstatements. (a) Generally. If the assessor should   determine   that  there  was  a  material  misstatement  on  an application for exemption pursuant to this section that was filed on  or after October first, two thousand ten, he or she shall proceed to impose a  penalty  tax against the property. If the application was filed prior to October first, two thousand thirteen, the penalty tax  shall  be  one hundred dollars, provided that the assessor's determination must be made within  three years of the filing of the application. If the application was filed on or after October first, two thousand thirteen, the  penalty tax  shall  be  either  one  hundred  dollars  or  twenty percent of the improperly received tax savings, whichever is greater not to exceed  two thousand  five  hundred  dollars,  provided  further that the assessor's determination must be made  within  six  years  of  the  filing  of  the application.  An  application  shall  be  deemed  to  contain a material misstatement for this purpose when either:  (i) the applicant or applicants claimed that the  property  was  their primary residence, when it was not; or  (ii)  the  applicant  or applicants claimed that they had relinquished the STAR exemption on their former primary  residence,  when  they  knew they had not; or  (iii)  in  the  case  of an application for the enhanced exemption for property  owned  by  senior  citizens,  the  applicant   or   applicants misrepresented  their  age  or  income so as to appear eligible for such exemption, when they were not.  (b) Procedure. When the assessor determines that a penalty tax  should be  imposed,  the  penalty  tax  shall  be  entered  on the next ensuing tentative or final assessment roll. The procedures set forth in  section five  hundred  fifty-one  or  five  hundred fifty-three of this chapter, relating to the entry by the assessor of  omitted  real  property  on  a tentative  or  final  assessment roll, shall apply so far as practicable when imposing a penalty tax pursuant to this subdivision. Each owner  or owners shall be given notice of the possible imposition of a penalty tax at  the  time  and in the manner provided by section five hundred ten or five hundred fifty-three of this chapter, and shall be entitled to  seek administrative and judicial review of such action in the manner provided by  law.  Any  penalty tax imposed pursuant to this subdivision shall be retained by the assessing unit and the state shall  be  entitled  to  no part thereof.  (c)  Additional consequences. A penalty tax may be imposed pursuant to this subdivision whether or not the improper exemption has been  revoked in the manner provided by this section. In addition, a person or persons who are found to have made a material misstatement shall be disqualified from   further   exemption   pursuant  to  this  section,  and  if  such misstatement appears on an application filed on or  after  April  first, two thousand nineteen, from the credit authorized by subsection (eee) of section  six  hundred  six of the tax law, for a period of six years. In addition, such person or persons may be subject to prosecution  pursuant to the penal law.  (d)  Applicability.  The  provisions  of this subdivision shall not be applicable to the extent that  the  prior  exemptions  shall  have  been renounced pursuant to section four hundred ninety-six of this article.  (e)  Records  retention. Nothing in this section shall be construed to impose upon an assessor a duty to retain records  for  a  period  longer than  the  period  prescribed  pursuant to the arts and cultural affairs law, or to require an assessor to  conduct  a  review  of  a  taxpayer's eligibility  when  the  assessor has disposed of the relevant records in accordance with such law.  (f) Assessor notification. The assessor shall inform the  commissioner whenever  a  person  or  persons  is  found  to  have  made  a  material misstatement on an application for  the  exemption  authorized  by  this section.   14.  STAR  registration  program. (a) The commissioner shall establish and implement a program under which all owners of  properties  initially applying  for  and  those  receiving  a  basic  STAR  exemption shall be required to be registered with the commissioner in the manner,  at  such intervals,  and  by  the  date  or dates prescribed by the commissioner, provided that:  (i) Owners of properties that are receiving the basic  STAR  exemption during  the two thousand twelve--two thousand thirteen school year shall be required to initially register with the commissioner  no  later  than April first, two thousand fourteen;  (ii) The commissioner shall provide written notice of the registration requirement  to  such owners at least sixty days before the registration deadline established pursuant to subparagraph (i) of this paragraph;  (iii) An owner who fails to register by the registration  deadline  so established  shall be permitted to file a petition with the commissioner requesting that the commissioner excuse such failure and accept  a  late registration, provided that such petition shall explain why such failure occurred  and shall be filed no later than one year after such deadline, and  provided  further  that  if  the  commissioner   accepts   a   late registration  after  having  directed  the  removal  of  the  Basic STAR exemption from the property to which the registration pertains, then  in lieu  of  directing  the  exemption  to be restored, the commissioner is authorized in his or her discretion to remit directly  to  the  property owner  or  owners  the tax savings that the exemption would have yielded had it not been removed, and to further direct the assessor  to  restore the  exemption  on  a prospective basis without a new application unless the assessor has reason to believe that the property owner is no  longer eligible for reasons other than a failure to register;  (iv)  After the initial registration program has been implemented, the commissioner shall endeavor to confirm  the  continuing  eligibility  of STAR  recipients  through  means  other than re-registration, such as by reviewing the relevant data appearing on personal  income  tax  returns. The  commissioner  may  reinstate the registration requirement, provided that in no event may the commissioner require registered STAR recipients  to re-register more than once in a three-year period  if  their  primary addresses have not changed.  (b)  Notwithstanding  any  provision  of  law  to  the  contrary,  the commissioner shall direct the removal or denial of a STAR  exemption  if he or she finds that one or more of the following conditions exist:  (i)  all  owners  of  the  property  have  not  been registered by the prescribed date and no acceptable justification has been  presented  for such failure;  (ii) the owners of the property are improperly receiving multiple STAR exemptions;  (iii)  the  property does not serve as the primary residence of any of its owners;  (iv) the applicable income limitation has been exceeded; or  (v) the property is otherwise ineligible for the STAR exemption.  (c) Prior to directing that a STAR  exemption  be  removed  or  denied pursuant  to  this  subdivision,  the  commissioner  shall  provide  the property owners with notice and an opportunity to show the  commissioner that  the  property  is eligible to receive the exemption. If the owners fail to respond to such notice within forty-five days from  the  mailing thereof,  or  if  their  response  does  not  show to the commissioner's satisfaction that the  property  is  eligible  for  the  exemption,  the commissioner shall direct the assessor or other person having custody or control  of  the  assessment  roll  or  tax  roll  to remove or deny the exemption, and to correct the roll accordingly. Such a  directive  shall be  binding  upon the assessor or other person having custody or control of the assessment roll or tax roll, and shall  be  implemented  by  such person without the need for further documentation or approval.  (d) Notwithstanding the provisions of paragraph (b) of subdivision six of  this  section,  neither an assessor nor a board of assessment review has the authority to consider an objection to the removal or  denial  of an  exemption  pursuant  to  this subdivision, nor may such an action be reviewed in a proceeding to review an assessment pursuant to  title  one or  one-A  of  article seven of this chapter. Such an action may only be challenged before the department of taxation and finance. If a  taxpayer is  dissatisfied with the department's final determination, the taxpayer may appeal that determination to the state board of  real  property  tax services in a form and manner to be prescribed by the commissioner. Such appeal  shall  be  filed within forty-five days from the issuance of the department's final determination. If dissatisfied with the state board's determination, the taxpayer may seek judicial review thereof pursuant to article seventy-eight of the civil practice law and rules. The  taxpayer shall otherwise have no right to challenge such final determination in a court  action,  administrative  proceeding  or  any  other form of legal recourse against  the  commissioner,  the  department  of  taxation  and finance,  the state board of real property tax services, the assessor or other person having custody or control of the  assessment  roll  or  tax roll regarding such action.  (e) The commissioner shall be entitled to utilize information from any filings  of  a  taxpayer  with the department of taxation and finance in conjunction with the STAR registration program.   14-a. Implementation of certain  eligibility  determinations.  When  a taxpayer's  eligibility  for  exemption  under this section for a school year is affected by a determination made in accordance with subparagraph (iv) of paragraph (b) of subdivision four of this section  or  paragraph (c)   or   (d)   of  subdivision  fourteen  of  this  section,  and  the determination is made after the school district taxes  for  that  school year  have  been  levied,  the  provisions  of this subdivision shall be applicable.  (a)  If  the  determination  restores  or  increases  the   taxpayer's exemption  for that school year, the commissioner is authorized to remit the excess directly to the property owner  upon  receiving  confirmation that  the taxpayer's original school tax bill has been paid in full. The amounts  payable  by the commissioner under this paragraph shall be paid from the account established for the payment of STAR  benefits  to  late registrants   pursuant   to  subparagraph  (iii)  of  paragraph  (a)  of subdivision fourteen of this section. When the  commissioner  implements the determination in this manner, he or she shall so notify the assessor and  county  director  of  real property tax services, but no correction shall be made to the assessment roll or tax roll for that  school  year, and  no refund shall be issued by the school authorities to the property owner or his or her agent for the excessive amount of school taxes  paid for that school year.  (b)  If  the determination removes, denies or decreases the taxpayer's exemption for that  school  year,  the  commissioner  is  authorized  to collect the shortfall directly from the owners of the property, together with  interest, by utilizing any of the procedures for collection, levy, and lien of personal income tax set forth in article twenty-two  of  the tax  law,  and  any  other  relevant  procedures  referenced  within the provisions  of  such  article.  When  the  commissioner  implements  the determination in this manner, he or she shall so notify the assessor and county  director  of real property tax services, but no correction shall be made to the assessment roll or tax roll for that school year, and  no corrected  school tax bill shall be sent to the taxpayer for that school year.   15. Recoupment of exemptions by commissioner. (a)  Generally.  If  the commissioner  should determine, based upon data collected under the STAR registration program, that property improperly received the  basic  STAR exemption  in  the  current  school  year  or  one  or more of the three preceding school years, the commissioner shall treat the exemption as an improperly granted exemption and proceed in the manner provided by  this subdivision;  provided that final assessment rolls that were filed prior to April first,  two  thousand  eleven  shall  not  be  subject  to  the provisions of this subdivision.  (b)  Procedure.  The  tax savings attributable to each such improperly granted exemption shall be collected  from  the  owners  whose  property improperly received the exemption for the applicable year, together with interest  as  specified  in  this  subdivision,  by utilizing any of the procedures for collection, levy, and lien of  personal  income  tax  set forth  in  article  twenty-two  of  the  tax  law,  any  other  relevant procedures referenced within the provisions of  that  article,  and  any other law as may be applicable, so far as practicable when recouping the exemption amount pursuant to this subdivision, except that:  (i) in order for the recoupment procedure to be considered timely, the notice required by subparagraph (ii) of this paragraph must be mailed no later than three years after the conclusion of the school year for which the  exemption  in  question was granted, or in the case of an exemption that was granted for the  two  thousand  twelve--two  thousand  thirteen school year, no later than September thirtieth, two thousand sixteen;  (ii)  prior  to  directing  that  an  improperly  granted exemption be recouped pursuant to this subdivision, the  commissioner  shall  provide the  owners with notice and an opportunity to show the commissioner that the exemption was properly granted. If the owners  fail  to  respond  to such notice within forty-five days from the mailing thereof, or if their response  does  not  show  to  the  commissioner's satisfaction that the eligibility requirements were in fact satisfied, the commissioner  shall  proceed  with  the  recoupment  of  the  improperly granted exemption in accordance with the provisions of this subdivision; and  (iii)  notwithstanding  the provisions of paragraph (b) of subdivision six of this section, neither an  assessor  nor  a  board  of  assessment review  has  the authority to consider an objection to the recoupment of an exemption pursuant to this subdivision, nor may  such  an  action  be reviewed  in  a proceeding to review an assessment pursuant to title one or one-A of article seven of this chapter. Such an action  may  only  be challenged  before  the department. If an owner is dissatisfied with the department's  final   determination,   the   owner   may   appeal   that determination  to the board in a form and manner to be prescribed by the commissioner. Such appeal shall be filed within forty-five days from the issuance of the department's final determination. If  dissatisfied  with the  board's  determination,  the owner may seek judicial review thereof pursuant to article seventy-eight of the civil practice law  and  rules. The  owner  shall  otherwise  have  no  right  to  challenge  such final determination in a court action,  administrative  proceeding,  including but  not  limited  to  an  administrative proceeding pursuant to article forty of the tax law, or any other form of legal  recourse  against  the commissioner,  the  department,  the  board,  the assessor, or any other person, state agency, or local government.  (c) The amount to be recouped for each improperly  received  exemption shall have interest added at the rate prescribed by section nine hundred twenty-four-a of this chapter or such other law as may be applicable for each  month  or portion thereof since the levy of school taxes upon such assessment roll.  (d) In the event that a revocation  of  prior  exemption  pursuant  to subdivision  twelve  of  this section or a voluntary renunciation of the STAR exemption pursuant to  section  four  hundred  ninety-six  of  this article  has  occurred,  the provisions of this subdivision shall not be applicable to the exemptions so revoked or voluntarily renounced.   15-a. Direct payments. Notwithstanding any provision  of  law  to  the contrary, when the commissioner finds that a property owner was eligible for the STAR exemption authorized by this section on an assessment roll, but  the  exemption was not taken into account in the calculation of the property owner's school tax bill due to an administrative error, and the property owner or his or her agent paid an excessive  amount  of  school taxes  on  the  property  as a result, the commissioner is authorized to remit directly to the property owner  the  tax  savings  that  the  STAR exemption  would  have yielded if the STAR exemption had been taken into account in the calculation of  that  taxpayer's  school  tax  bill.  The amounts  payable  under  this  section  shall  be  paid from the account established for  the  payment  of  STAR  benefits  to  late  registrants pursuant  to subparagraph (iii) of paragraph (a) of subdivision fourteen of this section. Where  such  a  payment  has  been  made,  neither  the property owner nor his or her agent shall be entitled to a refund of the excessive  amount  of school taxes paid on account of the administrative error.   16. Transition to personal  income  tax  credit.  (a)  Beginning  with assessment rolls used to levy school district taxes for the two thousand sixteen--two  thousand  seventeen  school  year,  no  application for an exemption under this section may be approved unless at least one of  the applicants  held title to the property on the taxable status date of the assessment roll that was used to levy school district taxes for the  two thousand  fifteen--two thousand sixteen school year and the property was granted an exemption pursuant to this section on that  assessment  roll. In  the  event  that  an  application  is submitted to the assessor that cannot be approved due to this restriction, the  assessor  shall  notify  the applicant that he or she is required by law to deny the application, but  that,  in  lieu  of  a  STAR exemption, the applicant may claim the personal income tax credit authorized by subsection (eee) of section six hundred  six  of  the  tax  law  if eligible, and that the applicant may contact the department of taxation and finance for further  information. The  commissioner  shall  provide  a form for assessors to use, at their option, when making this notification. No STAR exemption may be  granted on  the  basis  of  an  application  that  is not approvable due to this restriction.  (b) Where property received an exemption pursuant to this  section  on an  assessment  roll  used  to  levy  school  district taxes for the two thousand fifteen--two thousand sixteen school year, and at least one  of its owners held title to the property on the taxable status date of such assessment   roll,  the  exemption  shall  continue  to  be  granted  on subsequent assessment rolls without regard to  the  provisions  of  this subdivision  as  long as all applicable requirements of this section are satisfied. In addition, such exemption shall be subject to  modification as follows:  (i)  A  basic  STAR  exemption  shall  be  changed to an enhanced STAR exemption if the owners and spouses primarily residing on  the  property file  a  timely application showing that their ages and incomes meet the requirements of subdivision four of this section.  (ii) An enhanced STAR exemption shall  be  changed  to  a  basic  STAR exemption  if  the  combined  income of the owners and spouses primarily residing on the property increases above the limit  set  by  subdivision four of this section, subject to the provisions of subparagraph (iii) of this  paragraph,  provided that if their combined income falls below the limit set by subdivision four of  this  section  in  the  future,  their enhanced STAR exemption may be resumed upon timely application.  (iii) A STAR exemption shall be discontinued if the combined income of the  owners  and  spouses  primarily  residing on the property increases above the limit set by subdivision three of this section, provided  that if  their  income  falls  below  such  limit  in  the future, their STAR exemption may be resumed upon timely application.  (iv) A STAR exemption shall be permanently discontinued if the  owners fail  to  satisfy  the applicable residency or ownership requirement, or both.  (c) If the owners of a parcel that is  receiving  the  STAR  exemption authorized  by this section want to claim the personal income tax credit authorized by subsection (eee) of section six hundred six of the tax law in lieu of such exemption, they may do so by switching to the credit  in the   manner   provided   by  subdivision  seventeen  of  this  section. Alternatively, they may renounce that exemption and  make  any  required payments  in  the  manner provided by section four hundred ninety-six of this chapter. Any such switch to the credit  or  renunciation  shall  be irrevocable.  (d)  Notwithstanding  the  foregoing  provisions  of this subdivision, where a property served as the primary residence of a married couple  on the  taxable  status  date  of the assessment roll that was used to levy school district taxes for the two thousand fifteen--two thousand sixteen school year, but only one of the spouses held title to the  property  on that  taxable status date, and that spouse has since died and his or her interest in the property has been inherited  by  his  or  her  surviving spouse,  the surviving spouse shall be entitled to apply for and receive an exemption under this section to the same extent as if he or  she  had held title to the property on that taxable status date.  (e) The provisions of this subdivision shall apply to all applications for  STAR exemptions beginning with assessment rolls used to levy school  district taxes for the  two  thousand  sixteen--two  thousand  seventeen school  year,  including  those submitted prior to the effective date of this subdivision. If any application was approved prior to the effective date of this subdivision that is not approvable hereunder, such approval shall  be deemed void, and the assessor shall provide the applicant with the notice required by paragraph (a) of this subdivision, provided  that if  a  STAR exemption is granted on a tentative or final assessment roll or tax roll on the basis  of  an  application  that  is  not  approvable hereunder,  the  assessor,  or  other local official or officials having custody and control of such roll, is hereby authorized and  directed  to remove such exemption from such roll without regard to the provisions of title  three  of  article  five  of  this chapter or any comparable laws governing the correction of administrative errors  on  assessment  rolls and  tax rolls, notwithstanding any provision of law to the contrary. If an application was  submitted  prior  to  the  effective  date  of  this subdivision but is not approvable hereunder, the applicant may apply for advance  payment  of  the  personal  income  tax  credit  authorized  by subsection (eee) of section six hundred six of the tax law for  the  two thousand  sixteen  taxable  year, if eligible, in the manner provided by paragraph ten of such subsection, even  if  the  property  was  acquired prior to January first of the taxable year.   17.  Switching  to the STAR credit. (a) The commissioner shall develop procedures to enable property owners to switch from the  STAR  exemption to the STAR credit in as simple and expeditious a manner as practicable.  (b)  Such  procedures may allow STAR exemption recipients to switch to the STAR credit in the course of applying for the STAR credit.  When  an applicant  does  so,  the  commissioner  shall  advise  the  appropriate assessor as soon as practicable that such individual is switching or has switched to the STAR credit, that no  further  STAR  exemptions  may  be granted  to  the property in question after the switch takes effect, and if appropriate, that the property's STAR  exemption  should  be  removed from  the  most  recently  filed  assessment roll and/or the forthcoming assessment roll. The assessor or other party having custody and  control of  the  assessment  roll  shall thereupon be authorized and directed to proceed accordingly.  (c) Such procedures may also  set  forth  instances  under  which  the commissioner  may direct such a switch to the STAR credit to be deferred for one year, with the resulting differential, if any, to  be  added  to the  applicant's  initial  STAR credit. As used in this subdivision, the term "resulting differential" means the amount by which the STAR  credit that  the  applicant  did  not receive due to the deferral of the switch exceeds the STAR exemption tax savings that the  applicant  did  receive due  to  the  deferral  of  the switch. The commissioner is specifically authorized to direct a switch to the STAR credit to be so deferred under the following circumstances:  (i) A STAR credit switch may be deferred if the  application  for  the credit  is  submitted  after a cutoff date set by the commissioner. When setting a cutoff date, the commissioner shall take into account the time required  to  ensure  that  the  STAR  exemptions  of  all  STAR  credit applicants in the assessing unit will be removed before school tax bills are prepared. The commissioner shall specify the applicable cutoff dates after  taking  into  account  local  assessment calendars, provided that different cutoff dates may be  set  for  municipalities  with  different assessment calendars, and provided further that any such cutoff date may be  no  earlier  than  the  fifteenth day prior to the date on which the applicable final assessment roll is required by law to be completed  and filed.  (ii)  A  STAR  credit  switch  may  be  deferred if the application is submitted after school tax bills have  been  prepared,  but  before  the first  day  of  January of the following year, or such later date as the commissioner shall establish.  (iii)  A  STAR  credit  switch may be deferred if the applicant's STAR exemption is not removed from the applicable assessment roll in a timely manner due to inadvertence or other reasons.  (d) Such  procedures  may  also  provide  that  Basic  STAR  exemption recipients  whose incomes exceeds the limit applicable to that exemption may be automatically enrolled in and switched to the Basic  STAR  credit if their incomes do not exceed the limit applicable to that credit. Each affected  individual  shall  be  notified  of  the  switch  as  soon  as practicable. Each such notice shall also advise  the  individual  either that the commissioner has determined that the individual is eligible for the  credit,  or that the individual must furnish additional information to enable the commissioner to determine the individual's eligibility, as the case may be. In either case, once the  individual  receives  a  STAR credit  check  and deposits or endorses it, he or she shall be deemed to have consented to the switch and shall not be permitted to  switch  back to the exemption.