2023 New York Laws › RPT - Real Property Tax › Article 13 - Special Provisions Relating to School Districts › 1306-A - Effect of School Tax Relief (Star) Exemption Upon School District Taxes; State Aid.

§  1306-a.  Effect  of  school tax relief (STAR) exemption upon school
district taxes; state aid. 1. Levy of taxes; determination of taxes due.
The amount of taxes to be levied for any school year shall be determined
without regard to the fact that state aid will be  payable  pursuant  to
this  section.  In  addition,  the tax rate for any school year shall be
determined as if no  parcels  were  exempt  from  taxation  pursuant  to
section  four hundred twenty five of this chapter. However, the tax rate
so determined shall be applied to the taxable  assessed  value  of  each
parcel  after  accounting  for  all applicable exemptions, including the
exemption  authorized  by  section  four  hundred  twenty-five  of  this
chapter.
2.  Tax savings. (a) (i) The tax savings for each parcel receiving the
exemption authorized by section four hundred twenty-five of this chapter
shall be computed by subtracting the amount actually levied against  the
parcel  from  the  amount  that  would  have  been levied if not for the
exemption, provided  however,  that  for  the  two  thousand  eleven-two
thousand  twelve  through  two  thousand  eighteen-two thousand nineteen
school years, the tax savings applicable to any "portion" (which as used
herein shall mean that part of an assessing unit located within a school
district) shall not exceed the tax savings applicable to that portion in
the prior school year multiplied by one hundred two  percent,  with  the
result  rounded  to  the  nearest  dollar;  and  provided  further  that
beginning with the two  thousand  nineteen-two  thousand  twenty  school
year:  (A)  for  purposes  of  the  exemption authorized by section four
hundred twenty-five of this chapter, the tax savings applicable  to  any
portion shall not exceed the tax savings for the prior year, and (B) for
purposes  of  the  credit  authorized by subsection (eee) of section six
hundred six of the tax law, the tax savings applicable  to  any  portion
shall not exceed the tax savings applicable to that portion in the prior
school  year  multiplied  by  one  hundred  two percent, with the result
rounded to the nearest dollar. The tax savings attributable to the basic
and enhanced exemptions shall be calculated separately. It shall be  the
responsibility  of the commissioner to calculate tax savings limitations
for purposes of this subdivision.
(ii) The tax savings applicable to a  portion  for  the  two  thousand
ten-two  thousand  eleven school year shall be determined by multiplying
the exempt amount applicable to the portion for the two thousand ten-two
thousand eleven school year by the tax rate applicable  to  the  portion
for  the two thousand ten-two thousand eleven school year, with separate
calculations for the basic and enhanced exemptions.
(iii) Where a school tax rate was changed in the midst  of  the  prior
school  year,  an  annualized  school  tax  rate  shall be used for this
purpose. The annualized tax rate for this purpose shall be determined by
calculating the average of the tax rates  in  effect  at  various  times
during  the school year, weighted according to the length of time during
which they were respectively applicable.
(b) A statement shall then be placed on the tax bill for the parcel in
substantially the following form: "Your tax savings this year  resulting
from the New York state school tax relief (STAR) program is $_______."
3.  State  aid. (a) The total tax savings duly provided by each school
district pursuant to this section shall be a state charge,  which  shall
be payable as provided herein.
(b) A school district seeking state aid pursuant to this section shall
submit  an  application  therefor  to  the commissioner. The application
shall include such information as the commissioner shall require.
(c) Upon approving an application  for  state  aid  pursuant  to  this
section,  the commissioner shall compute and certify to the commissioner
of education the amounts payable to the school district. Such state  aid

shall  be  payable  upon  the audit and warrant of the state comptroller
from vouchers certified and approved by the commissioner  of  education,
as  provided  by section thirty-six hundred nine-e of the education law,
as applicable.
(d)  The  commissioner may audit an application for state aid pursuant
to this section within one year after authorizing  payment  thereon.  If
the  commissioner  should discover that a school district has received a
greater or lesser amount of such aid than it should have  received,  the
commissioner  shall  so  notify the school district, and shall cause the
next payment  of  such  aid  to  the  school  district  to  be  adjusted
accordingly.
(e)  When  an  improperly  granted  exemption  has been revoked in the
manner provided by section four hundred twenty-five of this chapter, the
aid payable to the school district pursuant to  this  section  shall  be
reduced  by  the  amount  of  the  taxes  attributable  to  the  revoked
exemption.
4. Installment payments. When school taxes are payable in installments
pursuant to law, the tax savings  provided  by  this  section  shall  be
applied proportionally against the respective installments.
5.  Untimely  payment of taxes. (a) When taxes on a property receiving
the exemption authorized by section four  hundred  twenty-five  of  this
chapter  are  not  paid  in a timely manner, interest, penalties and any
other applicable charges shall be imposed only against the  balance  due
after  the  tax savings provided by this section have been deducted from
the taxes owed.
(b) When a county, city  or  town  is  required  by  section  thirteen
hundred thirty or thirteen hundred thirty-two of this chapter, or by any
other  general or special law, to make a payment to a school district on
account of unpaid school taxes, the tax savings provided by this section
shall be deducted from the amount so payable.
6. When the commissioner determines, at least twenty days prior to the
levy of school district taxes, that an advance credit  of  the  personal
income  tax credit authorized by subsection (eee) of section six hundred
six of the tax law will be provided to the owners of a  parcel  in  that
school  district,  he  or  she  shall so notify the assessor, the county
director of real property tax  services,  and  the  authorities  of  the
school  district,  who  shall  cause a statement to be placed on the tax
bill for the parcel in substantially the following form:  "An  estimated
STAR  check has been or will be mailed to you by the NYS Tax Department.
Any overpayment or underpayment can  be  reconciled  on  your  next  tax
return or STAR credit check."
Notwithstanding  any  provision  of  law to the contrary, in the event
that the parcel in question had been granted a  STAR  exemption  on  the
assessment  roll upon which school district taxes are to be levied, such
exemption shall be deemed null and  void,  shall  be  removed  from  the
assessment  roll,  and  shall  be  disregarded  when  the  parcel's  tax
liability is  determined.  The  assessor  or  other  local  official  or
officials  having  custody and control of the data file used to generate
school district tax rolls and tax bills shall be authorized and directed
to  change  such  file  as  necessary  to  enable  the  school  district
authorities   to   discharge  the  duties  imposed  upon  them  by  this
subdivision.
7. Inconsistent laws superseded. The provisions of this section  shall
apply  to  all school districts, notwithstanding any provision of law to
the contrary.