2023 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. Provided, however,  that  if
the  assessment  roll  cannot  be corrected in time for the exemption to
appear on the applicant's school tax bill,  the  commissioner  shall  be
authorized  to  remit directly to the applicant the tax savings that the
STAR exemption would have yielded if it had appeared on the  applicant's
tax  bill.  The  amounts  so  payable  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.
(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.