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 state board 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 state board. 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 thestatewide 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 board finds to be unreliable, and including those adjustments requested by local assessors which the board 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 board finds to be unreliable, and including those adjustments requested by the local assessor which the board 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 state board. 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 aspecial 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 state board. It shall be the responsibility of the state board 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. (h) Recertification required in certain cases. If the state board 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 state board 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 corporationresides, 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. (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 bepayable 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. 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 school year and thereafter, the parcel's affiliated income may be no greater than fivehundred thousand dollars, as determined by the commissioner of taxation and finance pursuant to section one hundred seventy-one-u of the tax law, in order to be eligible for the basic exemption authorized by this section. 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) Any information deemed necessary to establish shareholder or partner 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. (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 state board 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. (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. Anyunauthorized disclosure of such information shall be deemed a violation of section eight hundred five-a of the general municipal law. (iv) Effective with applications for the enhanced exemption on final assessment rolls to be completed in two thousand three, the application form shall indicate that the owners of the property and any owners' spouses residing on the premises may authorize the assessor to have their income eligibility verified annually thereafter by the state department of taxation and finance, in lieu of furnishing copies of the applicable income tax return or returns with the application. If the owners of the property and any owners' spouses residing on the premises elect to participate in this program, which shall be known as the STAR income verification program, they must furnish their taxpayer identification numbers in order to facilitate matching with records of the department. Thereafter, their income eligibility shall be verified annually by the department and the assessor shall not request income documentation from them, unless such department advises the assessor that they do not satisfy the applicable income eligibility requirements, or that it is unable to determine whether they satisfy those requirements. (v) (A) Except in the case of a city with a population of one million or more, the assessor shall forward to the department, in the time and manner required by the department, information identifying the persons who have elected to participate in the STAR income verification program. After receiving the department's response or responses, the assessing authority shall cause notices to be mailed to participants as provided by paragraph (b) of subdivision five of this section. Information provided to the department identifying such persons, and responses obtained from such department shall be confidential and shall not be subject to disclosure under article six of the public officers law. (B) In the case of a city of one million or more, the assessor shall forward to the department of taxation and finance, in the time and manner required by the department, information identifying the persons who have elected to participate in the STAR income verification program. The department shall advise the assessor of its findings in the manner provided by the agreement executed pursuant to section one hundred seventy-one-o of the tax law. After receiving such response or responses, the assessing authority shall cause notices to be mailed to participants as provided by paragraph (b) of subdivision five of this section. Information provided to the department identifying such persons, and responses obtained from such department shall be confidential and shall not be subject to disclosure under article six of the public officers law. (vi) Notwithstanding the provisions of subparagraphs (iv) and (v) of this paragraph, which establish a STAR income verification program, income documentation must be submitted to the assessor in connection with each of the following: (A) Initial applications for the enhanced STAR exemption; (B) Renewal applications submitted by a person or persons who have not elected to participate in the STAR income verification program; (C) Applications that would allow an enhanced exemption to resume after having been discontinued; (D) Applications submitted by a person or persons who had previously qualified for the enhanced exemption but not in the assessing unit in question; and (E) Applications with respect to which the department of taxation and finance has advised the assessor through the state board that it is unable to determine whether a participant or participants in the STAR income verification program satisfy the income eligibility requirements.(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." (b) Informational notice for participants in the STAR income verification program. In the case of a parcel which is owned by an owner or owners who have elected to participate in the STAR income verification program, the assessing authority shall cause a notice, preferably on a postcard, to be mailed to such owner or owners after the assessor has been notified of their income eligibility by the department. Each such notice shall be mailed without restrictions upon forwarding or delivery, and shall contain, in language prescribed by the department, the substance of one of the following statements, whichever is appropriate: (i) Where the department of taxation and finance has found that the participants satisfy the income eligibility requirements with respect to the applicable income tax year, the notice shall so state. It shall further state that if the property remains their primary residence and there has been no change in its ownership, they remain eligible for the enhanced STAR exemption and need not contact the assessor at this time.It shall also remind them that they are expected to contact the assessor if there have been any residency or ownership changes. (ii) Where the department of taxation and finance has been unable to verify whether the participants satisfy the income eligibility requirements with respect to the applicable income tax year, the notice shall so state. It shall further state that they must furnish documentation of their income eligibility to the assessor on or before the applicable taxable status date, or the enhanced exemption will be discontinued, though a basic exemption may be granted in its place if the property remains their primary residence and there has been no change in its ownership. It shall also remind them that they are expected to contact the assessor if there have been any residency or ownership changes. (iii) Where the department of taxation and finance has found that the participants do not satisfy the income eligibility requirements with respect to the applicable income tax year, a notice of denial shall be mailed as provided by paragraph (b) of subdivision six of this section, giving the findings of such department as a reason for such denial. (c) Renewal notice for non-participants in the income verification program. (i) In the case of a parcel which was granted the enhanced STAR exemption on the preceding assessment roll and which is owned by an owner or owners who have not elected to participate in the STAR income verification program, the assessing authority shall cause an application form and a notice to be mailed to such owner or owners annually, at least sixty days before the appropriate taxable status date. Such notice shall be in a form prescribed by the state board and shall state, at a minimum, that such application must be filed on or before the taxable status date and be approved in order for the exemption to continue to be granted. (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 state board 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. (ii) In the case of a senior citizen who has not elected to participate in the STAR income verification program, a notice shall be sent to the designated third party at least thirty days prior to each ensuing taxable status date; provided that no such notice need be sent in the first year if the request was not received by the assessor at least sixty days before the applicable taxable status date. Such notice shall read substantially as follows: "On behalf of (identify senior citizen or citizens), you are advised that his, her, or their renewal application for the enhanced STAR exemption must be filed with the assessor no later than (enter date). You are encouraged to remind him, her, or them 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) In the case of a senior citizen who has elected to participate in the STAR income verification program, a notice shall be sent to the designated third party whenever the assessor sends a notice to the senior citizen regarding the possible removal of the enhanced STAR exemption. 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." (iv) 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 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 state board, 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. (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 state board. 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. (c) Senior citizens exemption. When property is eligible for the senior citizens exemption authorized by section four hundred sixty-seven of this article, it shall also be deemed to be eligible for the enhanced exemption authorized by this section for certain senior citizens, provided, where applicable, that the age requirement established by a municipal corporation pursuant to subdivision five of section four hundred sixty-seven of this article is satisfied, and no separate application need be filed therefor. (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) In the case of persons who have elected to participate in the STAR income verification program, the enhanced exemption, once granted, shall remain in effect until discontinued in the manner provided in this section. (b) In the case of persons who have not elected to participate in the STAR income verification program, the enhanced exemption shall apply for a term of one year. To continue receiving such enhanced exemption, a renewal application must be filed annually with the assessor on or before the applicable taxable status date on a form prescribed by the state board. Provided, however, that if a renewal application is not so filed, the assessor shall discontinue the enhanced exemption but shall grant the basic exemption, subject to the provisions of subdivision eleven of this section. (c) Whether or not the recipients of an enhanced STAR exemption have elected to participate in the STAR income verification program, the assessor may review their continued compliance with the applicableownership and residency requirements to the same extent as if they were receiving a basic STAR exemption. (d) Notwithstanding the foregoing provisions of this subdivision, the enhanced exemption shall be continued without a renewal application as long as the property continues to be eligible for the senior citizens exemption authorized by section four hundred sixty-seven of this title. 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 state board. (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 article of a transfer of title to real property which is exempt pursuant to this section, the assessor shall send the new owner or owners as shown thereon an application for the exemption authorized by 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 three preceding assessment rolls, 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 torevoke 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, except that the tax rate to be applied to any revoked exemption shall be the tax rate that was applied to the corresponding assessment roll. (c) Rights of owners. Each owner or owners shall be given notice of the possible revocation 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. 13. Penalty for material misstatements. (a) Generally. If the assessor should determine, within three years from the filing of an application for exemption pursuant to this section, that there was a material misstatement on the application, he or she shall proceed to impose a penalty tax against the property of one hundred dollars. 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) 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. (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 disqualifiedfrom further exemption pursuant to this section for a period of five years, and may be subject to prosecution pursuant to the penal law.