Section 1306-A. Effect of school tax relief (STAR) exemption upon school district taxes; state aid

1. Levy of taxes;  determination  of  taxes
  due.    The  amount  of  taxes to be levied for any school year shall be
  determined without regard to the fact that state  aid  will  be  payable
  pursuant to this section.  In addition, the tax rate for any school year
  shall  be determined as if no parcels were exempt from taxation pursuant
  to section four hundred twenty five of this chapter.   However, the  tax
  rate  so  determined  shall  be applied to the taxable assessed value of
  each parcel after accounting for all  applicable  exemptions,  including
  the  exemption  authorized  by  section four hundred twenty-five of this
  chapter.
    2. Tax savings.   The  tax  savings  for  each  parcel  receiving  the
  exemption authorized by section four hundred twenty-five of this chapter
  shall  be computed by subtracting the amount actually levied against the
  parcel from the amount that would  have  been  levied  if  not  for  the
  exemption.    A  statement  shall then be placed on the tax bill for the
  parcel in substantially the following form: "Your tax savings this  year
  resulting  from  the  New York state school tax relief (STAR) program is
  $_______."
    3. State aid.  (a) The total tax savings duly provided by each  school
  district  pursuant  to this section shall be a state charge, which shall
  be payable as provided herein.
    (b) A school district seeking state aid pursuant to this section shall
  submit an application therefor to the  state  board.    The  application
  shall include such information as the state board shall require.
    (c)  Upon  approving  an  application  for  state aid pursuant to this
  section, the state board shall compute and certify to  the  commissioner
  of education the amounts payable to the school district.  Such state aid
  shall  be  payable  upon  the audit and warrant of the state comptroller
  from vouchers certified and approved by the commissioner  of  education,
  as  provided  by section thirty-six hundred nine-e of the education law,
  as applicable.
    (d) The state board may audit an application for state aid pursuant to
  this section within one year after authorizing payment thereon.  If  the
  state  board  should  discover  that  a  school  district has received a
  greater or lesser amount of such aid than it should have  received,  the
  state  board  shall  so  notify the school district, and shall cause the
  next payment  of  such  aid  to  the  school  district  to  be  adjusted
  accordingly.
    (e)  When  an  improperly  granted  exemption  has been revoked in the
  manner provided by section four hundred twenty-five of this chapter, the
  aid payable to the school district pursuant to  this  section  shall  be
  reduced  by  the  amount  of  the  taxes  attributable  to  the  revoked
  exemption.
    4.    Installment  payments.  When  school  taxes   are   payable   in
  installments  pursuant  to law, the tax savings provided by this section
  shall be applied proportionally against the respective installments.
    5.  Untimely payment of taxes. (a) When taxes on a property  receiving
  the  exemption  authorized  by  section four hundred twenty-five of this
  chapter are not paid in a timely manner,  interest,  penalties  and  any
  other  applicable  charges shall be imposed only against the balance due
  after the tax savings provided by this section have been  deducted  from
  the taxes owed.
    (b)  When  a  county,  city  or  town  is required by section thirteen
  hundred thirty or thirteen hundred thirty-two of this chapter, or by any
  other general or special law, to make a payment to a school district  on
  account of unpaid school taxes, the tax savings provided by this section
  shall be deducted from the amount so payable.

    6.    Inconsistent  laws  superseded.   The provisions of this section
  shall apply to all school districts, notwithstanding  any  provision  of
  law to the contrary.