Section 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 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 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 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 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  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.
    (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.
    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.
    (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.  Any
  unauthorized  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  of  taxation  and  finance.  Thereafter,  their  income
  eligibility shall be  verified  annually  by  the  state  department  of
  taxation   and  finance  and  the  assessor  shall  not  request  income
  documentation from them, unless such  department  advises  the  assessor
  through  the  state board 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 state board, in the time  and
  manner  required by the state board, information identifying the persons
  who have elected to participate in the STAR income verification program.
  The state board shall forward such  information  to  the  department  of
  taxation  and  finance  in the manner provided by the agreement executed
  pursuant to section one hundred seventy-one-o of the tax law, and  shall
  notify  the  assessor of the response or responses it receives from such
  department pursuant to such agreement. 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  obtained  by  the  state  board  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  obtained  by  the  state  board  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
  of taxation and finance through the state board. Each such notice  shall
  be  mailed  without  restrictions upon forwarding or delivery, and shall
  contain, in language prescribed by the state board, 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.
    (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  applicable
  ownership  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 of taxation and finance through the state
  board 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 through the
  state board that the department of taxation and finance  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 state board 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 disqualified
  from further exemption pursuant to this section for  a  period  of  five
  years, and may be subject to prosecution pursuant to the penal law.