Assessor Manuals, Exemption Administration: RPTL Section 425-a

Exemption Administration Manual—Part 1: Residential—Other than multiple dwellings

Section 4.01 - RPTL Section 425-a: Enhanced STAR Recipients in Nassau County

Exemption Code:

Not applicable (see Coding of Exemption on Assessment Roll below)

Year originally enacted:

2002. Renewed: 2017

Related statutes:

None

Summary

To the extent allowed by local option, property located in Nassau County and owned by a senior citizen who is currently receiving the Enhanced STAR exemption is eligible to receive a partial abatement on county taxes through 2028. No abatement is allowed for city, town, village or school district taxes, special ad valorem levies, or special assessments.

Eligibility requirements

Ownership requirements:

Benefits under this abatement are reserved exclusively for those residents who qualify for and receive the Enhanced STAR exemption. (See Ownership Requirements in the exemption profile for RPTL 425.)

Property location requirements:

Property must be located in Nassau County

Property use requirements:

Property must be a one-, two-, or three-family residence, a farm home or a residential condominium or cooperative apartment. The property must serve as the primary residence of one or more of the owners thereof. The exemption may be granted to a portion of any other type of property that is partially used by the owner as a primary residence.

Certification by state or local government:

None required

Required construction start date or other time requirement: 

The renewal enacted in 2017 is deemed to have been in effect on and after December 31, 2015. 

Local option

Yes - Nassau County may choose whether or not to allow the abatement. The option to abate must be exercised through adoption of a local law (after a public hearing). The county may also choose to discontinue the abatement prior to the end of the abatement period (2028). In addition, the county may choose to establish the proportion of the increase in taxes to be abated, but that proportion may not exceed 100 percent; if the proportion is not established, it automatically becomes 50 percent. The county may also choose to provide that abatements may be granted retroactively for all or specified assessment rolls between 2002 and 2028 should the local law allowing the abatement take effect after the 2002 roll year. In such a case, the county may authorize the assessor to apply the retroactive abatement as a credit against current taxes for one or more years, or authorize the chief financial officer of Nassau County to refund excess taxes collected over a period of one or more years without interest in one or more installments.

Limitation on exemption

*If allowed by local option, the abatement is limited to 100 percent of the tax increase resulting from any increase in the county tax rates for the current fiscal year over the tax rates for the prior fiscal year. If no local law is passed regarding the proportion of the increase to be abated, the portion becomes 50 percent.

**Abatement takes effect in the 2002 roll year or in the year the local law first takes effect (local law may also allow for payments retroactive to 2002 should the local law be enacted in a later year), and extends through 2028. The abatement will be discontinued if prior to the end of this period the local option for this abatement is repealed or if the taxpayer's enhanced STAR exemption (RPTL Section 425) is discontinued or revoked.

***If allowed by local option. 

Payments in lieu of taxes

None required.

Calculation of exemption

General Municipal and School District Taxes:  

The amount of the abatement is limited to all or part of the increase in the county tax resulting from any increase in the general county tax rate for the current fiscal year and the tax rate for the prior fiscal year. The local legislative body sets the portion of the increase to be abated, i.e., the abatement ratio. If not specified in law, the abatement ratio is one-half of the increase in county taxes. In no instance may the abatement exceed the increase in county taxes. The abatement does not apply to city, town, village or school district taxes.

The county tax is abated by the abatement amount, calculated by multiplying the taxable assessed value of the parcel (for county purposes) by the base abatement tax rate, which is the general county tax rate for each property class (as defined under RPTL  1802) determined on the 2002 assessment roll, or in the roll year for which the abatement first applies minus the tax rate for such class determined on the 2001 assessment roll, or on the assessment roll immediately prior to the fiscal year the abatement first applies.

In each subsequent year the base abatement tax rate is adjusted to account for changes in level of assessment by multiplying it by the ratio of the corresponding class equalization rate for the 2002 roll year (or the roll year for which the abatement first becomes applicable) to the corresponding class equalization rate for the subsequent roll year. If the equalized tax rate for a class in any year is less than the equalized tax rate for the 2002 roll but more than the rate completed in the 2001 roll, the base abatement tax rate must be recalculated by dividing the difference between such equalized tax rates by the class equalization ratio for the roll year of the taxes to be abated. If the equalized tax rate for a class and roll year after calendar year 2002 is less than the equalized tax rate for the 2001 roll year, no abatement may be granted for property in that class for that roll year.

Whenever the abatement is applied to a cooperative apartment or to a trailer or mobile home, the abatement should be credited against the taxes or rent otherwise payable by or chargeable to such eligible owners in the same manner as provided in the STAR exemption (see Calculation of Exemption in RPTL 425, plus Appendices A and B in the STAR Assessor's Guide).

Special Ad Valorem Levies and Special Assessments: No exemption allowed.

Special ad valorem levies and special assessments:

No exemption allowed.

Coding of exemption on assessment roll

Since the abatement allowed here is a reduction in actual taxes levied rather than a reduction in assessed value, no exemption code should be used and no dollar amount should be entered in the "exempt value" section of the assessment roll 

Filing requirements (owner or occupant of property)

None

Reporting requirements (assessor)

The assessor must notify the collector of taxes in cases where eligibility for the abatement changes after the date taxies are levied.

Similar exemptions

None 

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