New York 2025-2026 Regular Session

New York Assembly Bill A07504

Introduced
3/28/25  
Refer
3/28/25  

Caption

Enacts the "Affordable NY act"; increases the STAR exemptions; adjusts personal income tax rates.

Summary

This bill enacts components of the proposed "Affordable NY act" and is divided into two parts. Part A would amend the real property tax law to increase the STAR exemption base figures for school tax relief. For the enhanced STAR exemption, the bill would double the CPI-W indexing formula beginning with the 2025-2026 school year, and it would raise the basic STAR exemption base figure from $30,000 to $60,000. It also removes prior statutory limits on annual tax savings growth for STAR exemptions, allowing the commissioner to calculate the savings limits under the revised framework. Part B would amend the personal income tax brackets in section 601 of the tax law for multiple filing categories. The bill lowers tax rates for certain income ranges beginning in tax year 2025, including a new 2% starting rate in the lowest brackets for some taxpayers, while preserving the higher-rate structure for upper-income brackets. The bill includes revised bracket thresholds and dollar amounts for single filers, married filing jointly, heads of household, and other filing statuses, with the changes generally taking effect immediately but applying to tax years specified in the text.

Impact

The bill would change New York’s real property tax law by expanding STAR school tax relief benefits, which would affect eligible homeowners receiving basic or enhanced STAR exemptions and the state and local school tax administration system. It would also alter the Tax Law’s personal income tax rate tables for several filing categories, changing how state income tax is calculated for many taxpayers beginning with the 2025 tax year. The practical effect would be to reduce taxes for some homeowners and certain income groups, while requiring the Department of Taxation and Finance to implement new exemption base figures, tax savings calculations, and bracket schedules.

Sentiment

The bill text and available context suggest a pro-tax-relief posture, aimed at making housing-related school tax relief and income taxes more affordable. Because there are no committee transcripts or recorded votes provided, there is no documented debate or formal support/opposition in the supplied materials. Based on the substance of the proposal, the overall sentiment appears favorable toward taxpayers, especially homeowners and middle-income filers, with the measure framed as an affordability initiative.

Contention

The main points of potential contention are fiscal: increasing STAR exemptions and lowering income tax rates would reduce state and local revenue, which could raise concerns about budget impacts and the distribution of benefits. Another likely issue is equity, since STAR primarily benefits homeowners and the income tax changes may provide different levels of relief across filing statuses and income brackets. No specific objections or sponsors’ responses are included in the provided record, so these concerns are inferred from the bill’s policy design rather than from recorded debate.

Companion Bills

NY S01559

Same As Enacts the "Affordable NY act"; increases the STAR exemptions; adjusts personal income tax rates.

Previously Filed As

NY A02747

Enacts the "Affordable NY act"; increases the STAR exemptions; adjusts personal income tax rates.

NY S01559

Enacts the "Affordable NY act"; increases the STAR exemptions; adjusts personal income tax rates.

NY HB389

Income tax, optional standard deduction increased, adjusted gross income range allowed for maximum dependent exemption increased

NY HB2190

Revenue and taxation; Oklahoma taxable income and adjusted gross income; exemption; retirement income; effective date.

NY HB2190

Revenue and taxation; Oklahoma taxable income and adjusted gross income; exemption; retirement income; effective date.

NY HB1248

Revenue and taxation; Senior Service Corps Act of 2025; adjustments to Oklahoma adjusted gross income and taxable income; support services; schools; effective date.

NY HB1248

Revenue and taxation; Senior Service Corps Act of 2025; adjustments to Oklahoma adjusted gross income and taxable income; support services; schools; effective date.

NY HB1927

Revenue and taxation; Oklahoma taxable income and Oklahoma adjusted gross income; retirement income; exemption; effective date.

NY HB1927

Revenue and taxation; Oklahoma taxable income and Oklahoma adjusted gross income; retirement income; exemption; effective date.

NY A07610

Enacts the "utility penalty adjustment"; adjusts utility penalties to account for inflation; increases such penalties and ties them to inflation after January 1, 2027.

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