NY A10776

Establishes a "Middle Class STAR" rebate program providing local property tax rebates to owners of parcels receiving Basic or Enhanced STAR exemptions beginning with the 2012-2013 school year.

Rebate amounts calculated based on exempt amounts, school district tax rates, and percentage multipliers that increase over time (ranging from 25-80% depending on exemption type and school year) and vary by income bracket and county.

Requires property owners receiving Basic STAR exemptions to file applications by December 31, 2013 to receive rebates; Enhanced STAR recipients receive rebates automatically without application.

Income brackets used to determine rebate amounts range from $90,000-$250,000 (upstate counties) or $120,000-$250,000 (NYC and surrounding counties), indexed annually for inflation.

Authorizes Department of Taxation and Finance to issue rebates only when appropriated in the state budget; provides alternative school district property tax credit on state income tax returns if rebates are not funded.