NY A01586

Amends real property tax law to establish that veteran property tax exemptions shall not reduce state aid to education, affect school district debt limits, determine taxes levied by school districts, or impact tax rate calculations.

Creates a new state aid mechanism where school districts receive state reimbursement equal to the total tax savings provided through veteran exemptions, making it a state charge rather than a local burden.

Requires school districts to submit applications to the commissioner for state aid reimbursement, with the commissioner auditing applications within one year and adjusting subsequent payments if necessary.

Adds an income limitation for veteran exemption eligibility, restricting qualification to individuals earning less than $500,000 annually, including veterans, their spouses, and unremarried surviving spouses of veterans.

Takes effect immediately and applies to taxable years beginning January 1, 2020.