Change in the STAR tax exemption program

NEW YORK STATE — Those who intend to file anew for the New York State School Tax Relief Program (STAR) this year will not be given a straight-forward exemption as in years past. Instead, the state’s Department of Taxation and Finance has made some changes. It issued the following statement on its website, www.tax.ny.gov.

“As a result of recent law changes, some homeowners will receive a STAR check directly from New York State instead of receiving a school property tax exemption. The amount of your benefit will be the same regardless of how you receive it.”

To do so, new STAR applicants must register with the Tax Department; registration will start soon.

According to Pine Plains Assessor James Mara, who addressed the issue at the April Town Board meeting, those who had STAR prior to March 1 this year will see no changes.

However, said Mara, the Basic STAR exemption is going to drop, as is the Enhanced STAR exemption.

“That’s going to hurt us all,” he said.

According to the state, current STAR exemption recipients will continue to enjoy their exemption status as long as they own their current home.

Those currently enrolled in the Enhanced STAR program, meanwhile, must be enrolled in the Income Verification Program. Otherwise, they must continue to file a renewal application with their local assessor annually.

There are two types of STAR exemptions: Basic STAR and Enhanced STAR. 

To be eligible for Basic STAR, homeowners dwelling in their primary residence, and their spouses, must have a joint income less than $500,000. STAR then exempts the first $30,000 of the full value of their home from school taxes.

Enhanced STAR is for homeowners age 65 or older (with qualifying incomes). For 2016-17, it will exempt the first $65,300 of the full value of a home from one’s school tax bill, which is unchanged from 2015-16.

As noted by the Department of Taxation and Finance, “STAR exemptions apply only to school district taxes. They don’t apply to property taxes for other purposes, such as county, town or city [except in cities where city property taxes fund schools].”