By Assemblyman Bill Magnarelli
Allow me to borrow from Mark Twain’s quote, “The reports of my death are greatly exaggerated,” to illustrate the confusion and misunderstanding that is taking place regarding the “changes” to the STAR property tax exemption program.
If you are living in your home and don’t intend to move, you have nothing to worry about. Nothing has changed for people in this scenario. You will continue to get your STAR exemption as an upfront savings when you pay your school taxes each fall.
The qualifications for this exemption are also not changing for people who are living in the same home and are not moving: Households with income under $500,000 are eligible for STAR. They get an exemption from the first $30,000 of the full value of their primary home from school taxes. Homeowners 65 and older get a larger tax break for Enhanced STAR: The first $65,000 of their home value is exempt from school taxes.
The STAR exemption program is changing for new homeowners and people who move. The people in this scenario will receive a check for a portion of their school property taxes instead of receiving it as an upfront savings in their tax bill. There is no change to the amount of the STAR credit for taxpayers, only the mechanism used to pay the credit. Starting this year, a check will be mailed in the fall for those who move or are a first-time homeowner, for the portion of their school taxes covered by STAR.
To receive a check in September of this year, if you’re a new homeowner, or if you have moved, you need to be registered for STAR through the state Department of Taxation and Finance by July 1. To register, the application will be online and by phone in the coming weeks. The website is tax.ny.gov. After July 1, you can still apply for STAR or Enhanced STAR, and then the state would provide you a check at a later date.
The state has sought to crack down on abuses in the STAR program, such as people getting the break on more than one home and if they exceed the income limit. The changes in the STAR exemption program are expected to save the state about $180 million a year when fully implemented in 2018.
If you have any questions regarding the STAR program, please contact my district office in Syracuse at 428-9651 or email [email protected].
