The New York State School Tax Relief Program (STAR) provides homeowners with two types of partial exemptions from school property taxes. If you earn less than $500,000 and own and live in your home, you're probably eligible for the STAR exemption.
Two types of STAR exemptions:
Basic STAR
- available for owner-occupied, primary residences where the resident owners' and their spouses income is less than $500,000
- exempts the first $30,000 of the full value of a home from school taxes
Enhanced STAR
- provides an increased benefit for the primary residences of senior citizens (age 65 and older) with qualifying incomes
- exempts the first $62,200 of the full value of a home from school taxes as of 2012-13 school tax bills (up from $60,100 in 2011-12)
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 - Buffalo, New York City, Rochester, Syracuse and Yonkers).
Also see: School Property Tax Report Cards hosted by the New York State Education Department.
Under the provisions of this bill, beginning in the 2012-13 school year, senior citizens would receive a rebate check in an amount that equals 25 percent of the current STAR exemption benefit. The benefit would increase to 35 percent of the STAR exemption starting in the 2013-14 school year.
Basic STAR rebate checks for middle class families would be restored beginning in the 2013-14 school year. The amount of the rebate checks would be determined by income and the local school district tax rate.
The Basic STAR rebate check percentages would remain the same in the 2014-15 school year, but would increase in each of the next two years to 70 percent, 52.5 percent and 35 percent in 2015-16 and to 80 percent, 60 percent and 40 percent in 2016-17.
In any year when there is no appropriation for the rebate checks, senior citizens and middle class taxpayers would be able to claim a property tax credit, equivalent to their rebate check, against their personal income taxes.
The Senate also passed legislation to simplify the process for senior citizens and other qualifying homeowners to apply for and receive their STAR property tax exemption.
The bill eliminates the requirement that senior citizens reapply for the STAR property tax exemption every year.
Comments(3)