Q. What is STAR?A. STAR
is the New York State School Tax Relief program that provides an exemption from school
property taxes for owner-occupied, primary residences. This State-financed exemption is
authorized by section 425 of the Real Property Tax Law. Governor George E. Pataki proposed
the STAR program in his 1997 Executive Budget. The State Legislature passed it as part of
the final budget agreement, and Governor Pataki signed it into law on August 7, 1997.
Top
Q. Who is first eligible for the STAR exemption?
A. Eligible senior citizens may receive reduces school taxes under the
"enhanced" STAR exemption for the first time for school year 1998-99. To be
eligible, property owners must be 65 years of age or older, with incomes that do not exceed
$60,000 a year. For property owned by a husband and wife, only one of them has to be at
least 65 years of age. Their combined annual income, however, must not exceed $60,000.
Top
Q. When will the Star exemption be available to other residential property owners?
A. The "basic" STAR program will be extended to all primary-residence
homeowners, regardless of age or income, starting with school year 1999-2000. The
"basic’ exemption will begin with at least a $10,000 full-value assessment
exemption in school year 1999-2000 and will be phased in over three years to $30,000 in
school year 2001-02.
Top
Q. What is the "enhanced" STAR exemption?
A. That refers to the STAR exemption available to senior citizens whose incomes do
not exceed $60,000. When the exemption is fully phased in, they will receive at least a
$50,000 exemption from the full value of their property. The exemption will begin with at
least a $12,500 full-value assessment exemption in school year 1998-99, and be phased in
over four years to at least $50,000 in school year 2001-02. By then the enhanced STAR
exemption will be providing an average school property tax reduction of at least 45
percent annually for seniors living in median-priced homes. Senior citizens whose annual
incomes exceed $60,000 still will be eligible for the ‘basic" STAR exemption.
Top
Q. What is the "basic" STAR exemption?
A. That refers to the STAR exemption that will be available to all residential
property owners, regardless of age or income, starting in school year 1999-2000. When the
basic exemption is fully phased in, they will receive at least a $30,000 exemption from
the full value of their property. The exemption will begin with at least a $10,000 full
value exemption in school year 1999-2000, and be phased in over three years to at least
$30,000 in school year 2001-02. By then the basic STAR exemption will be providing an
average school property tax reduction of at least 27 percent annually for persons living
in median-priced homes.
Top
Q. How will I know how much my STAR exemption us worth in terms of tax dollars?
A. Your school tax bill will state the amount of the STAR exemption and your tax
savings. This information will be included in a new "Property Taxpayer’s Bill of
Rights" that is also is part of the STAR program and will be used for the first time
with school property tax bills for 1998-99.
Other information on the new tax bill or an optional "Bill of Rights" notice
will include the market value of your property; the percent of market value used in
assessing property in your assessing unit; the total tax levy and percent changes from the
prior year, and how to seek an assessment reduction through the grievance process if you
believe your property’s assessment is too high.
Top
Q. Does the STAR exemption apply to all taxes on my property?
A. The STAR exemption applies only to school district taxes. It does not apply to
property taxes for other purposes, such a county, town or city.
Top
Q. How is the STAR exemption computed in places that do not assess properties at
their full market value?
A. The STAR exemption will be adjusted by use of State equalization rates to
reflect the fractional level of assessment in assessing units that do not assess property
at full market value. This will result in a fair allocation of the STAR exemptions.
Top
Q. What types of properties may be eligible?
A. To be eligible for either the enhanced or basic STAR exemption, persons must own
and live in a one, two – or three-family residence, mobile home, farm home,
condominium or cooperative apartment.
Top
Q. What is meant by my primary residence?
A. There is not one single factor that determines whether a property is your
primary residence, but factors such as voting, vehicle registrations, and length of time
spent each year on the property may be relevant. The assessor may ask you to provide proof
of residence with the application. In addition, the assessor may occasionally request
proof of residence after the exemption has been granted to verify that the property
remains your primary residence.
Top
Q. What if part of the property is used for other than residential purposes?
A. A mixed-use property is eligible for the exemption if it is the owner’s
primary residence.
Top
Q. I own more than one residential property. Can I receive the STAR exemption on all
the residences I own?
A. No. The STAR exemption can be applied only to your primary residence.
Q. I currently receive a senior citizen’s property tax exemption under a
pre-existing law (section 467 of the Real Property Tax Law). Am I entitled to both this
exemption and the new STAR exemption?
A. Yes. Low-income seniors who will be receiving the pre-existing senior
citizen’s tax exemption automatically qualify for the STAR exemption. As a result,
they need only to file and qualify for the pre-existing exemption, and they will receive
both that exemption and the STAR exemption.
The new STAR law also requires that assessors apply the pre-existing senior citizens
exemption and any other applicable exemption to the property’s assessed value before
applying the STAR exemption. This will result in greater exempt amounts for eligible
senior citizens.
Top
Q. I am a senior citizen who is not eligible for the pre-existing exemption, but my
income does not exceed $60,000. How do I get the STAR exemption?
A. If you are a senior whose property is not receiving the pre-existing senior
citizen exemption, your property may still be eligible for the enhanced STAR exemption,
but you must apply for it with the local assessor, not the State. If your application is
granted, you then must reapply each year thereafter in order to keep the enhanced
exemption in effect.
Top
Q. What is the process for non-seniors or seniors whose combined incomes exceed
$60,000?
A. They must file a completed application form for the basic STAR exemption with
their local assessor. The STAR exemption is a State-funded program, but the form must be
filed with the local assessor, not with the State. It is the local assessor who has the
responsibility for reviewing the application and determining eligibility.
Property owners who are granted the basic STAR exemption generally will not need to
reapply in subsequent years. However, they will need to notify their assessor if their
primary residence changes.
Top
Q. Where do I get the STAR application form?
A. The application form is RP-425 and is available at the office of your local
assessor.
Additional locations and deadline reminders will be advertised.
The form also can be found on the Internet home page of the New York State Office of
Real Property Services (ORPS) at http://www.orps.ny.us
Q. Is there a deadline by which I must file the
application form?
A. Yes. The deadline for the enhanced STAR exemption for eligible senior citizens
varies, so eligible seniors should check with their local assessors to determine what the
locally applicable date is (usually the deadline in most towns is March 1 - "taxable
status date").
The applications deadline for the basic STAR exemption for non-seniors and seniors
whose combined incomes exceed $60,000 generally will be one year after the above dates.
For example, March 1, 1999 in most towns.
However, in Westchester County schools and certain other city school districts where
1999-2000 school taxes will be levied on the 1998 assessment roll, all homeowners must
file the application by the 1998 taxable status date.
Top
Q. Where do I file the application form?
A. With your local assessor. Do not file the application with ORPS or any
other State agency.
Q. Do I have to prove my age?
A. Yes. The first time you, a senior citizen, apply for the STAR exemption, you
must give satisfactory proof of age, such as a birth certificate or a baptismal
certificate. If those documents are unavailable you my furnish a hospital birth record, an
affidavit of age from the Social Security Administration, marriage record, passport,
military record, immigration documents or other reliable records that show your age.
Remember for property owned by a husband and wife, only one of them has to be at least 65
years old by the filing deadline (taxable status date).
Homeowners applying for the "basic" exemption do not have to supply proof of
age.
Top
Q. Do I have to prove my income?
A. Yes, but only for those property owners who are applying for the
"enhanced" STAR exemption available to senior citizens whose incomes do not
exceed $60,000. Remember, for property owned by a husband and wife, their combined annual
income must be no greater then $60,000. Be sure to attach to your application form copies
of your latest federal or New York State income tax returns, in addition to proof of age,
Your income for STAR purposes is not necessarily the same as your income for federal or
state income tax purposes. When calculating your income for STAR purposes, include Social
Security and retirement benefits, interest, dividends, total gain from the sale or
exchange of a capital asset (which may be offset by a loss from the sale or exchange of a
capital asset in the same income tax year), net rental income, salary or earnings, and net
income for self-employment.
Do not include any return of capital, gifts, inheritances, monies earned through
the federal Foster Grandparents Program, or reparations received as a victim of Nazi
persecution.
If you have net rental income or net income from self-employment, you many not deduct
depreciation allowance for the exhaustion, wear and tear of real or personal property held
for the production of income.
Homeowners applying for the basic STAR exemption do not have to supply any proof of
income.
Top
Q. May the STAR exemption be granted if the property has been placed in a trust?
A. Yes, if all of the beneficiaries qualify.
Q. Would an otherwise qualified persons remain eligible to receive the STAR
exemption if he or she, by deed, reserves a life estate and granted someone a remainder
interest in the property?
A. Yes, the holder of a life estate is entitled to possession and use of the
property for the duration of his or her life and is deemed to be the owner for all
purposes, including taxation. The rights of the recipient, with respect to ownership of
the property, do not come into being until the death of the life tenant.
Top
Q. What if I buy a new primary residence?
A. The exemption is not transferred automatically. You will have to apply for the
exemption on your new primary residence.
Q. Are there any penalties associated with filing a false application?
A. Yes, there is a penalty for material misstatements. Anyone who misrepresents his
or her primary residence, age or income, may be subject to a $100 penalty, may be
prohibited from receiving the STAR exemption for five years, may have to return up to
three years of tax savings, and may be subject to criminal prosecution.
Top
Q. Where can I get more information about the STAR program?
A. Please contact your local assessor. You also can contact the County Director of
Real Property Tax Services in your county. Information is also available from the Internet
home page of the State Office of Real Property Services at:
http://www.orps.state.ny.us