Open in App
  • Local
  • U.S.
  • Election
  • Politics
  • Sports
  • Lifestyle
  • Education
  • Real Estate
  • Newsletter
  • DC News Now

    STAR benefits: Credits, exemptions, rebates, and deadlines for school tax relief in New York

    By Johan Sheridan,

    19 days ago

    https://img.particlenews.com/image.php?url=3YRKMq_0vVTe9cY00

    ALBANY, N.Y. (NEXSTAR) — New York homeowners can save on property taxes through the School Tax Relief ( STAR ) program, which can be worth hundreds of dollars. Those who are enrolled are receiving payments now or should receive them by year’s end.

    The benefit formula is based on the first $30,000 of the full value of an owner-occupied primary residence. STAR comes in several flavors, covering Basic and Enhanced , exemptions and credits. Under Basic STAR:

    • Homeowners of any age are eligible
    • The home must be the primary residence
    • Maximum household income of $500,000

    While under Enhanced STAR (E-STAR):

    • At least one homeowner must be 65+ by year’s end
    • Household income of $98,700 or less (for 2024), or $107,300 or less (for 2025)
    • Basic STAR required
    Tracking social media safety measures in New York

    To check your STAR status, contact the New York State Department of Taxation and Finance or use their property tax credit lookup tool online. New homeowners or those not already enrolled have to apply.

    First, when your home becomes your primary residence, register for the STAR credit by creating an account and logging in with the Department of Taxation and Finance. Keep the confirmation number from this transaction, fill out all the forms in the application, and provide necessary documentation like tax forms as proof of income and licenses as proof of your identity.

    Comptroller audit: Counties don’t check prices, scales

    You have to register for the credit within three years of your tax filing deadline for the year you want the credit. But you don’t need to register again each year, and the Department of Taxation and Finance automatically selects whichever credit you qualify for, be it Basic or E-STAR.

    Married couples with more than a single property only get credit for one property, unless documentation proves that they are divorced or legally separated. Also, homeowners should close their registration if they sell the property.

    COVID vaccination fraud voids pediatric vaccination records in New York

    Apply for the credit by Dec. 31, 2024, to get the Basic benefit in the next tax year. In most areas of the state, the deadline to apply for E-STAR comes on March 1 . To upgrade to E-STAR, apply for it by March 1 during the calendar year when you turn 65. Seniors who miss the E-STAR application deadline might still have time to apply with a valid reason.

    The Tax Department can’t calculate STAR benefits until districts release tax bills because local school tax rates represent a crucial variable in the savings formula. Still, Basic STAR averages about $290 in savings per household, while E-STAR averages about $650 per household.

    Spending opioid settlement money in New York

    Even so, the Department warned: “It may depend on your school district. For example, in 2023, some Albany County residents received as much as $1,885 in tax savings, while eligible homeowners in Suffolk could have received as much as $2,695.”

    To opt-in to direct deposit, which is faster, you have to enroll through the online portal with the Department at least a week before local distributions start. Most homeowners get their STAR credit before or around when they get their school tax bill. Depending on when your district files its taxes, you could even get an interest payout if you registered for the credit by July 1.

    DOH: Mpox variant has not been seen in New York

    The STAR credit represents a payment in the form of a check or direct deposit, while the STAR exemption reduces your school tax bill. The exemption is only available to legacy homeowners who had the exemption before 2015 and still meet the income requirements. A previous owner can’t transfer an exemption to a new owner. Current exemption recipients would need to reapply to switch from Basic to Enhanced, or in case of a marriage, divorce, or other change in who owns the property.

    Credits can increase by as much as 2% each year, but exemptions are capped . And the dollar amount for either one might actually drop from year to year. What’s more, switching from the exemption to the credit—getting a direct payment instead of a tax reduction—cannot be undone.

    Applications open for Women and Public Policy Fellowship

    According to the Department of Taxation and Finance website, “In 2023, 562,000 seniors received more than $815 million in savings from the Enhanced STAR property tax exemption.”

    The STAR program dates back to the Pataki Administration, and the transition from exemption to credit helps illustrate the evolution. “STAR exemptions were a lifeline,” said State Sen. Jake Ashby, a Republican who represents New York’s 43rd Senate District. “Now, they’re a bandaid.”

    New York dropping $646M to recruit, train health care workers

    Ultimately, Sen. Ashby blames what he perceives as an unreasonable cost of living in New York on partisanship. “If you want policies focused on affordability, you need bipartisan checks and balances in Albany, not one-party control,” he said. “I sponsor a $2.4 billion property tax cut that would structurally reform the system and relieve municipal governments from the burden of funding Medicaid.”

    Ashby said his tax cut— S8648 / A9431 —would save upstate taxpayers about $2.6 billion. Though it never got out of committee, if passed, it would have slowly lowered how much the counties paid the state for Medicaid reimbursements. Reimbursements would be cut each year until 2033, when Medicaid payments would end altogether. Every year, the money saved would have to be used for lowering property taxes or issuing property tax rebates.

    Copyright 2024 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

    For the latest news, weather, sports, and streaming video, head to DC News Now | Washington, DC.

    Expand All
    Comments / 2
    Add a Comment
    Roger Dodger
    19d ago
    I got my tiny check today.
    View all comments
    YOU MAY ALSO LIKE
    Local News newsLocal News

    Comments / 0