Reminder: STAR tax relief applications due
Deadline for most towns is Feb. 28
Reminder: the deadline to apply for NY’s STAR tax relief discount is approaching. The deadline for most towns is February 28 (a Sunday), after which homeowners will have to wait another full year to take advantage of the program.
What is STAR?
STAR is a New York State tax relief program that lowers property taxes for certain owners. There are two levels of benefits – basic and enhanced:
Who is eligible?
Residency:
To be eligible for the STAR reduction, you must own your home and it must be your primary residence. Your local assessor considers many factors to determine whether a property is your primary residence, like voting, vehicle registrations, and length of time spent each year on the property. They may ask you to provide proof of residency:
- with your STAR application
- after granting the exemption, to verify that it remains your primary residence
Income:
Eligibility in 2016 is based on income information from the 2014 tax year. Income means federal “adjusted gross income” minus the “taxable amount” of total distributions from individual retirement accounts or individual retirement annuities (IRA’s).
See special eligibility rules for seniors, residents of cooperative apartments, manufactured home parks nursing homes, trusts and life estates
Applying for STAR
- Submit Form RP-425 Application for School Tax Relief (STAR) Exemption to your local assessor. By signing the form, you are attesting that your income for the tax year referenced in Question #1 of the application form was below $500,000.
- Submit Form RP-425 Application for School Tax Relief (STAR) Exemption to your assessor.
- Demonstrate that you meet the income requirement annually in one of two ways:
- Apply annually with your assessor – Complete your STAR application and send it to your assessor with a copy of your income tax return(s) for the appropriate income tax year; or
- Authorize our department to verify your income eligibility – Submit Form RP-425-IVP School Tax Relief (STAR) Exemption: Optional Income Verification Program to provide your assessor with your social security number(s) and authorize us to verify your income eligibility. If you choose this option, generally you will only have to submit Form RP-425, Form RP-425-IVP, and a copy of your tax return(s) to the assessor in the first year.
STAR application deadline
Your STAR application must be postmarked or received by your assessor’s office by Taxable Status Date. (In most communities, Taxable Status Date is March 1, but visit Municipal Profiles to find the assessment calendar for your municipality.)
STAR Exemption Certification System – Saratoga County 2015-2016 School Levy Year
The enhanced or basic STAR exemption is the amount that your assessment will be reduced prior to the levy of school taxes. For example, if you own and live in a house that has an enhanced STAR exemption and that is assessed at $150,000 and the enhanced STAR exemption for your municipality is $50,000, the school taxes on your property would be paid on a taxable assessment of $100,000 ($150,000 – $50,000). Please note that due to the 2% limit on STAR savings increases, the savings on your individual tax bill may not reflect the entire value of the certified STAR exemption.
For more information
Visit New York State’s STAR page