New York

Basic/Enhanced School Tax Relief (STAR)

State: 

Year: 

Record ID: 
NY104_RR21
Variations in Receipt of Benefit : 
Benefit Varies with Taxes Due
Other Variation in Receipt of Benefits
Benefit Type: 
Credit
Exemption
Benefit: 
The Basic STAR program exempts the first $30,000 of full value from school taxes. The Basic value is subject to an annual adjustment based on local housing prices. The Enhanced value is annually adjusted by the increase in the consumer price index for urban wage earners and clerical workers (CPI-W). The savings resulting from the Basic or Enhanced STAR exemptions are limited to a 2% increase over the prior year. Within each municipality, the maximum savings may vary by school district and/or class. The program is converted from an exemption benefit program to a credit program. All new applicants receive an income tax credit of the same value rather than a reduction (exemption) of their school taxes.
How is Benefit Disbursed: 
Exemption from assessed value
Eligible Property Type: 
Residential
Characteristics of Eligible Property: 
Property must be a one-, two-, or three-family residence, a farm home or a residential condominium or cooperative apartment that must serve as a primary residence of one or more of the owners. The exemption may be granted to a portion of any other type of property that is partially used by the owner as a primary residence.
Eligibility Criteria: 
Age
Homeowner
Income Ceiling
Principal Residence
Surviving Spouse
Description of Eligibility Criteria: 
All primary residence homeowners with income less than $250,000 are eligible for the Basic STAR exemption. Those with incomes below $500,000 are eligible for the Basic STAR credit. Applicants of the Enhanced STAR program must be at least 65 years of age with an income less than or equal to $88,050 in 2018 for 2020 benefits. If the owners are legally married, only one must be at least 65 years old. A surviving spouse must be 62 years of age or older.
Local Option Regarding Program Features: 
No local option regarding program features
State Funding for Local Tax Loss: 
State reimburses all of the local government tax loss
Description of State Funding for Tax Loss: 
The state reimburses directly to the school districts and also provides administrative reimbursements to the local governments that process STAR exemptions.
Local Option in Adoption of Program : 
Local government is unable to exercise an option
Source State Statutes: 
N.Y. R.P.T Law § 425
N.Y. Tax Law §606(eee) (in effect for 2021)
Source Constitution: 
NY CLS Const Art XVI, § 1
Source Publication: 
New York State Department of Taxation and Finance Office of Real Property Tax Service, Application for Basic STAR Exemption for the 2021-2022 School Year RP-425-B, (2020)
[https://www.tax.ny.gov/pdf/current_forms/orpts/rp425b_fill_in.pdf Accessed 11/15/2021]
View Archived Source

New York State Department of Taxation and Finance Office of Real Property Tax Service, Application for Enhanced STAR Exemption for the 2021-2022 School Year RP-425-E, (2020)
View Archived Source

New York State Department of Taxation and Finance, Questions and Answers for Homeowners about the New STAR Credit Program, (2020)
[https://www.tax.ny.gov/pit/property/star/star-administration-faqs.htm accessed 11/15/2021]
View Archived Source

New York State Department of Taxation and Finance, Register for the School Tax Relief STAR Credit Information, (2020)
[https://www.tax.ny.gov/pdf/star/rp-5310-fs.pdf accessed 11/15/2021]
View Archived Source

New York State Department of Taxation and Finance, Register for the School Tax Relief STAR Credit, (2019)
[https://www.tax.ny.gov/pit/property/star/default.htm accessed 11/15/2021]
View Archived Source

New York State Department of Taxation and Finance, STAR Eligibility Information, (2020)
[https://www.tax.ny.gov/pit/property/star/eligibility.htm accessed 11/15/2021]
View Archived Source
Footnote: 
The income limit established by the basic STAR exemption will no longer be taken into account when determining eligibility for the basic STAR credit. Basic STAR exemption income limit changed to $250,000 from $500,000. This was enacted by 2019 N.Y. Laws ch. 59 § RR-2. Effective for applying in 2019, qualified individuals who did not file an income tax return prior to 2019 will still be eligible for exemption in the 2019 tax year so long as they file a statement to the New York State Department of Taxation that verifies their source(s) of income. This was enacted in 2018 N.Y. Laws ch. 59 § B-1 (SB 7509). The STAR program is converted from an exemption benefit program to an income tax credit program. The exemption program is closed to new applicants. All new applicants receive an income tax credit of the same value rather than a reduction on their school tax bill. For the Basic STAR, in counties where the median home value is higher than the statewide median home value, the exemption or credit is increased proportionally so that homeowners in these areas will realize equivalent tax relief. Residents of NYC while not eligible for STAR relief, a flat rate benefit, unrelated to property tax is available.
Data Collection Notes: 
11/15/21 WP Needs Review: not sure if all of what is in footnotes should be included in the record. Added change to exemption income limit, credit limit is still $500,000. The 2018 source additionals probably need to go, but the 2019 source additionals affect 2020 school year. For future, it appears that income requirements can be set differently between the Basic STAR credit and Basic STAR exemption. For exemption income is <$250,000 and credit is <$500,000. Enhanced program income limits appear to be the same between the credit and the exemption. The language in the benefits section could be changed (should "The program 'is' converted from an exemption benefit program to a credit program" be changed to 'can be'?) Applicants can apply to switch from the exemption to the credit, but not vice versa. The program has not been fully converted as people are still receiving the exemption, but it appears the state is drawing it down by lowering the income limit and barring new applicants. Forms are for 2022-2023 school year, should the 2020 record reflect school year 2019-2020 or 2020-2021? For future changes see:http://www.tax.ny.gov/pit/property/star/eligibility.htm

Revision Type: 

Revision By: 
NW
Revision Notes: 

11/18/21 WP created 2021 record, only for documents, still needs review
3/10/21 AJG created, several amendments recorded
12/21/20 cc checked years and verified
12/14/20 AJG source additional, footnotes cont.
12/11/20 AJG: source additional, eligibility criteria, footnotes {incomplete]
12/10/20 AJG: created 19, document upload
4/2/19 GM: verified
2/8/19 cc
2/7/19 ET updated access dates
12/14/18 cc deleted dcn, added to max. removed $ amount of enhanced
11/05/18 cc ok
7/17/18 SAH updated Source Publication with required forms and information regarding eligibility requirements
5/8/18 YP created 17 record
12/12/17 EM added FTN3
11/13/17 EM changed the title from exemption to credit.
5/24/17 cc created record

Housing Development Fund Companies

State: 

Year: 

Application Process: 
No application required
Geographic Requirements: 
Programs available without regard to any designated geographic area
Local Option in Adoption of Program: 
Local government must take action to opt in
Local Option Regarding Program Features : 
Yes
Description of Local Option Regarding Adoption or Program Features : 
The local legislative body of a municipality in which a project of a housing development fund company is or will be located may offer an exemption. In New York City, the City Council must approve or to disapprove an application for exemption on property owned by a housing development funding company within 120 days of its submission. If no such action is taken in this period, such application submitted by the funding company to the City Council will be deemed approved. The municipality may choose whether to extend the exemption to such property when the housing development funding company or any previously described related entities have entered into a loan agreement with the municipality.
Incentive Type: 
Exemption
Incentive Description: 
Eligible property may be exempt from municipal and local property taxes, including school taxes, other than assessments for local improvements. The amount of this exemption and its duration is at the discretion of the issuing municipality. However, the exemption may not be longer than 40 years. Furthermore, real property that is owned or under the control of a housing development fund company which is a subsidiary of the NYS Urban Development Corporation (UDC) but is not organized on a not-for-profit basis, and is used for co-op low-income housing is partially exempt from taxation, but is liable for special ad valorem levies and special assessments. The exemption shall be from all local and municipal taxes, other than assessments for local improvements. The tax exemption shall operate and continue so long as the mortgage loans of such housing development fund company are outstanding, but in no event for a period of more than 40 years.
Eligibility Criteria: 
Incentives Restricted to Certain Industries or Uses
Description of Eligibility Criteria: 
Property must be used for low-income housing and owned by a housing development company.
Local Government Actions: 
Local Legislative Body Approval
Eligible Property Type: 
Residential
Other
Description of Eligible Property Type: 
Eligible property is part of a project of Housing Development Fund Companies.
Record ID: 
NY010_ED21
Source State Statutes: 
N.Y. P.H.F Law § 577 (in effect for 2021)
Source Publication: 
New York State, Department of Taxation and Finance, Publication 577 FAQs Regarding the Additional Tax on Transfers of Residential Real Property for $1 Million or More
[https://www.tax.ny.gov/pdf/publications/real_estate/pub577.pdf Accessed 08/01/2023]
View Archived Source
Data Collection Notes: 
CAT05 2023/11/02 JS OLD: Included changes pursuant to 2021 N.Y. Laws ch. 56 § U-1 (A03006C). NEW: Removed because the changes relate to sales and use taxes, not the property tax. CC highlighted this issue. CAT09 2023/08/01 JS OLD: Improper formatting for source publication. NEW: Corrected formatting for source publication.

Revision Type: 

Revision By: 
Camille
Revision Notes: 
11/2/23 JS CAT change 8/1/23 JS CAT change 2/13/23 RH verified 2/25/22 AL complete 9/28/21 VO created and updated 2021 record 9/28/21 VO complete 12/21/20 MT verified 3/19/20 AG updated 12/16/19 YP verified 11/12/19 LA complete 6/26/18 GM: completed record 9/12/17 nr: no new changes 12/2/16 nr: no new changes 3/20/15 ND: no new updates 5/7/14 GIR: copied 2012 record 6/24/14 GIR: checked, marked as complete 12/20/2014 PA vets 2013 record

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