Basic/Enhanced School Tax Relief (STAR)

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State

New York

Year

2017

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 amount of exemption is adjusted for each county's housing market. The program is converted from an exemption benefit program to a credit program for new applicants. All new applicants receive an income tax credit of the same value rather than a reduction of their school taxes. Current STAR recipients will also have the option of giving up their STAR exemptions if they wish to receive the income tax credit instead. The Enhanced STAR is available to eligible senior citizens and exempts approximately $65,300 of property value in 2017. 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.

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 $500,000 are eligible for the Basic STAR exemption. Applicants of the Enhanced STAR program must be at least 65 years of age with an income less than $86,000 for based on 2017 income for 2018 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 in Adoption of Program

Local government is unable to exercise an option

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.

Record ID

NY104_RR17

Footnotes

Beginning with the assessment rolls used to levy school taxes for the 2016-2017 school year, 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. Effective 10 April 2017, the assessor shall forward to the commissioner a statement on the taxable assessed value attributable to each tenant (no regard to the exemption) and other information that the commissioner deems necessary to calculate the STAR credit, in a timely manner and manners prescribed by the commissioner. This statutory change is in accordance with the 2017 N.Y. Laws ch. 59 (AB 3009). Residents of NYC are not eligible for STAR relief, but instead a flat rate benefit, unrelated to property tax is available.

Sources

N.Y. R.P.T Law § 425
N.Y. Tax Law §606(eee) (in effect for 2017)
New York State Department of Taxation and Finance, Summary of Tax Provisions in SFY 2016-17 Budget (June 2016) p.2
[https://www.tax.ny.gov/pdf/stats/sumprovisions/Summary_of_Provisions-2016-17_FINAL.pdf Accessed 12/19/17]
View Archived Source

New York State Department of Taxation and Finance, Summary of 2016 STAR Transition Legislation, (2016)

[https://www.tax.ny.gov/images/orpts/star2016-amendments-summary.pdf Accessed 09/25/2018]

View Archived Source

New York State Department of Taxation and Finance, Questions and Answers for Homeowners about the New STAR Credit Program, (2017)
[https://www.tax.ny.gov/pit/property/star/star-2016-tp-faqs.htm accessed 07/17/2018]
View Archived Source

New York State Department of Taxation and Finance, Register for the School Tax Relief STAR Credit Information, (2017)
[https://www.tax.ny.gov/pdf/star/rp-5310-fs.pdf accessed 07/17/2018]
View Archived Source

New York State Department of Taxation and Finance, Register for the School Tax Relief STAR Credit, (2017)
[https://www.tax.ny.gov/pit/property/star/default.htm accessed 07/17/2018]
View Archived Source

New York State Department of Taxation and Finance, STAR Eligibility Information, (2017)

[https://www.tax.ny.gov/pit/property/star/eligibility.htm accessed 07/17/2018]

View Archived Source
2017 N.Y. Laws ch. 59 (AB 3009); 2016 N.Y. Laws ch. 60 Part A

To reference this webpage/table, please use the following citation:

Significant Features of the Property Tax. https://www.lincolninst.edu/residential-tax-relief/basicenhanced-school-tax-relief-star-new-york-2017 Lincoln Institute of Land Policy and George Washington Institute of Public Policy. (Basic/Enhanced School Tax Relief (STAR) ; accessed: 05/29/2023 02:06:17 PM)

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