Variations in Receipt of Benefit
Other Variation in Receipt of Benefits
Real property is exempt from taxation for school purposes with two variations known as the Basic STAR exemption and an Enhanced STAR exemption for eligible senior citizens. The exempt amount is determined annually by multiplying the product of the equalization factor for the assessing unit and if necessary, increasing the result to the applicable floor. The enhanced exemption is annually adjusted to equal the prior year’s base figure multiplied by the percentage increase in the consumer price index for urban wage earners and clerical workers (CPI-W). The amount of the basic exemption is $30,000 and the amount of the enhanced exemption in 2006 is $56,800.
How is Benefit Disbursed
Exemption from assessed value
Eligible Property Type
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.
Description of Eligibility Criteria
All primary residence homeowners are eligible for the Basic STAR exemption, regardless of age or income. Applicants of the Enhanced STAR program must be at least 65 years of age with an income less than $67,850 in 2006. 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.
In 2006, 2,684,666 Basic STAR exemptions were made, worth $127 billion. 660,045 Enhanced STAR exemptions were made, worth $50.43 billion.