Basic/Enhanced STAR Exemption

State

New York

Year

2015

Variations in Receipt of Benefit

No Variation in Receipt of Benefits

Other Variation in Receipt of Benefits

Benefit Type

Exemption

Benefit

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 amount of the basic exemption is $30,000 and the amount of the enhanced exemption in 2015 is approximately $64,000. The basic exemption value is subject to an annual adjustment based on local housing prices. 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 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

Description of Eligibility Criteria

All primary residence homeowners are eligible for the Basic STAR exemption, with income less than $500,000. 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 $83,300. 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_RR15

Footnotes

In cases where the combined income exceeds the eligible income standard for a given year the property in question is nevertheless eligible for the Basic STAR exemption provided all other eligibility requirements are met. These exemptions are allowed for school district taxes only, except in the cities of New York, Buffalo, Rochester, Syracuse, and Yonkers. In these cities of 125,000 inhabitants or more the STAR exemption is reduced in amount but applied to both general city portion of levy and portion of levy designated for school purposes. For the enhanced star exemption, when the value of a trailer or mobile home has been included in the assessment of the land on which it is located, the STAR exemption is available. If the owner of the trailer or mobile home also owns the land, he or she may apply in the same manner as any other homeowner. If the owner of the trailer or mobile home does not own the land, he or she may apply only upon the trailer or mobile home.

Sources

N.Y. R.P.T Law § 425 (in effect for 2015)
New York State Department of Taxation and Finance (2015) STAR Eligibility
[http://www.tax.ny.gov/pit/property/star/eligibility.htm Accessed 12/19/15]

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