Attention New York Homeowners

Since many of my clients have taken advantage of the STAR exemption (School Tax Relief Program) in the past, I want to inform them of new legislation that requires all homeowners receiving a Basic STAR exemption to register with the New York State Tax Department in order to receive the exemption in 2014 and subsequent years.

 The STAR exemption is available for owner-occupied, primary residences where the resident owners’ and their spouses’ income is less than $500,000 and exempts the first $30,000 of the full value of a home from school taxes. And if you are age 65 or older you may be eligible for the enhanced STAR which provides an increased benefit for the primary residence of senior citizens. This enhanced STAR exempts the first $63,200 of the full value of a home from school taxes, which is up from $62,200 in 2012-2013.

Keep in mind that STAR exemptions apply only to school district taxes, not to county, town or city taxes (except in cities where city property taxes fund schools).

Once registered, all homeowners receiving a basic STAR exemption will not have to re-register every year. However, seniors receiving the enhanced STAR exemption must still apply every year and must still participate in the income verification program.

Registration will continue until December 31, 2013. You can register online at: http://www.tax.ny.gov/pit/property/star13/default.htm or by calling (518) 457-2036 Monday – Friday:  8:30 am – 8:00 pm or on Saturdays:  9:00 am – 1:00 pm

In order to register you will need to provide a STAR code which is being mailed to all basic STAR recipients or you can use the STAR code lookup found on the website. In addition, you will need the name and social security number for all owners of the property and their spouses, and you must confirm that the combined owners and spouses income does not exceed $500,000 per year.

With the rising cost of real estate taxes, you do not want to miss out on an opportunity to obtain this benefit by failing to register.