The “ENHANCED” STAR exemption is available to senior citizens whose incomes do not exceed $60,000.  Recent legislation allows for this enhanced exemption to be available to qualifying senior citizens this year.  The amount of the enhanced full-value exemption is dependent on the median full-value assessment of residential property within the same county.

1- Who is eligible for STAR?

Eligible senior citizens may receive the STAR exemption if they are 65 years of age or older with incomes not exceeding $60,000 a year.  For property owned by a married couple, only one must be at least 65 years old, but their combined annual income from all sources may not exceed $60,000.

The “BASIC” STAR exemption is extended to all primary-residence homeowners, regardless of age or income.  All residential property owners receive at least a $30,000 full value exemption. 
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2- Does STAR apply to all property taxes?

No. STAR applies only to school district taxes, not to any other property taxes such as county, town or city.
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3- What types of property are eligible for any STAR exemption?

Persons must own and live in a one-, two-, or three-family residence, mobile home, farm home, condominium, or cooperative apartment.
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4- When must residents file for the STAR exemption?

Annual filing is required.  The local assessor will provide filing dates.
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5- Who administers the STAR exemption process?

Your local tax assessor, NOT the school district, administers the process.  All inquiries about the process should be directed to the assessor.
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6- Does STAR replace current senior citizen tax exemptions allowed by school districts?

No. STAR is in addition to current senior citizen property tax exemptions allowed in Real Property Tax Law §467.  Low income seniors receiving the pre-existing exemption automatically qualify for the STAR exemption.  They must file and qualify only for the pre-existing exemption to receive both that exemption and the STAR exemption.
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7- How does STAR affect district revenue collection?

District revenues from school tax payments will be reduced by the total amount of STAR exemptions taken by district residents.  The STAR re-payment schedule by the state will be as follows:            
 

35% of STAR re-payments to be paid by October 15;
Additional 35% to be paid by November 15;
Additional 10% to be paid by December 15; and
Last 20% to be paid by first business day in January.

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8- What are the major implications of STAR to school districts?   

STAR exemption payments are NOT state aid payments.  Local tax assessor(s) must notify your district of STAR exemption payments it is owed. Then, each year, every district must apply for STAR exempt state payments to the NYS Board of Real Property Tax Services for certification.  Once certified, the claim must be sent to the Department of Education to be further processed and then forwarded to the Comptroller’s Office for payment.  If a district doesn’t file, it will not be paid.  If it files late, payments will be late. 

Local school districts will calculate tax rates as they did prior to STAR.  There is no separate line in budgets for STAR exemption revenue; but it is essential that districts designate STAR as a separate revenue source in their budget documents for the community so that STAR reimbursement is not  confused with State Aid revenues. 
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9- What concerns does MCSBA have about STAR?

The possibility of late STAR payments is real; late payments will require districts to borrow more money for longer times.  District credit ratings could be damaged because of revenue re-direction from local property taxes to NYS reimbursement, due to NYS’s substandard credit rating.  The State could co-mingle STAR reimbursement with State Aid, as was done with lottery aid.
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 10- What would help school districts?

Districts should receive reimbursement for lost earnings on interest and costs of borrowing caused by STAR.  Districts should be allowed to increase their annual fund balances to compensate for lost revenues early in the school year.  Local Finance Law §25 should be amended to allow districts to issue revenue anticipation notes in anticipation of STAR aid up to the amount of the certified estimate of their remaining STAR reimbursement for the year.  Legislation should be passed to strengthen the investment capabilities of school districts.

Click HERE to read a similar Q & A produced by the New York State Department of Taxation and Finance.
 

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