http://www.orps.state.ny.us/MuniPro/
http://www.orps.state.ny.us/star/index.cfm
The School Tax Relief (STAR) exemption (Real Property Tax Law, §425) provides a partial exemption from school taxes for most owner-occupied, primary residences. It was signed it into law on August 7, 1997.
The exemption consists of two parts: (1) a "Basic" exemption available to virtually all New Yorkers who own their own one, two, or three family home, condominium, cooperative apartment or mobile home; and (2) an "Enhanced" exemption available to senior citizens (age 65 and older) with yearly incomes of $60,000 or less, increased annually according to a cost-of-living adjustment (COLA).
The Enhanced STAR works by exempting the first $56,800 of the primary residence's full value (2008-2009 school year), while the Basic STAR exempts the first $30,000 of full value. In counties where the median home value is higher than the statewide median home value, this exemption is increased proportionally so that homeowners in these areas will realize equivalent tax relief.
To receive the STAR exemption, taxpayers must file an application with their local assessor. Property owners who are granted the Basic exemption generally do not need to reapply in subsequent years. However, property owners will need to notify their assessor if their primary residence changes. Property owners who receive the Enhanced STAR exemption have the option of participating in a new income verification program. Beginning with 2003 assessment rolls, seniors who are applying for Enhanced STAR may authorize the assessor to have their incomes verified in subsequent years by the State Department of Taxation and Finance (DTF). Seniors who choose this option must furnish their taxpayer identification numbers at that time. The assessor will submit the list of numbers to ORPS, along with other identifying information as well to facilitate matching and reporting back (e.g., names of owners and owner's spouses who reside on the premises, parcel ID numbers). ORPS will then pass this information along to DTF. After checking its records, DTF will notify ORPS which applicants satisfy the income requirements and which do not (it will not disclose their actual incomes), and ORPS will forward that information to the appropriate assessors. Most seniors who choose this option will no longer need to re-apply thereafter or furnish tax returns to their local assessors (unless DTF should be unable to verify their returns).
The STAR income verification option does not directly affect seniors who are receiving the Senior Citizens Exemption (RPTL §467). Such persons will still have to reapply for the RPTL §467 exemption annually, and provide income documentation therewith, if they wish to continue receiving that exemption. Of course, as long as they qualify for the RPTL §467 exemption, they will automatically qualify for the Enhanced STAR exemption, so they will not need to submit separate STAR applications in those cases.
Seniors who do not wish to participate in the income verification program for any reason will not be obliged to do so. But if they wish to continue receiving the Enhanced STAR exemption, they will have to keep reapplying, with copies of their tax returns, year after year, just as they have been doing. The main difference, as far as they are concerned, is that the assessor will be obliged to send them an application form every year, with a reminder that they must reapply by taxable status date. If a senior who initially decided to opt-out of the income verification program later decides he or she would like to opt in, he or she will be permitted to do so.
Senior citizens eligible for the Enhanced STAR exemption may request that the assessor send a notice to an adult third party to assist the senior citizen in fulfilling the eligibility requirements regarding that exemption.
Although New York State law includes over 200 real property tax exemptions, STAR is unique in two ways. First, it is the only exemption that is funded by the State. All other exemptions erode the local tax base and shift the incidence of the tax burden (by increasing the tax rate) to those not enjoying that exemption. Second, STAR is unique in its scope. Whereas other exemption programs have targeted sometimes significant numbers of owners (e.g., some 595,000 veterans exemptions (RPTL, §§458, 458-a) and nearly 215,000 senior citizens exemptions (RPTL §467) were granted on 2006 assessment rolls statewide), none has come close to the overwhelming breadth of the STAR program (over 3.3 million exemptions).
Not surprisingly, a program of this magnitude has generated numerous questions to which the Office of Real Property Services (ORPS) has responded in Question and Answer (Q&A) memoranda, more extensive memos on certain subjects (e.g., program administration in manufactured housing communities, correction of error procedures), and formal Opinions of Counsel. Information has also been posted on the ORPS Website,www.orps.state.ny.us. The purpose of this Assessor’s Guide is to capture that material in a single document that will respond to the most frequently asked questions concerning STAR. Further questions may be directed to the local ORPS Regional Office, or to the STAR Unit at (518) 474-2819.