If you are a New York homeowner, you may have heard about STAR, a program under the state's Department of Taxation and Finance that helps provides property tax relief. If not, you may be missing out on potential savings.
Here's an introduction in case you are unfamiliar: The STAR program (School Tax Relief) was launched in 1998-99. Originally intended to assist senior citizen homeowners, STAR was expanded over the years to include residential properties of all taxpayers to the benefit of local school districts. Under the program qualified homeowners receive a partial property tax exemption.
Condominiums and co-ops receive benefits from the STAR program as well as individual homeowners. In a condominium, the exemption and resulting savings flow directly to the condominium owner and in a co-op, the benefits are passed through by the co-op corporation to the individual shareholders through maintenance reductions resulting from credits.
Kinds of STAR
There are two types of STAR: Basic STAR and Enhanced STAR. They’re exemptions that reduce homeowners’ property tax bills by several hundred dollars per year.
Basic STAR is available to owners who occupy their homes as primary residences and where the income of the resident owner and their spouse is less than $500,000 annually. Basic STAR is based on the first $30,000 of the full value of the home.