STAR program: Your money is at stake
Words that strike fear into many: “We are from the government, and we are here to help.” The STAR program is a perfect example of a good program ruined due to excessive revisions by the state Legislature.
The STAR program was created in 1997 and provided simple, much-needed tax relief to homeowners. Now, following drastic changes that I opposed in this year’s budget, homeowners must be more attentive to the benefits that may be available to them. The state Department of Taxation and Finance claims the changes will make it easier to track the STAR program, but the real reason for these changes is a mere budgeting trick to assist Gov. Cuomo in keeping state spending below 2 percent.
There are two ways homeowners have received their STAR benefits:
STAR exemption: a direct reduction to your school tax bill.
STAR credit program: a check in the mail from the State Tax and Finance Department to apply to your school taxes.
Now with these complicated changes, homeowners currently receiving the STAR exemption in the form of a direct reduction to school tax bills will have to renounce from the exemption program and register for the STAR credit program to continue to see their savings increase by as much as 2 percent each year. Homeowners who continue with the STAR exemption will not see an increase in savings.
To switch to the STAR credit program, homeowners must withdraw from the STAR exemption program entirely. Contact your local assessor to find out what stage of the annual property tax cycle your home is in. If the tentative assessment roll has not been filed, notify your assessor that you wish to withdraw from receiving your STAR exemption by delivering or sending them a signed, written note that includes your name and address. If the tentative assessment role has been filed, you must use Form RP-496, Application to Renounce Previously Granted Exemption(s). The form can be found at: https://www. tax.ny.gov/pdf/current_ forms/orpts/rp496_fill_ in.pdf).
Following these steps, you need to register for the STAR credit program. If you have access to internet, the form can be found directly at www.tax.ny.gov/pit/property/star/default.htm. Before registering, you should have the following information on hand for reference. You will not be able to save your online registration mid-point to complete at a later time if you do not have these materials on hand before you start:
The names and social security numbers for all owners of the property and their spouses.
The primary residence of the owners and their spouses.
Approximate date the owners purchased the property and the name of the sellers. This information is on file with your town clerk if you do not have it.
2018 school tax bill, if the current owners received one.
Address of any residential property owned in another state.
The legal name trust, if applicable.
2017 federal or state income tax returns for all owners. Note: If you weren’t required to file a 2017 income tax return, you will need the following information for all property owners: total wages, salaries, and tips; taxable interest income and dividends; unemployment compensation; total pensions and annuities; Social Security benefits; and other income.
If you do not have access to the internet, these applications are available at your local town hall, village hall, county building or community library. You may also contact the state Department of Taxation and Finance’s STAR hotline from 8:30 a.m. to 4:30 p.m. by calling (518) 457-2036.
I am disheartened that as a state we spend millions each year to promote everything from tourism to film tax credits, but for a change that can drastically impact home budgets and of the pocketbooks, New Yorkers are left in the dark. These changes will be specifically detrimental to senior and low-income households who face the challenge of paying their school taxes upfront and now have to wait to receive their STAR credit check in the mail. It seems that these modifications are aimed at benefitting the state rather than its residents.
For additional information, please visit the New York State Department of Taxation and Finance website here. If you have any questions or need assistance with the process, please do not hesitate to contact me by email at walshm@nyassembly.gov or call 518-455-5772. Assemblywoman Mary Beth Walsh represents the 112th Assembly District, which consists of parts of Saratoga and Schenectady counties. For more information, please visit Assemblywoman Walsh’s Official Website.