STAR is the New York State School Tax Relief Program that provides an exemption from school property taxes for owner-occupied primary residences of one, two and three family homes, farm homes, condominiums, cooperative apartments or multiple use properties of which a portion is used by the owner as a primary residence. You must apply for the STAR program. Homeowners are eligible to receive only one STAR exemption within New York State.
The Basic STAR Exemption has been extended to all primary residence homeowners, regardless of age. Annual household income must be $500,000 or less. Basic STAR does not have to be renewed each year, however, a new STAR application must be filed when a new deed is filed on the property or if the primary residence of a property changes.
New Basic STAR Registration Requirements
A state registration program has been implemented as part of the New York State Tax Relief Program, or STAR, which requires all homeowners who receive the “Basic” STAR property tax exemption to register with the New York State Tax Department in order to receive the STAR exemption in 2014 and subsequent years. This registration requirement is not satisfied by your original STAR application submitted to the Nassau County Department of Assessment. All Basic STAR recipients have received a verification form from New York State Tax Department requiring them to register with the New York State Tax Department by December 31, 2013** in order to continue receiving the STAR exemption in 2014 and forward. For details about the STAR Registration Program, please call (518) 457-2036 or visit the New York State Department of Taxation and Finance website. Senior citizens receiving Enhanced STAR benefits are not affected by the new registration requirement. This program is aimed at protecting New Yorkers against the cost of inappropriate or fraudulent STAR exemptions.
Eligible senior citizens may receive reduced school taxes under the Enhanced STAR Exemption. To be eligible, property owners must be 65 years of age or older (in the year in which the exemption takes effect), and have a Federal Adjusted Gross Income (AGI) less any taxable Individual Retirement Account (IRA) distribution that does not exceed $83,300* a year. For property owned by a husband and wife or siblings, only one resident owner has to be at least 65 years of age. Their combined Federal Adjusted Gross Income allowed by New York State, however, must not exceed $83,300. There is an annual cost-of-living adjustment (COLA) to the income limit for Enhanced STAR. Please check the income limit every year to see if you qualify. Senior citizens whose annual income exceeds $83,300 may still be eligible for the Basic STAR exemption. You must re-file for the Enhanced STAR exemption each year unless you apply for automatic renewal and file a New York State Tax return each year.
*Applies to applications submitted on or before January 2, 2015 for the 2016 Assessment Roll (2015/2016 school year tax bill).
**Date subject to change by the NYS Tax Department.
Basic or Enhanced STAR Tax Exemption applications may also be obtained from the Nassau County Department of Assessment by calling (516) 571-1500 or by visiting their office located at 240 Old Country Road in Mineola. Signed, completed applications must be filed with the Department of Assessment on or before January 2, 2015.