New STAR Rebate Program
There’s a new STAR Rebate Program. The STAR Exemption (lower property assessment) is being phased out and replaced by the STAR Credit (rebate check). If you are currently receiving a STAR Exemption, you do not have to register for the STAR Credit. You will continue to receive the Star Exemption. You may voluntarily switch to the STAR Credit program by canceling your STAR Exemption and applying for the STAR Credit. Once you switch to the STAR Credit, you cannot go back to the STAR Exemption.
If you have purchased a home and are eligible to receive a STAR benefit, you will now apply for a STAR Credit. The eligibility criteria for the STAR Credit is basically the same as for the STAR Exemption. Instead of applying to the local assessor, you will register with New York State Department of Taxation and Finance (“NYS DTF”).
The timing of the application has also changed. The March 1 deadline no longer applies. Eligible homeowners who register with NYS DTF by July 1 will be sent a STAR Credit check in September.
While the dollar value of the benefit is the same, the method of receiving the benefit has changed. Instead of receiving a property tax exemption (lower assessed value) thus paying a lower school tax bill, you will pay the school tax bill based on the full value of your property and then receive a rebate check.
You can register and find more details regarding the STAR program at https://www.tax.ny.gov/pit/property/star/register-for-star-credit.htm or click here.
William E. Duquette is Senior Counsel with the firm and practices Real Estate and Banking. He can be reached by phone at 866-303-9595 toll free or 845-764-9656 and by email.