NEW YORK HAS CREATED A NEW PROPERTY TAX CREDIT FOR HOMEOWNERS
New York has created a new property tax credit for homeowners who make less than $250,000 a year and whose property tax bill exceeds 6% of their annual income. The credit will be between $250 and $350. You must live in your New York home for at least 183 days out of the calendar year and you can only claim the credit for one property.
If your household income is less than $75,000 a year, the credit will be 14% of the “excess” property tax. Here’s an example, as provided by the State Division of the Budget:
- Say someone makes $50,000 this year and pays $5,000 in property tax.
- 6% of $50,000 is $3,000, which means the homeowner paid $2,000 in “excess” property tax.
- 14% of $2,000 is $280, which means the homeowner would get a credit for $280.
There are additional rules. If your credit is under $250, you won’t get anything. If your household income is more than $75,000, there is a formula for determining the percentage used. The maximum credit is $350. The credit takes effect this year, which means you can claim it when you file your income taxes in 2022 and 2023. This new credit is on top of the STAR program.
Keep in mind that May is Grievance Month for most municipalities in Orange County, New York. If you think you are overpaying or are over-assessed on your commercial property, please give us a call at (845)764-9656.
This is not intended to be legal advice. You should contact an attorney for advice regarding your specific situation.
Gary M. Schuster is Partner at the firm and practices business, non-profit, and arts and entertainment law.
He can be reached at 866-303-9595 toll free or 845-764-9656 and by email.