STAR Tax Relief Info

STAR PROPERTY TAX RELIEF INFORMATION

In 2016, New York State began the process of phasing out the STAR Exemption program and replacing it with the STAR Credit program. 

The STAR Tax Credit versus the STAR Tax Exemption

The value of the two benefits are the same. 

Homeowners who remain in the exemption program will continue to receive their benefit as an exemption to their school tax bill.  Enhanced STAR exemption applications and renewals will continue to be handled by local assessors.

Registrations for the STAR credit program will be submitted directly to the state by homeowners either online or by phone.  Homeowners will receive their benefit via a check issued by the state.  The state will automatically determine a homeowner's eligibility for the basic or enhanced benefit based on information gleaned from the homeowner's tax return.

STAR Eligibility

STAR eligibility criteria are the same for both the credit and exemption programs. 

To be eligible for a Basic STAR benefit:

• Residency - You must own your home and it must be your primary residence. 
• Age - No age restriction.
• Income - $500,000 or less

To be eligible for an Enhanced STAR benefit:

• Residency - You must own your home and it must be your primary residence. 
• Age - 65 years or older.  For jointly owned property, only one spouse or sibling must be at least 65 by December 31 of the year when the exemption will begin.
• Income - Variable - For the 2017-2018 sch00l year (March 2017 deadline) the limit is $86,000. 

Income Eligibility - Eligibility in 2017 is based on income information from the 2015 tax year. Income means federal "adjusted gross income" minus the "taxable amount" of total distributions from individual retirement accounts or individual retirement annuities (IRA's).

The STAR Tax Exemption

The STAR Exemption program is closed to new applicants.  If you are not currently enrolled in the exemption program, you may apply for the new STAR Tax credit program. 

To check whether you are currently enrolled in the exemption program, or to determine whether you are receiving the basic or enhanced benefit, you can look up your property on the county website using this link:

Searchable property information via the Otsego County Dept. of Real Property

Once you find your property, click the button in the left margin that says "Tax Info".  Your current exemptions and exemptions from the past couple of years will be at the bottom of the page.  If you have trouble using this site, you may call the assessor's office and we can look up your exemptions for you. 

If you have a basic STAR exemption, you generally do not need to renew annually.  However, if a circumstance occurs in which you are maintaining residency and ownership of your property but need to file a new deed, you will need to reapply for the exemption program.  Please contact our office for instructions and the proper form.  

If you have a basic STAR exemption and will become eligible for an enhanced exemption during a calendar year, apply by submitting form RP-425 -E to the Assessor's Office by March 1 of the year in which your are due to become eligible. 

If you have an enhanced STAR exemption you must reapply annually.  You can do this one of two ways:

• Submit form RP-425RNW to the Assessor's office by March 1 each year.
• Enroll in the Automatic Income Verification program by submitting form RP-425IVP to the Assessor's office. 

The STAR Tax Credit

Homeowners may register for the STAR Tax Credit anytime by visiting www.tax.ny.gov/star or calling (518) 457-2036 weekdays from 8:30 a.m. to 4:30 p.m. 

Once registered, the state will re-verify eligibility each year using information from your state tax return.  A check for the appropriate benefit (basic or enhanced) will be distributed each fall.

New homeowners should register by July 1 to receive their benefit in a timely manner.