Personal Income, Property Taxes: Update Regarding School Tax Relief Program Issued

11 June 2019

For property tax purposes, the New York Department of Taxation and Finance (department) issued an update regarding the School Tax Relief (STAR) program, informing tax professionals that property owners can receive STAR benefits either as a reduction on their school tax bill or as a check from New York State. However, taxpayers with incomes between $250,000 and $500,000 will no longer be eligible for the STAR exemption but they may be eligible for the STAR credit. The basic exemption income limit is now $250,000; however, the income limit for the STAR credit continues to be $500,000. The department further informed tax professionals that it is automatically registering affected property owners for the credit using information provided when they registered for the STAR exemption or for a STAR-related benefit. Further, property owners who are receiving the STAR exemption and whose income is $250,000 or less can choose to register for the STAR credit. STAR credit exemption benefit can no longer increase; however, the STAR benefit can continue to grow by up to 2% annually.

The department stated that to simplify the process for switching to the STAR credit, it has added new options to the beginning of the STAR credit registration online application. Homeowners may now choose from the following options: (1) Update Registration; (2) Make the Switch or; (3) Register for STAR.

Update for tax professionals, New York Department of Taxation and Finance, June 6, 2019