NORWICH – Chenango County’s assessors were given extra work last month to abide by a new state law that revoked the School Tax Relief (STAR) property tax break for families that make more than $500,000.
The New York Department of Taxation and Finance cross referenced assessment roll information and its own income tax return records to verify those families that were over the income limit and not eligible for the exemption any longer, and also those that they were unable to determine. The county’s assessors were then obliged to send out notifications to both groups.
Of the 10,224 School Tax Relief exemptions in Chenango County, 24 were over the income limit and 59 were not able to be determined.
Property owners affected will be permitted to submit 2009 federal and state returns in order to continue receiving the exemption.
“Assessors have been made aware that there could be errors made in the determinations,” said Chenango County Real Property Tax Services Director Steve Harris.
The STAR program, created by Govenor Pataki in 1998, was originally created to help seniors whose fixed incomes can’t keep up with property tax increases. The tax break evolved into something different, with every homeowner in a town or city, upstate or downstate, getting the same amount of property tax relief, regardless of home value, income, size of their tax bill or other exemptions.
According the the STAR website, the basic program is available to anyone who owns and lives in his or her own home and earns less than $500,000. Enhanced STAR is available to senior homeowners whose incomes do not exceed $79,050.
The 2010-2011 state budget required the tax department to prepare lists of those making a half a million per year and send them out to all assessors. Specific income figures weren’t reported, so the department isn’t violating the confidentiality of anyone’s personal income tax information, they say.
The state expects the change to save about $40 million by cutting off more than 100,000 homeowners. The state pays for STAR by reimbursing local governments for lost tax revenue.
Harris told members of the county’s finance committee early this month that there could be less STAR exemptions in the future. He also said fines will increase if exemptions aren’t truthful.
Town of Norwich Supervisor David C. Law said a number of his constituents fear that the program would be eliminated all together within the next few years.
“This will be very devastating to our senior citizens,” he said.
In other real property tax services news, Harris is preparing to assist the towns of Guilford and New Berlin in running notices to conduct their reassessment projects. Assessors will be able to meet informally with those taxpayers that wish to, and the assessor will make any necessary changes for the tentative assessment roll, he said. Normal grievance procedures will apply.
Harris said Governor Cuomo’s 2012 budget proposal would eliminate funding for assessment training and reassessment projects and require changes to counties’ parcel identification systems.
“There are a lot of changes in the governor’s budget. We’ll have to see what makes it through,” he said.
The 24-hour mandated rectification course for assessors was already double what a private sector, licensed assessor is required to have, he said.
Town of German Supervisor Richard Schlag said the training mandates, less aid proposals and changes in parcel identification would make it difficult for the two remaining towns that have a board of assessors – German and Norwich – to afford them. The remaining towns have just one assessor or share assessors.
Supervisor Wayne Outwater, R-Lincklaen, referred a resolution to the board protesting the new parcel numbering system unless New York reimburses counties for the work. The board adopted the resolution on at this month’s meeting.