CHENANGO COUNTY – Earlier this year when the 2016-17 New York State Budget was passed by Governor Andrew Cuomo changes to the popular N.Y. State-sponsored STAR Tax exemption program were made that will inevitably trickle down to those filing for the rebate for the first time, namely new home owners.
The most obvious difference beginning this year will be the method and timing by which homeowners receive their rebate, which can have a reverberating effect on family finances.
For real property owners who filed for the State's enhanced or basic STAR Exemption after March 2, 2016 at their local assessor’s office, a transition to a new personal income tax (PIT) credit program may complicate the rebate process for some familiar with the process.
Shelly Harris, Town of Sherburne Assessor explains that new STAR applicants, or those re-applying at another primary residence after a sale will receive checks for the amount of their STAR rebate in the mail directly from the State.
“I don't understand why the State government felt a change in the way that the successful rebate is paid out was necessary,” said Harris, whose office is responsible for shouldering the administrative duties of the State's rebate program. “Once the letters go out people are going to be so confused.”
Not only is the new seemingly unnecessary half-measure redundant, but it will require the expenditure of untold thousands of dollars in labor and postage to remove all the exemptions that local assessors have entered in the last year—and to notify taxpayers, another unfunded state mandate placed on local government.
Many of the STAR program beneficiaries in Harris' jurisdiction are elderly homeowners who receive the enhanced rebate, and many of them are going to be calling; looking for answers.
The alarming-to-some letters will inform homeowners with real estate transactions that closed after March 2, 2015 that they are not eligible for the STAR school property tax exemption. In order for them to receive the rebate, taxpayers will instead have to register with New York State for the Personal Income Tax Credit/Check program.
“Property owners who already applied with their local assessor for a STAR exemption will be receiving with the letter instructions for registering for the new PIT credit/check program,” explained Harris. “Those who register prior to July 1 and who meet the eligibility requirements – which are the same as the requirements for the STAR exemption, The State intends to have checks mailed by mid-September.
Those who register after July 1 will still get a check, just not by mid September.”
Unfortunately, N.Y. State often overwhelmingly underperforms in the realm of timely check distribution, so knowing when the checks will actually go out is indeterminate.
According to Harris, the checks will be in the amount of the STAR savings that property owners would have received on their school tax bill had there been no change to the program.
“Essentially, all homeowners who received the rebate for the 2015-2016 school taxes and years prior may stay in the STAR program – both basic or enhanced – as long eligibility requirements are met and they stay in their current home,” said Harris. “But moving forward, any new homebuyers will have to register with the State. Once you are registered with New York State for the PIT credit/check program, you will not need to register again, unless your eligibility changes, the State will send their check automatically each year.”
Moreover, homeowners enrolled in the current the STAR program have the choice to stay with the program or opt for the PIT credit, however once opted out of the STAR program, homeowners can not go back to STAR.
Harris said that the registration process can be implemented through either an online application or by telephone, although the State has not finalized concrete details.