New York State School Tax Relief Program
Encyclopedia
The New York State School Tax Relief Program (more commonly known as the STAR Program), or New York State Real Property Tax Law §425, is a school tax rebate program offered in New York State aimed at reducing school district property taxes on the primary residence
s of New York residents. The program was enacted on August 7, 1997, a product of the annual budget
of then-Governor
George Pataki
. The STAR Program takes two forms: the Basic STAR and the Enhanced STAR. The Basic STAR is open to the primary residence of any New York State resident and exempts $30,000 from the true value of a home or property. The Enhanced STAR, for eligible senior citizen
s at or above age 65, exempts an annually variable amount - $56,800 for the 2008-2009 school year - from the true value of their primary residence. Essentially, the program is aimed to lower the tax burden on school district residents. This does not affect the overall revenue of a given school district; the difference is made up by the state, essentially making the program another source of state aid.
The STAR rebate is subtracted from the "true value" of the home in question. The true value of a home is the value determined at the time of the last property assessment (typically done by a town or county assessor
), divided by an equalization rate, which is the ratio of assessed value to market value for each taxing jurisdiction, as calculated by the State of New York. Equalization rates are used because assessments are not done each year by town or county officials. In addition, school district
s typically do not have the same boundaries as other taxing jurisdictions (i.e. cities and towns) so equalization calculations are needed to bring property values to the same levels within all neighboring municipalities
, included in a given district.
To be eligible for the Enhanced STAR, a primary resident age 65 or older must have an adjusted gross income
that does not exceed $60,000. Proof of age is required upon initial application.
Primary residence
A person's primary residence is the dwelling where they usually live, typically a house or an apartment. A person can only have one primary residence at any given time, though they may share the residence with other people...
s of New York residents. The program was enacted on August 7, 1997, a product of the annual budget
Government budget
A government budget is a legal document that is often passed by the legislature, and approved by the chief executive-or president. For example, only certain types of revenue may be imposed and collected...
of then-Governor
Governor of New York
The Governor of the State of New York is the chief executive of the State of New York. The governor is the head of the executive branch of New York's state government and the commander-in-chief of the state's military and naval forces. The officeholder is afforded the courtesy title of His/Her...
George Pataki
George Pataki
George Elmer Pataki is an American politician who was the 53rd Governor of New York. A member of the Republican Party, Pataki served three consecutive four-year terms from January 1, 1995 until December 31, 2006.- Early life :...
. The STAR Program takes two forms: the Basic STAR and the Enhanced STAR. The Basic STAR is open to the primary residence of any New York State resident and exempts $30,000 from the true value of a home or property. The Enhanced STAR, for eligible senior citizen
Senior citizen
Senior citizen is a common polite designation for an elderly person in both UK and US English, and it implies or means that the person is retired. This in turn implies or in fact means that the person is over the retirement age, which varies according to country. Synonyms include pensioner in UK...
s at or above age 65, exempts an annually variable amount - $56,800 for the 2008-2009 school year - from the true value of their primary residence. Essentially, the program is aimed to lower the tax burden on school district residents. This does not affect the overall revenue of a given school district; the difference is made up by the state, essentially making the program another source of state aid.
The STAR rebate is subtracted from the "true value" of the home in question. The true value of a home is the value determined at the time of the last property assessment (typically done by a town or county assessor
Assessor (property)
An assessor is a specialist who calculates the value of property. The value calculated by the assessor is then used as the basis for determining the amounts to be paid or assessed for tax or insurance purposes....
), divided by an equalization rate, which is the ratio of assessed value to market value for each taxing jurisdiction, as calculated by the State of New York. Equalization rates are used because assessments are not done each year by town or county officials. In addition, school district
School district
School districts are a form of special-purpose district which serves to operate the local public primary and secondary schools.-United States:...
s typically do not have the same boundaries as other taxing jurisdictions (i.e. cities and towns) so equalization calculations are needed to bring property values to the same levels within all neighboring municipalities
Municipality
A municipality is essentially an urban administrative division having corporate status and usually powers of self-government. It can also be used to mean the governing body of a municipality. A municipality is a general-purpose administrative subdivision, as opposed to a special-purpose district...
, included in a given district.
To be eligible for the Enhanced STAR, a primary resident age 65 or older must have an adjusted gross income
Adjusted Gross Income
For United States individual income tax, taxable income is adjusted gross income less allowances for personal exemptions and itemized deductions. Adjusted gross income is total gross income minus specific items laid out in the tax code...
that does not exceed $60,000. Proof of age is required upon initial application.