ALBANY – New homeowners in New York State will receive a rebate check for a portion of their school-property taxes instead of receiving it as an upfront savings in their tax bill.
Under guidelines included in the new state budget approved last week, new homeowners or people who move to a new property in the state will get a rebate check each fall for the portion of their school taxes covered by STAR (Application for School Tax Relief). Then they would have to claim the money on their income taxes the following year. Under the previous conditions, all homeowners in the state had the STAR exemption applied directly to their school tax bill.
According to news reports, change will have a negative impact the middle class and poor people because, even with the rebate, it is going to cost them more money up front and that’s something many property owners will have a difficult time doing. In addition, a property owner may miss out on the STAR program entirely, unless they itemize their annual income tax.
According to the state Department of Budget, the STAR program — with the upfront rebates — costs the state $3 billion each year. The new changes to the program will save the state $180 million, but the state has yet to explain where the savings will come from, although it has said they don’t plan to change the amount of aid they are giving people.
Homeowners are eligible for the STAR program if their household has an income of under $500,000.
The rebate check is expected to come in the fall, and again you have to claim that on your income tax for the following year. If you’d like to apply for the STAR Rebate, you can visit tax.ny.gov.
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