How does the STAR Program affect my taxes?
This is a question frequently asked by home buyers in New York.
The School Tax Relief Program otherwise called STAR; as the name implies is intended to give NY homeowners a break on their school taxes. It is no surprise that relief is needed since NY has some of highest taxes
The relief was recently restricted to households with income less than $500,000. There are actually two parts to this program, the Basic STAR and the Enhanced STAR which is given to seniors with income less than $79,050 and at least 65 years old.
The amount given varies from municipalities; in Red Hook the Basic Star is $48,990 and the enhanced STAR is $98,150. If for example your home is assessed at $200,000 and you qualified for the Basic Star the amount you would be taxed on would be $200,000-$48,990=$151,010; seniors would be taxed on $101,850
For more information you will need to contact the assessor in the town you are purchasing the home. Also keep in mind that there are deadlines when filing, this too varies depending on the county and township.
It is customary for you attorney are real estate agent to inform you of this, and most times at the closing the attorney will give you the application.