Changes to New York State Star Program

This year’s budget agreement between Governor Andrew Cuomo and state lawmakers include a change to the STAR program for new homeowners. The change will only apply to homeowners that purchased a home in New York on or after March 1, 2015. These new homeowners will now receive a STAR rebate check in September rather than a STAR credit against their school tax bill.

On or about May 1, 2016, property owners subject to this new program will receive a letter from their local Assessor outlining this new process and how to apply to receive their rebate check. There is no change to the amount of the STAR benefit that homeowners will receive.This change could affect the buying power of homeowners by approximately $30,000 if the STAR program was used to qualify.
Is this change good or bad?
Receiving the check in place of a monthly discount will result in higher monthly payments for school taxes. Thus preparing the consumers for the full tax payments if the Star program is discontinued in the future. So that’s a good thing because the misconception most have is the STAR will last forever and calculate it into their budget that way. This will also help keep a closer look at when consumers purchase a home and regulate accurate refunds from the day of the purchase not the following year. I have multiple opinions on this topic. The reality is, it is here and we must continue to conduct business including it into our days work. 

For further information regarding the STAR please visit, https://www.tax.ny.gov/pit/property/star/savings.htm

Irene Amato