BASIC STAR EXEMPTION
New York State (NYS) now requires property owners to register with the NYS Tax Department so that they continue receiving the Basic STAR real estate tax exemption in the 2014 year and beyond.
The NYS Basic STAR exemption is a school tax exemption for property owners. To qualify, the property must be a primary residence. The total income of the owner and his/her spouse must also not exceed $500,000. This is the total adjusted income reported on your 2012 Federal tax return, less taxable distributions from individual retirement accounts/annuities (IRAs).
When determining if a property is a primary residence, the local assessor will consider vehicle registrations, where an owner votes, and how much time the owner spends on that property each year. Eligible properties include houses, condominiums, and apartment buildings.
All owners must register by December 31, 2013, to continue receiving this tax benefit in future years. This is a one-time registration process. Once registered, NYS will determine the eligibility of property owners in each future year.
If you were a past recipient, you should be receiving a notice in the mail from NYS, providing instructions on how to register. This notice will include the STAR Code that you will need in order to register.
ENHANCED STAR EXEMPTION
This exemption applies to properties that were also owned by at least one senior citizen age 65 or older during the applicable year. To be eligible, income on the 2012 Federal income tax return of the owner and his/her spouse must be $81,900 or less.
Senior citizens residing in New York City (NYC) are not required to take any action at this point. These individuals will be contacted by NYC if and when they would be required to register.
However, senior citizens that reside outside of NYC must annually apply for this exemption, or participate in the NYS Income Verification Program.
Register online using the NYS website: http://www.tax.ny.gov/pit/property/star13/default.htm
Another option for registering is to call and speak to NYS directly (518-457-2036).
Contact NYS or your Marcum Tax Advisor if you have any questions.
Please contact your Marcum tax professional if you have any questions on this new legislation.