DID YOU KNOW THAT New York State has a number of different tax exemption programs. Here is a brief summary of a few. See if you qualify! The STAR Program Enhanced STAR Program Basic STAR Program Senior Exemptions Veterans Exemptions STAR Program STAR stands for SCHOOL TAX RELIEF (STAR) program. It was implemented earlier this year by Governor Pataki and provides a partial exemption from school property taxes for owner-occupied primary residences. There are two types of STAR exemptions; the "ENHANCED" and the "BASIC". The "ENHANCED" STAR program applies only to senior citizens with combined incomes that do not exceed $60,000 (including social security). The "ENHANCED" exemption begins in the 1998/99 tax year. In 1999, all homeowners (non-seniors and seniors whose combined income exceeds $60,000) will be eligible for the "BASIC" STAR exemption. "ENHANCED" STAR Exemption Seniors who are 65 years and older with household incomes up to $60,000 will receive at least a $50,000 exemption from the full value of their property, beginning with a $12,500 exemption in the 1998-99 school year and phased in over four years to $50,000 in the school year 2001-02. When fully implemented, the enhanced STAR exemption will be providing an average school property tax reduction of at least 45% annually for seniors. The ENHANCED STAR exemption for eligible senior citizens first applies to 1998-99 school taxes. If your property will be receiving the "Senior Citizens Exemption" authorized by section 467 of the Real Property Tax Law, you do not need to apply for the STAR exemption; your property automatically qualifies for the enhanced STAR exemption. If you are a low or middle income senior whose property is not receiving the Senior Citizens Exemption, your property may still be eligible for the ENHANCED STAR exemption, but you must apply for it. To apply for the "ENHANCED" STAR exemption, you must file application form RP-425 with the assessor of your city or town (in Nassau County with the county assessor). The deadline for filing a 1998/99 "ENHANCED" STAR exemption application is MARCH 1, 1998. In Nassau County, the deadline is JANUARY 2, 1998. In cities and villages, check with your assessor. If your application is granted, you must reapply each year in order to keep the "ENHANCED" exemption in effect. "BASIC" STAR Exemption The "BASIC" STAR exemption begins in the 1999/2000 tax year. There are NO income limits or age qualifications for this exemption. To qualify for the "BASIC" STAR exemption you must own the property and it must by your primary residence and you must not be receiving the "ENHANCED" STAR exemption. The filing deadline for the "BASIC" STAR exemption in Suffolk County is MARCH 1, 1999; in Nassau County January 2, 1999. If the "BASIC" exemption is granted, you usually do not need to reapply in subsequent years. However, you must notify the assessor if your primary residence changes. The "BASIC" STAR exemption plan provides a least a $30,000 exemption from the full value of your property, beginning with a $10,000 exemption in school year 1999-2000, and phased in over three years to $30,000 in the school year 2001-02. The BASIC STAR program, will provide an average school property tax reduction of at least 27% annually. SENIOR CITIZEN EXEMPTION New York State law gives local governments and public school districts the option of granting a reduction on the amount of property taxes paid by qualifying senior citizens. This is accomplished by reducing the assessed value of their residential property by 50%. Please check with your local assessor or the clerks of the local government and school district to determine which local options, if any, are in effect. The senior citizens exemption is available to property owners 65 years of age or older who meet certain income limitations and other requirements. For the 50% exemption, the law allows each county, city, town, village or school district to set the maximum income limit at any figure between $3,000 and $18,500. Localities have the further option of granting an exemption of less than 50% to senior citizens whose incomes exceed the local income limit by less than $1000 in three income ranges or $900 in six other income ranges. Other limitations include ownership status, proof of residency and occupancy, proof of age and income. The exemption does not automatically go into effect when you reach age 65. You must timely file the first application and annual renewal applications with the office of the assessor by "taxable status date". In most towns, this date is March 1, but check the deadline with your assessor to be sure. Nassau County has an option to accept applications later than is usually required by law. Some municipalities permit late filing in certain hardship situations and/or the filing of affidavits in lieu of renewal applications after the exemption has been granted on five consecutive assessment rolls. When a person who qualifies for the exemption buys property after taxable status date, he or she may file a State Board prescribed form with the assessor within 30 days of the transfer. The assessor then has 30 days to decide whether the applicant would have qualified for the exemption had he or she had title as of taxable status date. You may obtain an application at the assessor's office. The first application is form RP-467. The annual renewal application is RP-467rnw. The Affidavit for the city, town, or village is RP-467aff/ctv. The affidavit form for a school district is R-467 aff/s. AGE REQUIREMENTS Each of the owners of the property must be 65 years of age or over, except that, where the owners are husband and wife, or are siblings, one spouse or sibling must be 65 years or over. Age is determined as of the appropriate taxable status date. Proof of age is required such as a birth certificate or baptismal certificate. If these are not available, an affidavit of age from the Social Security Administration, hospital birth record, marriage record, passport, military record, immigration documents or other reliable records that show your age would be considered. OWNERSHIP & RESIDENCY REQUIREMENTS In order to qualify for a partial exemption, the applicant or applicants must show they have owned the property for at least 12 consecutive months prior to the date of filing the application, unless the owner received a senior citizen exemption for his or her previous residence, in which case the 12 month requirement is considered satisfied. The property must be the legal residence of and must be occupied by all of the owners of the property unless: 1. a non-resident owner, who is the spouse or former spouse of the resident owner, is absent from the residence due to divorce, legal separation, or abandonment, or 2. an owner is absent from the property while receiving health-related services as an in-patient of a residential health care facility. A residential health care facility is a nursing home or other facility that provides or offers lodging, board and physical care including, but not limited to, the recording of health information, dietary supervision and supervised hygienic services. INCOME REQUIREMENTS The exemption cannot be granted if the income of the owner, or the combined income of all the owners, exceeds the maximum income limit set by the locality. If the owner is married, the income of the spouse must be included in the total unless the spouse is absent from the residence due to a legal separation or abandonment. You should contact your local assessor to determine what the income limits are. Income includes all Social Security payments, salary and wages including bonuses, interest (including non-taxable interest on state or local bonds), total dividends, net earnings from farming, rentals, business or profession (including amounts claimed as depreciation or income tax purposes), income from estates or trusts, gains from sales or exchanges, the total amount received from governmental or private retirement or pension plans, annuity payments (excluding amounts representing a return of capital), alimony or support money, unemployment insurance payments, disability payments, workers compensation, etc... Income does not include Supplemental Security Income, welfare payments, gifts, inheritances, payments received as participants in the Federal Foster Grandparents Program or a return of capital. Municipalities have the option to permit applicants to subtract from their incomes all medical and prescription drug expenses that are not reimbursed or paid by insurance. If an owner is an inpatient in a residential health care facility, the owner's other income is not considered income in determining exemption eligibility if it does not exceed the amount paid by such owner, spouse or co-owner for care at the facility. Proof from the facility of the amount paid for an owner's care must be submitted with the application. Copies of the preceding years' Federal or New York State income tax return(s) should be submitted as proof of income. You may also be required to submit statements of payments made by the Social Security Administration, bank statements, rent receipts or other documents to substantiate your statement of income. VETERANS EXEMPTIONS There are two different types of veterans exemptions. The first type is called the "Eligible Funds Veterans Real Property Exemption". It provides a partial exemption where property owned by a veteran or other persons designated in the law has been purchased by the veteran with the proceeds of: • a veteran's pension • bonus or insurance monies • dividend or refunds on such insurance compensation paid to prisoners of war etc... These payments are called "eligible funds". Eligible funds has a $5,000 maximum reduction of assessed value and only applies to general taxes (county, city, village), but not school taxes or local district levies. The law provides a partial exemption from real property taxation for property purchased by the veteran with the proceeds of a veteran's pension, bonus or insurance monies, or dividends or refunds on such insurance, compensation paid to prisoners of war, mustering-out pay, etc. Property is exempt to the extent that eligible funds are used in the purchase, generally up to a maximum of $5,000. For example, if the qualifying veteran's property has an assessed value of $20,000 and a maximum eligible funds exemption of $5,000, the taxable assessed value would be $15,000, and the veteran would pay taxes based on only $15,000 worth of assessment. The application form for the eligible funds exemption is RP-458; it must be filed with the local assessor. An exemption provided to specially adapted homes of paraplegics, or the homes of the widowed spouse, is covered by section 458(3) and by item 10 on the RP-458 form. The second type, "Alternative Veterans Exemption", is available only for the residential property of veterans of war and provides a property tax exemption of 15% of assessed value to veterans who served during wartime and an additional 10% to those who served in a combat zone. The law also provides an additional exemption to disabled veterans equal to one-half of their service-connected disability ratings. The application form for the Alternative Exemption is RP-458-a. It must be filed with your local assessor. The Alternative Exemption also is applicable only to general municipal taxes (county, city, village) and not school taxes. Unlike the Eligible Funds Veterans' Exemption, however, the Alternative Exemption is limited to the primary residence of a veteran, and is not based on eligible funds. Some municipalities were given the option of deciding not to grant this Alternative Exemption. To find out if yours does, check with your local assessor. OWNERSHIP REQUIREMENTS FOR THE ALTERNATIVE EXEMPTION The legal title to the property must be in the name of the veteran or the spouse of the veteran or both, or the unremarried spouse of the veteran. The title requirement also is satisfied if the veteran, veteran's spouse or unremarried surviving spouse is the legal life tenant of the property, or if the title has been transferred to a trust, such a person is a trustee or beneficiary of such trust. These title provisions also apply to the "eligible funds" exemption. RESIDENTIAL AND OCCUPANCY REQUIREMENTS The property must be used exclusively for residential purposes. However, if a portion of the property is used for non-residential purposes, the exemption will apply only to that portion of the property that is used exclusively for residential purposes. In addition the property for which the exemption is sought must be the primary residence of the veteran or unremarried surviving spouse unless that person is absent from the property due to medical reasons or is institutionalized. The exemption can still be granted if the qualifying veteran is deceased provided that the title to the property is in the name of the veteran's unremarried, surviving spouse, who continues to use the home as the primary residence. A veteran who also is the unremarried surviving spouse of a qualifying veteran also may receive any exemption to which the deceased spouse was entitled. In the event both husband and wife are deceased, the exemption can be continued for the veteran's dependent mother, father, child or children under 21 who have legally received the property and who use it as their primary residence. You may file for these exemptions at your local assessors office and of course must provide proof of service.