Part 3 – Enhanced STAR

DAVIDOWLAW Uncategorized

Tax Benefit:  

STAR – Enhanced


Tax Benefit Details:

Reduces school tax liability by exempting a portion of the value of the home from school tax.


Based on the first $65,000 of full value of the home.


Special rules for NYC, Buffalo, Rochester, Yonkers and Syracuse.


Property Types:

1, 2 and 3 family homes; Condominiums; Farm Dwelling; Cooperative apartment; Mobile home.


Commercial Mixed-Use – Portion of mixed-use property that serves as primary residence qualifies even if the property is not primarily residential in character.  (assessed value attributable to residence portion)  Example – 2 story commercial building with second floor residence.


Age Limit:

All owners must be 65 or older as of 12/31 of year of application.  If co-owned with spouse or sibling, only one owner must be 65 or older.  Co-owner child under 65 would cause a loss of Enhanced STAR.


Income Limit:

Combined 2015 income of all owners must not exceed $86,000 (2017).


Do not submit 2016 income documents.  Widow/Widower exception:  If senior citizen had decrease in income due to death of spouse, he may use 2016 income documents.  (STAR Assessor’s Guide)


Combined income of all owners and their spouses who reside on the property.  Income of non-resident, non-owner spouse is not included.



School-Aged Child – School-aged child living in the house is permitted for Enhanced STAR exemption.


Death of 65+ Owner – The surviving spouse may retain STAR Enhanced STAR exemption as long as he/she is at least 62 years old as of 12/31 of the applicable calendar year.


Death of STAR Applicant – STAR Enhanced exemption remains on the property but only for the assessment roll based on taxable status date.


Sale of House – If an Enhanced STAR recipient sells his house, exemption remains with the house until the next taxable status date.  (STAR Assessor’s Guide)


Restrictions, Deadlines & Supplemental Information:

Restrictions – Can receive both STAR (Basic or Enhanced and SCHE); Cannot receive both Basic STAR and Enhanced STAR.


Deadlines – New app:  March 15 for exemptions to start on July 15 of same year.


Renewal for those without SCHE – Optional Income Verification Program.  (2015)  Having income verified in subsequent years by NYS Department of Taxation and Finance.  Under this program, no need to re-apply or furnish income information.


Renewal for those with SCHE – Senior will not really benefit from the income verification program because SCE (SCHE in NYC) still have to re-apply annually.


Old STAR applicants with SCHE – SCHE aplication will also serve as Enhanced STAR application.