Assemblymember Sandy Galef, chair of the committee on Real Property Taxation and Assemblymember Kenneth Zebrowski today announced the Assembly has passed legislation to ensure New York homeowners do not struggle to pay their school taxes due to delayed STAR rebate checks.

A recent modification of the STAR program would have changed the tax relief program from being an upfront savings on property owners’ school tax bill through an exemption, to a credit issued in the form of a rebate check sent by the state tax department for new homeowners or those that had recently moved. Unfortunately, many New Yorkers have experienced delays in receiving their checks or received incorrect amounts forcing them to front their school tax payments or face potential late fees. Under the Assembly’s proposal, the STAR program would return to the original tax exemption structure that gave New Yorkers upfront savings.

The conversion to a tax credit was intended to provide the same tax benefit to homeowners in a timely fashion. However, the implementation of the program resulted in many adverse consequences for homeowners. As a result, the New York State Department of Taxation and Finance has experienced an influx in phone calls making it increasingly difficult for New Yorkers to get answers and remedies. The Assembly Majority’s proposal is designed to ensure a smooth transition back to the proven exemption program.

Today’s legislation reverses these changes and transitions the program back to the way it was, providing all homeowners with their deserved tax relief upfront as a reduction in their school tax bill. Administration of the program would also be returned to the hands of local assessors, and further, the bill requires the state to help localities in notifying residents of these new changes so that all qualified homeowners receive the exemption.

“Buying a home should be a joyful milestone, not a financial tax burden. The Assembly’s legislation will ensure a smooth transition back to the proven system that best served New York homeowners,” said Assemblymember Galef, sponsor of the bill. “Too many hardworking individuals and families have waited far longer than anticipated for money they needed to pay their school taxes resulting in late penalties and significant financial hardship.”

“We should provide homeowners with property tax relief in the most convenient form possible; not create unnecessary hardships for hardworking families. Why fix something that isn’t broken? STAR and the exemption structure has proven to be one of New York State’s most successful tax relief programs. Repealing these changes is essential to providing all homeowners, new and established, the same upfront tax relief they deserve,” Assemblyman Zebrowski said.

The STAR Program was established to offer school tax relief to homeowners across the state. Households with income under $500,000 are eligible for the basic STAR program and receive an exemption from the first $30,000 of the full value of their home from school taxes. Individuals 65 and older are eligible for the Enhanced STAR program and receive a larger tax break. Enhanced STAR candidates receive an exemption for the first $65,500 of their home value.