STAR Tax Credit and New Home Buyers

A frequent question that I’m asked by clients as the closing on their new home draws to an end is “what about the STAR exemption?”  Given the high property taxes that Long Island homes are subject to this is not surprising.  After all every dollar counts and the STAR (School Tax Relief) exemption can be significant.

The answer is simple.  As the new owner you will need to file a STAR application to assure that you either receive or continue to receive the STAR reduction on the property.

STAR program credit

The confusion that some new homeowners have happens because they may inherit the prior owner’s STAR exemption at the time of the closing.  This is because property taxes are set for a full tax year.  If the seller had an exemptions at the beginning of the tax year (such as STAR, Enhanced STAR, Senior, Veteran) the resultant property tax amount would be set for that tax year.  Even if the seller only owned the property for a single day after the property tax assessment. Buyers can mistakenly believe that the inherited amount will continue.

New homeowners, whether through purchase, inheritance or any other means, should review the information and forms at https://www.tax.ny.gov/star/  or consult with an attorney such as Beige Law to assure that they do not miss any filing deadlines and do not unwittingly lose any of the property tax exemptions that they are entitled to.

 
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