NY’s STAR Exemption Requires Additional Verification – What Homeowners Need to Know

For homeowners in New York State with the Basic STAR (School Tax Relief) exemption, a recent update could mean some additional paperwork. Typically, once applied, the STAR exemption runs on autopilot year after year, offering relief in the form of a property tax credit. However, this year, many may soon receive a letter requiring further verification to continue receiving the benefit, according to Dan Hust, Communications Director for Sullivan County Government.

The STAR exemption is a property tax break designed to reduce school taxes for eligible homeowners. It’s typically delivered as a credit on property tax bills, not as a direct check. The state’s Office of Taxation and Finance has updated its regulations, and as a result, many homeowners will be asked to provide additional documentation to maintain their exemption.

Those receiving a letter will be required to submit the following information:

Names and Social Security numbers of all property owners and their spouses

The name of the school district where the property is located

The date of purchase of the property

The most recent school tax bill

2023 federal or state income tax returns for all property owners and spouses residing at the property

The state’s move is part of an effort to ensure the exemption goes to the right people and to keep their records accurate. However, homeowners who receive the STAR exemption as a credit should be aware that they must respond within 45 days of receiving the letter. If they don’t, they could lose the benefit.

For those unsure whether they’ll need to submit the additional information, Hust recommends a proactive approach. Homeowners should call the state’s Office of Taxation and Finance at 518-457-2036 to check. When calling, it’s helpful to have your property’s section, block, and lot number (SBL), which can be found on your tax bill, he says.

Hust says “Do not contact your local assessor or the Office of Real Property Tax Services at the county level, as they won’t be able to assist in verifying this information. Only the state can confirm or deny whether you need to submit more documentation.”

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