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Special Friday edition in light of the holiday week! Happy Fourth!!!
Participate! Today is the last day to complete the RPSV5 Participation Survey! More than 140 of you have taken it already! Can we break 200?!?!
Renouncing STAR Exemptions. Some of you have asked for advice on how to process “renunciations” of STAR exemptions occurring after the completion of the tentative roll but before the levy of school taxes. Evidently a number of taxpayers have been filing Form RP-496 because they want to switch from the STAR exemption to the STAR credit.
In our opinion, if you receive a copy of Form RP-496 before school taxes are levied, you may remove the exemption from the assessment roll data file without going through the Board of Assessment Review or filing a Correction of Errors petition. The owner has clearly waived his or her claim to the exemption for 2017, and no purpose would be served by leaving the exemption on the 2017 roll and requiring the school authorities to issue a 2017 school tax bill that will only have to be adjusted. The renunciation statute (RPTL § 496) is designed to accommodate taxpayers who wish to relinquish their exemptions, and should be administered accordingly.
One caution, however: If Question 3 of a taxpayer’s Form RP-496 contains a date that falls after the school levy date, it means that the taxpayer did not intend to renounce the exemption for this year’s school tax bill. You should not remove the exemption from this year’s data file in those cases.
Finally, it should be understood that taxpayers who renounce their STAR exemption to switch to the credit cannot switch back to the exemption at a later date. Renunciations of STAR exemptions are irrevocable.
Your STAR credit questions:
• What is the deadline to register for the STAR credit? The STAR credit is a credit against the property owner’s personal income tax. For that reason, the STAR credit registration deadline is three years after the deadline for filing the return for the applicable income tax year. For example, the deadline to register for the 2017 STAR credit is April 15, 2021. However, there is no reason for home buyers to wait that long; we encourage them to register as soon as possible.
• What is the taxable status date for the STAR credit? While taxable status date is the deadline to apply for property tax exemptions, the STAR credit is a credit against the property owner’s personal income tax, and taxable status dates have no bearing upon eligibility for personal income tax credits. To be eligible for the STAR credit for a particular year, the property must be the owner’s primary residence during that year, the owner must pay the school taxes on it during that year, and the income requirement applicable to that year must be satisfied. See the full list of eligibility requirements.
• I bought my home on February 15 of this year. May I receive a STAR credit on it this year? Yes, if the property is your primary residence, you pay the school taxes on it this year, and you are otherwise eligible. You should register for the credit as soon as possible.
• I will be buying a home on September 15 of this year. May I receive the STAR credit on it for this year? Yes, if the property is your primary residence, you pay the school taxes on it this year, and you are otherwise eligible. You should register for the credit as soon as possible. Be aware, however, that you will not be on the same check processing schedule as taxpayers who bought their homes and registered earlier in the year.
• I will be buying a home on October 15 of this year. The seller will be paying the school taxes on it before the closing. May I receive a 2017 STAR credit check? No, since you won’t be paying the 2017 school taxes on your home. However, if you register, pay the 2018 school taxes, and are otherwise eligible, you’ll receive a 2018 STAR credit check.
• Several years ago, my mother executed a deed transferring her home to me while retaining a life estate. The property has been receiving a STAR exemption all along. May I apply for the STAR exemption once she passes away, or must I register for the STAR credit? Due to the life estate, you are not considered the owner of the property for property tax purposes until the life estate ends (which will happen when your mother passes away). You may not receive a STAR exemption at that point because you were not an owner on the 2015 STAR application deadline. To receive a STAR benefit, register for the STAR credit.
New Judicial Case. We've updated the Judicial
Cases webpage with this case:
- Cafferty v County of Broome
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Questions, comments or suggestions? Email geoffrey.gloak@tax.ny.gov
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