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STAR changes may cause problems for seniors, but St. Lawrence County real property director says no need to worry yet

Posted 5/15/16

By JIMMY LAWTON CANTON -- New York State is changing how the STAR tax exemption works and while details are vague, it could have a negative impact on seniors, who may be required to pay taxes up …

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STAR changes may cause problems for seniors, but St. Lawrence County real property director says no need to worry yet

Posted

By JIMMY LAWTON

CANTON -- New York State is changing how the STAR tax exemption works and while details are vague, it could have a negative impact on seniors, who may be required to pay taxes up front before receiving a refund.

Before anyone gets too scared, St. Lawrence County Real Property Director Darren Colton says it’s important to note that this change will only affect people who aren’t already receiving the exemption. And details on how the new system will work aren’t clear yet.

“If you already have that STAR exemption you are going to keep that STAR and it will be the same as it always has been,” he said.

People who move and have to reapply for the exemption will be placed under the new program. Under the new law homeowners will receive a STAR check directly from New York State instead of receiving a school property tax exemption. The amount of an individual’s benefit will be the same as it was prior to the change.

Colton says anyone who will be affected by the change will receive a letter. And although it will be a lot of extra work for his office this year, he said it shouldn’t have a major impact homeowners.

“I don’t want to scare people,” he said. “ I don’t even know if we have 500 people that are new, or moved that would be affected.”

The only major concern under the new system is how the STAR payments will function. Currently the exemption is included in the tax bill, meaning it’s deducted prior to payment. However since the new system will be a pay out from the Department of Tax and Finance, it is unclear if the payouts will be made before taxes are due.

This has the potential to create financial problems for people who live pay check to pay check or are on a fixed income.

“I hear from DTF, anticipates checks in September, School taxes are due September. My concern is for the people, mainly elderly who may save $1,400 to $1,500 in their STAR exemption and possibly have to pay up front, but we just don’t know yet how exactly it will work,” Colton said.

What we do know is that beginning with the 2016-2017 school year, new STAR applicants will need to register with the Tax Department to receive a STAR check.

Registration will begin soon, according to New York State Department of Tax and Finance. Current Basic and Enhanced STAR exemption recipients will keep their exemption as long as they continue to own their current home.

Current Enhanced STAR exemption recipients who are not enrolled in the Income Verification Program must continue to file a renewal application with their local assessor each year.