|
|
2007 Middle Class STAR Rebate Program
by Mark A. Krohn, Esq., Partner
Jacobowitz & Gubits, LLP
On July 16 of this year the New York State Department of Tax began mailing letters alerting homeowners who receive the basic STAR exemption of the need to apply and provide income information to receive this year's Middle Class STAR rebate. The Middle Class STAR Rebate Program is based upon your property tax burden and upon your ability to pay, factoring in your income level. All that you need to do is to fill out a simple application that will allow the State to calculate the amount of the targeted rebate. You must apply no later than November 30, 2007. The fastest way to receive a rebate check will be to apply online at http://www.tax.state.ny.us/star/2007/.
Senior citizens who are property owners and receive an enhanced STAR exemption on their 2007-2008 tax bill will receive a rebate check automatically. For seniors with enhanced STAR, no application is required. This year Enhanced STAR recipients will receive rebate checks equivalent to 25 percent of their 2006-07 savings. The amount will increase to 35 percent next year. In addition, last year's one-time increase in the standard exemption amount of $56,800 will be fixed for three years, following which it will increase based on cost-of-living adjustments.
More than 94 percent of all homeowners across New York are eligible to receive the additional tax relief, with 79 percent of homeowners qualifying for the maximum benefit.
Upstate residents with incomes of $90,000 or less will receive a 60 percent additional benefit in 2007-08, a 10 percent additional benefit in 2008-09 and a 10 percent additional benefit in 2009-10. The middle class benefit to be provided through a rebate check is in addition to the Basic STAR benefit provided in the form of a reduction in the homeowner's property tax bill.
The average Basic STAR savings upstate was $640 in 2006-07. As a result of the Governor's Middle Class STAR program, for a family with income of $90,000 or less, the STAR benefit would grow by $384, as a result of the Middle Class STAR program to a total STAR benefit of $1,024 in 2007-08.
In the downstate counties outside of New York City, where property values and taxes are considerably higher, the average basic STAR savings was $1,082 in 2006-07. For a family with income of $120,000 or less, as a result of the Middle Class STAR program, this benefit would increase by $649 to a total STAR benefit of $1,731 in 2007-08.
|
|
|
