Assemblyman Bill Magee (D-Nelson) announced that he is sponsoring legislation that would remove language inserted into last year’s state budget that made it much more difficult for local homeowners to receive timely tax relief under the state’s School Tax Relief (STAR) program (A.5969).
“Many of my constituents have reached out to my office concerned and confused about the changes to the STAR program that were quietly inserted into last year’s state budget,” said Magee. “People are genuinely frustrated with the red tape that is part of the STAR changes. They want to know when they will be getting their reimbursement checks. I try to help them any way I can, but it’s obvious the STAR tax relief program is broken.”
Before last year, all eligible homeowners saw a yearly reduction in their school tax bill as part of STAR tax relief program. Now, all new homeowners including those who bought their first home or moved to a different home, as well as homeowners who refinanced an existing loan, have to pay a higher school tax bill and then register for a rebate check from the state, which they expect to receive in September.
The changes to the STAR tax relief system have hurt the many homeowners of modest means who reside in the counties of Madison, Oneida and Otsego that Magee represents. For one it means many homeowners must pay their local school tax bill in full, without the benefit of the STAR tax relief and wait for state reimbursement. Many homeowners were left scrambling to pull together the money to pay their bills and some even had to take out loans. Many residents have also reported that when their check finally came, it was for an amount that was less than expected.
School districts and local accessors also oppose the changes to the STAR program. Many local school districts struggle to remain within the property tax cap, but received calls from confused homeowners who received tax bills without the STAR exemption automatically applied as in years past. Local tax assessors also report getting calls from struggling taxpayers asking when they will be receiving their promised STAR reimbursement. The local assessors are powerless to help homeowners, who must wait for the state Department of Taxation and Finance in Albany to mail the reimbursement check under the changes to the STAR program, Magee noted.
The legislation that Magee is sponsoring would reverse these changes and transition this program back to the way it was, providing all homeowners with their deserved tax relief upfront as a reduction in their school tax bill. The proposed legislation also requires the state to help localities in notifying residents of these new changes to ensure all qualified homeowners receive the exemption.
“The changes to the STAR program have caused a great deal of confusion and frustration for families in the many towns and cities I represent,” said Magee. “I remain committed to repealing the changes to the STAR program which has created red tape and hoops for local homeowners. We must make sure that homeownership remains affordable, and that people who work for a living can continue to achieve the American Dream.”