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In 1997 the STAR (School TAx Relief) program was enacted as a way of reducing the school property tax burden on homeowners by providing a savings on their school tax bills. While the STAR program does provide substantial property tax relief and may ease taxpayer discontent over school taxes, it is important to note that STAR does not increase total funding available to schools. The intent of the program is to substitute state funds for local property tax revenues.

In 2006 the STAR program was expanded to include a new STAR Rebate Program and in 2007 the STAR Rebate Program was converted into a new Middle Class STAR Rebate Program. The benefit from the STAR Rebate Program and now the Middle Class STAR Rebate Program comes in the form of a rebate check that is mailed directly to households.

THE STAR PROGRAM

The STAR program provides an exemption on the assessment of owner-occupied primary residences for the purpose of calculating school taxes. The state then reimburses school districts for the local revenue that they forego as a result of the reduction in assessment.

There are currently two exemption levels: a $56,800 enhanced exemption and a $30,000 basic exemption. The $56,800 enhanced exemption is only for seniors age 65 or older with incomes less than a certain level. All other homeowners receive the $30,000 basic exemption. Seniors age 65 or older, with incomes above the income limit are still eligible for the $30,000 basic exemption.

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