Previous Measures to Protect Seniors

Like most states, the largest property tax burden usually comes from school districts. With this in mind, New York State has tried to protect homeowners, especially seniors, from high taxation by school districts. Measures currently in place include the School Tax Relief Program (STAR), the senior citizen exemption, and exemptions for the disabled and veterans. These can all be combined into a potent weapon against rising taxes, but they have recently been supercharged by new legislation.

The School Tax Relief Program (STAR)

This longstanding program helps both seniors and regular taxpayers alike. Originally, the STAR program worked as a typical exemption, but this is no longer the case, at least for new homeowners. Taxpayers who have received STAR exemptions in the past still do, as long as they do not move. For all others, this has since transitioned to a STAR credit, which pays eligible taxpayers through a check or direct deposit to offset costs. There is debate among taxpayers about whether credits or exemptions are better, so it is up to personal preference. If you have been grandfathered into an exemption, it may be best to stay with it, rather than switching to a credit. To qualify for STAR, you must have an income under $250,000 per year. The STAR exemption reduces your home’s taxable value by $30,000, while the credit typically pays between $250 and $500.

Seniors exclusively have access to the Enhanced STAR program. Only available to homeowners over 65, this program offers potent exemptions or credits for homeowners over 65. The home value exemption rises to $86,000, easily surpassing the standard $30,000 cut. Credits can pay between $800 and $1,500 or more, depending on the school district and the value of your home. In order to qualify for the enhanced exemption or credit, your income must be below $107,000 per year.

Senior Citizen Exemption

This separate exemption is used in tandem with the STAR exemptions or credits, allowing you to combine benefits and get better savings. Before the new legislation, this was capped at 50% of your home’s value, which is still significant. The senior exemption is highly dependent on your local taxing bodies, as they are the ones that decide the size of the exemption. 50% was the maximum by which they could reduce taxable value, but the new legislation has enhanced this significantly. There can be some tricky income requirements to qualify for this exemption, typically under $50,000, but this can vary by county.

New Legislation Increases Exemption to 65%

The new legislation just passed will allow your local taxing body to increase the senior exemption to 65% of your home’s taxable value. This is the first time that the cap has increased in decades. Like the original, it is up to your local taxing body’s discretion if you can get the whole 65% or not, though it does allow them to do so. This would translate into a rough savings of $300 every year. This would come on top of your previous savings with the exemption, along with the STAR savings. When all combined together, you might be able to eliminate school taxes entirely.

The main goal of this legislation is to keep seniors in their homes. With growing home values across the state, it is becoming harder for older taxpayers to keep up with market changes, gentrification, and inflation. With an enhanced exemption in hand, you will be more prepared than ever to keep the financial wolves at bay. This also hopefully heralds future tax breaks for seniors, as the intrinsic problems in the system have now been recognized. There are still income restrictions, so you will want to check with your local assessor to confirm eligibility, as it can vary by jurisdiction. Many come in multiple tiers, so you might see a smaller savings if you have a higher income.

Grievances can Enhance Exemptions and Credits

While credits and exemptions are a great start, you can reduce your taxable burden even further with tax grievances. These appeals are useful for lowering your property’s assessed value to a fair market value, rather than the often-overstated assessed value. Grievances work well in concert with exemptions and credits, as they will lower your taxable value first, allowing even bigger savings to pile up on top. Grievances also ensure that your assessor has the correct information for your property, ensuring that you are not being charged for incorrect attributes or classification. Grievances can also compare your home to that of your neighbors or recent sales, making sure that your property is not overvalued.

O’Connor can Help with Exemptions and Grievances

New York can have a complicated tax system in the best of times, one with several deadlines that need to be minded. We at O’Connor can help you in every aspect of your property tax journey to saving money and protecting your home. With over 50 years in the property tax business, we have seen it all and helped taxpayers from every corner of the United States. We are not just one of the largest firms in the country but also have a local office in New York that is staffed with local experts. New York taxation is not for the faint of heart, and no one can compare to the knowledge and experience of locals.

We will analyze your tentative assessment, to see if we can spot errors or room for improvement. If you are missing key exemptions or credits, we will help you file them. If we find errors, we can file a grievance for you, correcting it before it can negatively affect your bill. If you think your assessed value is too high, we can use our proprietary database to compare hundreds of sales and similar properties, zeroing in on your home’s correct value. There is no charge to sign up, and you will only be charged a contingency fee if we are able to lower your taxes. We will do so for you annually, making sure you never miss a deadline.