Assemblymembers Galef & Zebrowski and Senator Carlucci Introduce Legislation to Repeal Governor Cuomo’s Changes to the STAR Tax Credit Program

State lawmakers move to repeal actions that would change STAR to a tax credit program for new residential owners

Assemblymembers Sandy Galef and Ken Zebrowski and Senator Carlucci recently introduced bill A.9943/S.7531 to repeal Governor Andrew Cuomo’s changes to both the basic and Enhanced School Tax Relief Programs (STAR). The basic STAR program exempts the first $30,000 of the full value of a home from school taxes. Enhanced STAR, which is for senior citizens (age 65+) exempts the first $65,300 of the full value of a home from school taxes. The new program converts this property tax exemption to a personal income tax program for new homes, condos and co-op owners.

Last year, Assemblymembers Galef and Zebrowski worked together and were successful in preventing the Governor’s proposed changes the STAR program from being included in the final budget. Earlier this year, the Assemblymembers also successfully blocked changes that would institute a rebate freeze on the programs. Both the Basic STAR and Enhanced STAR programs are very popular, particularly amongst senior citizens on fixed incomes who rely on these tax credits.

In the 2016-2017 enacted budget, however, Governor Cuomo moved to transition this credit from a property tax exemption to an income tax exemption. While this change would affect only new homeowners or homeowners who are moving, it has the potential to leave many in a difficult financial situation.

While the property tax credit results in an immediate reduction, an income tax credit will require owners to wait for their tax credit from the Department of Tax and Finance. For some, the burden of having to pay out additional money in taxes before being reimbursed through a check from the Department of Tax and Finance can be extremely difficult to bear.

Assemblywoman Galef’s office has noted that they have received a number of calls from constituents who are concerned about these changes. “I did not support the proposals when they were in the budget last year and was surprised to see they made it into the budget this year” Assemblywoman Galef stated. “The changes are complicated and do not serve to better the program itself. Rather, the Governor’s changes are doing nothing more than confusing and possibly excluding individuals who benefit from these programs.”

“This major change to STAR has completely altered the face of New York State’s most successful tax relief program. I have already heard from several of my constituents, soon to be new homeowners, who not only feel disappointed by the change but excluded from the same relief that their fellow tax payers receive.” Assemblyman Zebrowski stated. “Assemblywoman Galef and I have been staunchly opposed to this since its inception and I commend her for introducing legislation to repeal this policy. We will work together to ensure this is reversed and that we are treating each homeowner, new or established, fairly.”

Senator David Carlucci (D-Rockland/Westchester) believes that is it vital STAR remain unchanged so as to protect future beneficiaries of the programs. "The STAR program provides New York's homeowners with much needed relief on their school taxes. Along with Assemblywoman Galef and Assemblyman Zebrowski, our bill would ensure new homeowners or those who choose to move can receive the same STAR benefits as current homeowners. This will ensure all homeowners across the state will have the same access to STAR savings now and in the future," said Senator David Carlucci.