A lot of items will make the list of “must-haves” when you begin searching for your new home. Two items that commonly rank high on this list are: a good school district and low taxes.
Unfortunately, those two items don’t always go hand in hand, but New York’s STAR program can help with this.
The NY STAR Program is the School Tax Assessment Relief program, and is a tax rebate program that is offered in New York State aimed at reducing school district property taxes on the primary residences of New York residents. The STAR program can help lower school taxes for qualifying homeowners by giving them a partial exemption on their home’s full value from school taxes.
Applicable homeowners will fall into two categories: Basic STAR and Enhanced STAR.
To be eligible for Basic STAR, you need to answer the following two questions:
If you answered yes to both of these questions then you are eligible for the Basic STAR discount. Basic STAR provides an exemption of $30,000 off the full value of the home. This reduced amount is then used to calculate school taxes.
To be eligible for Enhanced STAR, you will need to answer the three questions below:
If you answered yes to these three questions then you are eligible for the Enhanced STAR discount. Enhanced STAR is an exemption of $64,200 off the full value of the home.
Note that home buyers will still need to qualify for and purchase a home at the price negotiated during the sale, and any taxes that may be owed as part of closing costs will be calculated based on the fully assessed value of the home. However, home owners can easily apply for their STAR exemption after the purchase of their home.
You can apply for the New York STAR program by completing the application form found here: http://www.tax.ny.gov/pdf/current_forms/orpts/rp425_fill_in.pdf.
For more information about the New York STAR program, contact your local assessor’s office or visit: http://www.tax.ny.gov/pit/property/star/index.htm
If you’re interested in purchasing a new home and taking advantage of the New York STAR Program, Maple Tree Funding can help! We specialize in getting New York homebuyers the financing they need to purchase the home they’ve always dreamed of owning. If you are hoping to become a New York homeowner, we can help you take the first step by getting you pre-qualified for a mortgage that fits your needs and budget.