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Rollout of STAR exemption changes has failed miserably, Assemblywoman Jenne says

Posted 2/7/17

Assemblywoman Addie A.E. Jenne (D-Theresa) is calling on Department of Taxation and Finance official need to provide answers about the state's school tax relief exemption program when they appear …

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Rollout of STAR exemption changes has failed miserably, Assemblywoman Jenne says

Posted

Assemblywoman Addie A.E. Jenne (D-Theresa) is calling on Department of Taxation and Finance official need to provide answers about the state's school tax relief exemption program when they appear next week at a joint legislative hearing on the 2017-18 executive budget.

The Department of Taxation and Finance, on its website, stresses homeowners with existing STAR exemptions are continuing to receive the exemption and to upgrade to the Enhanced STAR exemption when eligible. But new applicants - those who purchased their homes after Aug. 1, 2015 - are now required to seek a credit issued in the form of a check.

"The change was sold as a way to eliminate an unfunded mandate on local governments and to tighten up potential fraud in the system. But the roll out of the system has failed miserably and has had the greatest impact on some of our most vulnerable citizens, elders who rely on their Enhanced STAR to be able to stay in their homes," Assemblywoman Jenne said.

The president of the state's assessors' association said very few state residents received their STAR checks before their school taxes were due at the end of September, checks that were received by homeowners were often for the wrong amount, the policy of registering for the STAR exemption has proven to be troublesome and homeowners are finding they can be put on hold for more than an hour when they call the Department of Taxation and Finance seeking answers to questions about the STAR program.

She said the customer service local assessors provided that was so important to assisting senior citizens apply for exemptions they are eligible for have disappeared since the program was taken over by the state.

Ross also said it is her understanding there is a $3 cost for each of the 2 million STAR checks now being sent out to homeowners around the state by the Department of Taxation and Finance. "In the past, there had only been 720 wire transfers to school districts around the state," she noted.

Assemblywoman Jenne said it was unfortunate the Department of Taxation and Finance Committee failed to make an appearance at the standing committee hearing to provide their perspective on the concerns that have been raised around the state.

"We need to find out if the system itself is flawed or if the state simply moved too quickly to implement its takeover of the program, failing to follow the recommendation of local assessors and directors of Real Property Tax Offices at counties around the state to delay the change until the 2017 property tax rolls came out," she said. “The bottom line is we need to put the dollars in the hands of taxpayers before their school taxes are due, not weeks and often months after they have been paid. Any changes that are negatively impacting our taxpayers need to be scrutinized, and I will fight to make sure our seniors are not victimized by this bureaucratic snafu.”

The change in the STAR program currently only impacts people who purchased their homes after Aug. 1, 2015 or hadn't applied for STAR since May 1, 2014.

Testimony at the hearing revealed the average upstate Basic STAR payment is $750 and the Enhanced STAR payment is $1,500.