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STAR exemption scam pops up, governor warns people of St. Lawrence County and NY State

Posted 11/8/13

People in St. Lawrence County and around the state are being warned of a scam that would part them from their money with a fee-based service to apply for the School Tax Relief (STAR) property tax …

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STAR exemption scam pops up, governor warns people of St. Lawrence County and NY State

Posted

People in St. Lawrence County and around the state are being warned of a scam that would part them from their money with a fee-based service to apply for the School Tax Relief (STAR) property tax exemption, when homeowners can actually apply for free.

New homeowners have received letters offering to enroll them in the STAR Program for a substantial fee equivalent to the full amount of the taxpayers’ first year savings – which averages $700 statewide and can be as high as $3,000 for senior citizens in the Lower Hudson Valley and on Long Island.

“New Yorkers should not be fooled: registration to the STAR Program is free, convenient, and provides taxpayers with hundreds, and sometimes thousands, of dollars in property tax relief each year,” said Governor Andrew Cuomo said. “I encourage any homeowner not receiving a STAR exemption to apply on their own and avoid disingenuous schemes that seek to charge you for the tax relief that is rightfully yours.”

STAR exemptions are the only New York State-funded property tax exemptions. There are two STAR exemptions: Basic STAR for homeowners with incomes under $500,000, and Enhanced STAR for senior citizens with incomes under $81,900. The deadline to register for the STAR Program is Dec. 31.

To apply for STAR outside of New York City, homeowners should submit an application to their local assessor’s office. The form is available at http://www.tax.ny.gov/pdf/current_forms/orpts/rp425_fill_in.pdf, or from your assessor

In order to eliminate waste and fraud in the STAR Program, homeowners who are already receiving the Basic STAR exemption are required to register with New York State Tax Department this year.

To be eligible for the STAR Program, the property must be the primary residence of the owners. Despite that requirement, a Tax Department study last year found that thousands of owners of multiple properties were receiving more than one STAR exemption.

Most of the 2.6 million Basic STAR recipients have already registered for their exemptions, according to a news release from the governor’s office. Online registration takes less than four minutes, they say, and can be done from the Tax Department’s website.

Homeowners without Internet access can call (518) 457-2036 to register.

The registration deadline is December 31, 2013.