Thursday, April 12, 2012

Budget includes rule that will deny STAR benefits | Naples TEA ...

Under new rules passed Friday, March 30, as part of the state?s 2012-13 budget, residents behind on their state income taxes will lose their STAR exemptions, which provide relief from school taxes.

The $132.5 billion state budget includes a provision that will deny STAR benefits to owners who have outstanding state debt of $4,500 or more, said Assemblyman Phil Palmesano, R-Corning.

The law is designed to motivate residents who owe the state money to pay up.

But given the endless complaints many have over their rising school taxes and the popularity of the STAR break, the new rules may stir emotions.

?I think it?s one of those pieces in the budget, that if it wasn?t in there I wouldn?t mind,? Palmesano said. ?It?s not a major revenue pick-up. But it?s there and that?s what it is. I don?t think it was an important part of the budget.?

The STAR exemption, also known as the School Tax Relief Program, exempts the first $30,000 of the full value of a home from school taxes. For senior citizens, the first $62,200 is exempt, according to the state Department of Taxation and Finance. The discount can range from several hundred dollars to more than $1,000.

The logic behind withholding the STAR exemption is based on the idea that the exemption in local school taxes comes from the state. So if someone owes the state money, they should not benefit from a state-funded exemption.

Geoffrey Gloak, a spokesman for the state Department of Taxation and Finance, said STAR is the only property tax exemption that is reimbursed by the state.

Also, local assessors will have to remove homeowners from the STAR list if they owe money to the state, placing an additional burden on their office, according to several local assessors.

Under new rules passed Friday, March 30, as part of the state?s 2012-13 budget, residents behind on their state income taxes will lose their STAR exemptions, which provide relief from school taxes.

The $132.5 billion state budget includes a provision that will deny
STAR benefits to owners who have outstanding state debt of $4,500 or more, said Assemblyman Phil Palmesano, R-Corning.

The law is designed to motivate residents who owe the state money to pay up.

But given the endless complaints many have over their rising school taxes and the popularity of the STAR break, the new rules may stir emotions.

?I think it?s one of those pieces in the budget, that if it wasn?t in there I wouldn?t mind,? Palmesano said. ?It?s not a major revenue pick-up. But it?s there and that?s what it is. I don?t think it was an important part of the budget.?

The STAR exemption, also known as the School Tax Relief Program, exempts the first $30,000 of the full value of a home from school taxes. For senior citizens, the first $62,200 is exempt, according to the state Department of Taxation and Finance. The discount can range from several hundred dollars to more than $1,000.

The logic behind withholding the STAR exemption is based on the idea that the exemption in local school taxes comes from the state. So if someone owes the state money, they should not benefit from a state-funded exemption.

Geoffrey Gloak, a spokesman for the state Department of Taxation and Finance, said STAR is the only property tax exemption that is reimbursed by the state.

Also, local assessors will have to remove homeowners from the STAR list if they owe money to the state, placing an additional burden on their office, according to several local assessors.

Source

Like this:

Be the first to like this post.

greg oden st patricks day dark shadows st. bonaventure ira glass march madness swain

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.