Friday, February 16, 2018

Which Types of Property Tax Relief are Available to Taxpayers?

To reduce the homeowners' property tax burden, there are various property tax relief programs available in every state. Of course, certain criteria must be met to qualify for the various property tax relief programs. 

For New York, the following property tax relief programs are available:

  • Property tax relief credit- to qualify, you must reside in a school district complying with their state property tax cap, have income less or equal to $275,000, have paid the 2017 school property taxes, and have received the Enhanced STAR or Basic STAR credit or exemption.

  • Basic STAR recipients- recipients who are eligible for this credit will gain a Basic STAR savings' percentage according to income. Also, there are credit limitations. 

  • New York City enhanced real property tax credit- this is for households with a gross income lower than $200,000. Also, you must have resided in the same residence of New York City for at least six months, must be a resident of New York City for an entire tax year, can't be claimed as a taxpayer's dependent on his/her federal income tax return, had a residence not completely exempted by real property taxes, and meet other conditions as a renter or homeowner. The Form NYC-208 has more details about this tax credit. 

  • Property tax exemptions- besides the STAR program, other common property tax exemptions for New York include the senior citizens exemption, veterans' exemption, exemption for persons with disabilities, and exemptions for agricultural properties. There are a lot more property tax exemptions than these mentioned. 

The following are other property tax relief programs which apply to every state, including New York:

  • Homestead exemption- property taxes are reduced on normally a principal residence through excluding a part of the property value from taxes. 

  • Circuit breaker programs- contracting with traditional homestead exemption through a variable, such as property value or household income, the eligible resident is someone who's property tax exceeds a certain level of his/her income. 

  • Expenditure limit- a ceiling is placed on how much the local government can generate in revenue. 

  • A Limit on the assessed value/the tax rate- is set in place when the value/tax rate is increased in a given year.

If you have any questions, please contact us today:  (516) 484-0654 or (631) 484-0654 |

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