The 2007-08 State Budget includes a Middle Class STAR Rebate Program

The new program essentially marries the Middle Class STAR proposal put forth by Governor Spitzer with the STAR Rebate program of 2006. Rebate checks will be available to property owners who receive Basic and Enhanced STAR exemptions on their school tax bills.

The amount of Middle Class rebate checks will be based on 2005 New York State income data. For taxpayers with incomes of up to $90,000 the rebate check will be equivalent to 60% of the 2006-07 school tax savings due to the STAR exemption. For incomes of $90K - $150K, the rebate check will be 45% of that STAR savings and, for $150K-$250K the rebate check will be 30%. However, incomes greater than $250K are not considered middle class, therefore no rebate will be available.

This summer, the New York State Department of Taxation and Finance will mail postcards to property owners who received Basic STAR exemptions on their 2006 school bills. These postcards will contain information on how to apply for the new Middle Class rebates and a code to facilitate the process via mail or the web. The application will require social security numbers of all resident owners and their resident spouses. The application deadline is November 30, 2007.

Also, this summer the New York State Department of Taxation and Finance will mail rebate checks equivalent to 25% of 2006-07 STAR school tax savings, to property owners who received Enhanced STAR exemptions for 2006 school taxes.

Unlike last years rebate program, those who are not already receiving Basic and Enhanced STAR will not be able to submit applications for the 2007 rebate program. Only those receiving Basic and Enhanced STAR on the 2007 assessment roll for 2007 school tax purposes will be eligible for the rebates.

For both Basic and Enhanced STAR rebates, percentages will increase for 2008 and 2009, respectively and the income brackets will increase starting in 2010.

FOR MORE INFORMATION GO TO: www.orps.state.ny.us