Will grieving my assessment affect my STAR exemption or credit?
Will grieving my assessment affect my STAR exemption or credit?
Grieving your assessment does not cancel your STAR benefit — STAR is a separate exemption/credit under RPTL §425 that you keep as long as you remain eligible; lowering your assessed value reduces your overall tax bill independently of STAR.
Many New York homeowners worry that challenging their assessment will jeopardize their STAR (School Tax Relief) benefit. It will not — STAR and your assessment are separate things.
STAR is a school-tax relief program, not part of your assessment. Under N.Y. RPTL §425, Basic and Enhanced STAR reduce the school-tax portion of your bill for an owner-occupied primary residence. New applicants now generally receive STAR as a credit (a check or direct deposit) from the STAR program, while longtime recipients may still have the older STAR exemption on their bill. Either way, eligibility depends on owning and living in the home and meeting income limits — not on the dollar amount of your assessment.
Grieving lowers your assessed value; it does not touch STAR eligibility. A successful grievance reduces the assessed value on which all your property taxes are computed. Your STAR benefit continues as long as you remain eligible. The two work in addition to each other: STAR trims the school-tax slice, and a lower assessment trims the whole bill.
A nuance on the exemption form. STAR exemption amounts are calculated by the Tax Department using the assessing unit's level of assessment and equalization rate (STAR calculation). When your individual assessment drops, your tax savings come from the lower taxable value; the STAR exemption is computed separately and is not forfeited by appealing.
Bottom line: filing Form RP-524 (or a NYC Tax Commission / Nassau ARC application) does not remove your STAR benefit or trigger a STAR review. Keep filing for STAR as usual, and grieve your assessment on its own merits.