STAR Rebate Program Changes

Substantial changes to the STAR rebate program were included in the budget this year, altering how some recipients will receive their rebate going forward. The program, as originally designed, allowed those who were income eligible to receive a reduction in the amount of school taxes they would be required to pay. In recent years, changes have been made that would modify how that rebate would be distributed to qualifying new homeowners. Those changes stipulated that any newly eligible homeowner who purchased a home after August 2015 would receive a check from the state for their STAR rebate, as opposed to a reduction in the amount owed.

A provision in the budget builds on that prior change by increasing the number of people who would be switched over to the direct check rebate model. The change provides that anyone in the STAR rebate program who earns between $250,000 to $500,000 per year, regardless of when they purchased their home, will now be converted to a rebate check. The only individuals left receiving the rebate as originally drafted will be homeowners earning less than $250,000 per year, who bought their homes prior to August 2015. All others will be converted to the direct check rebate model.

The budget also creates an incentive to voluntarily switch to a direct check, for those not mandated, by increasing the benefit by 2% for those receiving a check, while keeping benefits for those in the original program flat.