Governor announces new measures to crack down on STAR program fraud

Governor Andrew M. Cuomo, Senate Majority Leader Andrea Stewart-Cousins and Assembly Speaker Carl Heastie recently announced that the FY 2020 Enacted Budget includes measures to prevent STAR fraud and abuse, including a six-year ban during which those found to have knowingly provided false information on a STAR credit application will be barred from receiving STAR benefits. 

“The STAR program provides real savings and relief to hard-working homeowners across the state,” Governor Cuomo said. “We have zero tolerance for those who commit fraud to profit at the expense of their law-abiding neighbors, and with these provisions we will continue to strengthen the STAR program while holding those who try to cheat the system accountable.”

The provision also expands the STAR Income Verification Program to include a review of age and primary residence in addition to income, thus requiring the same eligibility verification for the Enhanced STAR exemption that it has done for the basic STAR exemption. The Enacted Budget also permits the Commissioner of the Department of Taxation and Finance to seek repayment if a STAR check was inadvertently sent to someone whose primary residence was receiving a STAR exemption for the same year.

In 2013, Governor Cuomo enacted reforms to the STAR exemption program to crack down on delinquent taxpayers, including preventing property owners who made a material misstatement on a STAR exemption application from receiving the exemption for six years. In 2015, the New York Tax Department was authorized to recoup STAR benefits from property owners who unlawfully received those state benefits in past years, a power previously held only by local assessors. This law extends those protections to the STAR credit program.

The STAR program provides $3.4 billion in relief from school property taxes each year. It includes the Basic STAR credit benefit for homeowners with incomes of $500,000 or less, the Basic STAR exemption benefit for homeowners with incomes of $250,000 or less, and the Enhanced STAR benefit for seniors with incomes of $86,300 or less. 

Eligible homeowners can apply for STAR benefits by visiting www.tax.ny.gov/pit/property/star/default.htm.