State Audit Find Errors, Potential Abuses in STAR Program
New York State Comptroller Thomas DiNapoli is calling for increased enforcement of the School Tax Relief (STAR) program following an audit that revealed duplicate and improper exemptions being given to ineligible individuals and entities.
Auditors estimate the improper exemptions cost New York $13 million during the 2010-11 fiscal year and could exceed $73 million by 2015-16.
“The STAR program has succeeded in delivering millions of dollars in tax relief, but it is difficult to ferret out abuse or even errors because it is hard to police the program. STAR exemptions could be easily gamed at a significant cost to the state,” DiNapoli said. “New York cannot afford these abuses. Some local assessors have taken it upon themselves to track down improper exemptions but state and local officials need to work together to ensure legitimate tax breaks are only provided to those homeowners entitled to receive them.”
The STAR program provides a partial exemption from school taxes for most owner-occupied primary residences. Basic STAR exemptions are available where the income of owners and their spouses totals less than $500,000. The state’s enhanced STAR program provides an additional benefit for the primary residences of senior citizens with incomes of $74,100 or less.
In 2010-11, there were a total of 2,765,194 basic STAR exemptions and 624,474 enhanced STAR exemptions statewide. The state’s costs for underwriting the STAR program have increased from $582 million in 1998-99 to an anticipated $3.7 billion by 2015-16.
The auditors commissioned by DiNapoli examined more than 6,500 parcels receiving STAR benefits in 46 municipalities and discovered nearly 20% of the exemptions should not have been granted. Auditors found since the Basic STAR program application does not require information that identifies real property owners, such as Social Security numbers, local assessors often have difficulty detecting duplications. In addition, local assessors don’t have access to state databases that would allow them to track STAR exemptions outside their jurisdictions.
DiNapoli said there’s a obvious need for improved oversight and guidance and credited several municipalities, including the Town of Greenburgh in Westchester, of taking proactive steps to reduce the number of exemptions provided to residents for multiple homes and other abusive practices.
Some of the recommendations DiNapoli made in the audit include state lawmakers requiring a unique identifier to more easily monitor STAR exemptions and strengthening enforcement by increasing fees and penalties for STAR violators.
Rick has more than 40 years’ experience covering local news in Westchester and Putnam counties, running the gamut from politics and crime to sports and human interest. He has been an editor at Examiner Media since 2012. Read more from Rick’s editor-author bio here. Read Rick’s work here: https://www.theexaminernews.com/author/pezzullo_rick-writer/
