State Demands Income Proof From STAR Recipients | The Locally Times
NYS is mailing Form RP-5300-WSC to an unstated number of STAR recipients, leaving homeowners and school districts uncertain about the financial impact.
The New York State Department of Taxation and Finance has begun sending income verification letters to property owners who receive the School Tax Relief (STAR) benefit. An April 15, 2024, announcement on the department’s website confirms the mailing of Form RP-5300-WSC, an income request letter, to a selection of STAR recipients that the agency did not define. According to the state’s public posting, the purpose of the letters is to confirm recipient income to determine their specific STAR benefit. The program provides a partial exemption from school property taxes for primary residences. For homeowners who receive the form, the Department of Taxation and Finance advises that the quickest and simplest way to respond is online, directing recipients to a web page with instructions. ## Undisclosed Scope and Selection Criteria The department's April 15 announcement does not provide the criteria for selecting recipients for review, the total number of letters sent statewide or locally, or a response deadline. The public documents also do not detail the consequences for homeowners who fail to respond or whose verified income is found to exceed program eligibility limits. While the department encourages an online response, its public notice does not specify what support systems or alternative response methods are available for residents who may face challenges with digital access, such as those without reliable internet service. ## Potential Impact on Homeowners and Local Budgets A reduction or revocation of the STAR exemption would increase a household’s annual school tax liability. This verification process could also have broader fiscal implications for local school districts. The STAR program functions as a state-funded reimbursement to school districts to compensate for the property tax revenue they do not collect due to the exemptions. A widespread change in the number of eligible recipients could alter the total amount of reimbursement funds flowing from the state to local districts. State records do not include projections on the potential financial impact of the verification initiative, either on local school budgets or the tax burden for other property owners. The department also has not clarified in available documents whether this type of large-scale income review is a new practice or a recurring one.