By Jeff Lipton and Mike Russo
Across-the-board decreases will be seen in the Basic STAR and Enhanced STAR tax savings programs, escalating the tax bills of homeowners. Basic STAR (School Tax Relief) is available for owner-occupied, primary residences regardless of the owners' ages or incomes, exempting the first $30,000 of the full value of the home from school taxes. Enhanced STAR is available for the primary residences of seniors with yearly household incomes meeting eligibility requirements, exempting the first $56,800 of the full value of the home from school taxes.
Baldwin homeowners who saw a savings of $2,664 in 2007-08 under Enhanced STAR will see a savings of $2,343 in 2008-09. Under Basic STAR, the savings will drop from $1,299 to $1,139.
"Obviously, it's not a good thing because obviously the taxpayer will end up paying more than the year before," said Frank Fiumano, Assistant Superintendent for Business and Administrative Services. "Clearly that's not something we knew was going to happen when we were putting the budget together and determining how it would affect the tax levy." Fiumano said this is just one more tax increase he will have to explain to frustrated homeowners, some of whom are already paying higher taxes due to the county's reassessment of home values and anticipating the county's proposed 3.9 percent increase in property taxes. He said that while many residents will automatically blame the schools when they receive their October tax bill, it's important to note that the school district had no control over the increase.
Harvey Levinson, Nassau County Board of Assessors chairman, also blasted the program's cuts, since he has waged a two-year battle with state officials to increase STAR for Long Island homeowners.
"While state officials might consider the range of school property tax increases to be insignificant, to homeowners who struggle each day to make ends meet to pay higher gasoline or food prices, it is an unnecessary and untimely tax burden," said Levinson.
"When you consider the nearly $10 million that was wasted by the state [over the last two years] in postage and the additional costs of administering a separate STAR Property Tax Rebate Check program, you have to shake your head and ask why the money wasn't applied directly to the existing Basic and Enhanced STAR credit," he added. "Not only did the state officials saddle homeowners with an additional tax burden because the rebate check had to be reported on Federal Income Tax returns, but many homeowners did not use the check for the purpose it was intended - helping to reduce their school property tax burden."
Levinson said that the most startling aspect of the state's new formula for those eligible for STAR tax credits is that it will hit those on the low end of the assessment scale harder than those with million-dollar homes.
"It's time to put an end to the state legislature's wasteful and self-aggrandizing STAR Property Tax Rebate Check program and put the money back to where it belongs - as a direct credit to reduce a homeowner's school property taxes," Levinson said.
Comments about this story? MRusso@liherald.com or (516) 569-4000 ext. 283.
