Cracking Down on STAR Exemptions

This issue is something we all need to be aware of. Press Release from NYS Comptroller DiNapoli CONTACT: Press Office of NYS Comptroller Thomas DiNapoli (518) 474-4015 February 28, 2013 DiNapoli Audit Finds Errors and Potential Abuses in STAR Program Administrative shortcomings in the School Tax Relief (STAR) program have resulted in duplicate and improper exemptions going to individuals or entities not eligible to receive them, according to an audit released today by New York State Comptroller Thomas P. DiNapoli. Auditors estimate these exemptions cost New York State $13 million during the 2010-11 fiscal year and could top $73 million by the 2015-16 fiscal year. "The STAR program has succeeded in delivering million 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," said DiNapoli. "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." New York's STAR program provides a partial exemption from school taxes for most owner-occupied, primary residences. Basic STAR exemptions are available for an owner-occupied, primary residence 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. Property owners are eligible for one exemption for a primary residence only. The program does not affect the overall revenue given to a school district, because the state makes up the difference in state aid given to the school district. In 2010-11, there were a total of 2,765,194 basic STAR exemptions and 624,474 enhanced STAR exemptions statewide. New York State's costs for underwriting STAR benefits have grown significantly, from $582 million in 1998-99 to $3.2 billion in 2010-11 and are expected to reach over $3.7 billion by 2015-16. Over 13 years, actual State disbursements for the STAR program total $37.6 billion. DiNapoli's auditors examined more than 6,500 parcels receiving STAR exemptions in 46 municipalities around the state (see Appendix C for the list of municipalities). Auditors found nearly 20 percent of the STAR exemptions tested should not have been granted because they were duplicate or improper. Auditors found that because New York State's 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 do not have access to state databases that would allow them to track STAR exemptions outside their jurisdictions. It also made testing the data by auditors difficult. Auditors found the majority of duplicate exemptions involved individuals who received exemptions for property that was not their primary residence or was seasonal property. In other examples, homeowners may have died and a relative who inherited the property continued to receive the exemption. Auditors found other instances where banks or corporations improperly received exemptions. DiNapoli credited several municipalities for taking proactive steps to reduce the number of exemptions provided to residents for multiple homes and other abusive practices, helping to lower costs for the state, including Nassau County and the towns of Amherst, Brookhaven, Brunswick, Chili and Greenburgh. For example, municipalities that required more stringent proof of eligibility from STAR applicants and vigorously monitored recipients' continuing eligibility, using local resources, generally had lower exception rates than municipalities that did not use these best practices. Nonetheless, DiNapoli said there remains a need for improved oversight and guidance. He made a number of recommendations in the audit, including: • State policymakers should require a unique identifier to more easily monitor STAR exemptions; • State policymakers should develop mechanisms that allow local assessors to search for duplicates in the real property assessment databases maintained by New York State and other states; • State policymakers should consider obtaining electronic tools and software to analyze real property assessment records to identify improper exemptions; • Local assessors should look to neighboring governments for best practices to implement, such as those identified in the audit; and • The State Legislature should consider strengthening enforcement by increasing fees and penalties for STAR violators. DiNapoli noted the audit's findings underscore the need for increased enforcement of the STAR program as called for by Governor Cuomo in his 2013-14 Executive Budget proposal. Comments from the officials audited are included in the audit report. Albany Phone: (518) 474-4015 Fax: (518) 473-8940 NYC Phone: (212) 681-4840 Fax: (212) 681-7677 Internet: www.osc.state.ny.us E-Mail: press@osc.state.ny.us Follow us on Twitter: @NYSComptroller

A New Outlook on Personal Income & Wealth

Please take a moment to read this interesting article from The National Association of Realtors

Personal Income

A Snapshot of The Local Real Estate Market

I have been writing a Real Estate blog to accompany a weekly radio program I've been producing which airs on WGHQ on Sunday mornings at 10am. You can get an idea of what we talk about by visiting ut at www.hudsonvalleyrealestateforum.com The lastest post gives you an idea of what is happening in our local market. http://hudsonvalleyrealestateforum.blogspot.com/2013/02/comparing-2013-statistics.html

Shifting My Focus Back To Real Estate

After many months of hiatus from blogging I am starting up again. However this time I am going to put my focus on Real Estate and how it plays a key role in our community and economy. I am launching a new Blog that you can read at www.HudsonValleyRealEstateForum.com I will also be hosting a radio program which will air every Sunday morning at 10am on the Hudson Valley Radio Network which is heard locally on 920 AM WGHQ. I will continue to post here on this blog from time to time, especially when there are important things going on within our community. As always, thanks for reading.

New Blog Urging School Tax Reform

Over the years there have been wonderful letters written to the editors of our local newspapers. Often their message is valuable but once the paper is thrown away the letters are lost. Many of these letters deserve a longer 'shelf-life' to spark conversation and hopefully new ideas to find a way to lower the cost of education in our community. As a Realtor I can assure you that our School Taxes are hurting us in many, many ways.

I've created another blog to offer a platform for these letters to the editor to increase awareness that WE ALL need to do something about it. I welcome letters to share, I will include the author's names and I hope everyone will engage in the upcoming School Board & Budget Elections in May. Here is the blog and I hope we can shine a light on new ideas for School Tax Reform.

www.SchoolTaxReform4UlsterCounty.blogspot.com

Help Us Bring Movies To Our City Parks This Summer

UPDATE: We raised almost $4000 from our Concert & Silent Auction
Thank you everyone who took part from the musicians, volunteers, donors, and of course the audience.

Hit Escape and Re-Boot

I realize it has been months since my last post. Sometimes one needs to step away for a while in order to reflect and recharge the mind & spirit. Last year was filled with many peaks and valleys; the loss of our sweet Sherlock, saying goodbye to the Common Council and of course we all know about the Primary Election results. With that said, it was a great year. We have a wonderful new puppy named Kirby, I met many amazing people during the campaign, and feel that for such a short time on the Council I made a difference and now have a connection with my neighbors that will continue on in private life. Things happen for a reason, and I feel a shift in the tide here in Kingston and it seems we are gaining momentum and enthusiasm. That’s what we all hope for, and good things will spring from it.

The time away has also been wonderful in helping me understand how I can still be of service to the community and help Kingston be a great, thriving City. I was recently asked to serve as a Director on the Kingston Land Trust and will also be taking an active role with the Rail Trail Committee which I believe is going to be a vital asset for our City in the future. The folks who contribute their time for these projects are some of the most talented and creative professionals I’ve met. Kingston can benefit in a big way from their vision. Their efforts also tie in to the need for a public/private partnership in order to protect, maintain, and improve our City Parks and open space. In addition to the KLT, I’m working on the “Kingston Parks Movies Under The Stars” Project in order to purchase an inflatable movie screen & projector to play movies in various Kingston City Parks each week this summer. The response to this project has been great and the support from local businesses and residents alike is encouraging. There are several fundraisers underway including a concert at the Old Dutch Church on March 24th with some of Kingston’s finest musicians donating their talents (my husband Tony being one of them).

As you can see, I will continue to stay involved so we can make our City great. I will also continue to use this blog to encourage ideas, dialog, and shine a light on City government when necessary. With the recent headlines of more inappropriate behavior from the past administration there will be lots to write about. It’s good to be back.