It's no secret that the property taxes in NYS are among the highest in the nation.  Over the past ten years most Westchester residents have seen their property taxes rise 100% in some municipalities. In NYS overall, real property taxes have risen roughly 60%. This increase is far outstripping the average homeowners salary increases. The middle class has been particularly squeezed and in many cases has become an "endangered species" in lower Westchester.  Young people are moving further upstate or out of state. 

 To that end - Governor Spitzer has initiated a three year "property tax relief program" that targets the middle class with relief.  The less money you make, the bigger the rebate. The "Middle Class STAR" is the centerpiece of the program. All homeowners in NYS are familiar with the original STAR (School TAx Relief) program.  Every homeowner qualifies for a single "STAR" for their primary residence. Seniors often qualify for "enhanced" STAR programs which is beyond the scope of this blog. NYS homeowners apply for the single STAR with their local municipality.  The new "Middle Class STAR" is applied for by filling out a form that will be sent to each and every homeowner and returning it to NYS. The forms are being sent out as this blog is being written. In fact, I received mine yesterday.  

 It is pretty daunting to realize what is now considered "middle class" in the "downstate" area.  For Westchester, Putnam, Dutchess, Rockland, Orange, Nassau, and Suffolk counties - full benefits are received for households earning less than $120,000. Two other categories include incomes from $120,001-$175,000, and $175,001-$250,000. There is no rebate for households with an in come of over $250,000.  The savings can be significant. For example, in White Plains, NY the additional savings for those earning less than $120,000 are listed as $1302 for 2007-2008. For New Rochelle, its $1256. The biggest savings goes to Dobbs Ferry and Hastings-on-Hudson residents who earn less than $120,000 at $1618 and $1622 respectively. Pocantico Hills gets the smallest rebate of $502.  So be sure to fill out the STAR rebate form and send it back before the end of November to qualify!  Here are the rebate amounts for 2007-2008 extrapolated from http://www.budget.state.ny.us/localities/star/high0708Savings.html