Proposal Presented for the Master Plan For Aging (#101)
Disclaimer
Throughout the MPA process, more than 100 proposals were developed thanks in particular to thousands of hours of work by external stakeholders and members of the public. These proposals and the MPA Council commentary are being submitted to the Governor and shared with policymakers and the public to inform policymaking. These proposals represent a starting point for discussion. Further discussion is necessary between relevant state agencies and stakeholders to both refine these proposals and assess which may be appropriate to adopt and implement.
Summary
Expand the School Tax Relief (STAR) program benefits to help provide eligible aging homeowners with financial relief by providing upfront savings off their tax bills.
Justification
Due to inflation, there has been a steady increase in the cost of living over the past three years. These increases can put a financial strain on homeowners, especially those aging and on a fixed income. This tax credit relief could potentially offer homeowners hundreds, or thousands of dollars, in savings a year.
Full Proposal
Address the affordability pressure on the high percentage of older adults who are homeowners. The School Tax Relief (STAR) program provides property tax relief that financially benefits older New Yorkers:
- Expand STAR benefits for older adult homeowners having difficulty maintaining housing.
- Create incentives for localities to adopt senior citizen STAR enhancements.
- Develop incentives through the Pro-Housing Communities and economic development programs.
MPA Council Commentary
This proposal is categorized as long-term. New York already offers an Enhanced STAR program that provides tax relief specifically to older New Yorkers, providing almost 700,000 people in FY24 with an average benefit of $1,400, and Governor Hochul’s FY26 Executive Budget proposed to simplify STAR eligibility determinations to the benefit of older adults. In addition, some localities already offer property tax relief to older adults that may render STAR enhancements less valuable to these older adults; component 2 of this proposal must be evaluated in the context of these alternative forms of tax relief. Tax benefits and other programs with fiscal impact would be subject to the annual budget process and the availability of resources.