Homeowners earning between $250,000 to $500,000 a year would get a check back for their STAR rebates to help pay for school taxes rather than receiving the savings directly in their tax bill, Gov. Andrew Cuomo proposed Tuesday.
For homeowners who earn under less than $250,000 a year and have owned their houses prior to Aug. 1, 2015, they would continue to get STAR as an upfront savings on their school-tax bills.
The proposal from Cuomo in his 2019-20 state budget is the latest effort by the state to change how the popular $3 billion a year STAR program is administered.
The change was one of several tax policy proposals offered by Cuomo for the fiscal year that starts April 1.
He wants to keep higher income-tax rates on millionaires set to expire at year’s end and extend the 8.82 rate through 2024.
The millionaires’ tax, first implemented in 2011, brings in about $4.4 billion for the state’s coffers.
“To protect the progress that has been made in enhancing progressivity and ensuring tax fairness for New York’s middle class, Governor Cuomo is proposing a five-year extension of the current tax rate on millionaires,” his budget book states.
Middle-class homeowners will continue to see a decrease in income-tax rates this year.