Senior Spotlight By John Toscano
Added STAR Benefits For Seniors In Spitzer's Proposed Budget

Governor Eliot Spitzer didn't forget seniors in proposing the first budget of his administration. He included a new STAR (School Tax Relief) program, which he said will increase benefits for seniors.

The new property tax abatement program, which the governor calls the Middle Class STAR program, would also make permanent the cost of living adjustment for the Senior STAR segment of the proposal.

Explaining his objectives with the proposed new property tax rebate plan, the governor said in a speech last week: "Our plan will target property tax relief to the people and families who need it most: middle class New Yorkers who bear the brunt of soaring property taxes and have the least ability to pay them."

According to the news release Spitzer put out to explain his $120.6 billion budget, the centerpiece of the new STAR proposal will provide benefits to taxpayers on a sliding scale based on income, with benefits declining as income exceeds $80,000 a year for homeowners in the higher cost New York City metropolitan region.

More than 60 percent of all homeowners across New York state will receive additional tax relief under the new program, the governor explained, with 60 percent of homeowners qualifying for the maximum benefit.

In the New York City metropolitan region, 85 percent of the increased benefit will go to 1.13 million homeowners with incomes of $160,000 or less.

Also, the governor's release explained, STAR relief will be increased for all residents who are not homeowners, paying personal income tax with income of $235,000 or less. Married individuals filing joint returns will be eligible for a refundable credit of $300, up from $230 last year.

The average STAR savings for homeowners with incomes up to $80,000 would rise to $382 from $212, the governor said.

New York City homeowners and rent-paying residents receive their STAR rebate as a credit on their state income tax filing.

Spitzer's property tax relief differs from the current STAR program because the governor's plan is based on income while the present plan, which was created by Governor George Pataki, is based on home values on a county-by-county basis.

One of the objectives of the Spitzer STAR plan is to put money in the pockets of STAR beneficiaries, not give money to school districts with the expectation that taxpayers would receive equivalent credit on their property taxes.

As Pataki's plan worked out in practice, the rebate given to seniors was watered down as school districts, which set the school tax, continually increased the school tax year after year. Thus, seniors had to use some of their STAR benefit to pay higher school taxes. For this reason, Spitzer may have a difficult time getting his plan past Long Island lawmakers, mostly Republican in the Republican-controlled state senate.