That is the question this time of year. STAR (School Tax Relief) is the New York state program that provides a partial exemption on the school portion of property taxes for owner occupied primary homes. If a property owner qualifies for the STAR exemption, and files a STAR application with their township assessor prior to March 1, $30,000 of the full valuation of their home for assessment purposes will be exempt from school taxes. The actual dollar value of that $30,000 exemption varies by school district due to varying levies, but is generally less than $600. (Note that the March 1 deadline doesn't apply to every municipality in the state. You should confirm the taxable status date for your municipality directly with the tax assessor.)
Some folks who are par time Sullivan County residents consider shifting their primary residence to their home here to take advantage of the STAR — particularly those who have flexible work schedules or work freelance where they don't have to be at a 9 to 5 in the city every day, and they rent in the city so don't qualify for a STAR exemption there.
Anyone contemplating a change in their primary residence for tax purposes should research what constitutes a primary home for tax purposes, voting purposes, etc. I admit that I find it confusing, particularly in New York state where you have the added complication of the New York City income tax for those who reside in the city more than a certain number of days a year. If you work in the city, or maintain a residence there, you should discuss moving your primary residence for tax purposes with your tax advisor.
But there are a few other issues, beyond the direct tax consequences, that those considering a shift in their primary residence also need to consider.
Rent stabilized apartment in the city? If your apartment in the city is rent stabilized, the protections afforded by rent stabilization only apply if that is your primary residence. Will your landlord find out if you quietly shift your primary residence to the home you own in Sullivan County? Good chance. There are companies that specialize in scouring public records and credit reports for address mismatches for leasees of rent stabilized apartments that could indicate their NYC apartment is no longer their primary residence.
Automobile insurance. When people move their primary residence upstate, they usually move their car registration as well, to take advantage of typically lower insurance rates for automobiles domiciled outside of the city. Somewhere on your insurance application, you affirm that the car you're insurance primarily overnights at the address stated on your application. No problem if that's actually the case. But if your car is really parked 4 or 5 nights in the city, and only 2 or 3 up here, and the insurance company can prove it, they may have grounds to deny a claim.
Health insurance. Particularly if you have freelance or sole proprietor health insurance coverage, don't assume that the health insurance you have in New York City can 'transfer' upstate. Insurers that underwrite in NYC and the adjacent suburbs may not offer policies upstate. If your policy can transfer, you need to check out the "in network" provider list for Sullivan County.
These issues may not apply to you. But they are things you need to think about when considering the decision to move your primary residence. And if you do decide to file for the STAR exemption on your residence here, remember the deadline for filing in Sullivan County is March 1st. Contact your local assessor to get the form.
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