Tax Exemption Info

EXEMPTION INFORMATION AND FORMS

The Assessment Office also administers partial tax exemptions, as allowed under the New York State Real Property Tax Law, to property owners who meet certain eligibility requirements. Exemption applications may be picked up at the Town of Chili Assessment Office, or downloaded from the New York State Department of Taxation and Finance website, click: http://www.tax.ny.gov/pit/property/   All exemption applications must be filed with your Local Assessor by taxable status date (March 1st). Do not file these forms with the NYS Office of Real Property Tax Service. If you need assistance or have questions, please contact the Assessment Office at (585) 889-6132.

School Tax Relief (STAR) Exemption

The New York State School Tax Relief (STAR) Program provides an exemption from school taxes for owner-occupied, primary residences.

Due to changes in the School Tax Relief (STAR) program, certain homeowners in New York State will now register for the new STAR Credit Check. New applicants who qualify for STAR will now receive a credit in the form of a check rather than receiving a property tax exemption.

WHO HAS TO REGISTER FOR THE STAR CREDIT CHECK?

If a homeowner is already receiving a STAR exemption and purchased their current home prior to May 1, 2014, then they do not need to register; they will continue to receive the STAR exemption.

However, if they choose to receive a check, instead of the exemption, they must contact NYSDTF at (518)457-2036. Upon renouncement, a property owner may not revert back to an exemption.

If a homeowner purchased their home between May 1, 2014 and August 1, 2015, then they need to register to receive the STAR credit if

  • they bought their home after the 2015 STAR application deadline, March 1, 2015

– OR –

  • they did not apply for the STAR exemption for their home by the 2015 application deadline, March 1, 2015

Otherwise, no action is necessary; they will continue to receive the STAR exemption.

If a homeowner purchased their home after August 1, 2015, then they need to register for the STAR credit. New Homeowner Handout https://tax.ny.gov/pdf/star/rp-5310-fs.pdf

HOW TO REGISTER FOR THE STAR CREDIT CHECK

To receive a STAR credit check, the applicants must register with the New York State Department of Taxation and Finance.

Two ways to register:

Online at:   www.tax.ny.gov/star

– OR –

Call:  1-518-457-2036  (Weekdays from 8:30 a.m. – 4:30 p.m.)

STAR Registration Web-link: https://www.tax.ny.gov/pit/property/star/default.htm

Basic STAR

The total income limit for the exemption, owners and the owners’ spouse who primarily reside at the property must not exceed $250,000. The total income limit for the Credit Check, owners and the owners’ spouse who primarily reside at the property must not exceed $500,000.

See above: HOW TO REGISTER FOR THE STAR CREDIT CHECK

Enhanced STAR   Form RP-425-E

  • Provides an increased benefit for the primary residence of senior citizens (age 65 by December 31, 2022, or if already older) with qualifying incomes, that are already receiving a Basic STAR exemption.
  • The income limit for Enhanced STAR is annually adjusted for inflation, with maximum savings capped at the 2022 limit ($93,200).
  • All owners must be at least 65 years old (unless the owners are spouses or siblings, in which case at least one owner must be 65).
  • Application form RP-425-E, is  required:
    • Changes in RPTL Sec. 425, commencing in 2019, now require enrollment in the STAR Income Verification Program (IVP); complete and submit application RP-425-IVP for the STAR Income Verification Program to the Chili Assessment Department; this will require a NYS tax return be filed annually as eligibility will be determined by NYS DTF staff in Albany.

Other Exemptions Available in the Town of Chili

Partial Tax Exemption for Senior Citizens   Form RP-467   Instructions      Renewal RP-467-Rnw

New York State Tax Law, Section 467 gives local governments and public school districts the option of granting a reduction in the amount of property taxes paid. Persons who qualify for the Senior Citizens exemption are also deemed eligible for the Enhanced STAR exemption. No separate application for the STAR exemption need be filed, unless the Assessor cannot determine eligibility for Enhanced STAR based on the application.

Requirements for eligibility include four primary factors:

Age – You and all other owners must be 65 or older, unless you co-own the property with a spouse or sibling, only one of you needs to be 65 or older.

Ownership – You must own the property for at least 12 consecutive months prior to applying.

Residency – You and all other owners must occupy and use the property as your primary residence.

Income – You an all other owners must have combined income no greater than the maximum limit set by the local government or school district.

The exemption works by reducing your property’s taxable assessment by a percentage based on a “sliding scale”; within the Town of Chili, the minimum is 5% up to a maximum of 50% reduction in assessed value as determined by the applicants household income. Savings may vary, depending on county, town, and school district options adopted.

First time applicants use form RP-467 , which must be completed, signed by all owners and submitted with supporting proof of age, residency and income to your local assessor, no later than taxable status date (March 1st). Continued eligibility requires annual renewal of the exemption; in the Fall of subsequent years, the Assessment Department will mail a renewal application (form RP-467-Rnw) for the upcoming assessment roll year, which must be returned, completed & signed by all owners, with the specified income information no later than taxable status date of March 1st.

For more information, visit: http://www.tax.ny.gov/pit/property/exemption/seniorexempt.htm

Partial Tax Exemption for Persons With Disabilities and Limited Income   Form RP-459-c  Instructions

New York State Tax Law, Section 459-c gives local governments and public school districts the option of granting a reduction in the amount of property taxes paid by qualifying persons with disabilities. To qualify, persons with disabilities generally must have certain documented evidence of their disabilities and meet certain income limitations and other requirements.

The exemption works in the a similar manner as the Senior Citizens exemption, it reduces your property’s taxable assessment of the legal residence of qualifying disabled person by a percentage based on a “sliding scale”; within the Town of Chili, the minimum is 5% up to a maximum of 50% reduction in assessed value as determined by the applicants income. Savings may vary, depending on county, town, and school district options adopted.

Please note that if a property is receiving an exemption under the low-income Senior Citizens exemption (RPTL, Section 467), it cannot also receive an exemption under this law. A property eligible for the persons with disabilities exemption, however, can receive other exemptions, such as Basic STAR, Veterans, etc.

First time applicants must submit for RP-459-c with supporting documentation of disability, residency and income to their local assessor, no later than taxable status date (March 1st). Continued eligibility requires annual renewal of the exemption; in the Fall of subsequent years, the Assessment Department will mail a renewal application

For more information, visit:   http://www.tax.ny.gov/pit/property/exemption/disablexempt.htm

VETERANS’ EXEMPTIONS

There are three different property tax exemptions available to veterans who own real property. A veteran is anyone who served in the U.S. Armed Forces, which includes the U.S. Army, Navy, Air Force, Marines and Coast Guard. The exemption applies to County, City, Town or Village if offered. School taxes may also be reduced, but only for the Alternative Veterans’ or Cold War Exemption whereby local option has been adopted. Typically the exemptions do not apply to special district levies or special assessments, only under special conditions, such as a Subscription Vets exemption.

(New) In 2019, the Restoration of Honor Act was signed into law in New York State. The Restoration of Honor Act authorized the NYS Division of Veterans’ Services (NYS DVS) to restore access to State Veterans Benefits to Veterans who have an Other-Than-Honorable Discharge (OTH) or a General Under Honorable Conditions Discharge due to any of the following:

  • Post-Traumatic Stress Disorder (PTSD)
  • Traumatic Brain Injury (TBI)
  • Military Sexual Trauma (MST)
  • Sexual Orientation
  • Gender Identity

An applicant for the Alternative and/or Cold War Veterans’ exemption who is receipt of a letter from DVS stating that the veteran meets the character of discharge criteria for all of the benefits and services listed in the Restoration of Honor Act, is deemed eligible. In this instance the applicant is not required to provide documentation of having been discharged or released under honorable conditions (DD-214).

NYS DTF updated RP-458-a and RP-458-b in November 2020, making administration available for RHA veterans beginning on the 2021 assessment roll. See the NSY DVS website for instructions and information on how to obtain the required eligibility letter: https://veterans.ny.gov/content/restoration-honor-act

All three veterans exemptions are available within the Town of Chili; inquire to the Assessor’s Office regarding availability of school reductions. School districts who currently have adopted some level of exemption for Alternative and/or Cold War are as follows:

  • Gates Chili School District – Alternative only
  • Caledonia Mumford School District – Alternative and Cold War
  • Churchville Chili and Wheatland Chili have not adopted any local option to grant savings on school taxes for veterans

Alternative Veterans Exemption  Form RP-458-a   Instructions

Available to veterans who served during a recognized period of war or have received an expeditionary medal.

The exemption reduces the assessed value of your primary residence before the tax rate is applied. There are three levels of benefits:

  • 15% of assessed value for veterans who served during a period of war.
  • Additional 10% for veterans who served in a combat zone/combat theater.
  • Additional benefit for disabled veterans (equal to one-half of their VA service-connected disability rating).

Note: Each of these reductions is subject to maximum limits set by the local community.

Application must be made by taxable status date, March 1st. Attach proof of eligibility, Form DD-214, which the veteran should have received upon separation of service. The only instance where a DD-214 is not required is if the applicant falls under the Restoration of Honor Act criteria and has received a letter to such from NYS DVS. Applicants should also make available a copy of discharge orders and VA documentation for disability rating, if applicable. If you need help with acquiring a copy of your discharge papers, contact the Assessor’s Office for information on local New York State Division of Veterans’ Affairs or your County Veterans’ Service Agency.

Eligible – Period of War

  • Persian Gulf Conflict: on or after August 2, 1990 – TBD
  • Vietnam War: November 1, 1955 – May 7, 1975
  • Korean War: June 27, 1950 – January 31, 1955
  • World War II:  December 7, 1941 – December 31, 1946

May also qualify if you received:

  • Armed Forces Expeditionary Medal
  • Navy Expeditionary Medal
  • Marine Corps Expeditionary Medal
  • Global War On Terrorism Expeditionary Medal

Cold War Veterans Exemption  Form RP-458-b  Instructions

Available to veterans who served during the Cold War period. Exemption reduces the assessed value of your primary residence before the tax rate is applied. There are two levels of benefits:

  • 10 or 15 percent of the assessed value to veterans who served during the Cold War, depending on the community. This benefit is limited to 10 years.  Note: Local adopted maximum limit was 10 percent for County taxes, up to $8,000 of assessed value.
  • Additional benefit to disabled veterans (equal to one-half of their service-connected disability). There is no time limit for the additional benefit.

You’re eligible for the exemption if you served on active duty, other than for training, in the Armed Forces between September 2, 1945 and December 26, 1991.

Application must be made by taxable status date of March 1st; form RP-458-a with supporting documentation, Form DD-214 (discharge papers) and applicable VA documentation for disability rating. The only instance where a DD-214 is not required is if the applicant falls under the Restoration of Honor Act criteria and has received a letter to such from NYS DVS. 

Additional information, visit:  http://www.tax.ny.gov/pdf/current_forms/orpts/rp458b_fill_in.pdf

Eligible Funds Exemption  Form RP-458  Instructions

Available to veterans and certain persons who purchased their home with pension, bonus, or insurance monies, referred to as eligible funds.

Eligible funds are any proceeds from a veteran:

  • pension
  • bonus or insurance monies
  • dividends or refunds from such insurance
  • compensation paid for being a prisoner of war
  • mustering-out pay, etc.

You may switch to the Alternative exemption in you choose. If you choose not to switch, your current exemption will remain in effect. If you choose to switch, you will have to apply for it (see Alternative Veteran above).

Note: Any application to switch will be reviewed by the Assessor; approval or denial will be made on the basis as to which exemption is the most beneficial (greater savings) to the veteran.

AGRICULTURAL ASSESSMENT PROGRAM  Form RP-305

The State Legislature enacted the New York Agricultural Districts Law in 1971 to protect and promote the availability of land for farming purposes.  Subsequent amendments have broadened its scope.  The law provides a locally initiated mechanism for creating agricultural districts.  Forming agricultural districts is intended to counteract the impact that nonfarm development can have upon the continuation of farm businesses.

The Agricultural Districts Law allows reduced property tax bills for land in agricultural production by limiting the property tax assessment of such land to its prescribed agricultural assessment value.  Owners whose land satisfies the eligibility requirements may apply for an agricultural assessment (see details below).

Agricultural districts also provide the framework to:

  • limit unreasonable local regulation on farm practices
  • modify public agencies’ ability to acquire farmland through eminent domain
  • modify the right to advance public funds to construct facilities that encourage development
  • require state agencies to modify administrative regulations and procedures to encourage continuing farm businesses
  • provide Right to Farm provisions for protection from private nuisance suits for land in agricultural districts and parcels receiving agricultural assessments outside districts

Benefit assessment, special ad valorem levies, or other rates and fees for the finance of improvements such as water, sewer or nonfarm drainage may not be imposed upon land used in agricultural production and within an agricultural district unless such charges were imposed prior to forming the agricultural district.

You must apply to receive an agricultural assessment

Landowners must file Form RP-305, Agricultural Assessment Application or Form RP-305-r, Agricultural Assessment Application Renewal with the assessor to receive an agricultural assessment for their parcels.  Landowners must apply for an agricultural assessment, and the farmland must satisfy certain gross sales and acreage eligibility requirements.

Land outside an agricultural district

Land outside an agricultural district may qualify for an agricultural assessment.  The requirements and application procedure are the same.  However, land located outside of an established agricultural district that receives and agricultural assessment is required to remain in agricultural use for eight years (land within an agricultural district is encumbered for five years) or be subject to a payment for conversion to non-agricultural use.

Rented land and agricultural assessments

Land rented for agricultural purposes may receive an agricultural assessment.  If the rented land satisfies the basic eligibility requirements described above, it is eligible for agricultural assessment.  In addition, if the rented land does not satisfy the average gross sales value requirement, but does satisfy the other requirements, it may still be eligible if it is farmed, under a written rental agreement of at least five years, with the other farmland that satisfies all eligibility requirements.  The applicant must substantiate the existence of the term of the rental agreement by providing the assessor with either a copy of the lease or Form RP-305-c, Agricultural Assessment Written Lease Affidavit for Rented Land.  A start-up farm operation may include rented land.

Additional Information may be found at:   Agricultural assessment program – overview

  • Ag Assessment Eligibility Requirements
  • Multiple Land Parcels
  • Gross Sales Value
  • Application Process
  • What happens to Farmland taken out of agricultural production?

More Agricultural Assessment information may also be found at:   Agricultural Assessment Information

OTHER EXEMPTIONS – Contact the Assessment Office for Information: