Office of Borough President James P. Molinaro
Staten Island, New York
B.P. Molinaro and Finance Commissioner Stark urge seniors to file for homeowners’ exemption before March 15th deadline
Eligible Seniors May Qualify for Up to a 50% Reduction in Property Taxes
STATEN ISLAND, N.Y. – Borough President James P. Molinaro and New York City Department of Finance Commissioner Martha E. Stark today held a press conference at Borough Hall to urge eligible Staten Island seniors to file for the Senior Citizen Homeowners’ Exemption (SCHE) program before the March 15th deadline.
The SCHE program provides up to a 50 percent property tax exemption for eligible seniors who own and occupy residential properties. Last year, the City raised the income threshold for people eligible for the 50 percent cut from $24,000 to $26,000, but seniors making up to $34,400 a year can also qualify for tax breaks based on an income sliding scale.
“As President of the Borough with the largest number of homeowners in the City, and the only Borough to experience an increase in its elderly population over the last decade, I feel a responsibility to get the word out about this important tax break to Staten Island’s 70,000 seniors,” said Molinaro.
“After a lifetime of mortgage payments, the burden of property taxes falls heavily on senior homeowners as they struggle to make ends meet on fixed incomes,” Molinaro added. “Mayor Bloomberg recently raised the SCHE program’s income eligibility level, so more seniors than ever may qualify for up to a 50 percent reduction in annual property tax bills. Finance Commissioner Stark and I urge eligible seniors to apply by March 15th for benefits beginning on July 1st.”
Commissioner Stark said, “The Senior Citizens Homeowners’ Exemption is crucial to helping seniors stay in their homes. Although we have been able to give
homeowners $1,200 in rebates over the last three years, we know that many seniors on fixed incomes need this exemption to help offset assessment increases that have occurred during the City’s real estate boom.”
To be eligible for the SCHE program, the homeowner must be 65 or older, and must have owned the property for at least one year. If the property is co-owned by spouses, only one has to be over 65. If someone other than a spouse is a co-owner, all owners must be older than 65. The property must be the applicant’s legal residence, must be used exclusively for residential purposes and may have no more than three dwelling units.
Without a tax exemption such as SCHE, a homeowner’s property tax is calculated this way: Multiply the assessed value of the 1-family house by the current tax rate for Class 1 properties (16.118% or .16118). If the assessed value is $15,000, $15,000 x .16118 = $2,418, the annual property tax. However, if the homeowner qualifies for SCHE, and based on the owner’s income, the exemption lowers the assessed value by 10%, the new assessed value would be $13,500. Multiply $13,500 by the same tax rate (16.118%), and the new tax assessment would be $2,176 -- a tax savings of $242 a year!
Here is how a homeowner’s income determines how much SCHE lowers the assessed value of the property:
If the owners’ income is between
SCHE will reduce the assessed value by
$33,500 and $34,399
5%
$32,600 and $33,499
10%
$31,700 and $32,599
15%
$30,800 and $31,699
20%
$29,900 and $30,799
25%
$29,000 and $29,899
30%
$28,000 and $28,999
35%
$27,000 and $27,999
40%
$26,001 and $26,999
45%
$0 and $26,000
50%
Applications for the SCHE program must be received by the New York City Department of Finance by March 15th to qualify for benefits beginning July 1st. Forms are available at the Borough President’s Helpline office in Borough Hall, or can be downloaded from the Finance Dept.’s website at www.nyc.gov/finance. Applicants may also have a form mailed to them by calling 311.
February 7, 2007