Penalties related to the STAR Program
Who is subject to penalties
Taxpayers who make a "material misstatement” on a STAR exemption application are subject to penalties.
A "material misstatement" means an applicant:
- claimed a property was their residence when it was not;
- claimed they had relinquished the STAR exemption on a former primary residence when they knew they had not; or
- misrepresented their age or income to appear eligible for the enhanced STAR exemption.
What are the penalties
The penalties include:
- a fee, equal to the greater of $100 or 20% of inappropriately received benefits, not to exceed $2,500 (fee goes to assessing unit);
- the requirement to repay up to six years of inappropriately received benefits, plus interest; and
- disqualification for any STAR exemption for six years (and possibly permanently if the 2015 exemption was removed due to the material misstatement).