If there have been ownership changes, since the property began to receive the exemption or the exemption was last renewed, the property may no longer be eligible to receive it.
Your exemption renewal application may be denied or the Department of Finance (DOF) may remove the exemption from the property if:
- The property was sold to a new owner
- An owner died
- An owner has moved
- The property transitioned to or was transferred to a new owner
- The owner no longer meets eligibility requirements
You may get a letter asking you to certify or provide proof of your eligibility. Make sure to complete any forms or applications and provide the requested information and documents by the deadline on the notice. If you don’t respond, your exemption may be removed.
Sale of Property
When a property is sold and the new deed is recorded with the City Register or Richmond County Clerk's Office, exemptions in effect for the seller should be automatically removed from the Department of Finance's system. However, if the property is a life estate, the removal isn’t automatic.
Removals take effect at certain times each year.
Basic and Enhanced School Tax Relief (STAR) Exemptions are removed at the end of the tax year on June 30th.
The following exemptions are removed as of the next quarter after the deed is recorded:
- Senior Citizens Homeowners’ Exemption (SCHE)
- Disabled Homeowners’ Exemption (DHE)
- Veterans Exemption
- Clergy Exemption
If you’re the new deed holder, you’re responsible to confirm that all exemptions were removed.
If you want your property to receive an exemption or if you receive a renewal application addressed to a former owner, you can’t renew or continue the previous owner’s benefit. However, if you meet the program eligibility requirements, you may apply for property tax benefits under your name as a new applicant by filling out an initial application.
If you received an exemption and have moved to a new property, you should request that the exemption on your old property be removed so you can apply for an exemption on your new property.
If an owner of a property receiving an exemption has died, you may receive a letter from DOF saying the benefit is being removed. Owners have 60 days to respond.
If you co-owned the property with the owner who died, you can apply to have the benefits reinstated. The letter will tell you how to apply. If you co-owned the property with a deceased spouse or sibling, you may still be eligible and don’t need to reapply.
If the previous owner of the property has died and you are now the new owner of the property, you must submit a new application in your own name for the property to continue to receive the SCHE, DHE, Veterans, or Clergy Exemptions. For STAR or Enhanced STAR, you must register for the benefit as a credit check with New York State.
SCHE and DHE Renewals
If a co-owner of a property receiving SCHE or DHE has died in the time since the exemption began or was last renewed, the property may no longer be eligible to receive the benefit and your renewal application may be denied. In certain circumstances, you may be able to keep the exemption.
For SCHE, if you’re the surviving spouse or sibling of someone who received SCHE and are listed on the deed as an owner of the property, you may be able to renew the benefits under your name. The surviving spouse must be at least 62 years old and the sibling must be at least 65. To learn how to renew after a co-owner death or other changes during the benefit period, visit the Senior Citizen Homeowners' Exemption (SCHE) Renewal page.
For DHE, if you’re the surviving spouse or sibling of someone who received DHE, are listed on the deed as an owner of the property, and have a disability, you may be able to renew the benefits under your name. To learn how to renew after a co-owner death or other changes during the benefit period, visit the Disabled Homeowners' Exemption (DHE) Renewal page.
If you move to a new property, you can’t bring your exemption with you, unless you receive the Veterans Exemption and meet other eligibility requirements.
You must reapply as a new applicant. You should request that the exemption on your old property be removed so you can apply for an exemption on your new property.
If you received a Veterans Exemption at your previous residence and have moved, you may be able to transfer the exemption to the new property. Both residences must be located in New York State.
You must complete a Veterans Exemption Application and show proof that your previous residence was granted the exemption. You don't have to wait until the next tax year to receive the exemption if your application is received within 30 days of the purchase of the new property. To qualify for the following tax year, your application must be postmarked on or before March 15th. If you are granted the exemption, the benefit will be prorated.
For other types of exemptions, you must reapply for the benefit.
If the property was transferred through zero consideration, the new owners can’t keep the exemptions in effect for the property and must reapply for the benefit under their own name.
Examples of these types of ownership transfers include:
- A parent transferring property to a child with little or no money exchanged
- A property being willed or transferred through an inheritance or gift
If you had ownership transferred to you through zero consideration and the new deed was registered with the City Register or the Richmond County Clerk (for Staten Island properties), you can submit a new exemption application in your own name. For STAR or Enhanced STAR, you must register for the benefit as a credit check with New York State.
Life Estates and Trusts
If the ownership of a property has transferred to a trust or if there is now a life estate on the property, the property may still be able to continue their benefit.
The person holding a life estate on a property is the owner for exemption eligibility purposes. Eligibility will be based on their income and if they meet all program requirements. To apply for or renew an exemption, you must submit proof of income and a copy of the life estate with the application.
If the property is owned by a trust, only the qualifying beneficiary (trustee) can renew the exemption. To apply for or renew an exemption, the beneficiary must submit proof of income and a copy of the trust with the application. The name of the beneficiary/trustee can be found within the Trust documents which should specifically state who has the right to live on the property.
Limited Liability Companies (LLCs)
If an LLC now owns the property, it is no longer eligible to receive personal exemptions or abatements and the benefit will be removed. An LLC is a business, regardless of the number of owners or their relationship to each other. Property owned by LLCs and other businesses aren’t eligible for personal exemptions or abatements.