How Exemptions Work

The Most Common Real Property Tax

There are over 400 property tax exemptions in New York State. When exemptions are applied, their effect is to reduce the taxable value of assessed Real Property. This is generally calculated by taking the total assessed value of a property and deducting the value of the exemption. The resulting difference is the taxable value which is what the tax rates are applied to. This illustrates how exemptions can reduce a taxpayers property tax burden. However, the more exemptions that exist, the more the tax burden is shifted to taxpayers without exemptions. With New York State ranking as one of the most highly taxed states in the country, this can have a more profound affect on those taxpayers without exemptions.

While having tax exemptions shift the tax burden to parcels without exemptions, the main purpose is to reduce the burden on property owners, within defined income ranges, on their primary residence. Many exemptions require annual renewal while others require application only upon property transfer as is the case with the Basic Star exemption. Some exemptions have income thresholds while still others require supporting documents. Each exemption has varying requirements. If applying for exemptions, you should consult with your local assessor as they are the ones that receive and approve exemptions. The renewal deadline for exemptions is Feb. 1st in the city of Auburn and March 1st in the outlying towns and villages.