Pennies from Heaven: Assessing the Impact of New York State's STAR Exemption on School District Property Taxation

Amy Ellen Schwartz, Johanna Lacoe
Andrew Berger Gross

New York State's School Tax Relief (STAR) program exempts a portion of homestead property values from school district property taxation. The inception of this program immediately preceded a period of increased school property tax levies and expenditures. Using a public choice theory framework, this applied research Capstone project attempted to determine whether STAR was a causal factor for school district tax increases. The extent to which individual level and regional differences influenced local variation in the tax price elasticity of demand was also examined.