Sometimes, honesty is not the best policy.

The city is tightening the screws on its system for awarding property-tax exemptions — a move one lawmaker attributes to his discovery that residents can get the tax breaks through an “honor system” without having to prove they’re eligible.

Sara Meyers, an assistant commissioner in the Department of Finance, is revamping the system that handed out nearly $300 million in property-tax exemptions last fiscal year to roughly 789,600 residents, agency spokesman Owen Stone said.

“The new assistant commissioner is reviewing procedures and will make changes concerning proof of eligibility for exemptions as appropriate,” Stone said.

He said it is possible the agency will begin requiring more documentation, such as military papers for veteran exemptions and proof of age for elder tax breaks.

The city currently relies on the honor system for certain exemptions. City Councilman Vincent Ignizio (R-SI), who uncovered the slack process, plans to introduce a law forcing the agency to require New Yorkers to submit proof for all exemptions.

“It seems to me the Department of Finance agrees that this needs to be regulated,” he said.

Currently, applicants for some exemptions must simply fill out a standard form stating his or her address, age, income and Social Security number. Paperwork for those exemptions is not required.

Meanwhile, the state Senate passed a bill out of committee yesterday that would allow seniors getting property-tax breaks to automatically qualify for it each year without having to reapply as they currently do.

(Source: NY Post)