Since the check was received in 2017, you will deal with it next year.
If you are itemizing your property taxes and take a property tax deduction in 2016 that is more than the STAR rebate, then on your 2017 return, you will have what is known as a taxable recovery, a reimbursement of a previous deduction. This is entered as other miscellaneous income at the bottom of the income page, look for "reimbursed deductions" and enter the amount there.
If you are not deducting property taxes on your 2016 federal tax return, then the STAR rebate will not be income next year.
And next year, if you get the STAR rebate on time (hah) you won't report it as income. Instead, reduce your 2017 property tax deduction by any rebate you also receive in 2017.