S T A T E O F N E W Y O R K
________________________________________________________________________
10779
I N A S S E M B L Y
April 1, 2026
___________
Introduced by M. of A. BRABENEC -- read once and referred to the Commit-
tee on Ways and Means
AN ACT to amend the tax law and the education law, in relation to estab-
lishing a real property tax freeze credit
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 606 of the tax law is amended by adding a new
subsection (bbb) to read as follows:
(BBB) REAL PROPERTY TAX FREEZE CREDIT. (1) AS USED IN THIS SUBSECTION:
(A) "FREEZE-COMPLIANT BUDGET" MEANS A BUDGET OF A TAXING JURISDICTION
THAT HAS MET THE REQUIREMENTS OF SECTION TWO THOUSAND TWENTY-THREE-B OF
THE EDUCATION LAW.
(B) "DEPENDENT SCHOOL DISTRICT" MEANS A SCHOOL DISTRICT THAT IS
SUBJECT TO ARTICLE FIFTY-TWO OF THE EDUCATION LAW AND THAT HAS A POPU-
LATION OF LESS THAN ONE MILLION.
(B-1) "INDEPENDENT SPECIAL DISTRICT" MEANS A SPECIAL DISTRICT AS
DEFINED BY SECTION ONE HUNDRED TWO OF THE REAL PROPERTY TAX LAW THAT
EITHER: (I) HAS A SEPARATE INDEPENDENT ELECTED BOARD, AND EITHER HAS THE
AUTHORITY TO LEVY A TAX, OR CAN REQUIRE A MUNICIPAL CORPORATION TO LEVY
A TAX ON ITS BEHALF; OR (II) HAS A SEPARATE INDEPENDENT BOARD APPOINTED
BY THE GOVERNING BODY OF ANOTHER MUNICIPAL CORPORATION AND EITHER HAS
THE AUTHORITY TO LEVY A TAX OR CAN REQUIRE A MUNICIPAL CORPORATION TO
LEVY A TAX ON ITS BEHALF.
(C) "STAR EXEMPTION" MEANS THE SCHOOL TAX RELIEF EXEMPTION AUTHORIZED
BY SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW.
(D) "STAR CREDIT" MEANS THE SCHOOL TAX RELIEF CREDIT AUTHORIZED BY
SUBSECTION (EEE) OF THIS SECTION.
(E) "TAXING JURISDICTION" MEANS A COUNTY, CITY, TOWN, VILLAGE, SCHOOL
DISTRICT OR AN INDEPENDENT SPECIAL DISTRICT, EXCEPT THAT SUCH TERM SHALL
NOT INCLUDE A CITY WITH A POPULATION OF ONE MILLION OR MORE, NOR SHALL
IT INCLUDE A COUNTY WHOLLY LOCATED WITHIN SUCH A CITY.
(F) "LEVY CREDIT FACTOR" MEANS THE ALLOWABLE LEVY GROWTH FACTOR FOR A
TAXING JURISDICTION, AS DETERMINED PURSUANT TO SECTION THREE-C OF THE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13625-06-6
A. 10779 2
GENERAL MUNICIPAL LAW OR SECTION TWO THOUSAND TWENTY-THREE-A OF THE
EDUCATION LAW, MINUS ONE.
(2) AN INDIVIDUAL TAXPAYER WHO MEETS THE ELIGIBILITY STANDARDS SET
FORTH IN PARAGRAPH THREE OF THIS SUBSECTION AND WHOSE PRIMARY RESIDENCE
IS LOCATED IN A TAXING JURISDICTION THAT HAS A FREEZE-COMPLIANT BUDGET
FOR THE FISCAL YEAR STARTING IN TWO THOUSAND TWENTY-SEVEN, TWO THOUSAND
TWENTY-EIGHT AND TWO THOUSAND TWENTY-NINE SHALL BE ALLOWED A CREDIT
AGAINST THE TAXES IMPOSED BY THIS ARTICLE. SUBJECT TO THE PROVISIONS OF
PARAGRAPH SIX OF THIS SUBSECTION, SUCH CREDIT SHALL BE DETERMINED AS
FOLLOWS:
(A) IF A SCHOOL DISTRICT OTHER THAN A DEPENDENT SCHOOL DISTRICT HAS A
FREEZE-COMPLIANT BUDGET FOR ITS FISCAL YEAR STARTING IN TWO THOUSAND
TWENTY-SEVEN, A CREDIT SHALL BE ALLOWED FOR THE ELIGIBLE TAXPAYER'S TWO
THOUSAND TWENTY-SEVEN TAXABLE YEAR IN THE AMOUNT THAT IS THE GREATER OF
THE AMOUNT BY WHICH THE REAL PROPERTY TAXES IMPOSED UPON SUCH RESIDENCE
BY OR ON BEHALF OF THAT SCHOOL DISTRICT FOR THE FISCAL YEAR STARTING IN
TWO THOUSAND TWENTY-SEVEN EXCEEDS THE REAL PROPERTY TAXES SO IMPOSED FOR
THE FISCAL YEAR STARTING IN TWO THOUSAND TWENTY-SIX, OR THE PRODUCT OF
THE REAL PROPERTY TAXES IMPOSED UPON SUCH RESIDENCE BY OR ON BEHALF OF
THAT SCHOOL DISTRICT FOR THE FISCAL YEAR STARTING IN TWO THOUSAND TWEN-
TY-SIX MULTIPLIED BY THE LEVY CREDIT FACTOR FOR THAT SCHOOL DISTRICT FOR
THE FISCAL YEAR STARTING IN TWO THOUSAND TWENTY-SEVEN.
(B) IF A TAXING JURISDICTION, OTHER THAN A SCHOOL DISTRICT OR A CITY
WITH A DEPENDENT SCHOOL DISTRICT, HAS A FREEZE-COMPLIANT BUDGET FOR ITS
FISCAL YEAR STARTING IN TWO THOUSAND TWENTY-EIGHT, A CREDIT SHALL BE
ALLOWED FOR THE ELIGIBLE TAXPAYER'S TWO THOUSAND TWENTY-EIGHT TAXABLE
YEAR IN THE AMOUNT THAT IS THE GREATER OF THE AMOUNT BY WHICH THE REAL
PROPERTY TAXES IMPOSED UPON SUCH RESIDENCE BY OR ON BEHALF OF THAT
TAXING JURISDICTION FOR THE FISCAL YEAR STARTING IN TWO THOUSAND TWEN-
TY-EIGHT EXCEEDS THE REAL PROPERTY TAXES SO IMPOSED FOR THE FISCAL YEAR
STARTING IN TWO THOUSAND TWENTY-SEVEN, OR THE PRODUCT OF THE REAL PROP-
ERTY TAXES IMPOSED UPON SUCH RESIDENCE BY OR ON BEHALF OF THAT TAXING
JURISDICTION FOR THE FISCAL YEAR STARTING IN TWO THOUSAND TWENTY-SEVEN
MULTIPLIED BY THE LEVY CREDIT FACTOR FOR THAT TAXING JURISDICTION FOR
THE FISCAL YEAR STARTING IN TWO THOUSAND TWENTY-EIGHT.
(C) IF A SCHOOL DISTRICT OTHER THAN A DEPENDENT SCHOOL DISTRICT HAS A
FREEZE-COMPLIANT BUDGET FOR ITS FISCAL YEAR STARTING IN TWO THOUSAND
TWENTY-EIGHT, A CREDIT SHALL BE ALLOWED FOR THE ELIGIBLE TAXPAYER'S TWO
THOUSAND TWENTY-EIGHT TAXABLE YEAR IN THE AMOUNT BY WHICH THE REAL PROP-
ERTY TAXES IMPOSED UPON SUCH RESIDENCE BY OR ON BEHALF OF SUCH SCHOOL
DISTRICT FOR THE FISCAL YEAR STARTING IN TWO THOUSAND TWENTY-SEVEN
EXCEEDS THE REAL PROPERTY TAXES SO IMPOSED FOR THE FISCAL YEAR IDENTI-
FIED AS FOLLOWS:
(I) IF THE SCHOOL DISTRICT'S BUDGET FOR THE FISCAL YEAR STARTING IN
TWO THOUSAND TWENTY-SEVEN WAS A FREEZE-COMPLIANT BUDGET, A CREDIT SHALL
BE ALLOWED FOR THE ELIGIBLE TAXPAYER'S TWO THOUSAND TWENTY-EIGHT TAXABLE
YEAR IN THE AMOUNT OF THE CREDIT FOR SCHOOL DISTRICT TAXES ALLOWED FOR
THE ELIGIBLE TAXPAYER'S TWO THOUSAND TWENTY-SEVEN TAXABLE YEAR; TOGETHER
WITH THE AMOUNT THAT IS THE GREATER OF THE AMOUNT BY WHICH THE REAL
PROPERTY TAXES IMPOSED UPON SUCH RESIDENCE BY OR ON BEHALF OF THAT
SCHOOL DISTRICT FOR THE FISCAL YEAR STARTING IN TWO THOUSAND TWENTY-
EIGHT EXCEEDS THE REAL PROPERTY TAXES SO IMPOSED FOR THE FISCAL YEAR
STARTING IN TWO THOUSAND TWENTY-SEVEN, OR THE PRODUCT OF THE REAL PROP-
ERTY TAXES IMPOSED UPON SUCH RESIDENCE BY OR ON BEHALF OF SUCH SCHOOL
DISTRICT FOR THE FISCAL YEAR STARTING IN TWO THOUSAND TWENTY-SEVEN
A. 10779 3
MULTIPLIED BY THE LEVY CREDIT FACTOR FOR THAT SCHOOL DISTRICT FOR THE
FISCAL YEAR STARTING IN TWO THOUSAND TWENTY-EIGHT.
(II) IF THE SCHOOL DISTRICT'S BUDGET FOR THE FISCAL YEAR STARTING IN
TWO THOUSAND TWENTY-SEVEN WAS NOT A FREEZE-COMPLIANT BUDGET, A CREDIT
SHALL BE ALLOWED FOR THE ELIGIBLE TAXPAYER'S TWO THOUSAND TWENTY-EIGHT
TAXABLE YEAR IN THE AMOUNT THAT IS THE GREATER OF THE AMOUNT BY WHICH
THE REAL PROPERTY TAXES IMPOSED UPON SUCH RESIDENCE BY OR ON BEHALF OF
THAT SCHOOL DISTRICT FOR THE FISCAL YEAR STARTING IN TWO THOUSAND TWEN-
TY-EIGHT EXCEEDS THE REAL PROPERTY TAXES SO IMPOSED FOR THE FISCAL YEAR
STARTING IN TWO THOUSAND TWENTY-SEVEN, OR THE PRODUCT OF THE REAL PROP-
ERTY TAXES IMPOSED UPON SUCH RESIDENCE BY OR ON BEHALF OF SUCH SCHOOL
DISTRICT FOR THE FISCAL YEAR STARTING IN TWO THOUSAND TWENTY-SEVEN
MULTIPLIED BY THE LEVY CREDIT FACTOR FOR SUCH SCHOOL DISTRICT FOR THE
FISCAL YEAR STARTING IN TWO THOUSAND TWENTY-EIGHT.
(D) IF A TAXING JURISDICTION, OTHER THAN A SCHOOL DISTRICT OR A CITY
WITH A DEPENDENT SCHOOL DISTRICT, HAS A FREEZE-COMPLIANT BUDGET FOR ITS
FISCAL YEAR STARTING IN TWO THOUSAND TWENTY-NINE:
(I) IF THE TAXING JURISDICTION'S BUDGET FOR THE FISCAL YEAR STARTING
IN TWO THOUSAND TWENTY-EIGHT WAS A FREEZE-COMPLIANT BUDGET, A CREDIT
SHALL BE ALLOWED FOR THE ELIGIBLE TAXPAYER'S TWO THOUSAND TWENTY-NINE
TAXABLE YEAR IN THE AMOUNT OF THE CREDIT FOR THE TAXES IMPOSED BY OR ON
BEHALF OF SUCH TAXING JURISDICTION ALLOWED FOR THE ELIGIBLE TAXPAYER'S
TWO THOUSAND TWENTY-EIGHT TAXABLE YEAR; TOGETHER WITH THE AMOUNT THAT IS
THE GREATER OF THE AMOUNT BY WHICH THE REAL PROPERTY TAXES IMPOSED UPON
SUCH RESIDENCE BY OR ON BEHALF OF SUCH TAXING JURISDICTION FOR THE
FISCAL YEAR STARTING IN TWO THOUSAND TWENTY-NINE EXCEEDS THE REAL PROP-
ERTY TAXES IMPOSED UPON SUCH RESIDENCE BY OR ON BEHALF OF THAT TAXING
JURISDICTION FOR THE FISCAL YEAR STARTING IN TWO THOUSAND TWENTY-EIGHT,
OR THE PRODUCT OF THE REAL PROPERTY TAXES IMPOSED UPON SUCH RESIDENCE BY
OR ON BEHALF OF SUCH TAXING JURISDICTION FOR THE FISCAL YEAR STARTING IN
TWO THOUSAND TWENTY-EIGHT MULTIPLIED BY THE LEVY CREDIT FACTOR FOR SUCH
TAXING JURISDICTION FOR THE FISCAL YEAR STARTING IN TWO THOUSAND TWEN-
TY-NINE.
(II) IF THE TAXING JURISDICTION'S BUDGET FOR THE FISCAL YEAR STARTING
IN TWO THOUSAND TWENTY-EIGHT WAS NOT A FREEZE-COMPLIANT BUDGET, A CREDIT
SHALL BE ALLOWED FOR THE ELIGIBLE TAXPAYER'S TWO THOUSAND TWENTY-NINE
TAXABLE YEAR IN THE AMOUNT THAT IS THE GREATER OF THE AMOUNT BY WHICH
THE REAL PROPERTY TAXES IMPOSED UPON SUCH RESIDENCE BY OR ON BEHALF OF
SUCH TAXING JURISDICTION FOR THE FISCAL YEAR STARTING IN TWO THOUSAND
TWENTY-NINE EXCEEDS THE REAL PROPERTY TAXES SO IMPOSED FOR THE FISCAL
YEAR STARTING IN TWO THOUSAND TWENTY-EIGHT, OR THE PRODUCT OF THE REAL
PROPERTY TAXES IMPOSED UPON SUCH RESIDENCE BY OR ON BEHALF OF SUCH
TAXING JURISDICTION FOR THE FISCAL YEAR STARTING IN TWO THOUSAND TWEN-
TY-EIGHT MULTIPLIED BY THE LEVY CREDIT FACTOR FOR SUCH TAXING JURISDIC-
TION FOR THE FISCAL YEAR STARTING IN TWO THOUSAND TWENTY-NINE.
(E) IF A CITY WITH A DEPENDENT SCHOOL DISTRICT HAS A FREEZE-COMPLIANT
BUDGET FOR ITS FISCAL YEAR STARTING IN TWO THOUSAND TWENTY-SEVEN, A TAX
CREDIT SHALL BE ALLOWED FOR THE ELIGIBLE TAXPAYER'S TWO THOUSAND TWEN-
TY-SEVEN TAXABLE YEAR IN THE AMOUNT EQUIVALENT TO SIXTY-EIGHT PERCENT OF
THE AMOUNT THAT IS THE GREATER OF THE AMOUNT BY WHICH THE REAL PROPERTY
TAXES IMPOSED UPON SUCH RESIDENCE BY OR ON BEHALF OF THAT CITY FOR THE
FISCAL YEAR STARTING IN TWO THOUSAND TWENTY-SEVEN EXCEEDS THE REAL PROP-
ERTY TAXES SO IMPOSED FOR THE FISCAL YEAR STARTING IN TWO THOUSAND TWEN-
TY-SIX, OR THE PRODUCT OF THE REAL PROPERTY TAXES IMPOSED UPON SUCH
RESIDENCE BY OR ON BEHALF OF SUCH CITY FOR THE FISCAL YEAR STARTING IN
A. 10779 4
TWO THOUSAND TWENTY-SIX MULTIPLIED BY THE LEVY CREDIT FACTOR FOR SUCH
CITY FOR THE FISCAL YEAR STARTING IN TWO THOUSAND TWENTY-SEVEN.
(F) IF A CITY WITH A DEPENDENT SCHOOL DISTRICT HAS A FREEZE-COMPLIANT
BUDGET FOR ITS FISCAL YEAR STARTING IN TWO THOUSAND TWENTY-EIGHT:
(I) IF THE CITY'S BUDGET FOR THE FISCAL YEAR STARTING IN TWO THOUSAND
TWENTY-SIX WAS A FREEZE-COMPLIANT BUDGET, A CREDIT SHALL BE ALLOWED FOR
THE ELIGIBLE TAXPAYER'S TWO THOUSAND TWENTY-EIGHT TAXABLE YEAR IN AN
AMOUNT EQUIVALENT TO THIRTY-THREE PERCENT OF THE AMOUNT THAT IS THE
GREATER OF THE AMOUNT BY WHICH THE REAL PROPERTY TAXES IMPOSED UPON SUCH
RESIDENCE BY THAT CITY FOR THE FISCAL YEAR STARTING IN TWO THOUSAND
TWENTY-SEVEN EXCEEDS THE REAL PROPERTY TAXES SO IMPOSED FOR THE FISCAL
YEAR STARTING IN TWO THOUSAND TWENTY-SIX, OR THE PRODUCT OF THE REAL
PROPERTY TAXES IMPOSED UPON SUCH RESIDENCE BY OR ON BEHALF OF SUCH CITY
FOR THE FISCAL YEAR STARTING IN TWO THOUSAND TWENTY-SIX MULTIPLIED BY
THE LEVY CREDIT FACTOR FOR SUCH CITY FOR THE FISCAL YEAR STARTING IN TWO
THOUSAND TWENTY-SEVEN; TOGETHER WITH THE AMOUNT OF THE CREDIT FOR THE
TAXES IMPOSED BY OR ON BEHALF OF SUCH CITY ALLOWED FOR THE ELIGIBLE
TAXPAYER'S TWO THOUSAND TWENTY-SIX TAXABLE YEAR; AND TOGETHER WITH AN
AMOUNT EQUIVALENT TO SIXTY-SEVEN PERCENT OF THE AMOUNT THAT IS THE
GREATER OF THE AMOUNT BY WHICH THE REAL PROPERTY TAXES IMPOSED UPON SUCH
RESIDENCE BY THAT CITY FOR THE FISCAL YEAR STARTING IN TWO THOUSAND
TWENTY-EIGHT EXCEEDS THE REAL PROPERTY TAXES SO IMPOSED FOR THE FISCAL
YEAR STARTING IN TWO THOUSAND TWENTY-SEVEN; OR THE PRODUCT OF THE REAL
PROPERTY TAXES IMPOSED UPON SUCH RESIDENCE BY OR ON BEHALF OF SUCH CITY
FOR THE FISCAL YEAR STARTING IN TWO THOUSAND TWENTY-SEVEN MULTIPLIED BY
THE LEVY CREDIT FACTOR FOR SUCH CITY FOR THE FISCAL YEAR STARTING IN TWO
THOUSAND TWENTY-EIGHT; AND A CREDIT SHALL BE ALLOWED FOR THE ELIGIBLE
TAXPAYER'S TWO THOUSAND TWENTY-NINE TAXABLE YEAR IN AN AMOUNT EQUIVALENT
TO THIRTY-THREE PERCENT OF THE AMOUNT THAT IS THE GREATER OF THE AMOUNT
BY WHICH THE REAL PROPERTY TAXES IMPOSED UPON SUCH RESIDENCE BY THAT
CITY FOR THE FISCAL YEAR STARTING IN TWO THOUSAND TWENTY-EIGHT EXCEEDS
THE REAL PROPERTY TAXES SO IMPOSED FOR THE FISCAL YEAR STARTING IN TWO
THOUSAND TWENTY-SEVEN, OR THE PRODUCT OF THE REAL PROPERTY TAXES IMPOSED
UPON SUCH RESIDENCE BY OR ON BEHALF OF SUCH CITY FOR THE FISCAL YEAR
STARTING IN TWO THOUSAND TWENTY-EIGHT MULTIPLIED BY THE LEVY CREDIT
FACTOR FOR SUCH CITY FOR THE FISCAL YEAR STARTING IN TWO THOUSAND TWEN-
TY-EIGHT; TOGETHER WITH AN AMOUNT EQUIVALENT TO 49.25 PERCENT OF THE
AMOUNT OF THE CREDIT FOR THE TAXES IMPOSED BY OR ON BEHALF OF SUCH CITY
ALLOWED FOR THE ELIGIBLE TAXPAYER'S TWO THOUSAND TWENTY-SEVEN TAXABLE
YEAR.
(II) IF THE CITY'S BUDGET FOR THE FISCAL YEAR STARTING IN TWO THOUSAND
TWENTY-SEVEN WAS NOT A FREEZE-COMPLIANT BUDGET, A CREDIT SHALL BE
ALLOWED FOR THE ELIGIBLE TAXPAYER'S TWO THOUSAND TWENTY-EIGHT TAXABLE
YEAR IN AN AMOUNT EQUIVALENT TO SIXTY-SEVEN PERCENT OF THE AMOUNT THAT
IS THE GREATER OF THE AMOUNT BY WHICH THE REAL PROPERTY TAXES IMPOSED
UPON SUCH RESIDENCE BY THAT CITY FOR THE FISCAL YEAR STARTING IN TWO
THOUSAND TWENTY-EIGHT EXCEEDS THE REAL PROPERTY TAXES SO IMPOSED FOR THE
FISCAL YEAR STARTING IN TWO THOUSAND TWENTY-SEVEN OR THE PRODUCT OF THE
REAL PROPERTY TAXES IMPOSED UPON SUCH RESIDENCE BY OR ON BEHALF OF SUCH
CITY FOR THE FISCAL YEAR STARTING IN TWO THOUSAND TWENTY-SEVEN MULTI-
PLIED BY THE LEVY CREDIT FACTOR FOR SUCH CITY FOR THE FISCAL YEAR START-
ING IN TWO THOUSAND TWENTY-EIGHT; AND A CREDIT SHALL BE ALLOWED FOR THE
ELIGIBLE TAXPAYER'S TWO THOUSAND TWENTY-NINE TAXABLE YEAR IN AN AMOUNT
EQUIVALENT TO THIRTY-THREE PERCENT OF THE AMOUNT THAT IS THE GREATER OF
THE AMOUNT BY WHICH THE REAL PROPERTY TAXES IMPOSED UPON SUCH RESIDENCE
BY THAT CITY FOR THE FISCAL YEAR STARTING IN TWO THOUSAND TWENTY-EIGHT
A. 10779 5
EXCEEDS THE REAL PROPERTY TAXES SO IMPOSED FOR THE FISCAL YEAR STARTING
IN TWO THOUSAND TWENTY-SEVEN OR THE PRODUCT OF THE REAL PROPERTY TAXES
IMPOSED UPON SUCH RESIDENCE BY OR ON BEHALF OF SUCH CITY FOR THE FISCAL
YEAR STARTING IN TWO THOUSAND TWENTY-SEVEN MULTIPLIED BY THE LEVY CREDIT
FACTOR FOR SUCH CITY FOR THE FISCAL YEAR STARTING IN TWO THOUSAND TWEN-
TY-EIGHT.
(G) IF A CITY WITH A DEPENDENT SCHOOL DISTRICT HAS A FREEZE-COMPLIANT
BUDGET FOR ITS FISCAL YEAR STARTING IN TWO THOUSAND TWENTY-SEVEN BUT
DOES NOT HAVE A FREEZE-COMPLIANT BUDGET FOR ITS FISCAL YEAR STARTING IN
TWO THOUSAND TWENTY-EIGHT, A TAX CREDIT SHALL BE ALLOWED FOR THE ELIGI-
BLE TAXPAYER'S TWO THOUSAND TWENTY-EIGHT TAXABLE YEAR AN AMOUNT REPRES-
ENTING THIRTY-THREE PERCENT OF THE AMOUNT THAT IS THE GREATER OF THE
AMOUNT BY WHICH THE REAL PROPERTY TAXES IMPOSED UPON SUCH RESIDENCE BY
THAT CITY FOR THE FISCAL YEAR STARTING IN TWO THOUSAND TWENTY-SEVEN
EXCEEDS THE REAL PROPERTY TAXES SO IMPOSED FOR THE FISCAL YEAR STARTING
IN TWO THOUSAND TWENTY-SIX OR THE PRODUCT OF THE REAL PROPERTY TAXES
IMPOSED UPON SUCH RESIDENCE BY OR ON BEHALF OF SUCH CITY FOR THE FISCAL
YEAR STARTING IN TWO THOUSAND TWENTY-SIX MULTIPLIED BY THE LEVY CREDIT
FACTOR FOR SUCH CITY FOR THE FISCAL YEAR STARTING IN TWO THOUSAND TWEN-
TY-SEVEN.
(3) TO BE ELIGIBLE FOR SUCH CREDIT, THE TAXPAYER, OR TAXPAYERS FILING
JOINT RETURNS, MUST MEET THE FOLLOWING CRITERIA:
(A) FOR THE TWO THOUSAND TWENTY-SEVEN TAXABLE YEAR, THE TAXPAYER'S
PRIMARY RESIDENCE MUST HAVE QUALIFIED FOR THE STAR EXEMPTION OR CREDIT
FOR THE TWO THOUSAND TWENTY-SEVEN--TWO THOUSAND TWENTY-EIGHT SCHOOL
YEAR, OR WOULD HAVE SO QUALIFIED IF AN APPLICATION FOR SUCH BENEFIT HAD
BEEN SUBMITTED IN A TIMELY MANNER.
(B) FOR THE TWO THOUSAND TWENTY-EIGHT TAXABLE YEAR, THE TAXPAYER'S
PRIMARY RESIDENCE MUST HAVE QUALIFIED FOR THE STAR EXEMPTION OR CREDIT
FOR THE TWO THOUSAND TWENTY-EIGHT--TWO THOUSAND TWENTY-NINE SCHOOL YEAR,
OR WOULD HAVE SO QUALIFIED IF AN APPLICATION FOR SUCH BENEFIT HAD BEEN
SUBMITTED IN A TIMELY MANNER.
(C) FOR THE TWO THOUSAND TWENTY-NINE TAXABLE YEAR, THE TAXPAYER'S
PRIMARY RESIDENCE MUST HAVE QUALIFIED FOR THE STAR EXEMPTION OR CREDIT
FOR THE TWO THOUSAND TWENTY-NINE--TWO THOUSAND THIRTY SCHOOL YEAR, OR
WOULD HAVE SO QUALIFIED IF AN APPLICATION FOR SUCH BENEFIT HAD BEEN
SUBMITTED IN A TIMELY MANNER.
(4) FOR EACH YEAR THIS CREDIT IS ALLOWED, THE COMMISSIONER SHALL
DETERMINE THE TAXPAYER'S ELIGIBILITY FOR THIS CREDIT UTILIZING THE
INFORMATION AVAILABLE TO THE COMMISSIONER. WHEN THE COMMISSIONER HAS
DETERMINED A TAXPAYER TO BE ELIGIBLE FOR THIS CREDIT, THE COMMISSIONER
SHALL ADVANCE A PAYMENT OF THE AMOUNT DETERMINED IN ACCORDANCE WITH THIS
SUBSECTION. THE TAXPAYER SHALL NOT APPLY FOR SUCH CREDIT IN CONJUNCTION
WITH THE FILING OF THEIR RETURN. A TAXPAYER WHO HAS FAILED TO RECEIVE AN
ADVANCE PAYMENT THAT THEY BELIEVE WAS DUE TO THEM, OR WHO HAS RECEIVED
AN ADVANCE PAYMENT THAT THEY BELIEVE IS LESS THAN THE AMOUNT THAT WAS
DUE TO THEM, MAY REQUEST PAYMENT OF THE CLAIMED DEFICIENCY IN A MANNER
PRESCRIBED BY THE COMMISSIONER.
(5) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION, IF ANY,
SHALL EXCEED THE TAXPAYER'S TAX FOR THE TAXABLE YEAR, THE EXCESS SHALL
BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN
ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS
ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON.
(6) THE FOLLOWING PROVISIONS SHALL APPLY TO THE CALCULATION OF THE
CREDIT PURSUANT TO PARAGRAPH TWO OF THIS SUBSECTION:
A. 10779 6
(A) IF THE TAX BILL PERTAINING TO THE ELIGIBLE TAXPAYER'S PRIMARY
RESIDENCE INCLUDES TAXES LEVIED BY OR ON BEHALF OF MULTIPLE TAXING
JURISDICTIONS, THE CREDIT SHALL BE BASED UPON THE CHANGE IN THE AGGRE-
GATE TAX LIABILITY OF SUCH RESIDENCE, PROVIDED THAT ANY TAX APPEARING ON
THE TAX BILL THAT IS NOT ATTRIBUTABLE TO A FREEZE-COMPLIANT BUDGET SHALL
BE DISREGARDED WHEN DETERMINING THE AGGREGATE TAX LIABILITY OF SUCH
RESIDENCE.
(B) IF THE TAX BILL PERTAINING TO THE ELIGIBLE TAXPAYER'S PRIMARY
RESIDENCE INCLUDES RELIEVED TAXES OR OTHER TAXES THAT WERE PREVIOUSLY
BILLED BUT NOT PAID, THOSE TAXES SHALL BE DISREGARDED WHEN DETERMINING
THE AGGREGATE TAX LIABILITY OF SUCH RESIDENCE.
(C) IF THE TAX BILL PERTAINING TO THE ELIGIBLE TAXPAYER'S PRIMARY
RESIDENCE INCLUDES USAGE CHARGES, UNIT CHARGES OR OTHER CHARGES THAT ARE
BASED UPON THE CONSUMPTION OF A SERVICE, THOSE CHARGES SHALL BE DISRE-
GARDED WHEN DETERMINING THE AGGREGATE TAX LIABILITY OF SUCH RESIDENCE.
(D) NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SUBSECTION, NO
CREDIT SHALL BE ALLOWED TO THE EXTENT THAT THE TAX LIABILITY OF THE
ELIGIBLE TAXPAYER'S PRIMARY RESIDENCE INCREASED DUE TO ONE OR MORE OF
THE FOLLOWING EVENTS:
(I) A PHYSICAL IMPROVEMENT TO THE ELIGIBLE TAXPAYER'S PRIMARY RESI-
DENCE.
(II) A REMOVAL OR REDUCTION OF AN EXEMPTION ON THE ELIGIBLE TAXPAYER'S
PRIMARY RESIDENCE, INCLUDING A REDUCTION OF THE STAR EXEMPT AMOUNT
CALCULATED PURSUANT TO SUBDIVISION TWO OF SECTION FOUR HUNDRED TWENTY-
FIVE OF THE REAL PROPERTY TAX LAW.
(III) A REVALUATION THAT CAUSED THE ASSESSMENT OF THE ELIGIBLE TAXPAY-
ER'S PRIMARY RESIDENCE TO INCREASE BY A PERCENTAGE THAT IS GREATER THAN
THE APPLICABLE CHANGE IN LEVEL OF ASSESSMENT. AS USED HEREIN, THE TERMS
"REVALUATION" AND "CHANGE IN LEVEL OF ASSESSMENT" SHALL HAVE THE SAME
MEANINGS AS DEFINED IN SECTIONS ONE HUNDRED TWO AND TWELVE HUNDRED TWEN-
TY OF THE REAL PROPERTY TAX LAW, RESPECTIVELY.
(E) IN THE CASE OF PROPERTY CONSISTING OF A COOPERATIVE APARTMENT
CORPORATION THAT IS DESCRIBED BY PARAGRAPH (K) OF SUBDIVISION TWO OF
SECTION FOUR HUNDRED TWENTY-FIVE OF THE REAL PROPERTY TAX LAW, AN ELIGI-
BLE OWNER SHALL BE ALLOWED A CREDIT IN THE AMOUNT EQUAL TO SIXTY PERCENT
OF THE AVERAGE TAX CREDIT IN THAT TAXING JURISDICTION FOR THAT FISCAL
YEAR, AS DETERMINED BY THE COMMISSIONER, OR IN THE CASE OF A COOPERATIVE
APARTMENT CORPORATION THAT IS DESCRIBED BY SUBPARAGRAPH (IV) OF PARA-
GRAPH (K) OF SUBDIVISION TWO OF SECTION FOUR HUNDRED TWENTY-FIVE OF THE
REAL PROPERTY TAX LAW, A CREDIT OF TWENTY PERCENT OF SUCH AVERAGE TAX
CREDIT.
(F) IN THE CASE OF PROPERTY CONSISTING OF A MOBILE HOME THAT IS
DESCRIBED BY PARAGRAPH (L) OF SUBDIVISION TWO OF SECTION FOUR HUNDRED
TWENTY-FIVE OF THE REAL PROPERTY TAX LAW, AN ELIGIBLE OWNER SHALL BE
ALLOWED A CREDIT IN THE AMOUNT EQUAL TO TWENTY-FIVE PERCENT OF THE AVER-
AGE TAX CREDIT IN THAT TAXING JURISDICTION FOR THAT FISCAL YEAR, AS
DETERMINED BY THE COMMISSIONER.
(G) IN THE CASE OF A CITY WITH A DEPENDENT SCHOOL DISTRICT, IT SHALL
BE PRESUMED THAT SIXTY-SEVEN PERCENT OF THE CITY TAX BILL IS FOR SCHOOL
DISTRICT PURPOSES AND THAT THIRTY-THREE PERCENT IS FOR GENERAL CITY
PURPOSES.
(H) THE AMOUNT OF THE CREDIT SHALL BE ROUNDED TO THE NEAREST DOLLAR,
EXCEPT WHERE SUCH AMOUNT IS GREATER THAN ZERO AND LESS THAN ONE DOLLAR
AND FIFTY CENTS, IN WHICH CASE THE AMOUNT OF THE CREDIT SHALL BE ROUNDED
UP TO TWO DOLLARS.
A. 10779 7
(7) NO CREDIT SHALL BE ALLOWED UNDER THIS SUBSECTION IN RELATION TO
PROPERTY LOCATED WITHIN A CITY WITH A POPULATION OF ONE MILLION OR MORE.
§ 2. The education law is amended by adding a new section 2023-c to
read as follows:
§ 2023-C. CERTIFICATION OF COMPLIANCE WITH PROPERTY TAX FREEZE
REQUIREMENTS. 1. A SCHOOL DISTRICT THAT IS SUBJECT TO THE PROVISIONS OF
SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART MUST COMPLY WITH THE
REQUIREMENTS OF THIS SECTION IN ORDER TO RENDER ITS TAXPAYERS ELIGIBLE
FOR THE REAL PROPERTY TAX FREEZE CREDIT AUTHORIZED BY SUBSECTION (BBB)
OF SECTION SIX HUNDRED SIX OF THE TAX LAW FOR A FISCAL YEAR STARTING IN
TWO THOUSAND TWENTY-SEVEN.
2. A. UPON THE ADOPTION OF THE BUDGET OF AN ELIGIBLE SCHOOL DISTRICT,
THE CHIEF EXECUTIVE OFFICER OF SUCH SCHOOL DISTRICT SHALL CERTIFY TO THE
STATE COMPTROLLER, THE COMMISSIONER OF TAXATION AND FINANCE AND THE
COMMISSIONER THAT THE BUDGET SO ADOPTED DOES NOT EXCEED THE TAX LEVY
LIMIT PRESCRIBED BY SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART.
SUCH CERTIFICATION SHALL BE MADE IN A FORM AND MANNER PRESCRIBED BY THE
STATE COMPTROLLER IN CONSULTATION WITH THE COMMISSIONER OF TAXATION AND
FINANCE AND THE COMMISSIONER.
B. IN ORDER FOR SUCH CERTIFICATION TO GIVE RISE TO A REAL PROPERTY TAX
FREEZE CREDIT UNDER SUBSECTION (BBB) OF SECTION SIX HUNDRED SIX OF THE
TAX LAW, SUCH CERTIFICATION SHALL BE MADE NO LATER THAN THE TWENTY-FIRST
DAY OF THE FISCAL YEAR TO WHICH IT APPLIES.
C. IF SUCH A CERTIFICATION HAS BEEN MADE AND THE ACTUAL TAX LEVY OF
THE SCHOOL DISTRICT EXCEEDS THE APPLICABLE TAX LEVY LIMIT, THE EXCESS
AMOUNT SHALL BE PLACED IN RESERVE AND USED IN THE MANNER PRESCRIBED BY
SUBDIVISION FIVE OF SECTION TWO THOUSAND TWENTY-THREE-A OF THIS PART,
EVEN IF A TAX LEVY IN EXCESS OF THE TAX LEVY LIMIT HAD BEEN DULY AUTHOR-
IZED FOR THE APPLICABLE FISCAL YEAR BY THE SCHOOL DISTRICT VOTERS.
D. NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, EVERY SCHOOL
DISTRICT THAT IS SUBJECT TO THE PROVISIONS OF SECTION TWO THOUSAND TWEN-
TY-THREE-A OF THIS PART SHALL REPORT BOTH ITS PROPOSED BUDGET AND ITS
ADOPTED BUDGET TO THE OFFICE OF THE STATE COMPTROLLER AND THE COMMIS-
SIONER AT THE TIME AND IN THE MANNER AS THEY MAY PRESCRIBE, WHETHER OR
NOT SUCH BUDGET HAS BEEN OR WILL BE CERTIFIED AS PROVIDED BY THIS SUBDI-
VISION.
§ 3. This act shall take effect immediately.