THE DIVISION OF THE BUDGET REMINDS LOCAL GOVERNMENTS, SCHOOL DISTRICTS, AND SPECIAL DISTRICTS TO SUBMIT GOVERNMENT EFFICIENCY PLANS BY JUNE 1

The Property Tax Freeze Credit is a two-year tax relief program that reimburses qualifying New York State homeowners for increases in local property taxes on their primary residences.  

In order for the full credit to be available to the homeowners in a local taxing jurisdiction, the jurisdiction must comply with the New York State Property Tax Cap and, by June 1 of this year, must also develop an efficiency plan.

The credit applies to school districts in 2014 and 2015, and to most other municipalities in 2015 and 2016, but for all forms of governments the plans are due June 1, 2015.

“We don’t want local taxpayers to miss out on the benefit of the Property Tax Freeze Credit,” said New York State Budget Director Mary Beth Labate. “Good conversations are happening around the State and we encourage all local governments and school districts to submit their plans.”

The efficiency plans encourage local governments, school districts, and special districts to generate long-term tax relief for New York State taxpayers by sharing services, consolidating or merging, and demonstrating and implementing operational efficiencies.

Potential savings opportunities include procurement, real estate and facility management, fleet management, business and financial services, administrative services, payroll administration, time and attendance, benefits administration, contract management, grants management, transportation services, human services and information technology.

Within those municipalities and school districts that participate, qualified homeowners will receive a Freeze Credit equal to the greater of:

• the actual increase in their homeowner’s tax bill; or
• the previous year’s tax bill multiplied by an inflation factor (the lesser of 2% or inflation).

Over the three years of the program, the average New York State property taxpayers will receive $656. 

Registration information, instructions, a webinar, and sample documents are all on the Division of Budget website.

Only Lead School Districts, Lead Local Governments, School Districts filing an individual Plan and Local Governments filing an individual plan need to register.

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