STATE OF NEW YORK ________________________________________________________________________ 8489 2025-2026 Regular Sessions IN SENATE August 22, 2025 ___________ Introduced by Sen. WEBER -- read twice and ordered printed, and when printed to be committed to the Committee on Rules 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: 1 Section 1. Section 606 of the tax law is amended by adding a new 2 subsection (bbb) to read as follows: 3 (bbb) Real property tax freeze credit. (1) As used in this subsection: 4 (A) "Freeze-compliant budget" means a budget of a taxing jurisdiction 5 that has met the requirements of section two thousand twenty-three-b of 6 the education law or section three-d of the general municipal law, 7 whichever is applicable. 8 (B) "Independent special district" and "dependent school district" 9 have the same meaning as set forth in section three-d of the general 10 municipal law. 11 (C) "STAR exemption" means the school tax relief exemption authorized 12 by section four hundred twenty-five of the real property tax law. 13 (D) "STAR credit" means the school tax relief credit authorized by 14 subsection (eee) of this section. 15 (E) "Taxing jurisdiction" means a county, city, town, village, school 16 district or an independent special district, except that such term shall 17 not include a city with a population of one million or more, nor shall 18 it include a county wholly located within such a city. 19 (F) "Levy credit factor" means the allowable levy growth factor for a 20 taxing jurisdiction, as determined pursuant to section three-c of the 21 general municipal law or section two thousand twenty-three-a of the 22 education law, minus one. 23 (2) An individual taxpayer who meets the eligibility standards set 24 forth in paragraph three of this subsection and whose primary residence 25 is located in a taxing jurisdiction that has a freeze-compliant budget EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD13625-02-5

S. 8489 2 1 for the fiscal year starting in two thousand twenty-six, two thousand 2 twenty-seven and two thousand twenty-eight shall be allowed a credit 3 against the taxes imposed by this article. Subject to the provisions of 4 paragraph six of this subsection, such credit shall be determined as 5 follows: 6 (A) If a school district other than a dependent school district has a 7 freeze-compliant budget for its fiscal year starting in two thousand 8 twenty-six, a credit shall be allowed for the eligible taxpayer's two 9 thousand twenty-six taxable year in the amount that is the greater of 10 the amount by which the real property taxes imposed upon such residence 11 by or on behalf of that school district for the fiscal year starting in 12 two thousand twenty-six exceeds the real property taxes so imposed for 13 the fiscal year starting in two thousand twenty-five, or the product of 14 the real property taxes imposed upon such residence by or on behalf of 15 that school district for the fiscal year starting in two thousand twen- 16 ty-five multiplied by the levy credit factor for that school district 17 for the fiscal year starting in two thousand twenty-six. 18 (B) If a taxing jurisdiction, other than a school district or a city 19 with a dependent school district, has a freeze-compliant budget for its 20 fiscal year starting in two thousand twenty-seven, a credit shall be 21 allowed for the eligible taxpayer's two thousand twenty-seven taxable 22 year in the amount that is the greater of the amount by which the real 23 property taxes imposed upon such residence by or on behalf of that 24 taxing jurisdiction for the fiscal year starting in two thousand twen- 25 ty-seven exceeds the real property taxes so imposed for the fiscal year 26 starting in two thousand twenty-six, or the product of the real property 27 taxes imposed upon such residence by or on behalf of that taxing juris- 28 diction for the fiscal year starting in two thousand twenty-six multi- 29 plied by the levy credit factor for that taxing jurisdiction for the 30 fiscal year starting in two thousand twenty-seven. 31 (C) If a school district other than a dependent school district has a 32 freeze-compliant budget for its fiscal year starting in two thousand 33 twenty-seven, a credit shall be allowed for the eligible taxpayer's two 34 thousand twenty-seven taxable year in the amount by which the real prop- 35 erty taxes imposed upon such residence by or on behalf of such school 36 district for the fiscal year starting in two thousand twenty-six exceeds 37 the real property taxes so imposed for the fiscal year identified as 38 follows: 39 (i) if the school district's budget for the fiscal year starting in 40 two thousand twenty-six was a freeze-compliant budget, a credit shall be 41 allowed for the eligible taxpayer's two thousand twenty-seven taxable 42 year in the amount of the credit for school district taxes allowed for 43 the eligible taxpayer's two thousand twenty-six taxable year; together 44 with the amount that is the greater of the amount by which the real 45 property taxes imposed upon such residence by or on behalf of that 46 school district for the fiscal year starting in two thousand twenty-sev- 47 en exceeds the real property taxes so imposed for the fiscal year start- 48 ing in two thousand twenty-six, or the product of the real property 49 taxes imposed upon such residence by or on behalf of such school 50 district for the fiscal year starting in two thousand twenty-six multi- 51 plied by the levy credit factor for that school district for the fiscal 52 year starting in two thousand twenty-seven. 53 (ii) if the school district's budget for the fiscal year starting in 54 two thousand twenty-six was not a freeze-compliant budget, a credit 55 shall be allowed for the eligible taxpayer's two thousand twenty-seven 56 taxable year in the amount that is the greater of the amount by which

S. 8489 3 1 the real property taxes imposed upon such residence by or on behalf of 2 that school district for the fiscal year starting in two thousand twen- 3 ty-seven exceeds the real property taxes so imposed for the fiscal year 4 starting in two thousand twenty-six, or the product of the real property 5 taxes imposed upon such residence by or on behalf of such school 6 district for the fiscal year starting in two thousand twenty-six multi- 7 plied by the levy credit factor for such school district for the fiscal 8 year starting in two thousand twenty-seven. 9 (D) If a taxing jurisdiction, other than a school district or a city 10 with a dependent school district, has a freeze-compliant budget for its 11 fiscal year starting in two thousand twenty-eight: 12 (i) if the taxing jurisdiction's budget for the fiscal year starting 13 in two thousand twenty-seven was a freeze-compliant budget, a credit 14 shall be allowed for the eligible taxpayer's two thousand twenty-eight 15 taxable year in the amount of the credit for the taxes imposed by or on 16 behalf of such taxing jurisdiction allowed for the eligible taxpayer's 17 two thousand twenty-seven taxable year; together with the amount that is 18 the greater of the amount by which the real property taxes imposed upon 19 such residence by or on behalf of such taxing jurisdiction for the 20 fiscal year starting in two thousand twenty-eight exceeds the real prop- 21 erty taxes imposed upon such residence by or on behalf of that taxing 22 jurisdiction for the fiscal year starting in two thousand twenty-seven, 23 or the product of the real property taxes imposed upon such residence by 24 or on behalf of such taxing jurisdiction for the fiscal year starting in 25 two thousand twenty-seven multiplied by the levy credit factor for such 26 taxing jurisdiction for the fiscal year starting in two thousand twen- 27 ty-eight. 28 (ii) if the taxing jurisdiction's budget for the fiscal year starting 29 in two thousand twenty-seven was not a freeze-compliant budget, a credit 30 shall be allowed for the eligible taxpayer's two thousand twenty-eight 31 taxable year in the amount that is the greater of the amount by which 32 the real property taxes imposed upon such residence by or on behalf of 33 such taxing jurisdiction for the fiscal year starting in two thousand 34 twenty-eight exceeds the real property taxes so imposed for the fiscal 35 year starting in two thousand twenty-seven, or the product of the real 36 property taxes imposed upon such residence by or on behalf of such 37 taxing jurisdiction for the fiscal year starting in two thousand twen- 38 ty-seven multiplied by the levy credit factor for such taxing jurisdic- 39 tion for the fiscal year starting in two thousand twenty-eight. 40 (E) If a city with a dependent school district has a freeze-compliant 41 budget for its fiscal year starting in two thousand twenty-six, a tax 42 credit shall be allowed for the eligible taxpayer's two thousand twen- 43 ty-six taxable year in the amount equivalent to sixty-seven percent of 44 the amount that is the greater of the amount by which the real property 45 taxes imposed upon such residence by or on behalf of that city for the 46 fiscal year starting in two thousand twenty-six exceeds the real proper- 47 ty taxes so imposed for the fiscal year starting in two thousand twen- 48 ty-five, or the product of the real property taxes imposed upon such 49 residence by or on behalf of such city for the fiscal year starting in 50 two thousand twenty-five multiplied by the levy credit factor for such 51 city for the fiscal year starting in two thousand twenty-six. 52 (F) If a city with a dependent school district has a freeze-compliant 53 budget for its fiscal year starting in two thousand twenty-seven: 54 (i) if the city's budget for the fiscal year starting in two thousand 55 twenty-five was a freeze-compliant budget, a credit shall be allowed for 56 the eligible taxpayer's two thousand twenty-seven taxable year in an

S. 8489 4 1 amount equivalent to thirty-three percent of the amount that is the 2 greater of the amount by which the real property taxes imposed upon such 3 residence by that city for the fiscal year starting in two thousand 4 twenty-six exceeds the real property taxes so imposed for the fiscal 5 year starting in two thousand twenty-five, or the product of the real 6 property taxes imposed upon such residence by or on behalf of such city 7 for the fiscal year starting in two thousand twenty-five multiplied by 8 the levy credit factor for such city for the fiscal year starting in two 9 thousand twenty-six; together with the amount of the credit for the 10 taxes imposed by or on behalf of such city allowed for the eligible 11 taxpayer's two thousand twenty-five taxable year; and together with an 12 amount equivalent to sixty-seven percent of the amount that is the 13 greater of the amount by which the real property taxes imposed upon such 14 residence by that city for the fiscal year starting in two thousand 15 twenty-seven exceeds the real property taxes so imposed for the fiscal 16 year starting in two thousand twenty-six; or the product of the real 17 property taxes imposed upon such residence by or on behalf of such city 18 for the fiscal year starting in two thousand twenty-six multiplied by 19 the levy credit factor for such city for the fiscal year starting in two 20 thousand twenty-seven; and a credit shall be allowed for the eligible 21 taxpayer's two thousand twenty-eight taxable year in an amount equiv- 22 alent to thirty-three percent of the amount that is the greater of the 23 amount by which the real property taxes imposed upon such residence by 24 that city for the fiscal year starting in two thousand twenty-seven 25 exceeds the real property taxes so imposed for the fiscal year starting 26 in two thousand twenty-six, or the product of the real property taxes 27 imposed upon such residence by or on behalf of such city for the fiscal 28 year starting in two thousand twenty-seven multiplied by the levy credit 29 factor for such city for the fiscal year starting in two thousand twen- 30 ty-seven; together with an amount equivalent to 49.25 percent of the 31 amount of the credit for the taxes imposed by or on behalf of such city 32 allowed for the eligible taxpayer's two thousand twenty-six taxable 33 year. 34 (ii) if the city's budget for the fiscal year starting in two thousand 35 twenty-six was not a freeze-compliant budget, a credit shall be allowed 36 for the eligible taxpayer's two thousand twenty-seven taxable year in an 37 amount equivalent to sixty-seven percent of the amount that is the 38 greater of the amount by which the real property taxes imposed upon such 39 residence by that city for the fiscal year starting in two thousand 40 twenty-seven exceeds the real property taxes so imposed for the fiscal 41 year starting in two thousand twenty-six or the product of the real 42 property taxes imposed upon such residence by or on behalf of such city 43 for the fiscal year starting in two thousand twenty-six multiplied by 44 the levy credit factor for such city for the fiscal year starting in two 45 thousand twenty-seven; and a credit shall be allowed for the eligible 46 taxpayer's two thousand twenty-eight taxable year in an amount equiv- 47 alent to thirty-three percent of the amount that is the greater of the 48 amount by which the real property taxes imposed upon such residence by 49 that city for the fiscal year starting in two thousand twenty-seven 50 exceeds the real property taxes so imposed for the fiscal year starting 51 in two thousand twenty-six or the product of the real property taxes 52 imposed upon such residence by or on behalf of such city for the fiscal 53 year starting in two thousand twenty-six multiplied by the levy credit 54 factor for such city for the fiscal year starting in two thousand twen- 55 ty-seven.

S. 8489 5 1 (G) If a city with a dependent school district has a freeze-compliant 2 budget for its fiscal year starting in two thousand twenty-six but does 3 not have a freeze-compliant budget for its fiscal year starting in two 4 thousand twenty-seven, a tax credit shall be allowed for the eligible 5 taxpayer's two thousand twenty-seven taxable year an amount representing 6 thirty-three percent of the amount that is the greater of the amount by 7 which the real property taxes imposed upon such residence by that city 8 for the fiscal year starting in two thousand twenty-six exceeds the real 9 property taxes so imposed for the fiscal year starting in two thousand 10 twenty-five or the product of the real property taxes imposed upon such 11 residence by or on behalf of such city for the fiscal year starting in 12 two thousand twenty-five multiplied by the levy credit factor for such 13 city for the fiscal year starting in two thousand twenty-six. 14 (3) To be eligible for such credit, the taxpayer, or taxpayers filing 15 joint returns, must meet the following criteria: 16 (A) For the two thousand twenty-six taxable year, the taxpayer's 17 primary residence must have qualified for the STAR exemption or credit 18 for the two thousand twenty-six--two thousand twenty-seven school year, 19 or would have so qualified if an application for such benefit had been 20 submitted in a timely manner. 21 (B) For the two thousand twenty-seven taxable year, the taxpayer's 22 primary residence must have qualified for the STAR exemption or credit 23 for the two thousand twenty-seven--two thousand twenty-eight school 24 year, or would have so qualified if an application for such benefit had 25 been submitted in a timely manner. 26 (C) For the two thousand twenty-eight taxable year, the taxpayer's 27 primary residence must have qualified for the STAR exemption or credit 28 for the two thousand twenty-eight--two thousand twenty-nine school year, 29 or would have so qualified if an application for such benefit had been 30 submitted in a timely manner. 31 (4) For each year this credit is allowed, the commissioner shall 32 determine the taxpayer's eligibility for this credit utilizing the 33 information available to the commissioner. When the commissioner has 34 determined a taxpayer to be eligible for this credit, the commissioner 35 shall advance a payment of the amount determined in accordance with this 36 subsection. The taxpayer shall not apply for such credit in conjunction 37 with the filing of their return. A taxpayer who has failed to receive an 38 advance payment that they believe was due to them, or who has received 39 an advance payment that they believe is less than the amount that was 40 due to them, may request payment of the claimed deficiency in a manner 41 prescribed by the commissioner. 42 (5) If the amount of the credit allowed under this subsection, if any, 43 shall exceed the taxpayer's tax for the taxable year, the excess shall 44 be treated as an overpayment of tax to be credited or refunded in 45 accordance with the provisions of section six hundred eighty-six of this 46 article, provided, however, that no interest shall be paid thereon. 47 (6) The following provisions shall apply to the calculation of the 48 credit pursuant to paragraph two of this subsection: 49 (A) If the tax bill pertaining to the eligible taxpayer's primary 50 residence includes taxes levied by or on behalf of multiple taxing 51 jurisdictions, the credit shall be based upon the change in the aggre- 52 gate tax liability of such residence, provided that any tax appearing on 53 the tax bill that is not attributable to a freeze-compliant budget shall 54 be disregarded when determining the aggregate tax liability of such 55 residence.

S. 8489 6 1 (B) If the tax bill pertaining to the eligible taxpayer's primary 2 residence includes relieved taxes or other taxes that were previously 3 billed but not paid, those taxes shall be disregarded when determining 4 the aggregate tax liability of such residence. 5 (C) If the tax bill pertaining to the eligible taxpayer's primary 6 residence includes usage charges, unit charges or other charges that are 7 based upon the consumption of a service, those charges shall be disre- 8 garded when determining the aggregate tax liability of such residence. 9 (D) Notwithstanding the foregoing provisions of this subsection, no 10 credit shall be allowed to the extent that the tax liability of the 11 eligible taxpayer's primary residence increased due to one or more of 12 the following events: 13 (i) A physical improvement to the eligible taxpayer's primary resi- 14 dence. 15 (ii) A removal or reduction of an exemption on the eligible taxpayer's 16 primary residence, including a reduction of the STAR exempt amount 17 calculated pursuant to subdivision two of section four hundred twenty- 18 five of the real property tax law. 19 (iii) A revaluation that caused the assessment of the eligible taxpay- 20 er's primary residence to increase by a percentage that is greater than 21 the applicable change in level of assessment. As used herein, the terms 22 "revaluation" and "change in level of assessment" shall have the same 23 meanings as defined in sections one hundred two and twelve hundred twen- 24 ty of the real property tax law, respectively. 25 (E) In the case of property consisting of a cooperative apartment 26 corporation that is described by paragraph (k) of subdivision two of 27 section four hundred twenty-five of the real property tax law, an eligi- 28 ble owner shall be allowed a credit in the amount equal to sixty percent 29 of the average tax credit in that taxing jurisdiction for that fiscal 30 year, as determined by the commissioner, or in the case of a cooperative 31 apartment corporation that is described by subparagraph (iv) of para- 32 graph (k) of subdivision two of section four hundred twenty-five of the 33 real property tax law, a credit of twenty percent of such average tax 34 credit. 35 (F) In the case of property consisting of a mobile home that is 36 described by paragraph (l) of subdivision two of section four hundred 37 twenty-five of the real property tax law, an eligible owner shall be 38 allowed a credit in the amount equal to twenty-five percent of the aver- 39 age tax credit in that taxing jurisdiction for that fiscal year, as 40 determined by the commissioner. 41 (G) In the case of a city with a dependent school district, it shall 42 be presumed that sixty-seven percent of the city tax bill is for school 43 district purposes and that thirty-three percent is for general city 44 purposes. 45 (H) The amount of the credit shall be rounded to the nearest dollar, 46 except where such amount is greater than zero and less than one dollar 47 and fifty cents, in which case the amount of the credit shall be rounded 48 up to two dollars. 49 (7) No credit shall be allowed under this subsection in relation to 50 property located within a city with a population of one million or more. 51 § 2. The education law is amended by adding a new section 2023-c to 52 read as follows: 53 § 2023-c. Certification of compliance with property tax freeze 54 requirements. 1. A school district that is subject to the provisions of 55 section two thousand twenty-three-a of this part must comply with the 56 requirements of this section in order to render its taxpayers eligible

S. 8489 7 1 for the real property tax freeze credit authorized by subsection (bbb) 2 of section six hundred six of the tax law for a fiscal year starting in 3 two thousand twenty-six. 4 2. a. Upon the adoption of the budget of an eligible school district, 5 the chief executive officer of such school district shall certify to the 6 state comptroller, the commissioner of taxation and finance and the 7 commissioner that the budget so adopted does not exceed the tax levy 8 limit prescribed by section two thousand twenty-three-a of this part. 9 Such certification shall be made in a form and manner prescribed by the 10 state comptroller in consultation with the commissioner of taxation and 11 finance and the commissioner. 12 b. In order for such certification to give rise to a real property tax 13 freeze credit under subsection (bbb) of section six hundred six of the 14 tax law, such certification shall be made no later than the twenty-first 15 day of the fiscal year to which it applies. 16 c. If such a certification has been made and the actual tax levy of 17 the school district exceeds the applicable tax levy limit, the excess 18 amount shall be placed in reserve and used in the manner prescribed by 19 subdivision five of section two thousand twenty-three-a of this part, 20 even if a tax levy in excess of the tax levy limit had been duly author- 21 ized for the applicable fiscal year by the school district voters. 22 d. Notwithstanding any provision of law to the contrary, every school 23 district that is subject to the provisions of section two thousand twen- 24 ty-three-a of this part shall report both its proposed budget and its 25 adopted budget to the office of the state comptroller and the commis- 26 sioner at the time and in the manner as they may prescribe, whether or 27 not such budget has been or will be certified as provided by this subdi- 28 vision. 29 § 3. This act shall take effect immediately.

Establishes a real property tax freeze credit

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