New York State
Property Tax Freeze Credit Fact Sheet
Timeline and Requirements for School Districts*
Year Eligibility Requirement
Year 1 (2014-15) Comply with tax cap only
Year 2 (2015-16) Comply with tax cap and submit an efficiency plan by June 1, 2015 that is determined
to be compliant by the State Division of Budget.
* Different rules apply in Buffalo, Rochester, Syracuse, and Yonkers – see page 2.
Timeline and Requirements for Local Governments*
Year Eligibility Requirement
Year 1 (fiscal years Comply with tax cap only
beginning in 2015)
Year 2 (fiscal years Comply with tax cap and submit an efficiency plan by June 1, 2015 that is determined
beginning in 2016) to be compliant by the State Division of Budget.RP-5301-FS (7-14) 2
As a general rule, the freeze credit will fully reimburse eligible homeowners for increases to their taxes imposed by all jurisdictions
that comply with the eligibility requirements. The freeze credit will be the greater of:
• the actual increase in the homeowner’s tax bill, or,
• the previous year’s tax bill multiplied by an inflation factor (the lesser of 2% or inflation). For 2014 the inflation factor
for school districts is 1.46%.
Homeowners whose tax bills go down, stay the same, or increase less than the inflation factor will receive a credit equal to the
previous year’s tax bill multiplied by the inflation factor.
Calculating increases using baseline year
The increase is calculated as the difference between the homeowner’s taxes in:
• the year before the freeze went into effect (baseline year), and
• the current year.
If the taxing jurisdiction is compliant for both years of the freeze:
• In year one, the credit will be determined based on the tax paid in year one and the tax paid in the baseline year.
• In year two, the credit will be determined based on the tax paid in year two and the tax paid in the baseline year.
If the taxing jurisdiction is only compliant in the second year of the freeze, the credit will be determined based on the tax paid
in the second year and the tax paid in the previous year - not the baseline year.
There are some exceptions. The credit will not reimburse homeowners for increases that are the result of:
• improvements to the property that increase its value,
• changes in a property’s exemption status,
• a jurisdiction-wide reassessment to the extent the increase in the homeowner’s assessed value exceeds the average
change in assessed value.
How to get the credit
Eligible homeowners do not need to do anything to receive the credit. The Tax Department will review eligibility data and
calculate the credit for all qualifying taxing jurisdictions. In the Fall of each of the program’s three years (2014, 2015, 2016), the
department will mail eligible taxpayers a single check that will be the total of the credits for each jurisdiction that is in compliance.
Homeowners who do not receive a check and who believe they are entitled to the credit (or who believe the credit should have
been larger) will be able to contact the Tax Department to have their case reviewed.
Co-ops and mobile homes
The credit for co-ops and mobile homes that are not separately assessed will be calculated as such:
• Co-op owners: the credit will be 60% of the average credit for the jurisdiction.
• Mobile home owners: the credit will be 25% of the average credit for the jurisdiction.
Buffalo, Rochester, Syracuse, and Yonkers
Different rules apply in Buffalo, Rochester, Syracuse, and Yonkers. These cities impose a single levy that includes both city and