BILL NUMBER: S8489
SPONSOR: WEBER
TITLE OF BILL:
An act to amend the tax law and the education law, in relation to estab-
lishing a real property tax freeze credit
PURPOSE:
The Property Tax Freeze Credit is a three-year tax relief program that
reimburses qualifying New York State homeowners for increases in local
property taxes on their primary residences.
SUMMARY OF PROVISIONS:
Section 1 - provides that The Property Tax Freeze Credit is a three-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 credit to be available to the homeowners in a local
taxing jurisdiction, the jurisdiction must comply with the New York
State Property Tax Cap.
Eligibility requirements - To be eligible, homeowners must meet the
requirements for the STAR property tax exemption or credit:
* For BASIC STAR the property must be the homeowner's primary residence.
The total household income must be $500,000 if on the STAR Exemption
$250,000 if on the STAR Credit.
* For ENHANCED STAR (seniors) eligibility is determined annually (for
2026 it is $110,750)
* School district/local government requirements: The requirements
imposed on taxing jurisdictions (school districts and local governments)
will be phased in over three years. In each year the jurisdiction must
comply with the property tax cap. This means the increase in the tax
levy cannot be more than that allowed by a formula established by State
law.
* Jurisdictions' eligibility is determined separately: Each taxing
jurisdiction is treated separately for purposes of eligibility for the
credit. For example, homeowners may be subject to town, village, and
fire district taxes. If only the town and village comply with the
requirements:
* the homeowner will receive a credit based on increases to town and
village taxes, and since the fire district or school district did not
comply, the homeowner will not receive a credit based on the fire
district tax.
Section 2 - requires school districts to certify to the State comp-
troller the commissioner of Tax and Finance and the Commissioner of
JUSTIFICATION:
New York homeowners are subject to some of the highest property tax
bills in the nation, whether measured in absolute terms or as a percent-
age of income or home value. Property taxes have seriously burdened New
York's working families and senior citizens and hindered job growth.
While progress has been made and should continue under the property tax
cap legislation, there is a need to further reduce the property tax
burden. This bill effectively freezes property taxes on the primary
residences of homeowners within local governments that stay within the
property tax cap for the next two years and school districts that stay
within the cap for the next three years. This will be effective for
school districts starting with the 2026-27 school year and for local
governments in fiscal years beginning in 2026.
LEGISLATIVE HISTORY:
New bill
FISCAL IMPLICATIONS:
This bill will save homeowners over $2.5 billion over 3 years.
EFFECTIVE DATE:
This act shall take effect immediately.
Statutes affected: S8489: 606 tax law