NYS Property Tax Credit Language (2014)

Below is the language for the Property Tax Credit.

The language appears in in Part FF of Chapter 59 of the Laws of 2014.

  • Section 1 outlines how the value of credits will be calculated
  • Section 2 outlines the requirements for school districts
  • Section 3 outlines the requirements for local governments
  • Section 4 requires the submission of tax data to the Department of Taxation and Finance so they can calculate the value of the credit
  • Section 5 is the effective date

source: New York State Division of the Budget

PART FF

 

Section 1. Subsections (yy) and (zz) of section 606 of the tax law, as

relettered by section 5 of part H of chapter 1 of the laws of 2003,  are

relettered  (yyy)  and (zzz) and a new subsection (bbb) is added to read

as follows:

(bbb) Real property tax freeze credit. (1) As used in this subsection:

(A) The term “freeze-compliant budget” means  a  budget  of  a  taxing

jurisdiction that has met the requirements of section two thousand twen-

ty-three-b of the education law or section three-d of the general munic-

ipal law, whichever is applicable.

(B)  The  terms  “independent  special district” and “dependent school

district” have the same meaning as set forth in section three-d  of  the

general municipal law.

(C)  The  term  “STAR exemption” means the school tax relief exemption

authorized by section four hundred twenty-five of the real property  tax

law.

(D)  The  term  “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.

(E)  The  term  “levy  credit  factor” means the allowable levy growth

factor for a taxing jurisdiction,  as  determined  pursuant  to  section

three-c  of  the  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  fourteen,  two  thousand

fifteen  or  two  thousand  sixteen,  whichever  is applicable, 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

fourteen,  a  credit  shall  be  allowed for the eligible taxpayer’s two

thousand fourteen taxable year in the amount that is the greater of  (i)

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 fourteen exceeds the real property taxes so imposed for the

fiscal  year  starting  in two thousand thirteen, or (ii) 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 thir-

teen multiplied by the levy credit factor for that school  district  for

the fiscal year starting in two thousand fourteen.

(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 fifteen, a credit shall be allowed

for the eligible taxpayer’s two thousand fifteen  taxable  year  in  the

amount  that is the greater of (i) the amount by which the real property

taxes imposed upon such residence by or on behalf of that taxing  juris-

diction for the fiscal year starting in two thousand fifteen exceeds the

real property taxes so imposed for the fiscal year starting in two thou-

sand  fourteen,  or  (ii) the product of the real property taxes imposed

upon such residence by or on behalf of that taxing jurisdiction for  the

fiscal  year  starting  in  two thousand fourteen multiplied by the levy

credit factor for that taxing jurisdiction for the fiscal year  starting

in two thousand fifteen.

(C)  If a school district other than a dependent school district has a

freeze-compliant budget for its fiscal year  starting  in  two  thousand

fifteen, a credit shall be allowed for the eligible taxpayer’s two thou-

sand fifteen taxable year in the amount by which the real property taxes

imposed  upon such residence by or on behalf of such school district for

the fiscal year starting in two thousand fifteen exceeds the real  prop-

erty taxes so imposed for the fiscal year identified as follows:

(i)  if  the  school district’s budget for the fiscal year starting in

two thousand fourteen was a freeze-compliant budget, a credit  shall  be

allowed for the eligible taxpayer’s two thousand fifteen taxable year in

the  amount  of  the  credit  for  school district taxes allowed for the

eligible taxpayer’s two thousand fourteen taxable  year;  together  with

the amount that is the greater of (I) the amount by which the real prop-

erty  taxes  imposed  upon such residence by or on behalf of that school

district for the fiscal year starting in two  thousand  fifteen  exceeds

the  real  property taxes so imposed for the fiscal year starting in two

thousand fourteen, or (II)  the  product  of  the  real  property  taxes

imposed  upon such residence by or on behalf of such school district for

the fiscal year starting in two thousand fourteen multiplied by the levy

credit factor for that school district for the fiscal year  starting  in

two thousand fifteen.

(ii)  if  the school district’s budget for the fiscal year starting in

two thousand fourteen was not a freeze-compliant budget, a credit  shall

be allowed for the eligible taxpayer’s two thousand fifteen taxable year

in  the  amount  that is the greater of (I) the amount by which the real

property taxes imposed upon such residence  by  on  or  behalf  of  that

school  district  for  the  fiscal year starting in two thousand fifteen

exceeds the real property taxes so imposed for the fiscal year  starting

in two thousand fourteen, or (II) the product of the real property taxes

imposed  upon such residence by or on behalf of such school district for

the fiscal year starting in two thousand fourteen multiplied by the levy

credit factor for such school district for the fiscal year  starting  in

two thousand fifteen.

(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 sixteen:

(i)  if  the taxing jurisdiction’s budget for the fiscal year starting

in two thousand fifteen was a freeze-compliant budget, a credit shall be

allowed for the eligible taxpayer’s two thousand sixteen 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

fifteen taxable year; together with the amount that is  the  greater  of

(I)  the amount by which the real property taxes imposed upon such resi-

dence by or on behalf of such taxing jurisdiction for  the  fiscal  year

starting in two thousand sixteen exceeds the real property taxes imposed

upon  such residence by or on behalf of that taxing jurisdiction for the

fiscal year starting in two thousand fifteen, or (II) 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 fifteen

multiplied  by  the  levy credit factor for such taxing jurisdiction for

the fiscal year starting in two thousand sixteen.

(ii) if the taxing jurisdiction’s budget for the fiscal year  starting

in  two  thousand  fifteen  was  not a freeze-compliant budget, a credit

shall be allowed for the eligible taxpayer’s two thousand sixteen  taxa-

ble  year  in  the amount that is the greater of (I) 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

sixteen exceeds the real property taxes so imposed for the  fiscal  year

starting  in two thousand fifteen, or (II) the product of the real prop-

erty taxes imposed upon such residence by or on behalf  of  such  taxing

jurisdiction for the fiscal year starting in two thousand fifteen multi-

plied  by  the  levy  credit factor for such taxing jurisdiction for the

fiscal year starting in two thousand sixteen.

(E) If a city with a dependent school district has a  freeze-compliant

budget  for  its  fiscal  year  starting in two thousand fourteen, a tax

credit shall be allowed for the eligible taxpayer’s two  thousand  four-

teen taxable year in the amount equivalent to sixty-seven percent of the

amount  that is the greater of (i) 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 fourteen exceeds the real property

taxes so imposed for the fiscal year starting in two thousand  thirteen,

or  (ii)  the product of the real property taxes imposed upon such resi-

dence by or on behalf of such city for the fiscal year starting  in  two

thousand thirteen multiplied by the levy credit factor for such city for

the fiscal year starting in two thousand fourteen.

(F)  If a city with a dependent school district has a freeze-compliant

budget for its fiscal year starting in two thousand fifteen:

(i)  if the city’s budget for the fiscal year starting in two thousand

fourteen was a freeze-compliant budget, a credit shall  be  allowed  for

the  eligible  taxpayer’s two thousand fifteen taxable year in an amount

equivalent to thirty-three percent of the amount that is the greater  of

(I)  the amount by which the real property taxes imposed upon such resi-

dence by that city for the fiscal year starting in two thousand fourteen

exceeds the real property taxes so imposed for the fiscal year  starting

in two thousand thirteen, or (II) 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 thirteen multiplied  by  the  levy  credit

factor  for such city for the fiscal year starting in two thousand four-

teen; 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

fourteen  taxable year; and together with an amount equivalent to sixty-

seven percent of the amount that is the greater of  (I)  the  amount  by

which  the  real property taxes imposed upon such residence by that city

for the fiscal year starting in two thousand fifteen  exceeds  the  real

property  taxes  so imposed for the fiscal year starting in two thousand

fourteen; or (II) 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 fourteen multiplied by the levy credit factor for such

city for the fiscal year starting in two thousand fifteen; and a  credit

shall  be allowed for the eligible taxpayer’s two thousand sixteen taxa-

ble year in an amount equivalent to thirty-three percent of  the  amount

that  is  the greater of (I) the amount by which the real property taxes

imposed upon such residence by that city for the fiscal year starting in

two thousand fifteen exceeds the real property taxes so imposed for  the

fiscal  year  starting  in two thousand fourteen, or (II) 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 fourteen multi-

plied by the levy credit factor for such city for the fiscal year start-

ing in two thousand fifteen; 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

fourteen taxable year.

(ii) if the city’s budget for the fiscal year starting in two thousand

fourteen was not a freeze-compliant budget, a credit  shall  be  allowed

for  the  eligible  taxpayer’s  two  thousand fifteen taxable year in an

amount equivalent to sixty-seven percent  of  the  amount  that  is  the

greater  of (I) the amount by which the real property taxes imposed upon

such residence by that city for the fiscal year starting in two thousand

fifteen exceeds the real property taxes so imposed for the  fiscal  year

starting  in two thousand fourteen or (II) the product of the real prop-

erty taxes imposed upon such residence by or on behalf of such city  for

the fiscal year starting in two thousand fourteen multiplied by the levy

credit factor for such city for the fiscal year starting in two thousand

fifteen;  and  a credit shall be allowed for the eligible taxpayer’s two

thousand sixteen taxable year in an amount  equivalent  to  thirty-three

percent of the amount that is the greater of (I) the amount by which the

real  property  taxes  imposed  upon such residence by that city for the

fiscal year starting in two thousand fifteen exceeds the  real  property

taxes  so  imposed for the fiscal year starting in two thousand fourteen

or (II) the product of the real property taxes imposed upon  such  resi-

dence  by  or on behalf of such city for the fiscal year starting in two

thousand fourteen multiplied by the levy credit factor for such city for

the fiscal year starting in two thousand fifteen.

(G)  If a city with a dependent school district has a freeze-compliant

budget for its fiscal year starting in two thousand  fourteen  but  does

not  have  a freeze-compliant budget for its fiscal year starting in two

thousand fifteen, a tax credit shall be allowed for the eligible taxpay-

er’s two thousand fifteen taxable year an  amount  representing  thirty-

three  percent  of  the  amount that is the greater of (I) the amount by

which the real property taxes imposed upon such residence by  that  city

for  the  fiscal year starting in two thousand fourteen exceeds the real

property taxes so imposed for the fiscal year starting in  two  thousand

thirteen  or  (II)  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 thirteen multiplied by the levy credit factor  for  such

city for the fiscal year starting in two thousand fourteen.

(3)  To be eligible for such credit, the taxpayer (or taxpayers filing

joint returns) must meet the following criteria:

(A) For the two thousand fourteen taxable year, the taxpayer’s primary

residence must have qualified for the STAR exemption for the  two  thou-

sand fourteen–two thousand fifteen school year, or would have so quali-

fied if an application for such exemption had been submitted in a timely

manner.

(B)  For the two thousand fifteen taxable year, the taxpayer’s primary

residence must have qualified for the STAR exemption for the  two  thou-

sand  fifteen–two thousand sixteen school year, or would have so quali-

fied if an application for such exemption had been submitted in a timely

manner.

(C) For the two thousand sixteen taxable year, the taxpayer’s  primary

residence  must  have qualified for the STAR exemption for the two thou-

sand sixteen–two thousand seventeen school year, or would have so qual-

ified if an application for such exemption had been submitted in a time-

ly 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 his or her return.  A  taxpayer  who  has  failed  to

receive  an  advance  payment  that he or she believes was due to him or

her, or who has received an advance payment that he or she  believes  is

less  than the amount that was due to him or her, 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)  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 relevied 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  set  forth  in sections one hundred two and twelve hundred

twenty 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.

(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-b  to

read as follows:

§  2023-b.  Certification  of  compliance  with  property  tax  freeze

requirements. 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 subdivision two 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 fourteen.  The property tax cuts  will  be

extended  for  a  second year in jurisdictions which comply with the tax

cap and have a state approved government efficiency  plan  which  demon-

strate  three  year savings and efficiencies of at least one percent per

year from shared services,  cooperation  agreements  and/or  mergers  or

efficiencies.  The  director of the budget shall consider past efficien-

cies, shared services and  reforms  in  their  approval  process.  While

localities  may offer a variety of approaches it is anticipated that the

county government or board  of  cooperative  educational  services  will

convene  and  facilitate  a process and submit a county wide or board of

cooperative educational services region  wide  plan  for  approval.    A

school  district  that is subject to the provisions of section two thou-

sand twenty-three-a of this part must comply with  the  requirements  of

subdivision two and either subdivision three or subdivision four 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 fifteen.

1. Definitions.  As used in this section:

a.  “Mergers”  means:  reorganizations  of  eligible  school districts

pursuant to  sections  fifteen  hundred  five,  fifteen  hundred  eleven

through  fifteen  hundred thirteen, fifteen hundred twenty-four, fifteen

hundred twenty-six, seventeen hundred five, eighteen hundred one through

eighteen hundred three, or twenty-two hundred eighteen of the  education

law;  or  reorganizations,  consolidations,  or dissolutions of eligible

school districts in which one or  more  eligible  school  districts  are

terminated  and  another  eligible  school district assumes jurisdiction

over the terminated school district or districts pursuant to  any  other

provision of law.

b.  “Cooperation  agreements”  means  agreements  entered into between

eligible school districts to implement the sharing or  consolidation  of

functions  or  services, including but not limited to: procurement, real

estate and facility management, fleet management, business and financial

services, administrative  services,  payroll  administration,  time  and

attendance,   benefits  administration  and  other  transactional  human

resources functions, contract management, grants management, transporta-

tion services, facilities and function, human  services  facilities  and

functions,  customer  service  facilities  and functions and information

technology infrastructure, process, services and functions.

c. “Eligible school district” means a school district that is  subject

to  section two thousand twenty-three-a of this part, but shall not mean

a school district that is subject to article fifty-two of this chapter.

d. “Government efficiency plan” means a plan that  identifies  cooper-

ation  agreements,  shared services and/or mergers or efficiencies to be

fully implemented by one or more  eligible  school  districts  that  are

signatories to the plan.

e.  “Lead district” means the eligible school district that is partic-

ipating in a government efficiency plan with  more  than  one  signatory

that  has elected to submit the government efficiency plan to the direc-

tor of the budget on behalf of all signatories to the plan.

f. “Shared services” means  functional  consolidations  by  which  one

eligible  school  district completely provides a service or function for

another eligible school district, which no longer engages in that  func-

tion or service; shared or cooperative services between and among eligi-

ble  school districts; and regionalized delivery of services between and

among eligible school  districts.  These  shared  services  may  be  for

services  or  functions  including but not limited to: procurement, real

estate and facility management, fleet management, business and financial

services, administrative  services,  payroll  administration,  time  and

attendance,   benefits  administration  and  other  transactional  human

resources functions, contract management, grants management, transporta-

tion services, facilities and functions, human services  facilities  and

functions,  customer  service  facilities  and functions and information

technology infrastructure, processes, services and functions.

2. Certification of compliance  with  tax  levy  limit.  a.  Upon  the

adoption  of the budget of an eligible school district, the chief execu-

tive officer of such school district shall certify to  the  state  comp-

troller,  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. School district  government  efficiency  plans  submitted  by  lead

district.  a.  The  superintendent of each lead district shall submit to

the director of the budget  by  June  first,  two  thousand  fifteen,  a

government  efficiency  plan  that  demonstrates  three year savings and

efficiencies of at least one percent  per  year  from  shared  services,

cooperation agreements and/or mergers or efficiencies over the aggregate

two  thousand  fourteen–two thousand fifteen school year tax levies for

all eligible school districts that are signatories to such plan.

(i) The superintendent of each eligible  school  district  that  is  a

signatory  to  a  government  efficiency plan shall submit to the super-

intendent of the lead district by May fifteenth, two thousand fifteen, a

written certification that the eligible school district agrees to under-

take its best efforts to fully implement by the end of the two  thousand

sixteen–two  thousand seventeen school year the cooperation agreements,

mergers, efficiencies and/or shared services specified for the  eligible

school district in such plan.

(ii) The chief financial officer of a school district that is a signa-

tory  to a government efficiency plan shall submit to the superintendent

of the lead district by May fifteenth, two thousand fifteen,  a  written

certification  that in his or her professional opinion, full implementa-

tion by the end of the  two  thousand  sixteen–two  thousand  seventeen

school  year of the cooperation agreements, mergers, efficiencies and/or

shared  services  that are to be taken by such school district itself as

specified in such plan will result in the savings set forth in such plan

attributable to such school district.

(iii) The chief financial officer of  each  eligible  school  district

that  is a signatory to a government efficiency plan shall submit to the

lead district by May fifteenth, two thousand fifteen, a written  certif-

ication  that in his or her professional opinion, full implementation of

the cooperation agreements, mergers, efficiencies and/or shared services

as specified for all of the eligible school districts that are  signato-

ries to such plan will result in savings over the aggregate two thousand

fourteen–two  thousand  fifteen school year tax levies for all eligible

school districts that are signatories to  such  plan  of  at  least  one

percent in each of the two thousand sixteen–two thousand seventeen, the

two thousand seventeen–two thousand eighteen and the two thousand eigh-

teen–two thousand nineteen school years.

b.  The chief financial officer of each lead district shall submit the

following documents to the director of the  budget  on  or  before  June

first, two thousand fifteen:  (i) the government efficiency plan; (ii) a

list of all eligible school districts that are signatories to such plan;

(iii) all of the certifications required by paragraph a of this subdivi-

sion;  and (iv) an analysis of the aggregate amount of savings set forth

in such plan attributable to all  eligible  school  districts  that  are

signatories to such plan that will be achieved if the cooperation agree-

ments,  mergers,  efficiencies and/or shared services identified in such

plan are fully implemented by the end of the two  thousand  sixteen–two

thousand seventeen school year.  The director of the budget shall review

such documents and shall consider past efficiencies, shared services and

reforms  in their approval process to determine whether the requirements

of this subdivision have been met with respect to each  eligible  school

district that is a signatory to the government efficiency plan and shall

notify  the  commissioner of taxation and finance of such determinations

no later than July thirty-first, two thousand fifteen.

4. School district government efficiency plans submitted by  a  single

eligible  school  district.  a.  While localities may offer a variety of

approaches it is anticipated that the  county  government  or  board  of

cooperative  educational  services will convene and facilitate a process

and submit a county wide or board of  cooperative  educational  services

region  wide  plan  for approval. As such, eligible school districts are

strongly encouraged to develop a single government efficiency  plan  for

all  of  the  eligible  school  districts  in their board of cooperation

educational services  district.  However,  the  superintendent  of  each

eligible school district that is not participating in a government effi-

ciency  plan  with more than one signatory may submit to the director of

the budget by June first, two thousand fifteen, a government  efficiency

plan  that  demonstrates three year savings and efficiencies of at least

one percent per year from shared services, cooperation agreements and/or

mergers or efficiencies over such eligible school district’s  two  thou-

sand fourteen–two thousand fifteen school year tax levy.

(i)  In the event an eligible school district chooses to submit such a

government efficiency plan, the superintendent of such  eligible  school

district  shall  submit to the director of the budget by June first, two

thousand fifteen, a written  certification  that  such  eligible  school

district  agrees to undertake its best efforts to fully implement by the

end of the two thousand sixteen–two thousand seventeen school year  the

cooperation  agreements,  mergers,  efficiencies  and/or shared services

specified in such plan.

(ii)  In  the event a school district chooses to submit such a govern-

ment efficiency plan, the  chief  financial  officer  of  such  eligible

school  district  shall  submit  to  the  director of the budget by June

first, two thousand fifteen, an analysis of the  savings  set  forth  in

such  plan  that  will be achieved if the cooperation agreements, shared

services and/or mergers or efficiencies  identified  in  such  plan  are

fully  implemented  by the end of the two thousand sixteen–two thousand

seventeen school year, as well as a written certification that in his or

her professional opinion, full implementation of the cooperation  agree-

ments, mergers, efficiencies and/or shared services as specified in such

plan will result in savings over its two thousand fourteen–two thousand

fifteen  school year tax levy of at least one percent in each of the two

thousand sixteen–two thousand seventeen, the two  thousand  seventeen–

two  thousand eighteen and the two thousand eighteen–two thousand nine-

teen school years.

b. The director of the budget shall review the documents  referred  to

in paragraph a of this subdivision and shall consider past efficiencies,

shared  services  and  reforms  in  their  approval process to determine

whether the requirements of this subdivision have been met with  respect

to an eligible school district that has submitted a government efficien-

cy  plan  and  shall  notify the commissioner of taxation and finance of

such  determination  no  later  than  July  thirty-first,  two  thousand

fifteen.

§  3. The general municipal law is amended by adding a new section 3-d

to read as follows:

§ 3-d. Certification of compliance with property tax  freeze  require-

ments.  A  municipal corporation or an independent special district that

is subject to the provisions of section three-c  of  this  article  must

comply with the requirements of subdivision two 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 fifteen.  The property tax

cuts will be extended for a second year in  jurisdictions  which  comply

with  the  tax  cap and have a state approved government efficiency plan

which demonstrate three year savings and efficiencies of  at  least  one

percent  per  year  from  shared services, cooperation agreements and/or

mergers or efficiencies. The director of the budget shall consider  past

efficiencies,  shared  services  and  reforms in their approval process.

While localities may offer a variety of  approaches  it  is  anticipated

that  the county government or board of cooperative educational services

will convene and facilitate a process and submit a county wide or  board

of  cooperative  educational  services region wide plan for approval.  A

municipal corporation or an independent special district that is subject

to the provisions of section three-c of this article  must  comply  with

the  requirements  of  subdivision  two  and either subdivision three or

subdivision four of this section in order to render its taxpayers eligi-

ble for the real property tax freeze  credit  authorized  by  subsection

(bbb) of section six hundred six of the tax law for a fiscal year start-

ing  in  two  thousand  sixteen.  Provided  however,  that a city with a

dependent school district must comply with the requirements of  subdivi-

sion  two  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 fourteen and comply with the requirements of subdivision two of

this  section,  and both the city and its dependent school district must

jointly comply with the requirements of subdivision three or subdivision

four  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 fifteen or two thousand sixteen.

1. Definitions.  As used in this section:

(a)  “Mergers”  means: consolidations or dissolutions of local govern-

ment units in accordance with article seventeen-A  of  this  chapter  or

reorganizations,  consolidations,  or  dissolutions  of local government

units in which one or more local government  units  are  terminated  and

another  local  government unit assumes jurisdiction over the terminated

local government unit  or units pursuant to any other provision of law.

(b) “Cooperation agreements” means  agreements  entered  into  between

local  government  units  to  implement  the sharing or consolidation of

functions or services, including but not limited to:  procurement,  real

estate and facility management, fleet management, business and financial

services,  administrative  services,  payroll  administration,  time and

attendance,  benefits  administration  and  other  transactional   human

resources functions, contract management, grants management, transporta-

tion  services,  facilities  and function, human services facilities and

functions, customer service facilities  and  functions  and  information

technology infrastructure, process, services and functions.

(c)  “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.

(d)  “Government efficiency plan” means a plan that identifies cooper-

ation agreements, shared services and/or mergers or efficiencies  to  be

fully  implemented by one or more local government units that are signa-

tories to the plan.

(e) “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.

(f)  “Lead local government unit” means the local government unit that

is participating in a government efficiency  plan  with  more  than  one

signatory  that  has elected to submit the government efficiency plan to

the director of the budget on behalf of all signatories to the plan.

(g) “Local government unit” means a municipal corporation or an  inde-

pendent  special  district  that is subject to the provisions of section

three-c of this article.

(h) “Shared services” means functional  consolidations  by  which  one

local  government  unit  completely  provides  a service or function for

another local government unit, which no longer engages in that  function

or  service;  shared  or  cooperative  services  between and among local

government units; and regionalized  delivery  of  services  between  and

among local government units.  These shared services may be for services

or functions including but not limited to:  procurement, real estate and

facility  management, fleet management, business and financial services,

administrative services, payroll administration,  time  and  attendance,

benefits  administration  and  other transactional human resources func-

tions, contract management, grants management, transportation  services,

facilities  and  functions,  human  services  facilities  and functions,

customer service facilities and  functions  and  information  technology

infrastructure, processes, services and functions.

2.  Certification  of  compliance  with  tax  levy limit. (a) Upon the

adoption of the budget of a local government unit, the  chief  executive

officer or budget officer of such local government unit shall certify to

the  state comptroller and the commissioner of taxation and finance that

the budget so adopted does not exceed the tax levy limit  prescribed  in

section  three-c of this article and, if the governing body of the local

government unit did enact a local law or approve a resolution  to  over-

ride  the  tax  levy limit, that such local law or resolution was subse-

quently repealed. Such certification shall be made in a form and  manner

prescribed by the state comptroller in consultation with the commission-

er of taxation and finance.

(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) Notwithstanding any other law to the contrary, if such  a  certif-

ication  has  been  made and the actual tax levy of the local government

unit exceeds the applicable tax levy limit, the excess amount  shall  be

placed  in  reserve and used in the manner prescribed by subdivision six

of section three-c of this article, even if a tax levy in excess of  the

tax  levy  limit had been authorized for the applicable fiscal year by a

duly adopted local law or resolution.

(d) Notwithstanding any provision of law to the contrary, every  local

government  unit  shall  report both its proposed budget and its adopted

budget to the office of the state comptroller at the  time  and  in  the

manner  as  he or she may prescribe, whether or not such budget has been

or will be certified as provided by this subdivision.

3. Local government government  efficiency  plans  submitted  by  lead

local government unit. (a) The chief executive officer or budget officer

of  each  lead local government unit shall submit to the director of the

budget by June first, two thousand fifteen, a government efficiency plan

that demonstrates three year savings and efficiencies of  at  least  one

percent  per  year  from  shared services, cooperation agreements and/or

mergers or efficiencies over the aggregate tax levies for  fiscal  years

beginning  in  two  thousand fourteen for all local government units and

dependent school districts that are signatories to such plan.

(i) The chief executive  officer  or  budget  officer  of  each  local

government  unit  and dependent school district that is a signatory to a

government efficiency plan shall submit to the chief  executive  officer

or  budget  officer  of the lead local government unit by May fifteenth,

two thousand fifteen, a written certification that the local  government

unit  or  dependent school district agrees to undertake its best efforts

to fully implement by the end of the local fiscal year beginning in  two

thousand  seventeen  the  cooperation  agreements, mergers, efficiencies

and/or shared services  specified  for  the  local  government  unit  or

dependent school district in such plan.

(ii)  The  chief  financial officer of a local government unit and the

chief fiscal officer of the dependent school district, that is a  signa-

tory to a government efficiency plan shall submit to the chief executive

officer of the lead local government unit by May fifteenth, two thousand

fifteen,  a  written certification that in his or her professional opin-

ion, full implementation by the end of the local fiscal  year  beginning

in two thousand seventeen, of the cooperation agreements, mergers, effi-

ciencies  and/or  shared  services  that  are  to be taken by such local

government unit itself as specified in such  plan  will  result  in  the

savings set forth in the government efficiency plan attributable to such

local government unit or dependent school district.

(iii)  The  chief  financial officer of each local government unit and

dependent school district that is a signatory to a government efficiency

plan shall submit to the lead local government unit  by  May  fifteenth,

two thousand fifteen, a written certification that in his or her profes-

sional opinion, full implementation of the cooperation agreements, merg-

ers,  efficiencies  and/or  shared  services as specified for all of the

local government units and dependent school districts that are  signato-

ries  to  such plan will result in savings over the aggregate tax levies

for fiscal years beginning  in  two  thousand  fourteen  for  all  local

government  units  that  are  signatories  to  such plan of at least one

percent in each of the fiscal years beginning in two thousand seventeen,

beginning in two thousand eighteen and beginning in two  thousand  nine-

teen.

(b)  The  chief  financial  officer of each lead local government unit

shall submit the following documents to the director of the budget on or

before June first, two thousand fifteen:  (i) the government  efficiency

plan;  (ii)  a  list  of all local government units and dependent school

districts that are signatories to such plan; (iii) all  of  the  certif-

ications  required  by  paragraph  (a)  of this subdivision; and (iv) an

analysis of the aggregate amount of  savings  set  forth  in  such  plan

attributable   to  all  local  government  units  and  dependent  school

districts that are signatories to such plan that will be achieved if the

cooperation agreements, shared services and/or mergers  or  efficiencies

identified  in  such  plan are fully implemented by the end of the local

fiscal year beginning in two thousand seventeen.  The  director  of  the

budget shall review such documents and shall consider past efficiencies,

shared  services  and  reforms  in  their  approval process to determine

whether the requirements of this subdivision have been met with  respect

to  each  local  government unit and dependent school district that is a

signatory to the government efficiency plan and shall notify the commis-

sioner of taxation and finance of such determinations no later than July

thirty-first, two thousand fifteen.

4. Local government government efficiency plans submitted by a  single

local  government  unit.  (a)  While  localities  may offer a variety of

approaches it is anticipated that the  county  government  or  board  of

cooperative  educational  services will convene and facilitate a process

and submit a county wide or board of  cooperative  educational  services

region  wide  plan  for  approval.  As  such, local government units are

strongly encouraged to develop a single government efficiency  plan  for

all  of  the  local government units in their county. However, the chief

executive officer or budget officer of each local government  unit  that

is  not participating in a government efficiency plan with more than one

signatory may submit to the director of the budget by  June  first,  two

thousand  fifteen,  a government efficiency plan that demonstrates three

year savings and efficiencies of at least  one  percent  per  year  from

shared  services,  cooperation agreements and/or mergers or efficiencies

over such local government unit’s tax levy for the fiscal year beginning

in two thousand fourteen.

(i) In the event a local government unit  chooses  to  submit  such  a

government  efficiency plan, the chief executive officer or budget offi-

cer of such local government unit shall submit to the  director  of  the

budget by June first, two thousand fifteen, a written certification that

such local government unit agrees to undertake its best efforts to fully

implement  by the end of the local fiscal year beginning in two thousand

seventeen  the  cooperation  agreements,  mergers,  efficiencies  and/or

shared services specified in such plan.

(ii) In the event a local government unit chooses  to  submit  such  a

government  efficiency  plan,  the chief financial officer of such local

government unit shall submit to the  director  of  the  budget  by  June

first,  two  thousand  fifteen,  an analysis of the savings set forth in

such plan that will be achieved if the  cooperation  agreements,  shared

services  and/or  mergers  or  efficiencies  identified in such plan are

fully implemented by the end of the local fiscal year beginning  in  two

thousand  seventeen,  as  well as a written certification that in his or

her professional opinion, full implementation of the cooperation  agree-

ments, mergers, efficiencies and/or shared services as specified in such

plan will result in savings over its tax levy for the fiscal year begin-

ning  in  two  thousand  fourteen of at least one percent in each of the

fiscal years beginning in two thousand seventeen, beginning in two thou-

sand eighteen and beginning in two thousand nineteen.

(b) The director of the budget shall review the documents referred  to

in paragraph a of this subdivision and shall consider past efficiencies,

shared  services  and  reforms  in  their  approval process to determine

whether the requirements of this subdivision have been met with  respect

to  a  local  government unit that has submitted a government efficiency

plan and shall notify the commissioner of taxation and finance  of  such

determination no later than July thirty-first, two thousand fifteen.

§  4. Section 1590 of the real property tax law is amended by adding a

new subdivision 3 to read as follows:

3. Each municipal corporation shall submit  to  the  commissioner  the

data files used to prepare its tax rolls and tax bills no later than ten

days after the annexation of the warrant for the collection of taxes for

the  applicable  fiscal  year,  or  where no such warrant is annexed, no

later than ten days after the last date prescribed by law for  the  levy

of  taxes  of the applicable fiscal year, provided that if its tax rolls

or tax bills, or both, are prepared by a different governmental  entity,

that  entity  shall be jointly responsible for submitting the applicable

data files to the commissioner.

§ 5. This  act  shall  take  effect  immediately,  provided  that  the

provisions of subdivision 3 of section 1590 of the real property tax law

as  added  by  section four of this act shall apply to tax rolls and tax

bills of school districts and cities with a  population  of  125,000  or

more  for  fiscal  years  starting  on or after July 1, 2013, and to tax

rolls and tax bills for other municipal corporations  for  fiscal  years

starting  on  or  after  January 1, 2014, except that in the case of tax

rolls and tax bills for fiscal years that started prior to the effective

date of this act, the data files used to prepare tax rolls and tax bills

shall be submitted to the commissioner of taxation and finance no  later

than 60 days after the effective date of this act.

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