Others

rp5301fs_prop_tax_facts.pdf

Categories
Published
of 2
All materials on our website are shared by users. If you have any questions about copyright issues, please report us to resolve them. We are always happy to assist you.
Related Documents
Share
Description
RP-5301-FS (7-14) 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 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, after the frst year, must also develop an effciency plan. Eligibility requirements 1. Homeowner requirements To be eligible for
Transcript
  RP-5301-FS  (7-14) 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 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, after the rst year, must also develop an efciency plan. Eligibility requirements 1. Homeowner requirements  To be eligible for the credit, homeowners must meet the requirements for the STAR property tax exemption: ã  The property must be the homeowner’s primary residence. ã  The total household income must be $500,000 or less.New York City homeowners are not  eligible for the freeze credit. New York City homeowners and renters are, however, eligible for the New York City Circuit Breaker Tax Credit. 2. School district /local government requirements  The requirements imposed on taxing jurisdictions (school districts and local governments) will be phased in over two years.  Year 1:  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.  Year 2:  In the second year, the jurisdiction must comply with the tax cap and also develop and implement a Government Efciency Plan to reduce costs by consolidating services.  Jurisdictions’ eligibility determined separately Each taxing jurisdiction is treated separately for purposes of eligibility for the credit. For example, a homeowner may be subject to town, village, and re district taxes. If only the town and village comply with the requirements:ã the homeowner will receive a credit based on increases to town and village taxes, and ã since the re district did not comply, the homeowner will not  receive a credit based on the re district tax. 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 efciency 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 (scal years Comply with tax cap only beginning in 2015)  Year 2 (scal years Comply with tax cap and submit an efciency plan by June 1, 2015 that is determinedbeginning in 2016) to be compliant by the State Division of Budget.  RP-5301-FS  (7-14) 2 Credit amounts  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: ã the actual increase in the homeowner’s tax bill, or, ãthe previous year’s tax bill multiplied by an ination factor (the lesser of 2% or ination). For 2014 the ination factorfor school districts is 1.46%.Homeowners whose tax bills go down, stay the same, or increase less than the ination factor will receive a credit equal to the previous year’s tax bill multiplied by the ination factor. Calculating increases using baseline year  The increase is calculated as the difference between the homeowner’s taxes in: ã the year before the freeze went into effect (baseline year), and ã the current year.If the taxing jurisdiction is compliant for both years of the freeze: ã In  year one , the credit will be determined based on the tax paid in year one and the tax paid in the baseline year. ã 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. Exceptions  There are some exceptions. The credit will not reimburse homeowners for increases that are the result of: ã improvements to the property that increase its value, ã changes in a property’s exemption status, ã a jurisdiction-wide reassessment to the extent the increase in the homeowner’s as s essed 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: ã Co-op owners:  the credit will be 60% of the average credit for the jurisdiction. ã 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 school district taxes. For purposes of the freeze credit, 67% of the tax is attributable to school tax and 33% attributable to city tax.  These cities must comply with the tax cap in 2014-15 and 2015-16 to be eligible for the freeze credit. ãFor 2014, the credit will be equal to that part of the increase attributable to school tax (67%).ã For 2015, the credit will be based on both the city and school tax components. ãFor 2016, the credit will be based on 33% of the 2015-16 levy - the amount attributable to city tax. Freeze Credit Payment Calendar Fall 2014 Year 1 - School districtFall 2015 Year 2 - School district & Year 1 - Local governmentFall 2016 Year 2 - Local government
We Need Your Support
Thank you for visiting our website and your interest in our free products and services. We are nonprofit website to share and download documents. To the running of this website, we need your help to support us.

Thanks to everyone for your continued support.

No, Thanks