NY S08489

Creates a real property tax freeze credit for homeowners whose primary residence is in a taxing jurisdiction (county, city, town, village, school district, or independent special district) that adopts a "freeze-compliant budget" staying within tax levy limits for fiscal years 2026, 2027, and 2028

Credit amount equals the greater of: the actual property tax increase from the prior year, or the prior year's taxes multiplied by the "levy credit factor" (allowable growth factor minus one)

Eligibility requires the taxpayer's primary residence to qualify for the STAR exemption or credit for the corresponding school year; New York City and counties wholly within it are excluded from the program

For cities with dependent school districts, the credit is calculated assuming 67% of the city tax bill is for school purposes and 33% for general city purposes, with credits phased at 67% and 33% portions accordingly

School districts must certify compliance to the State Comptroller and Commissioner of Taxation and Finance within 21 days of their fiscal year start, and any tax levy exceeding the limit must be placed in reserve even if voters approved the higher levy