FROM: Peter A. Baynes, NYCOM Executive Director

SUBJECT: State Guidance Issued on Tax Freeze Implementation

The New York State Department of Taxation and Finance has issued a  fact sheet (click to view) and  guidance document 

(click to view) on the Property Tax Freeze that was enacted as 

part of the 2014-2015 State Budget.  As expected, these documents do help clarify many of the questions and concerns 

that were raised soon after the law was enacted.  For example:  

• While the law and the guidance documents strongly encourage municipalities to develop county-wide Government Efficiency Plans, this is not a requirement.  Plans may be developed among a smaller number of local governments or a municipality may develop the Plan on its own.  
• The Government Efficiency Plans may include past actions going back to your fiscal year beginning in 2012.  This means for calendar year cities, any eligible activities you have implemented or undertaken since January 1, 2012 could be included in your Plan.  For most villages, any eligible activities you have implemented or undertaken since June 1, 2012 could be included in your Plan.  
• Government Efficiency Plans may include actions jointly undertaken between local governments and school districts.  
• Efficiencies are defined as "actions taken by a local government or school district to improve the completion of existing processes or functions or the delivery of existing services that result in lower costs."  

As you will see, the guidance document contains additional information on a variety of issues including Plan compliance, the Plan's savings calculation, required certifications, and payment of the freeze credit to homeowners.  Please be advised that NYCOM will be holding two training sessions on the Tax Freeze at its upcoming Fall Training School in Lake Placid, September 15-18.  We are also planning to hold additional regional training sessions on this topic later this fall.  Questions on the Tax Freeze can be directed to NYCOM Deputy Director Barbara VanEpps at [email protected].