Testimony of Nonie Manion, Executive Deputy Commissioner

New York State Department of Taxation & Finance

Prepared for the Assembly Standing Committees on Local Governments, Real Property
Taxation, and Cities Hearing of December 17, 2014

Good morning Chairwoman Galef, Chairmen Magnarelli and Ortiz, Honorable Assembly
members, and committee staff. I am Nonie Manion, Executive Deputy Commissioner of the
New York State Department of Taxation & Finance.

Thank you for the opportunity to bring you up to date with respect to our efforts to implement
the new property tax related provisions that were enacted in this years State Budget.

Governor Cuomo has led efforts to help constrain property tax growth, beginning with the
enactment of the Property Tax Cap provisions in 2011. In the decade prior to the enactment of
the tax cap, real property taxes had increased by an average of 5.3 percent annually. Since its
enactment, real property tax growth has been held in check, averaging just two percent. Fully
84 percent of local governments and 97 percent of school districts have complied with the real
property tax cap provisions.

In his 2013 Budget, Governor took aim at errors and abuse, requiring Basic STAR recipients to
register with the Department. At this time last year, the Basic STAR registration program was in
full swing, providing taxpayers a fast, user-friendly registration system. As of today, this effort
to confirm STAR eligibility has yielded significant savings for the State and improved
confidence in the program. Property owners who missed the initial registration period can still
register up until the end of this year; although these owners did not see STAR exemptions on
their school tax bills this year, 2014 budget language authorized the Department to make direct
STAR benefit payments to owners whose eligibility is confirmed after assessment rolls were
finalized.

The 2014 Budget also included a new property tax related benefit for residents of New York
City. Because New York City is not covered by the Tax Cap, it likewise is not covered by the
new Property Tax Freeze Credit provisions. Instead, residents of NYC are eligible for an
Enhanced Real Property Tax Credit. This new benefit, commonly identified as a circuit breaker
credit, can be easily claimed using a new stand-alone form the NYC-208 -- and forms and
instructions will be available on our website.

Further, the 2014 Budget included the Property Tax Freeze Credit, which is available to the
owners of STAR-eligible properties located in taxing jurisdictions that complied with the Tax
Cap and, beginning in 2015, submit efficiency plans committing to specific property tax savings
actions.

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In this first year of the program, the Property Tax Freeze Credit covers allowable school tax
increases over the previous years bill. Next year the credit will cover a second year of allowable
school tax increases, as well as the allowable tax increases in other taxing jurisdictions
(Counties, Cities, Towns, Villages, Special Districts, etc.) that have complied with the Tax Cap.
For 2016 the final year of the credit the credit will cover a second year of allowable increases
in taxing jurisdictions other than school districts. Property Tax Freeze Credit amounts are
individually determined by comparing current and prior year assessment roll and tax bill records.
Payment is issued to eligible taxpayers automatically.

As always, we are eager to continue working with you to improve conditions for the property
taxpayers of our State. I will be happy to take any questions you may have.

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