Under the law, which took effect on April 12, 2018, such funds may receive unrestricted charitable contributions for the purposes of addressing education and other charitable purposes.The City of Buffalo opted into this program establishing the Buffalo Charitable Gifts Reserve Fund allowing it to receive charitable monetary contributions while giving the taxpayers of the City of Buffalo a property tax credit on their income taxes.
Here’s how it works:Any owner of real property located within the City of Buffalo who makes an unrestricted charitable contribution to the City Charitable Gifts Reserve Fund shall be issued a written acknowledgment of such contribution and may claim a credit against their City of Buffalo real property taxes equal to 95% of the Buffalo Charitable Gifts Reserve Fund donation.Donations received in the 12-month period prior to the last day that taxes may be paid without incurring interest or penalties are eligible for a tax credit in 2018. For City of Buffalo property owners this date is July 31, 2018. Payments received or postmarked on or before July 31st will receive the property tax credit. Payments received after July 31st, 2018 will be available for use on the taxpayers 2019 taxes as a credit.
To claim the credit, the taxpayer must bring the donation acknowledgement form and the credit claim form received from the City of Buffalo with them along for payment. The collecting officer will then issue a credit to the taxpayer for 95% of the contribution. Please note that you must pay your bill in full to receive the credit while noting 95% of the gift will be applied to your actual outstanding tax obligation.For example: Tax bill = $10,000 for 2018-To be eligible for credit, payment must be made in full or mailed by July 31, 2018.-Amount needed to qualify for credit at 95% of total tax bill-$10,000 tax bill-$10,000/95% = $10,526.32In the above example, a payment of less than the $10,526.32 received by July 31, 2018 will not qualify for the 95% property tax credit for 2018 and the claim form will not be processed.Tax payments made via escrow accounts will not qualify for the tax credits in 2018 but monies paid in escrow will be refunded to the taxpayer upon providing proof of contribution to the charitable gifts fund.If you have any questions please call the Department of Tax and Assessment at 716-851-5743.