ALBANY - Property taxpayers across New York could get almost $1 billion in rebates from the state this fall under an agreement reached by lawmakers, legislative leaders said Monday.

The plan agreed to by the leaders of the Republican-led Senate and Democrat-controlled Assembly creates a personal income tax credit based on property taxes paid. Officials estimate the refund checks would total $960 million. The Senate passed the bill 58-0 on Monday. The Assembly approved the bill by a 141-1 margin.

The move is an attempt to get around Republican George Pataki's earlier blocking of a property tax rebate plan that would have seen checks going out right before this fall's legislative elections.

Under the new plan, the elderly would receive a “significantly” larger benefit than New Yorkers younger than retirement age. There would also be an accompanying increase in personal income tax credits for New York City residents, most of whom pay property taxes only indirectly through their rent.

“There is simply no issue more pressing or more important to New Yorkers than providing relief from the crushing burden of property taxes,” Republican Senate Majority Leader Joseph Bruno said. “We have to act to ensure that when school tax bills arrive this fall, taxpayers have help paying them.”

An April report by Comptroller Alan Hevesi's office found that local property taxes in New York rose 42 percent from 2000 to 2005, more than three times the rate of inflation.

Over the past five years, property taxes collected in New York rose to $38 billion from $26 billion.

In 2002, the most recent year for which federal data is available, property taxes in the state were $1,406 per person. That was 49 percent above the national average of $945 and the fourth highest state level in the country, Hevesi said.

Mark Hansen, a spokesman for Bruno, said the tax cut would come out of what the Senate estimates is a $5 billion tax revenue surplus.

“Giving tax relief to the hard working homeowners, renters and taxpayers of this state is one of the most important things we can do in the Legislature this year,” said state Assembly Ways and Means Committee Chairman Herman Farrell, who drew attention last week by saying tax cuts were not a major priority for the Democratic party he heads as state chairman. He quickly said he misspoke.

The Legislature had included $1 billion in property tax rebates in its state budget earlier this year, but that measure was vetoed by Pataki. While lawmakers voted to override that veto, Pataki said their override didn't count because they had acted unconstitutionally in proposing the original rebate. That stalemate led to Monday's agreement between legislative leaders.

Lawmakers said that if the governor vetoes the new measure, they can legally override because it is a new tax credit, not an appropriation in the state budget.

“No one has fought harder for property tax relief than Governor Pataki and we are pleased that the Legislature has advanced what appears to be a constitutionally sound proposal,” Pataki spokesman Michael Marr said. “We look forward to working with the Legislature over the next 10 days to see how this proposal would fit within the context of the state's overall financial plan.”

While the new plan calls for an income tax credit that can be applied to next year's tax bill, the legislation allows New York taxpayers to get an advance on that credit this fall, just before the election in which all 212 seats of the Legislature go to voters.