senate Bill S4547

Amended

Establishes limitations upon real property tax levies in cities having a population of one million or more

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 10 / Apr / 2013
    • REFERRED TO CITIES
  • 23 / Apr / 2013
    • 1ST REPORT CAL.427
  • 24 / Apr / 2013
    • 2ND REPORT CAL.
  • 29 / Apr / 2013
    • ADVANCED TO THIRD READING
  • 21 / Jun / 2013
    • COMMITTED TO RULES
  • 08 / Jan / 2014
    • REFERRED TO CITIES
  • 10 / Feb / 2014
    • AMEND AND RECOMMIT TO CITIES
  • 10 / Feb / 2014
    • PRINT NUMBER 4547A
  • 04 / Mar / 2014
    • 1ST REPORT CAL.235
  • 05 / Mar / 2014
    • 2ND REPORT CAL.
  • 06 / Mar / 2014
    • ADVANCED TO THIRD READING
  • 20 / Jun / 2014
    • COMMITTED TO RULES

Summary

Limits, in cities having a population of one million or more, the annual increase in real property taxes.

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Bill Details

See Assembly Version of this Bill:
A6431
Versions:
S4547
S4547A
Legislative Cycle:
2013-2014
Current Committee:
Senate Rules
Law Section:
General Municipal Law
Laws Affected:
Add §3-d, Gen Muni L; amd §23, Munic Home R L
Versions Introduced in 2011-2012 Legislative Cycle:
S2866A, A4741A

Votes

6
0
6
Aye
0
Nay
0
aye with reservations
0
absent
0
excused
0
abstained
show Cities committee vote details

Sponsor Memo

BILL NUMBER:S4547

TITLE OF BILL: An act to amend the general municipal law and the
municipal home rule law, in relation to establishing limitations upon
real property tax levies in cities with a population of one million or
more

PURPOSE OR GENERAL IDEA OF BILL:

This bill would control the ever-rising property tax by limiting the
amount by which the City of New York may increase property taxes each
year.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1 of the bill would add a new § 3-d to the General Municipal
Law to establish a real property tax levy cap for New York City.

Under the property tax levy cap:

*New York City may not its property tax levy by more than 2 percent or
the rate of inflation (whichever is less).

*New York City may exceed the tax levy cap only if the City Council,
by a two-thirds vote by local law overriding the tax levy cap.

* The cap will have limited exceptions including:

*Personal injury settlements that exceed 10 percent of the taxing
entity's budget;

*Certain capital expenditures; and

*The increase or decrease in the city cost of state mandated social
services assistance to persons eligible for public assistance
(including those programs Temporary Assistance to Needy Families
("TANF") program, or the Safety Net Assistance Program ("SNAP")).

*The State Comptroller will determine the tax levy limitations for
local governments that are consolidated or dissolved.

* Any excess levy funds that are collected due to clerical or
technical errors will be held in reserve.

JUSTIFICATION:

New York property taxes are among the highest taxes in the nation.
When you combine State and local taxes, New York has the second
highest property taxes in the nation. The median U.S. property tax
paid is $1,917 and in New York it is $3,755--96 percent higher than
the national median. Moreover, New York has the highest local taxes in
America as a percentage of personal income--79 percent above the
national average. New York City residents are looking for relief from
high property tax increases. Such increases jeopardize their quality
of life and the ability to stay in their homes. This bill would limit
New York City's ability to raise property levies, up to 2%. This bill
will relieve taxpayers from unexpected high property tax increases.


This measure will force the City to budget more responsibly without
looking at property taxpayers as a way to balance its budget. This
proposal will allow property owners to budget for their property
taxes. It will also prevent city government from burdening the people
with outrageous increases. By limiting future increases, families and
especially those on fixed incomes -- would have a much better sense of
what they need to budget. This bill will also help reign in out of
control government spending.

PRIOR LEGISLATIVE HISTORY:

2012: A4741A - Died in Ways and Means. S2866A - Died in Cities,

FISCAL IMPLICATIONS:

This bill would benefit taxpayers in the City of New York by limiting
the annual amount of real property taxes the City can levy.

EFFECTIVE DATE:

This act shall take effect immediately and shall first apply to the
levy of taxes by cities having a population of one million or more for
the fiscal year that begins in 2014.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4547

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             April 10, 2013
                               ___________

Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Cities

AN ACT to amend the general municipal law and the  municipal  home  rule
  law,  in  relation  to establishing limitations upon real property tax
  levies in cities with a population of one million or more

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The  general  municipal  law  is  amended by adding a new
section 3-d to read as follows:
  S 3-D. LIMITATION UPON REAL PROPERTY TAX LEVIES  BY  CITIES  HAVING  A
POPULATION OF ONE MILLION OR MORE.  1. UNLESS OTHERWISE PROVIDED BY LAW,
THE  AMOUNT OF REAL PROPERTY TAXES THAT MAY BE LEVIED BY OR ON BEHALF OF
ANY CITY HAVING A POPULATION OF ONE MILLION OR MORE SHALL NOT EXCEED THE
TAX LEVY LIMITATION ESTABLISHED PURSUANT TO THIS SECTION.
  2. WHEN USED IN THIS SECTION:
  (A) "ALLOWABLE LEVY GROWTH FACTOR" SHALL BE THE LESSER OF: (I) ONE AND
TWO ONE-HUNDREDTHS; OR (II) THE SUM OF ONE PLUS  THE  INFLATION  FACTOR;
PROVIDED,  HOWEVER, THAT IN NO CASE SHALL THE LEVY GROWTH FACTOR BE LESS
THAN ONE.
  (B) "APPROVED CAPITAL EXPENDITURES" MEANS THE EXPENDITURES  ASSOCIATED
WITH CAPITAL PROJECTS THAT HAVE BEEN APPROVED BY THE QUALIFIED VOTERS OF
THE LOCAL GOVERNMENT.
  (C) "AVAILABLE CARRYOVER" MEANS THE SUM OF THE AMOUNT BY WHICH THE TAX
LEVY  FOR  THE  PRIOR  FISCAL YEAR WAS BELOW THE TAX LEVY LIMIT FOR SUCH
FISCAL YEAR, IF ANY, BUT NO MORE THAN ONE AND ONE-HALF  PERCENT  OF  THE
TAX LEVY LIMIT FOR SUCH FISCAL YEAR.
  (D) "CAPITAL TAX LEVY" MEANS THE TAX LEVY NECESSARY TO SUPPORT CAPITAL
EXPENDITURES, IF ANY.
  (E) "COMING FISCAL YEAR" MEANS THE FISCAL YEAR OF THE LOCAL GOVERNMENT
FOR  WHICH  A  TAX  LEVY LIMITATION SHALL BE DETERMINED PURSUANT TO THIS
SECTION.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05440-01-3

S. 4547                             2

  (F) "INFLATION FACTOR" MEANS THE QUOTIENT OF: (I) THE AVERAGE  OF  THE
NATIONAL  CONSUMER PRICE INDEXES DETERMINED BY THE UNITED STATES DEPART-
MENT OF LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE
START OF THE COMING FISCAL  YEAR  MINUS  THE  AVERAGE  OF  THE  NATIONAL
CONSUMER  PRICE  INDEXES  DETERMINED  BY THE UNITED STATES DEPARTMENT OF
LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO  THE  START
OF  THE  PRIOR FISCAL YEAR, DIVIDED BY: (II) THE AVERAGE OF THE NATIONAL
CONSUMER PRICE INDEXES DETERMINED BY THE  UNITED  STATES  DEPARTMENT  OF
LABOR  FOR  THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE START
OF THE PRIOR FISCAL YEAR, WITH THE RESULT EXPRESSED AS A DECIMAL TO FOUR
PLACES.
  (G) "LOCAL GOVERNMENT" MEANS A CITY HAVING A POPULATION OF ONE MILLION
OR MORE.
  (H) "PRIOR FISCAL YEAR" MEANS THE FISCAL YEAR OF THE LOCAL  GOVERNMENT
IMMEDIATELY PRECEDING THE COMING FISCAL YEAR.
  (I) "TAX LEVY LIMITATION" MEANS THE AMOUNT OF TAXES A LOCAL GOVERNMENT
IS  AUTHORIZED TO LEVY PURSUANT TO THIS SECTION, PROVIDED, HOWEVER, THAT
THE TAX LEVY LIMIT SHALL NOT INCLUDE  THE  LOCAL  GOVERNMENT'S  APPROVED
CAPITAL TAX LEVY, IF ANY.
  3.  (A)  BEGINNING  WITH  THE  FISCAL YEAR THAT BEGINS IN TWO THOUSAND
THIRTEEN, NO LOCAL GOVERNMENT SHALL ADOPT A BUDGET THAT REQUIRES  A  TAX
LEVY  THAT IS GREATER THAN THE TAX LEVY LIMITATION FOR THE COMING FISCAL
YEAR.
  (B) THE STATE COMPTROLLER SHALL CALCULATE THE TAX LEVY LIMITATION  FOR
EACH  LOCAL  GOVERNMENT  BY  THE ONE HUNDRED TWENTIETH DAY PRECEDING THE
COMMENCEMENT OF EACH LOCAL GOVERNMENT'S FISCAL YEAR,  AND  SHALL  NOTIFY
EACH LOCAL GOVERNMENT OF THE TAX LEVY LIMITATION SO DETERMINED.
  (C) THE TAX LEVY LIMITATION APPLICABLE TO THE COMING FISCAL YEAR SHALL
BE DETERMINED AS FOLLOWS:
  (I)  ASCERTAIN  THE  TOTAL AMOUNT OF TAXES LEVIED FOR THE PRIOR FISCAL
YEAR.
  (II) ADD ANY PAYMENTS IN LIEU OF TAXES THAT  WERE  RECEIVABLE  IN  THE
PRIOR FISCAL YEAR.
  (III)  SUBTRACT  THE  APPROVED  CAPITAL  TAX LEVY FOR THE PRIOR FISCAL
YEAR, IF ANY.
  (IV) SUBTRACT THE LEVY ATTRIBUTABLE TO A LARGE LEGAL SETTLEMENT  OF  A
TORT  ACTION EXCLUDED FROM THE LEVY LIMITATION IN THE PRIOR FISCAL YEAR,
IF ANY.
  (V) MULTIPLY THE RESULT BY THE ALLOWABLE LEVY GROWTH FACTOR.
  (VI) SUBTRACT ANY PAYMENTS IN LIEU OF TAXES RECEIVABLE IN  THE  COMING
FISCAL YEAR.
  (VII) ADD THE AVAILABLE CARRYOVER, IF ANY.
  (D) IN THE EVENT THE CITY COUNCIL OF A LOCAL GOVERNMENT HAS APPROVED A
LEGAL  SETTLEMENT  OF  A  TORT ACTION AGAINST THE GOVERNMENT, THE ANNUAL
COSTS OF WHICH EXCEED TEN PERCENT OF THE PROPERTY TAXES  LEVIED  BY  THE
LOCAL  GOVERNMENT  IN THE PRIOR FISCAL YEAR, THE STATE COMPTROLLER, UPON
APPLICATION BY THE LOCAL GOVERNMENT, MAY ADJUST THE TAX LEVY  LIMITATION
FOR  THE  COMING  FISCAL  YEAR  APPLICABLE  TO SUCH LOCAL GOVERNMENT, BY
ADDING THE ANNUAL COSTS OF SUCH SETTLEMENT TO THE TAX LEVY LIMITATION.
  (E) THE STATE COMPTROLLER SHALL DETERMINE THE PORTION OF THE TAX  LEVY
OF  EACH  LOCAL  GOVERNMENT  THAT  IS  ATTRIBUTABLE  TO  ANY INCREASE OR
DECREASE OVER THE PRIOR YEAR IN THE COST OF THE LOCAL  GOVERNMENT  SHARE
OF  DIRECT CASH ASSISTANCE TO PERSONS ELIGIBLE FOR THE FEDERAL-STATE-LO-
CAL TEMPORARY ASSISTANCE TO NEEDY FAMILIES PROGRAM  OR  THE  STATE-LOCAL
SAFETY  NET  ASSISTANCE PROGRAM AND SHALL ADJUST THE TAX LEVY LIMITATION
FOR SUCH LOCAL GOVERNMENT TO REFLECT SUCH CHANGE.

S. 4547                             3

  4. A LOCAL GOVERNMENT MAY ADOPT A BUDGET THAT REQUIRES A TAX LEVY THAT
IS GREATER THAN THE TAX LEVY LIMITATION FOR THE COMING FISCAL YEAR  ONLY
IF  THE  CITY  COUNCIL  OF  SUCH  LOCAL  GOVERNMENT  FIRST  ENACTS, BY A
TWO-THIRDS VOTE OF THE TOTAL VOTING POWER OF SUCH CITY COUNCIL, A  LOCAL
LAW TO OVERRIDE SUCH LIMITATION FOR SUCH COMING FISCAL YEAR ONLY.
  5.  IN  THE  EVENT  A  LOCAL  GOVERNMENT'S ACTUAL TAX LEVY FOR A GIVEN
FISCAL YEAR EXCEEDS THE MAXIMUM ALLOWABLE LEVY AS  ESTABLISHED  PURSUANT
TO  THIS  SECTION DUE TO CLERICAL OR TECHNICAL ERRORS, THE LOCAL GOVERN-
MENT SHALL PLACE THE EXCESS AMOUNT OF THE LEVY IN RESERVE IN  ACCORDANCE
WITH SUCH REQUIREMENTS AS THE STATE COMPTROLLER MAY PRESCRIBE, AND SHALL
USE  SUCH  FUNDS  AND ANY INTEREST EARNED THEREON TO OFFSET THE TAX LEVY
FOR THE ENSUING FISCAL YEAR.
  S 2. Paragraphs j and k of subdivision 2 of section 23 of the  munici-
pal home rule law are relettered k and l, and a new paragraph j is added
to read as follows:
  J.  OVERRIDES THE TAX LEVY LIMITATION APPLICABLE FOR THE COMING FISCAL
YEAR IN ACCORDANCE WITH SECTION THREE-D OF THE GENERAL MUNICIPAL LAW.
  S  3.  This act shall take effect immediately and shall first apply to
the levy of taxes by local governments for the fiscal year  that  begins
in 2014.

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