S T A T E O F N E W Y O R K
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6977--A
2011-2012 Regular Sessions
I N A S S E M B L Y
April 7, 2011
___________
Introduced by M. of A. D. MILLER, CERETTO, MONTESANO, McLAUGHLIN,
TENNEY, J. MILLER, BLANKENBUSH, FRIEND, KATZ, FITZPATRICK, LOSQUADRO
-- Multi-Sponsored by -- M. of A. GOODELL, HANNA, MURRAY -- read once
and referred to the Committee on Ways and Means -- recommitted to the
Committee on Ways and Means in accordance with Assembly Rule 3, sec. 2
-- committee discharged, bill amended, ordered reprinted as amended
and recommitted to said committee
AN ACT to amend the real property tax law, the general municipal law,
the education law and the legislative law, in relation to a property
tax cap and other mandated relief for local governments and locali-
ties; and to repeal section 3-c of the general municipal law and
section 2023-a of the education law relating to limitations on proper-
ty tax levies
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Article 9 of the real property tax law is amended by adding
a new title 2-A to read as follows:
TITLE 2-A
REAL PROPERTY TAX LIMITATION ACT
SECTION 916. LIMITATION ON LOCAL GOVERNMENT'S AND LOCALITY'S INCREASE IN
TAX LEVY.
917. TAX CAP OVERRIDE.
918. MERGER OR CONSOLIDATION OF TAX DISTRICTS.
S 916. LIMITATION ON LOCAL GOVERNMENT'S AND LOCALITY'S INCREASE IN TAX
LEVY. AS USED IN THIS ARTICLE THE TERM "LOCAL GOVERNMENT" OR "LOCALITY"
SHALL MEAN ANY COUNTY, CITY, TOWN, VILLAGE, SCHOOL DISTRICT OR ANY ENTI-
TY WITH TAXING AUTHORITY. (A) NOTWITHSTANDING ANY PROVISION OF LAW TO
THE CONTRARY, NO LOCAL GOVERNMENT OR LOCALITY MAY INCREASE ITS TAX LEVY
FOR ANY FISCAL YEAR COMMENCING ON OR AFTER THE DATE THE PROVISIONS OF
THIS SECTION SHALL HAVE BECOME A LAW OVER THE TAX LEVY FOR THE IMME-
DIATELY PRECEDING FISCAL YEAR. PROVIDED, HOWEVER, THE PROVISIONS OF
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10136-07-2
A. 6977--A 2
THIS SECTION SHALL NOT APPLY TO ANY INCREASES IN TAXES NECESSARY TO
SUPPORT PILOT OR PAYMENT IN LIEU OF TAXES AGREEMENTS, OR ANY PERSONAL
INJURY SETTLEMENTS THAT EXCEED FIVE PERCENT OF THE LOCALITY'S TOTAL
BUDGET.
(B) ANY STATE MANDATED EXPENDITURE IMPOSED ON A LOCALITY THAT WILL
EXCEED FIVE THOUSAND DOLLARS A YEAR IN SPENDING BY SUCH LOCALITY SHALL
BE FUNDED BY AND THROUGH THE STATE. FURTHER, ANY MANDATED EXPENDITURES
IMPOSED BY THE STATE ON ALL LOCALITIES WITHIN THE STATE THAT EXCEEDS
FIVE HUNDRED THOUSAND DOLLARS IN SPENDING IN THE AGGREGATE SHALL BE
FUNDED BY AND THROUGH THE STATE.
(C) 1. ALL PROGRAMS WHICH ARE CURRENTLY MANDATED BY STATE LAW AND
FUNDED BY AND THROUGH LOCAL AND MUNICIPAL MONIES SHALL BE REVIEWED FOR
EFFECTIVENESS. UPON REVIEW OF SUCH PROGRAMS LOCALITIES SHALL SUGGEST AND
NEGOTIATE WITH THE STATE AS TO WHICH PROGRAMS MAY BE TERMINATED DUE TO
INEFFECTIVENESS, RETAINED WITH FUNDING COSTS TO BE SHARED BETWEEN THE
STATE AND LOCALITY, SUCH SHARING TO BE AT THE DISCRETION OF THE LOCALI-
TY, OR RETAINED WITH ALL FUNDING COSTS TO BE COVERED BY AND THROUGH THE
OVERRIDE OF THE TAX LEVY OR THE STATE. PROGRAMS THAT ARE CHOSEN TO BE
TERMINATED SHALL BE SUNSET OVER A THREE YEAR PERIOD COMMENCING WITH THE
EFFECTIVE DATE OF THIS SECTION. ANY PROGRAM WHICH IS NOT TERMINATED AND
REMAINS OPERATIONAL IN THE LOCALITY SHALL BE FUNDED BY AND THROUGH STATE
MONIES OR THROUGH A COST SHARE ARRANGEMENT BETWEEN THE STATE AND LOCALI-
TY AT THE SOLE DISCRETION OF THE LOCALITY COMMENCING THE FIRST FISCAL
YEAR SUBSEQUENT TO SUCH PROGRAM'S EFFECTIVENESS REVIEW.
2. ANY EXCESS FUNDS OR REVENUES REMAINING AT THE LOCAL GOVERNMENT
LEVEL AFTER THE TERMINATION OF PROGRAMS SHALL BE DISBURSED DIRECTLY TO
THE TAXPAYERS IN THE LOCALITY IN A PRO RATA FASHION ALLOCATING MONIES
PROPORTIONALLY IN RELATION TO THE AMOUNT OF TAX PAID BY EACH INDIVIDUAL
TAXPAYER. LOCAL REVENUES FOR STATE-MANDATED PROGRAMS FOR WHICH COSTS
ARE ELIMINATED OR TRANSFERRED TO OR SHARED BY THE STATE SHALL BE REDUCED
AT THE LOCAL LEVEL IN AMOUNTS PROPORTIONAL TO THE AMOUNT OF LOCAL SPEND-
ING TRANSFERRED TO THE STATE, BY ACT OF THE LOCAL LEGISLATIVE BODY
GOVERNING SUCH TAX DISTRICTS.
S 917. TAX CAP OVERRIDE. LOCAL GOVERNMENTS SHALL BE ABLE TO OVERRIDE
THE TAX LEVY LIMITATION IMPOSED BY SECTION NINE HUNDRED SIXTEEN OF THIS
TITLE UPON A TWO-THIRDS MAJORITY VOTE OF THE LOCAL LEGISLATIVE BODY
GOVERNING SUCH TAX DISTRICTS.
S 918. MERGER OR CONSOLIDATION OF TAX DISTRICTS. FOR PURPOSES OF THIS
TITLE, WHEN TWO OR MORE TAX DISTRICTS MERGE OR CONSOLIDATE, THE AMOUNT
OF THE LAST PRECEDING TAX LEVY FOR EACH TAX DISTRICT SHALL BE AVERAGED
TO ESTABLISH THE LEVY FOR THE RESULTING MERGED OR CONSOLIDATED TAXING
DISTRICT. WHEN FINANCIAL RESPONSIBILITY FOR THE COST OF A SERVICE
PERFORMED BY ONE TAX DISTRICT IS TRANSFERRED TO ANOTHER TAX DISTRICT,
THAT PART OF THE TAX LEVY FOR SUCH PURPOSE SHALL BE TRANSFERRED AND
ADDED TO THE TAX LEVY OF THE TRANSFEREE TAX DISTRICT FOR PURPOSES OF
THIS TITLE AND SHALL BE DEDUCTED FROM THE TAX LEVY OF THE TRANSFEROR TAX
DISTRICT. THE STATE COMPTROLLER SHALL AUDIT AND CERTIFY THE TAX LEVIES
PERMITTED FOR MERGING AND CONSOLIDATING TAXING DISTRICTS UNDER THIS
SECTION.
S 2. Section 3-c of the general municipal law is REPEALED and a new
section 3-c is added to read as follows:
S 3-C. LIMITATION UPON REAL PROPERTY TAX LEVIES BY LOCAL GOVERNMENTS.
NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, COMMENCING
THE NEXT FISCAL YEAR AFTER THE EFFECTIVE DATE OF THIS SECTION THE AMOUNT
OF REAL PROPERTY TAXES THAT MAY BE LEVIED BY OR ON BEHALF OF ANY LOCAL
GOVERNMENT SHALL NOT EXCEED THE PRIOR FISCAL YEAR'S TAX LEVY. "PRIOR
A. 6977--A 3
FISCAL YEAR" MEANS THE FISCAL YEAR OF THE LOCAL GOVERNMENT AT THE TIME
THIS SECTION BECOMES EFFECTIVE. PROVIDED, HOWEVER LOCAL GOVERNMENTS
SHALL BE ABLE TO OVERRIDE THE TAX LEVY LIMITATION IMPOSED BY THIS
SECTION UPON A TWO-THIRDS MAJORITY VOTE OF THE LOCAL LEGISLATIVE BODY
GOVERNING SUCH TAX DISTRICTS.
S 3. Section 2023-a of the education law is REPEALED and a new section
2023-a is added to read as follows:
S 2023-A. LIMITATION UPON SCHOOL DISTRICT TAX LEVIES BY LOCAL GOVERN-
MENTS. 1. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY,
COMMENCING THE NEXT FISCAL YEAR AFTER THE EFFECTIVE DATE OF THIS SECTION
THE AMOUNT OF TAXES THAT MAY BE LEVIED BY OR ON BEHALF OF ANY SCHOOL
DISTRICT, SHALL NOT EXCEED THE PRIOR FISCAL YEAR'S TAX LEVY. "PRIOR
FISCAL YEAR" MEANS THE FISCAL YEAR OF THE SCHOOL DISTRICT AT THE TIME
THIS SECTION BECOMES EFFECTIVE.
2. IN ORDER TO INCREASE THE SCHOOL DISTRICT TAX LEVY, LOCAL GOVERN-
MENTS SHALL BE REQUIRED TO VOTE ON THE INCREASE.
A. IN CITIES WHERE THE SCHOOL BUDGET IS PART OF THE CITY BUDGET
AUTHORIZATION TO INCREASE THE TAX LEVY SHALL BE MADE UPON A TWO-THIRDS
MAJORITY VOTE OF THE CITY COUNCIL.
B. IN AREAS WHERE THE SCHOOL BUDGET IS APPROVED BY POPULAR VOTE
AUTHORIZATION TO INCREASE THE TAX LEVY SHALL BE MADE UPON A SIXTY
PERCENT VOTE OF THE MAJORITY OF THE QUALIFIED VOTERS PRESENT AND VOTING.
S 4. Section 50 of the legislative law, as added by chapter 503 of the
laws of 1971, is amended to read as follows:
S 50. Fiscal [note] NOTES in retirement AND ALL OTHER bills. 1. A bill
which enacts or amends any provision of law relating to a retirement
system or plan of the state of New York or of any of its political
subdivisions shall contain a fiscal note stating the estimated annual
cost to the employer affected and the source of such estimate.
2. ANY BILL OR LEGISLATION WITH A FISCAL IMPACT ON ANY PUBLIC OR
PRIVATE ENTITY SHALL BE REQUIRED TO CONTAIN A FISCAL NOTE STATING THE
ESTIMATED ANNUAL COSTS OF SUCH BILL BEFORE IT MAY BE VOTED ON BY THE
LEGISLATURE.
S 5. This act shall take effect immediately.