S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5639
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 14, 2017
                                ___________
 
 Introduced  by  M.  of  A.  KOLB, HAWLEY, BUTLER, MONTESANO, RAIA, GRAF,
   BLANKENBUSH, OAKS, DiPIETRO -- Multi-Sponsored by -- M. of A.  CROUCH,
   McLAUGHLIN  --  read  once  and  referred to the Committee on Ways and
   Means
 
 AN ACT to amend the general municipal law  and  the  education  law,  in
   relation  to  the  real  property  tax  cap;  and  to  repeal  certain
   provisions of such laws relating thereto
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.    Legislative intent. The legislature finds that when the
 property tax cap was first enacted in 2011 that tangible mandate  relief
 is  needed  to  be coupled with the cap in order to significantly reduce
 property taxes.  Since enactment, no substantial mandate relief has been
 introduced and property taxes throughout the state continue to be  high.
 The  property tax cap has kept the growth in property taxes down but has
 done little in helping with providing the necessary relief  to  property
 owners. On the other hand, without mandate relief, local governments and
 school districts have been squeezed financially. They are now limited to
 a  tax  cap  that  is tied to the Consumer Price Index (CPI) that has in
 recent years been low. This has  forced  local  governments  and  school
 districts to struggle with budget concerns and a potential tax cap over-
 ride.    However,  the  current  lack of taxpayer appetite for a tax cap
 override at the school district level has  forced  school  districts  to
 potentially  cut  services  in  order  to  pay  for  under  and unfunded
 mandates. This bill would create a true two percent property tax cap  by
 removing  the  property  tax cap being tied to CPI and would allow for a
 simple majority vote to override the  cap.  The  legislature  recognizes
 that had real mandate relief been enacted when the cap was first enacted
 these  changes  would  not  have been needed. Further, these two changes
 would also make New York's property tax cap consistent with  neighboring
 state's  property tax caps. A true two percent cap would create predict-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD03330-01-7

 A. 5639                             2
 
 ability and fairness to local governments and school districts. Finally,
 this bill would provide  state  aid  to  local  governments  and  school
 districts  equal  to  the year-to-year increase in levy growth under the
 property  tax  cap; therefore keeping property taxes flat for homeowners
 and small businesses.
   § 2. Paragraph (a) of subdivision 2 of  section  3-c  of  the  general
 municipal law, as added by section 1 of part A of chapter 97 of the laws
 of 2011, is amended to read as follows:
   (a)  "Allowable  levy  growth  factor"  shall be [the lesser of:  (i)]
 EQUAL TO 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].
   § 3. Paragraph (d) of subdivision 2 of  section  3-c  of  the  general
 municipal law is REPEALED.
   §  4.  Paragraph a of subdivision 2 of section 2023-a of the education
 law, as added by section 2 of part A of chapter 97 of the laws of  2011,
 is amended to read as follows:
   a. "Allowable levy growth factor" shall be [the lesser of:  (i)] EQUAL
 TO  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].
   §  5.  Paragraph f of subdivision 2 of section 2023-a of the education
 law is REPEALED.
   § 6. Subdivision 5 of section 3-c of the  general  municipal  law,  as
 added  by  section  1  of  part  A of chapter 97 of the laws of 2011, is
 amended to read as follows:
   5. A local government may adopt a budget that requires a tax levy that
 is greater than the tax levy limit  for  the  coming  fiscal  year,  not
 including  any  levy  necessary  to support the expenditures pursuant to
 subparagraphs (i) through (iv) of paragraph [g] (G) of  subdivision  two
 of  this  section,  only  if the governing body of such local government
 first enacts, by a vote of [sixty] MORE THAN FIFTY percent of the  total
 voting  power  of such body, a local law to override such limit for such
 coming fiscal year only, or in the case of a district or fire  district,
 a  resolution,  approved  by a vote of sixty percent of the total voting
 power of such body, to override such limit for such coming  fiscal  year
 only.
   § 7. Subdivision 6 of section 2023-a of the education law, as added by
 section  2  of  part  A of chapter 97 of the laws of 2011, is amended to
 read as follows:
   6. (a) Notwithstanding any other provision of law to the contrary,  in
 the  event  the  trustee,  trustees  or  board  of education of a school
 district that is subject to the provisions of this  section  proposes  a
 budget  that will require a tax levy that exceeds the tax levy limit for
 the corresponding school year,  not  including  any  levy  necessary  to
 support  the  expenditures pursuant to subparagraphs (i) through (iv) of
 paragraph i of subdivision two of this section, then such  budget  shall
 be approved if [sixty] MORE THAN FIFTY percent of the votes cast thereon
 are in the affirmative.
   (b) Where the trustee, trustees or board of education proposes a budg-
 et subject to the requirements of paragraph (a) of this subdivision, the
 ballot for such budget shall include the following statement in substan-
 tially  the  same  form:  "Adoption  of  this budget requires a tax levy
 increase of         which exceeds the statutory tax levy increase  limit
 of       for this school fiscal year and therefore exceeds the state tax

 A. 5639                             3
 
 cap and must be approved by [sixty] MORE THAN FIFTY percent of the qual-
 ified voters present and voting."
   § 8. Subdivision 9 of section 2023-a of the education law, as added by
 section  2  of  part  A of chapter 97 of the laws of 2011, is amended to
 read as follows:
   9. Nothing in this section shall preclude the  trustee,  trustees,  or
 board  of  education  of  a  school  district, in their discretion, from
 submitting additional items of expenditures to the voters  for  approval
 as  separate  propositions  or  the  voters from submitting propositions
 pursuant to sections two thousand eight and two thousand thirty-five  of
 this part; provided however, except in the case of a proposition submit-
 ted  for any expenditure contained within subparagraphs (i) through (iv)
 of paragraph i of subdivision two of this section, if  any  proposition,
 or  propositions  collectively  that  are  subject to a vote on the same
 date, would require an expenditure of money that  would  require  a  tax
 levy  and  would  result  in  the  tax levy limit being exceeded for the
 corresponding school year then such proposition  shall  be  approved  if
 [sixty]  MORE  THAN  FIFTY  percent of the votes cast thereon are in the
 affirmative.
   § 9. Section 3-c of the general municipal law is amended by  adding  a
 new subdivision 8 to read as follows:
   8. A LOCAL GOVERNMENT SHALL RECEIVE STATE AID IF SUCH LOCAL GOVERNMENT
 ADOPTS  A BUDGET THAT IS EQUAL TO OR LOWER THAN THE TAX LEVY LIMIT. SUCH
 STATE AID WOULD BE EQUAL TO A LOCAL  GOVERNMENT'S  YEAR-TO-YEAR  ADOPTED
 LEVY INCREASE WITHIN THE TAX LEVY LIMIT. IN NO EVENT SHALL THE STATE AID
 FOR  A  LOCAL  GOVERNMENT  EXCEED  THE  ALLOWABLE  LEVY GROWTH FACTOR AS
 DEFINED IN PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION.
   § 10. Section 2023-a of the education law is amended by adding  a  new
 subdivision 10 to read as follows:
   10.  A SCHOOL DISTRICT SHALL RECEIVE STATE AID IF SUCH SCHOOL DISTRICT
 ADOPTS A BUDGET THAT IS EQUAL TO OR LOWER THAN THE TAX LEVY LIMIT.  SUCH
 STATE  AID  WOULD  BE  EQUAL TO A SCHOOL DISTRICT'S YEAR-TO-YEAR ADOPTED
 LEVY INCREASE WITHIN THE TAX LEVY LIMIT. IN NO EVENT SHALL THE STATE AID
 FOR A SCHOOL DISTRICT EXCEED THE ALLOWABLE LEVY GROWTH FACTOR AS DEFINED
 IN PARAGRAPH A OF SUBDIVISION TWO OF THIS SECTION.
   § 11. This act shall take effect immediately; provided, however,  that
 the  amendments  to section 3-c of the general municipal law and section
 2023-a of the education law made by  sections  two,  four,  six,  seven,
 eight,  nine  and  ten  of  this act shall not affect the repeal of such
 sections and shall expire and be deemed repealed therewith.