S. 5728--A 2
Section 1. Paragraph 3 of subdivision (a) of section 1212-a of the tax
law, as amended by chapter 338 of the laws of 2014, is amended to read
as follows:
(3) a tax, at the same uniform rate, but at a rate not to exceed four
and one-half per centum, in multiples of one-half of one per centum, on
the receipts from every sale of any or all of the following services in
whole or in part: credit rating, credit reporting, credit adjustment and
collection services, including, but not limited to, those services
provided by mercantile and consumer credit rating or reporting bureaus
or agencies and credit adjustment or collection bureaus or agencies,
whether rendered in written or oral form or in any other manner, except
to the extent otherwise taxable under article twenty-eight of this chap-
ter; notwithstanding the foregoing, collection services shall not
include those services performed by a law office or a law and collection
office, the maintenance or conduct of which constitutes the practice of
law, if the services are performed by an attorney at law who has been
duly licensed and admitted to practice law in this state. The local law
imposing the taxes authorized by this paragraph may provide for exclu-
sions and exemptions in addition to those provided for in such para-
graph. Provided, however, that the tax hereby authorized shall not be
imposed after November thirtieth, two thousand [seventeen] TWENTY.
§ 2. Subsection (a) of section 1301 of the tax law, as amended by
chapter 338 of the laws of 2014, is amended to read as follows:
(a) Notwithstanding any other provision of law to the contrary, any
city in this state having a population of one million or more inhabit-
ants, acting through its local legislative body, is hereby authorized
and empowered to adopt and amend local laws imposing in any such city,
for taxable years beginning after nineteen hundred seventy-five:
(1) a tax on the personal income of residents of such city, at the
rates provided for under subsection (a) of section thirteen hundred four
of this article for taxable years beginning before two thousand [eigh-
teen] TWENTY-ONE, and at the rates provided for under subsection (b) of
section thirteen hundred four of this article for taxable years begin-
ning after two thousand [seventeen] TWENTY, provided, however, that if,
for any taxable year beginning after two thousand [seventeen] TWENTY,
the rates set forth in such subsection (b) are rendered inapplicable and
the rates set forth in such subsection (a) are rendered applicable, then
the tax for such taxable year shall be at the rates provided under
subparagraph (A) of paragraphs one, two and three of such subsection
(a),
(2) for taxable years beginning after nineteen hundred seventy-six, a
separate tax on the ordinary income portion of lump sum distributions of
such residents, at the rates provided for herein, such taxes to be
administered, collected and distributed by the commissioner as provided
for in this article.
§ 3. Subsection (b) of section 1304 of the tax law, as amended by
chapter 338 of the laws of 2014, is amended to read as follows:
(b) A tax other than the city separate tax on the ordinary income
portion of lump sum distributions imposed pursuant to the authority of
section thirteen hundred one of this article shall be determined as
follows:
(1) Resident married individuals filing joint returns and resident
surviving spouses. The tax under this section for each taxable year on
the city taxable income of every city resident married individual who
makes a single return jointly with his or her spouse under subsection
(b) of section thirteen hundred six of this article and on the city
S. 5728--A 3
taxable income of every city resident surviving spouse shall be deter-
mined in accordance with the following table:
For taxable years beginning after two thousand [seventeen] TWENTY:
If the city taxable income is: The tax is:
Not over $21,600 1.18% of the city taxable income
Over $21,600 but not $255 plus 1.435% of excess
over $45,000 over $21,600
Over $45,000 but not $591 plus 1.455% of excess
over $90,000 over $45,000
Over $90,000 $1,245 plus 1.48% of excess
over $90,000
(2) Resident heads of households. The tax under this section for each
taxable year on the city taxable income of every city resident head of a
household shall be determined in accordance with the following table:
For taxable years beginning after two thousand [seventeen] TWENTY:
If the city taxable income is: The tax is:
Not over $14,400 1.18% of the city taxable income
Over $14,400 but not $170 plus 1.435% of excess
over $30,000 over $14,400
Over $30,000 but not $394 plus 1.455% of excess
over $60,000 over $30,000
Over $60,000 $830 plus 1.48% of excess
over $60,000
(3) Resident unmarried individuals, resident married individuals
filing separate returns and resident estates and trusts. The tax under
this section for each taxable year on the city taxable income of every
city resident individual who is not a city resident married individual
who makes a single return jointly with his or her spouse under
subsection (b) of section thirteen hundred six of this article or a city
resident head of household or a city resident surviving spouse, and on
the city taxable income of every city resident estate and trust shall be
determined in accordance with the following table:
For taxable years beginning after two thousand [seventeen] TWENTY:
If the city taxable income is: The tax is:
Not over $12,000 1.18% of the city taxable income
Over $12,000 but not $142 plus 1.435% of excess
over $25,000 over $12,000
Over $25,000 but not $328 plus 1.455% of excess
over $50,000 over $25,000
Over $50,000 $692 plus 1.48% of excess
over $50,000
§ 4. Subsection (a) of section 1304-B of the tax law, as amended by
chapter 338 of the laws of 2014, is amended to read as follows:
(a) (1) In addition to any other taxes authorized by this article, any
city imposing such taxes is hereby authorized and empowered to adopt and
amend local laws imposing in any such city for each taxable year begin-
ning after nineteen hundred ninety but before two thousand [eighteen]
TWENTY-ONE, an additional tax on the city taxable income of every city
S. 5728--A 4
resident individual, estate and trust, to be calculated for each taxable
year as follows: (i) for each taxable year beginning after nineteen
hundred ninety but before nineteen hundred ninety-nine, at the rate of
fourteen percent of the sum of the taxes for each such taxable year
determined pursuant to section thirteen hundred four and section thir-
teen hundred four-A of this article; and (ii) for each taxable year
beginning after nineteen hundred ninety-eight, at the rate of fourteen
percent of the tax for such taxable year determined pursuant to such
section thirteen hundred four.
(2) Notwithstanding paragraph one of this subsection, for each taxable
year beginning after nineteen hundred ninety-nine but before two thou-
sand [eighteen] TWENTY-ONE, any city imposing such additional tax may by
local law impose such tax at a rate that is less than fourteen percent
and may impose such tax at more than one rate depending upon the filing
status and city taxable income of such city resident individual, estate
or trust.
(3) A local law enacted pursuant to paragraph two of this subsection
shall be applicable with respect to any taxable year only if it has been
enacted on or before July thirty-first of such year. A certified copy of
such local law shall be mailed by registered mail to the department at
its office in Albany within fifteen days of its enactment. However, the
department may allow additional time for such certified copy to be
mailed if it deems such action to be consistent with its duties under
this article.
§ 5. Paragraph E of subdivision 1 of section 11-604 of the administra-
tive code of the city of New York, as amended by chapter 338 of the laws
of 2014, is amended to read as follows:
E. For taxable years beginning on or after January first, nineteen
hundred seventy-eight but before January first, two thousand [eighteen]
TWENTY-ONE, the tax imposed by subdivision one of section 11-603 of this
subchapter shall be, in the case of each taxpayer:
(a) whichever of the following amounts is the greatest:
(1) an amount computed, for taxable years beginning before nineteen
hundred eighty-seven, at the rate of nine per centum, and for taxable
years beginning after nineteen hundred eighty-six, at the rate of eight
and eighty-five one-hundredths per centum, of its entire net income or
the portion of such entire net income allocated within the city as here-
inafter provided, subject to any modification required by paragraphs (d)
and (e) of subdivision three of this section,
(2) an amount computed at one and one-half mills for each dollar of
its total business and investment capital, or the portion thereof allo-
cated within the city, as hereinafter provided, except that in the case
of a cooperative housing corporation as defined in the internal revenue
code, the applicable rate shall be four-tenths of one mill,
(3) an amount computed, for taxable years beginning before nineteen
hundred eighty-seven, at the rate of nine per centum, and for taxable
years beginning after nineteen hundred eighty-six, at the rate of eight
and eighty-five one-hundredths per centum, on thirty per centum of the
taxpayer's entire net income plus salaries and other compensation paid
to the taxpayer's elected or appointed officers and to every stockholder
owning in excess of five per centum of its issued capital stock minus
fifteen thousand dollars (subject to proration as hereinafter provided)
and any net loss for the reported year, or on the portion of any such
sum allocated within the city as hereinafter provided for the allocation
of entire net income, subject to any modification required by paragraphs
(d) and (e) of subdivision three of this section, provided, however,
S. 5728--A 5
that for taxable years beginning on or after July first, nineteen
hundred ninety-six, the provisions of paragraph H of this subdivision
shall apply for purposes of the computation under this clause, or
(4) for taxable years ending on or before June thirtieth, nineteen
hundred eighty-nine, one hundred twenty-five dollars, for taxable years
ending after June thirtieth, nineteen hundred eighty-nine and beginning
before two thousand nine, three hundred dollars, and for taxable years
beginning after two thousand eight:
If New York city receipts are: Fixed dollar minimum tax is:
Not more than $100,000 $25
More than $100,000 but not over $250,000 $75
More than $250,000 but not over $500,000 $175
More than $500,000 but not over $1,000,000 $500
More than $1,000,000 but not over $5,000,000 $1,500
More than $5,000,000 but not over $25,000,000 $3,500
Over $25,000,000 $5,000
For purposes of this clause, New York city receipts are the receipts
computed in accordance with subparagraph two of paragraph (a) of subdi-
vision three of this section for the taxable year. For taxable years
beginning after two thousand eight, if the taxable year is less than
twelve months, the amount prescribed by this clause shall be reduced by
twenty-five percent if the period for which the taxpayer is subject to
tax is more than six months but not more than nine months and by fifty
percent if the period for which the taxpayer is subject to tax is not
more than six months. If the taxable year is less than twelve months,
the amount of New York city receipts for purposes of this clause is
determined by dividing the amount of the receipts for the taxable year
by the number of months in the taxable year and multiplying the result
by twelve, plus;
(b) an amount computed at the rate of three-quarters of a mill for
each dollar of the portion of its subsidiary capital allocated within
the city as hereinafter provided.
In the case of a taxpayer which is not subject to tax for an entire
year, the exemption allowed in clause three of subparagraph (a) of this
paragraph shall be prorated according to the period such taxpayer was
subject to tax. Provided, however, that this paragraph shall not apply
to taxable years beginning after December thirty-first, two thousand
[seventeen] TWENTY. For the taxable years specified in the preceding
sentence, the tax imposed by subdivision one of section 11-603 of this
subchapter shall be, in the case of each taxpayer, determined as speci-
fied in paragraph A of this subdivision, provided, however, that the
provisions of paragraphs G and H of this subdivision shall apply for
purposes of the computation under clause three of subparagraph (a) of
such paragraph A.
§ 6. The opening paragraph of section 11-1701 of the administrative
code of the city of New York, as amended by chapter 338 of the laws of
2014, is amended to read as follows:
A tax is hereby imposed on the city taxable income of every city resi-
dent individual, estate and trust determined in accordance with the
rates set forth in subdivision (a) of this section for taxable years
beginning before two thousand [eighteen] TWENTY-ONE, and in accordance
with the rates set forth in subdivision (b) of this section for taxable
years beginning after two thousand [seventeen] TWENTY. Provided, howev-
er, that if, for any taxable year beginning after two thousand [seven-
teen] TWENTY, the rates set forth in such subdivision (b) are rendered
inapplicable and the rates set forth in such subdivision (a) are
S. 5728--A 6
rendered applicable, then the tax for such taxable year shall be at the
rates provided under subparagraph (A) of paragraphs one, two and three
of such subdivision (a).
§ 7. Subdivision (b) of section 11-1701 of the administrative code of
the city of New York, as amended by chapter 338 of the laws of 2014, is
amended to read as follows:
(b) Rate of tax. A tax imposed pursuant to this section shall be
determined as follows:
(1) Resident married individuals filing joint returns and resident
surviving spouses. The tax under this section for each taxable year on
the city taxable income of every city resident married individual who
makes a single return jointly with his or her spouse under subdivision
(b) of section 11-1751 of this title and on the city taxable income of
every city resident surviving spouse shall be determined in accordance
with the following table:
For taxable years beginning after two thousand [seventeen] TWENTY:
If the city taxable income is: The tax is:
Not over $21,600 1.18% of the city taxable income
Over $21,600 but not $255 plus 1.435% of excess
over $45,000 over $21,600
Over $45,000 but not $591 plus 1.455% of excess
over $90,000 over $45,000
Over $90,000 $1,245 plus 1.48% of excess
over $90,000
(2) Resident heads of households. The tax under this section for each
taxable year on the city taxable income of every city resident head of a
household shall be determined in accordance with the following table:
For taxable years beginning after two thousand [seventeen] TWENTY:
If the city taxable income is: The tax is:
Not over $14,400 1.18% of the city taxable income
Over $14,400 but not $170 plus 1.435% of excess
over $30,000 over $14,400
Over $30,000 but not $394 plus 1.455% of excess
over $60,000 over $30,000
Over $60,000 $830 plus 1.48% of excess
over $60,000
(3) Resident unmarried individuals, resident married individuals
filing separate returns and resident estates and trusts. The tax under
this section for each taxable year on the city taxable income of every
city resident individual who is not a married individual who makes a
single return jointly with his or her spouse under subdivision (b) of
section 11-1751 of this title or a city resident head of a household or
a city resident surviving spouse, and on the city taxable income of
every city resident estate and trust shall be determined in accordance
with the following table:
For taxable years beginning after two thousand [seventeen] TWENTY:
If the city taxable income is: The tax is:
Not over $12,000 1.18% of the city taxable income
Over $12,000 but not $142 plus 1.435% of excess
over $25,000 over $12,000
Over $25,000 but not $328 plus 1.455% of excess
S. 5728--A 7
over $50,000 over $25,000
Over $50,000 $692 plus 1.48% of excess
over $50,000
§ 8. Paragraph 1 of subdivision (a) of section 11-1704.1 of the admin-
istrative code of the city of New York, as amended by chapter 338 of the
laws of 2014, is amended to read as follows:
(1) In addition to any other taxes imposed by this chapter, there is
hereby imposed for each taxable year beginning after nineteen hundred
ninety but before two thousand [eighteen] TWENTY-ONE, an additional tax
on the city taxable income of every city resident individual, estate and
trust, to be calculated for each taxable year as follows: (i) for each
taxable year beginning after nineteen hundred ninety but before nineteen
hundred ninety-nine, at the rate of fourteen percent of the sum of the
taxes for each such taxable year determined pursuant to section 11-1701
and section 11-1704 of this subchapter; and (ii) for each taxable year
beginning after nineteen hundred ninety-eight, at the rate of fourteen
percent of the tax for such taxable year determined pursuant to such
section 11-1701.
§ 9. Subdivision (a) of section 11-2002 of the administrative code of
the city of New York, as amended by chapter 338 of the laws of 2014, is
amended to read as follows:
(a) There are hereby imposed and there shall be paid sales taxes at
the rate of four and one-half percent on receipts from every sale of the
services of beauty, barbering, hair restoring, manicuring, pedicuring,
electrolysis, massage services and similar services, and every sale of
services by weight control salons, health salons, gymnasiums, turkish
and sauna bath and similar establishments and every charge for the use
of such facilities, whether or not any tangible personal property is
transferred in conjunction therewith; but excluding services rendered by
a physician, osteopath, dentist, nurse, physiotherapist, chiropractor,
podiatrist, optometrist, ophthalmic dispenser or a person performing
similar services licensed under title eight of the education law, as
amended, and excluding such services when performed on pets and other
animals, as authorized by subdivision (a) of section twelve hundred
twelve-A of the tax law. Provided, however, that the tax hereby imposed
shall not be imposed after November thirtieth, two thousand [seventeen]
TWENTY.
§ 10. The opening paragraph of subdivision (a) of section 11-2040 of
the administrative code of the city of New York, as amended by chapter
338 of the laws of 2014, is amended to read as follows:
There is hereby imposed within the city and there shall be paid a tax
at the rate of four and one-half percent upon the receipts from every
sale, except for resale, of the following services, provided, however,
that the tax hereby imposed shall not be imposed after November thirti-
eth, two thousand [seventeen] TWENTY, on receipts from sales of the
services specified in paragraph one of this subdivision:
§ 11. Section 4 of chapter 877 of the laws of 1975, relating to the
imposition of certain taxes in the city of New York, as amended by chap-
ter 338 of the laws of 2014, is amended to read as follows:
§ 4. This act shall expire on December 31, [2017] 2020, provided,
however, that it is hereby declared to be the express intention of the
legislature that the provisions of sections two and three of this act,
except with respect to the enforcement and collection of any tax arising
thereunder, shall remain in full force and effect only until the date of
such expiration, at which time the provisions of law amended by this act
S. 5728--A 8
shall be continued in full force and effect as they existed prior to the
enactment of this act.
§ 12. Section 6 of chapter 884 of the laws of 1975, relating to the
imposition of certain taxes in the city of New York, as amended by chap-
ter 338 of the laws of 2014, is amended to read as follows:
§ 6. This act shall expire on December 31, [2017] 2020, provided,
however, that it is hereby declared to be the express intention of the
legislature that the provisions of sections two, three and four of this
act, except with respect to the enforcement and collection of any tax
arising thereunder, shall remain in full force and effect only until the
date of such expiration, at which time the provisions of law amended by
this act shall be continued in full force and effect as they existed
prior to the enactment of this act.
§ 13. Section 2 of chapter 882 of the laws of 1977, relating to the
imposition of certain taxes in the city of New York, as amended by chap-
ter 338 of the laws of 2014, is amended to read as follows:
§ 2. This act shall expire on December 31, [2017] 2020, provided,
however, that it is hereby declared to be the express intention of the
legislature that the provisions of section one of this act, except with
respect to the enforcement and collection of any tax arising thereunder,
shall remain in full force and effect only until the date of such expi-
ration, at which time the provisions of law amended by this act shall be
continued in full force and effect as they existed prior to the enact-
ment of this act.
§ 14. This act shall take effect immediately.
PART B
Section 1. The general municipal law is amended by adding a new
section 3-e to read as follows:
§ 3-E. 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.
(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
S. 5728--A 9
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
EIGHTEEN, 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.
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-
S. 5728--A 10
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.
§ 2. Paragraphs j and k of subdivision 2 of section 23 of the munici-
pal home rule law are relettered paragraphs 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-E OF THE GENERAL MUNICIPAL LAW.
§ 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 2018.
§ 2. Severability clause. If any clause, sentence, paragraph, subdivi-
sion, section or part of this act shall be adjudged by any court of
competent jurisdiction to be invalid, such judgment shall not affect,
impair, or invalidate the remainder thereof, but shall be confined in
its operation to the clause, sentence, paragraph, subdivision, section
or part thereof directly involved in the controversy in which such judg-
ment shall have been rendered. It is hereby declared to be the intent of
the legislature that this act would have been enacted even if such
invalid provisions had not been included herein.
§ 3. This act shall take effect immediately, provided, however, that
the applicable effective date of Parts A through B of this act shall be
as specifically set forth in the last section of such Parts.