S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7464
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                                May 6, 2019
                                ___________
 
 Introduced  by  M.  of  A.  MALLIOTAKIS -- read once and referred to the
   Committee on Real Property Taxation
 
 AN ACT to amend the real property tax law and the general municipal law,
   in relation to property taxes in a  city  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. Subdivision 1 of section 1805 of the real property tax  law
 is amended by adding a new paragraph (h) to read as follows:
   (H)  PROVIDED FURTHER, THIS SUBDIVISION SHALL NOT APPLY TO THE ASSESS-
 MENT ROLL OF A SPECIAL ASSESSING UNIT WHOLLY  CONTAINED  WITHIN  A  CITY
 WITH A POPULATION OF ONE MILLION OR MORE.
   §  2.  The  real  property  tax law is amended by adding a new section
 467-l to read as follows:
   § 467-L. REAL PROPERTY TAX CAP FOR CERTAIN PERSONS  WHO  RESIDE  IN  A
 CITY  WITH A POPULATION OF ONE MILLION OR MORE. 1. REAL PROPERTY LOCATED
 IN A CITY WITH A POPULATION OF ONE MILLION OR MORE AND IS OWNED  BY  ONE
 OR MORE PERSONS, MAY BE SUBJECT TO A REAL PROPERTY TAX CAP.
   2. PROPERTY SHALL BE ELIGIBLE FOR A TAX CAP IF:
   (A)  THE  INCOME  OF THE OWNER OR THE COMBINED INCOME OF THE OWNERS OF
 THE PROPERTY FOR THE INCOME TAX YEAR IMMEDIATELY PRECEDING THE  DATE  OF
 MAKING  APPLICATION  FOR  THE  CAP SHALL EQUAL THE INCOME QUALIFICATIONS
 ESTABLISHED BY SUBDIVISION FOUR OF SECTION FOUR HUNDRED  TWENTY-FIVE  OF
 THIS TITLE.
   (B)  THE  TITLE OF THE PROPERTY SHALL HAVE BEEN VESTED IN THE OWNER OR
 ONE OF THE OWNERS OF THE PROPERTY FOR NOT LESS THAN TWENTY  YEARS  PRIOR
 TO  THE DATE OF MAKING APPLICATION FOR A CAP, PROVIDED, HOWEVER, THAT IF
 AS THE RESULT OF THE DEATH OF A SPOUSE IN WHOSE NAME TITLE OF THE  PROP-
 ERTY  WAS VESTED AT THE TIME OF DEATH THE PROPERTY BECOMES VESTED SOLELY
 IN THE SURVIVOR BY VIRTUE OF DEVISE BY  OR  DESCENT  FROM  THE  DECEASED
 SPOUSE,  THE  TIME  OF  OWNERSHIP OF THE PROPERTY BY THE DECEASED SPOUSE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD09772-01-9

 A. 7464                             2
 
 SHALL BE DEEMED ALSO A TIME OF OWNERSHIP BY THE SURVIVOR AND SUCH OWNER-
 SHIP SHALL BE DEEMED CONTINUOUS FOR THE PURPOSES OF COMPUTING SUCH PERI-
 OD OF THIRTY-SIX CONSECUTIVE MONTHS. IN THE EVENT OF  A  TRANSFER  BY  A
 SPOUSE  TO THE OTHER SPOUSE OF ALL OR PART OF THE TITLE TO THE PROPERTY,
 THE TIME OF OWNERSHIP OF THE PROPERTY BY THE TRANSFEROR SPOUSE SHALL  BE
 DEEMED ALSO A TIME OF OWNERSHIP BY THE TRANSFEREE SPOUSE AND SUCH OWNER-
 SHIP SHALL BE DEEMED CONTINUOUS FOR THE PURPOSES OF COMPUTING SUCH PERI-
 OD  OF  THIRTY-SIX  CONSECUTIVE  MONTHS. PROVIDED, FURTHER, THAT WHERE A
 PERSON IS THE OWNER OF A PRESENT INTEREST  IN  A  PARCEL  UNDER  A  LIFE
 ESTATE,  OR  IS  A VENDEE IN POSSESSION UNDER AN INSTALLMENT CONTRACT OF
 SALE, OR IS A BENEFICIAL OWNER UNDER A TRUST, OR RESIDES PRIMARILY IN  A
 DWELLING  WHICH IS OWNED BY A CORPORATION OR PARTNERSHIP BUT IS NONETHE-
 LESS ELIGIBLE FOR A CAP, AND THAT PERSON HAS APPLIED FOR AND BEEN GRANT-
 ED A CAP PURSUANT TO THIS SECTION, THAT PERSON SHALL BE DEEMED TO BE THE
 OWNER OF THE PARCEL FOR PURPOSES OF THIS SECTION.
   (C)  THE  PROPERTY  IS  USED  EXCLUSIVELY  FOR  RESIDENTIAL  PURPOSES,
 PROVIDED, HOWEVER, THAT IN THE EVENT ANY PORTION OF SUCH PROPERTY IS NOT
 SO  USED  EXCLUSIVELY  FOR  RESIDENTIAL  PURPOSES  BUT IS USED FOR OTHER
 PURPOSES, SUCH PORTION SHALL BE SUBJECT TO TAXATION  AND  THE  REMAINING
 PORTION ONLY SHALL BE ENTITLED TO A CAP PROVIDED BY THIS SECTION.
   (D)  THE  REAL  PROPERTY  IS THE LEGAL RESIDENCE OF AND IS OCCUPIED IN
 WHOLE OR IN PART BY THE OWNER OR BY ALL OF THE OWNERS OF  THE  PROPERTY,
 PROVIDED THAT AN OWNER WHO IS ABSENT WHILE RECEIVING HEALTH-RELATED CARE
 AS  AN  INPATIENT  OF  A RESIDENTIAL HEALTH CARE FACILITY, AS DEFINED IN
 SECTION TWENTY-EIGHT HUNDRED ONE OF THE  PUBLIC  HEALTH  LAW,  SHALL  BE
 DEEMED  TO REMAIN A LEGAL RESIDENT AND AN OCCUPANT OF THE PROPERTY WHILE
 SO CONFINED AND INCOME ACCRUING TO THAT PERSON SHALL BE INCOME  ONLY  TO
 THE  EXTENT  THAT  IT  EXCEEDS THE AMOUNT PAID BY SUCH OWNER, SPOUSE, OR
 CO-OWNER FOR CARE IN THE FACILITY; AND  PROVIDED  FURTHER,  THAT  DURING
 SUCH  CONFINEMENT SUCH PROPERTY IS NOT OCCUPIED BY OTHER THAN THE SPOUSE
 OR CO-OWNER OF SUCH OWNER.
   3. BEGINNING WITH THE TWO THOUSAND TWENTY  FISCAL  YEAR,  AN  ELIGIBLE
 PERSON  RESIDING  IN A CITY WITH A POPULATION OF ONE MILLION OR MORE MAY
 APPLY FOR A REAL PROPERTY TAX CAP. THE REAL PROPERTY TAX CAP SHALL EQUAL
 TEN PERCENT OF A HOUSEHOLD'S INCOME FOR THE TAXABLE YEAR.
   4. APPLICATION FOR SUCH CAP MUST BE MADE BY THE OWNER, OR ALL  OF  THE
 OWNERS  OF  THE  PROPERTY, ON FORMS PRESCRIBED BY THE COMMISSIONER TO BE
 FURNISHED BY THE APPROPRIATE ASSESSING AUTHORITY AND SHALL  FURNISH  THE
 INFORMATION AND BE EXECUTED IN THE MANNER REQUIRED OR PRESCRIBED IN SUCH
 FORMS,  AND  SHALL  BE  FILED IN SUCH ASSESSOR'S OFFICE ON OR BEFORE THE
 APPROPRIATE TAXABLE STATUS DATE.
   5. (A) AT LEAST SIXTY DAYS PRIOR TO  THE  APPROPRIATE  TAXABLE  STATUS
 DATE,  THE ASSESSING AUTHORITY SHALL MAIL TO EACH PERSON WHO WAS GRANTED
 A CAP PURSUANT TO THIS SECTION ON THE LATEST COMPLETED  ASSESSMENT  ROLL
 AND APPLICATION FORM AND A NOTICE THAT SUCH APPLICATION MUST BE FILED ON
 OR  BEFORE  THE TAXABLE STATUS DATE AND BE APPROVED IN ORDER FOR THE CAP
 TO BE GRANTED. THE ASSESSING AUTHORITY SHALL, WITHIN THREE DAYS  OF  THE
 COMPLETION  AND  FILING OF THE TENTATIVE ASSESSMENT ROLL, NOTIFY BY MAIL
 ANY APPLICANT WHO HAS INCLUDED WITH HIS OR HER APPLICATION AT LEAST  ONE
 SELF-ADDRESSED,  PREPAID  ENVELOPE,  OF  THE  APPROVAL  OR DENIAL OF THE
 APPLICATION; PROVIDED, HOWEVER, THAT THE ASSESSING AUTHORITY SHALL, UPON
 THE RECEIPT AND FILING OF THE APPLICATION, SEND BY MAIL NOTIFICATION  OF
 RECEIPT TO ANY APPLICANT WHO HAS INCLUDED TWO OF SUCH ENVELOPES WITH THE
 APPLICATION. WHERE AN APPLICANT IS ENTITLED TO A NOTICE OF DENIAL PURSU-
 ANT  TO  THIS  SUBDIVISION, SUCH NOTICE SHALL BE ON A FORM PRESCRIBED BY
 THE STATE BOARD AND SHALL STATE THE REASONS FOR SUCH  DENIAL  AND  SHALL

 A. 7464                             3
 
 FURTHER STATE THAT THE APPLICANT MAY HAVE SUCH DETERMINATION REVIEWED IN
 THE MANNER PROVIDED BY LAW.
   (B) AN OWNER ELIGIBLE FOR THE CAP MAY REQUEST THAT A NOTICE BE SENT TO
 AN ADULT THIRD PARTY. SUCH REQUEST SHALL BE MADE ON A FORM PRESCRIBED BY
 THE  STATE BOARD AND SHALL BE SUBMITTED TO THE ASSESSOR OF THE ASSESSING
 UNIT IN WHICH THE ELIGIBLE TAXPAYER RESIDES NO  LATER  THAN  SIXTY  DAYS
 BEFORE  THE FIRST TAXABLE STATUS DATE TO WHICH IT IS TO APPLY. SUCH FORM
 SHALL PROVIDE A SECTION WHEREBY THE DESIGNATED THIRD PARTY SHALL CONSENT
 TO SUCH DESIGNATION. SUCH REQUEST SHALL BE EFFECTIVE UPON RECEIPT BY THE
 ASSESSOR. THE ASSESSOR SHALL MAINTAIN A LIST OF  ALL  ELIGIBLE  PROPERTY
 OWNERS WHO HAVE REQUESTED NOTICES PURSUANT TO THIS SUBDIVISION.
   (C)  A  NOTICE  SHALL  BE  SENT TO THE DESIGNATED THIRD PARTY AT LEAST
 THIRTY DAYS PRIOR TO EACH ENSUING TAXABLE STATUS DATE; PROVIDED THAT  NO
 SUCH  NOTICE  NEED  BE  SENT  IN  THE  FIRST YEAR IF THE REQUEST WAS NOT
 RECEIVED BY THE ASSESSOR AT LEAST SIXTY DAYS BEFORE THE APPLICABLE TAXA-
 BLE STATUS DATE. SUCH NOTICE SHALL READ SUBSTANTIALLY AS FOLLOWS:
   "ON BEHALF OF (IDENTIFY PERSON OR PERSONS ELIGIBLE FOR THE  CAP),  YOU
 ARE  ADVISED THAT HIS, HER, OR THEIR RENEWAL APPLICATION FOR THE TAX CAP
 MUST BE FILED WITH THE ASSESSOR NO LATER  THAN  (ENTER  DATE).  YOU  ARE
 ENCOURAGED  TO  REMIND  HIM,  HER,  OR  THEM  OF THAT FACT, AND TO OFFER
 ASSISTANCE IF NEEDED, ALTHOUGH YOU ARE UNDER NO LEGAL OBLIGATION  TO  DO
 SO. YOUR COOPERATION AND ASSISTANCE ARE GREATLY APPRECIATED."
   (D)  THE  OBLIGATION  TO MAIL SUCH NOTICES SHALL CEASE IF THE ELIGIBLE
 TAXPAYER CANCELS THE REQUEST OR CEASES TO QUALIFY FOR THE TAX CAP.
   (E) FAILURE TO MAIL ANY NOTICE REQUIRED BY THIS  SUBDIVISION,  OR  THE
 FAILURE OF A PARTY TO RECEIVE SAME, SHALL NOT AFFECT THE VALIDITY OF THE
 LEVY,  COLLECTION,  OR  ENFORCEMENT  OF  TAXES ON PROPERTY OWNED BY SUCH
 PERSON, OR IN THE CASE OF A THIRD PARTY NOTICE, ON PROPERTY OWNED BY THE
 PERSON OR PERSONS ELIGIBLE FOR A TAX CAP.
   6. ANY CONVICTION OF HAVING MADE ANY WILLFUL FALSE  STATEMENT  IN  THE
 APPLICATION FOR SUCH CAP, SHALL BE PUNISHABLE BY A FINE OF NOT MORE THAN
 ONE  HUNDRED  DOLLARS  AND  SHALL DISQUALIFY THE APPLICANT OR APPLICANTS
 FROM FURTHER TAX CAP.
   § 3. 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.

 A. 7464                             4
 
   (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
 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
 TWENTY,  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-

 A. 7464                             5

 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-
 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.
   § 4. 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.
   § 5. 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 2020.