S T A T E O F N E W Y O R K
________________________________________________________________________
991
2019-2020 Regular Sessions
I N A S S E M B L Y
January 14, 2019
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Introduced by M. of A. CUSICK, MALLIOTAKIS, BARNWELL -- read once and
referred to the Committee on Ways and Means
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-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.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00106-01-9
A. 991 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
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-
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.
A. 991 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.
§ 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 2020.