Bill Text: NY A00991 | 2019-2020 | General Assembly | Introduced


Bill Title: Limits, in cities having a population of one million or more, the annual increase in real property taxes.

Spectrum: Bipartisan Bill

Status: (Introduced) 2019-01-14 - referred to ways and means [A00991 Detail]

Download: New_York-2019-A00991-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                           991
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 14, 2019
                                       ___________
        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:
     1    Section  1.  The  general  municipal  law  is  amended by adding a new
     2  section 3-e to read as follows:
     3    § 3-e. Limitation upon real property tax levies  by  cities  having  a
     4  population of one million or more.  1. Unless otherwise provided by law,
     5  the  amount of real property taxes that may be levied by or on behalf of
     6  any city having a population of one million or more shall not exceed the
     7  tax levy limitation established pursuant to this section.
     8    2. When used in this section:
     9    (a) "Allowable levy growth factor" shall be the lesser of: (i) one and
    10  two one-hundredths; or (ii) the sum of one plus  the  inflation  factor;
    11  provided,  however, that in no case shall the levy growth factor be less
    12  than one.
    13    (b) "Approved capital expenditures" means the expenditures  associated
    14  with capital projects that have been approved by the qualified voters of
    15  the local government.
    16    (c) "Available carryover" means the sum of the amount by which the tax
    17  levy  for  the  prior  fiscal year was below the tax levy limit for such
    18  fiscal year, if any, but no more than one and one-half  percent  of  the
    19  tax levy limit for such fiscal year.
    20    (d) "Capital tax levy" means the tax levy necessary to support capital
    21  expenditures, if any.
    22    (e) "Coming fiscal year" means the fiscal year of the local government
    23  for  which  a  tax  levy limitation shall be determined pursuant to this
    24  section.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00106-01-9

        A. 991                              2
     1    (f) "Inflation factor" means the quotient of: (i) the average  of  the
     2  national  consumer price indexes determined by the United States depart-
     3  ment of labor for the twelve-month period ending six months prior to the
     4  start of the coming fiscal  year  minus  the  average  of  the  national
     5  consumer  price  indexes  determined  by the United States department of
     6  labor for the twelve-month period ending six months prior to  the  start
     7  of  the  prior fiscal year, divided by: (ii) the average of the national
     8  consumer price indexes determined by the  United  States  department  of
     9  labor  for  the twelve-month period ending six months prior to the start
    10  of the prior fiscal year, with the result expressed as a decimal to four
    11  places.
    12    (g) "Local government" means a city having a population of one million
    13  or more.
    14    (h) "Prior fiscal year" means the fiscal year of the local  government
    15  immediately preceding the coming fiscal year.
    16    (i) "Tax levy limitation" means the amount of taxes a local government
    17  is  authorized to levy pursuant to this section, provided, however, that
    18  the tax levy limit shall not include  the  local  government's  approved
    19  capital tax levy, if any.
    20    3.  (a)  Beginning  with  the  fiscal year that begins in two thousand
    21  twenty, no local government shall adopt a budget  that  requires  a  tax
    22  levy  that is greater than the tax levy limitation for the coming fiscal
    23  year.
    24    (b) The state comptroller shall calculate the tax levy limitation  for
    25  each  local  government  by  the one hundred twentieth day preceding the
    26  commencement of each local government's fiscal year,  and  shall  notify
    27  each local government of the tax levy limitation so determined.
    28    (c) The tax levy limitation applicable to the coming fiscal year shall
    29  be determined as follows:
    30    (i)  Ascertain  the  total amount of taxes levied for the prior fiscal
    31  year.
    32    (ii) Add any payments in lieu of taxes that  were  receivable  in  the
    33  prior fiscal year.
    34    (iii)  Subtract  the  approved  capital  tax levy for the prior fiscal
    35  year, if any.
    36    (iv) Subtract the levy attributable to a large legal settlement  of  a
    37  tort  action excluded from the levy limitation in the prior fiscal year,
    38  if any.
    39    (v) Multiply the result by the allowable levy growth factor.
    40    (vi) Subtract any payments in lieu of taxes receivable in  the  coming
    41  fiscal year.
    42    (vii) Add the available carryover, if any.
    43    (d) In the event the city council of a local government has approved a
    44  legal  settlement  of  a  tort action against the government, the annual
    45  costs of which exceed ten percent of the property taxes  levied  by  the
    46  local  government  in the prior fiscal year, the state comptroller, upon
    47  application by the local government, may adjust the tax levy  limitation
    48  for  the  coming  fiscal  year  applicable  to such local government, by
    49  adding the annual costs of such settlement to the tax levy limitation.
    50    (e) The state comptroller shall determine the portion of the tax  levy
    51  of  each  local  government  that  is  attributable  to  any increase or
    52  decrease over the prior year in the cost of the local  government  share
    53  of  direct cash assistance to persons eligible for the federal-state-lo-
    54  cal temporary assistance to needy families program  or  the  state-local
    55  safety  net  assistance program and shall adjust the tax levy limitation
    56  for such local government to reflect such change.

        A. 991                              3
     1    4. A local government may adopt a budget that requires a tax levy that
     2  is greater than the tax levy limitation for the coming fiscal year  only
     3  if  the  city  council  of such local government first enacts, by a two-
     4  thirds vote of the total voting power of such city council, a local  law
     5  to override such limitation for such coming fiscal year only.
     6    5.  In  the  event  a  local  government's actual tax levy for a given
     7  fiscal year exceeds the maximum allowable levy as  established  pursuant
     8  to  this  section due to clerical or technical errors, the local govern-
     9  ment shall place the excess amount of the levy in reserve in  accordance
    10  with such requirements as the state comptroller may prescribe, and shall
    11  use  such  funds  and any interest earned thereon to offset the tax levy
    12  for the ensuing fiscal year.
    13    § 2. Paragraphs j and k of subdivision 2 of section 23 of the  munici-
    14  pal home rule law are relettered paragraphs k and l, and a new paragraph
    15  j is added to read as follows:
    16    j.  Overrides the tax levy limitation applicable for the coming fiscal
    17  year in accordance with section three-e of the general municipal law.
    18    §  3.  This act shall take effect immediately and shall first apply to
    19  the levy of taxes by local governments for the fiscal year  that  begins
    20  in 2020.
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