Bill Text: NY A04145 | 2019-2020 | General Assembly | Introduced


Bill Title: Relates to the real property tax cap; removes the current required school district override super majority vote.

Spectrum: Partisan Bill (Republican 7-0)

Status: (Introduced - Dead) 2020-07-17 - held for consideration in ways and means [A04145 Detail]

Download: New_York-2019-A04145-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          4145
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 1, 2019
                                       ___________
        Introduced  by  M.  of  A.  KOLB,  HAWLEY, MONTESANO, RAIA, BLANKENBUSH,
          DiPIETRO -- Multi-Sponsored by -- M. of A. CROUCH  --  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:
     1    Section 1.  Legislative intent. The legislature finds  that  when  the
     2  property  tax cap was first enacted in 2011 that tangible mandate relief
     3  is needed to be coupled with the cap in order  to  significantly  reduce
     4  property taxes.  Since enactment, no substantial mandate relief has been
     5  introduced  and property taxes throughout the state continue to be high.
     6  The property tax cap has kept the growth in property taxes down but  has
     7  done  little  in helping with providing the necessary relief to property
     8  owners. On the other hand, without mandate relief, local governments and
     9  school districts have been squeezed financially. They are now limited to
    10  a tax cap that is tied to the Consumer Price Index  (CPI)  that  has  in
    11  recent  years  been  low.  This  has forced local governments and school
    12  districts to struggle with budget concerns and a potential tax cap over-
    13  ride.  However, the current lack of taxpayer  appetite  for  a  tax  cap
    14  override  at  the  school  district level has forced school districts to
    15  potentially cut  services  in  order  to  pay  for  under  and  unfunded
    16  mandates.  This bill would create a true two percent property tax cap by
    17  removing the property tax cap being tied to CPI and would  allow  for  a
    18  simple  majority  vote  to  override the cap. The legislature recognizes
    19  that had real mandate relief been enacted when the cap was first enacted
    20  these changes would not have been needed.  Further,  these  two  changes
    21  would  also make New York's property tax cap consistent with neighboring
    22  state's property tax caps. A true two percent cap would create  predict-
    23  ability and fairness to local governments and school districts. Finally,
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04180-01-9

        A. 4145                             2
     1  this  bill  would  provide  state  aid  to  local governments and school
     2  districts equal to the year-to-year increase in levy  growth  under  the
     3  property  tax  cap; therefore keeping property taxes flat for homeowners
     4  and small businesses.
     5    §  2.  Paragraph  (a)  of  subdivision 2 of section 3-c of the general
     6  municipal law, as added by section 1 of part A of chapter 97 of the laws
     7  of 2011, is amended to read as follows:
     8    (a) "Allowable levy growth factor" shall be  [the  lesser  of:    (i)]
     9  equal  to  one  and two one-hundredths[; or (ii) the sum of one plus the
    10  inflation factor; provided, however, that in  no  case  shall  the  levy
    11  growth factor be less than one].
    12    §  3.  Paragraph  (d)  of  subdivision 2 of section 3-c of the general
    13  municipal law is REPEALED.
    14    § 4. Paragraph a of subdivision 2 of section 2023-a of  the  education
    15  law,  as added by section 2 of part A of chapter 97 of the laws of 2011,
    16  is amended to read as follows:
    17    a. "Allowable levy growth factor" shall be [the lesser of:  (i)] equal
    18  to one and two  one-hundredths[;  or  (ii)  the  sum  of  one  plus  the
    19  inflation  factor;  provided,  however,  that  in no case shall the levy
    20  growth factor be less than one].
    21    § 5. Paragraph f of subdivision 2 of section 2023-a of  the  education
    22  law is REPEALED.
    23    §  6.  Subdivision  5  of section 3-c of the general municipal law, as
    24  added by section 1 of part A of chapter 97  of  the  laws  of  2011,  is
    25  amended to read as follows:
    26    5. A local government may adopt a budget that requires a tax levy that
    27  is  greater  than  the  tax  levy  limit for the coming fiscal year, not
    28  including any levy necessary to support  the  expenditures  pursuant  to
    29  subparagraphs  (i)  through (iv) of paragraph [g] (g) of subdivision two
    30  of this section, only if the governing body  of  such  local  government
    31  first  enacts, by a vote of [sixty] more than fifty percent of the total
    32  voting power of such body, a local law to override such limit  for  such
    33  coming  fiscal year only, or in the case of a district or fire district,
    34  a resolution, approved by a vote of sixty percent of  the  total  voting
    35  power  of  such body, to override such limit for such coming fiscal year
    36  only.
    37    § 7. Subdivision 6 of section 2023-a of the education law, as added by
    38  section 2 of part A of chapter 97 of the laws of  2011,  is  amended  to
    39  read as follows:
    40    6.  (a) Notwithstanding any other provision of law to the contrary, in
    41  the event the trustee, trustees  or  board  of  education  of  a  school
    42  district  that  is  subject to the provisions of this section proposes a
    43  budget that will require a tax levy that exceeds the tax levy limit  for
    44  the  corresponding  school  year,  not  including  any levy necessary to
    45  support the expenditures pursuant to subparagraphs (i) through  (iv)  of
    46  paragraph  i  of subdivision two of this section, then such budget shall
    47  be approved if [sixty] more than fifty percent of the votes cast thereon
    48  are in the affirmative.
    49    (b) Where the trustee, trustees or board of education proposes a budg-
    50  et subject to the requirements of paragraph (a) of this subdivision, the
    51  ballot for such budget shall include the following statement in substan-
    52  tially the same form: "Adoption of  this  budget  requires  a  tax  levy
    53  increase  of         which exceeds the statutory tax levy increase limit
    54  of      for this school fiscal year and therefore exceeds the state  tax
    55  cap and must be approved by [sixty] more than fifty percent of the qual-
    56  ified voters present and voting."

        A. 4145                             3
     1    § 8. Subdivision 9 of section 2023-a of the education law, as added by
     2  section  2  of  part  A of chapter 97 of the laws of 2011, is amended to
     3  read as follows:
     4    9.  Nothing  in  this section shall preclude the trustee, trustees, or
     5  board of education of a  school  district,  in  their  discretion,  from
     6  submitting  additional  items of expenditures to the voters for approval
     7  as separate propositions or  the  voters  from  submitting  propositions
     8  pursuant  to sections two thousand eight and two thousand thirty-five of
     9  this part; provided however, except in the case of a proposition submit-
    10  ted for any expenditure contained within subparagraphs (i) through  (iv)
    11  of  paragraph  i of subdivision two of this section, if any proposition,
    12  or propositions collectively that are subject to  a  vote  on  the  same
    13  date,  would  require  an  expenditure of money that would require a tax
    14  levy and would result in the tax  levy  limit  being  exceeded  for  the
    15  corresponding  school  year  then  such proposition shall be approved if
    16  [sixty] more than fifty percent of the votes cast  thereon  are  in  the
    17  affirmative.
    18    §  9.  Section 3-c of the general municipal law is amended by adding a
    19  new subdivision 8 to read as follows:
    20    8. A local government shall receive state aid if such local government
    21  adopts a budget that is equal to or lower than the tax levy limit.  Such
    22  state  aid  would  be equal to a local government's year-to-year adopted
    23  levy increase within the tax levy limit. In no event shall the state aid
    24  for a local government  exceed  the  allowable  levy  growth  factor  as
    25  defined in paragraph (a) of subdivision two of this section.
    26    §  10.  Section 2023-a of the education law is amended by adding a new
    27  subdivision 10 to read as follows:
    28    10. A school district shall receive state aid if such school  district
    29  adopts  a budget that is equal to or lower than the tax levy limit. Such
    30  state aid would be equal to a  school  district's  year-to-year  adopted
    31  levy increase within the tax levy limit. In no event shall the state aid
    32  for a school district exceed the allowable levy growth factor as defined
    33  in paragraph a of subdivision two of this section.
    34    §  11. This act shall take effect immediately; provided, however, that
    35  the amendments to section 3-c of the general municipal law  and  section
    36  2023-a  of  the  education  law  made by sections two, four, six, seven,
    37  eight, nine and ten of this act shall not  affect  the  repeal  of  such
    38  sections and shall expire and be deemed repealed therewith.
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