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. LBD04180-01-9A. 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 the10inflation factor; provided, however, that in no case shall the levy11growth 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 the19inflation factor; provided, however, that in no case shall the levy20growth 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.