Bill Text: NY A06312 | 2019-2020 | General Assembly | Introduced


Bill Title: Relates to medical expenditure amounts and to county property tax levy reductions resulting from medical assistance program expenditure reductions; and limits, in cities having a population of one million or more, the annual increase in real property taxes.

Spectrum: Partisan Bill (Republican 6-0)

Status: (Introduced - Dead) 2020-01-08 - referred to social services [A06312 Detail]

Download: New_York-2019-A06312-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          6312
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                      March 5, 2019
                                       ___________
        Introduced  by M. of A. SCHMITT -- read once and referred to the Commit-
          tee on Social Services
        AN ACT to amend chapter 58 of the laws of  2005  authorizing  reimburse-
          ments  for  expenditures  made  by  or  on  behalf  of social services
          districts for medical assistance for needy persons  and  the  adminis-
          tration   thereof,  in  relation  to  medical  assistance  expenditure
          amounts; to amend the general municipal law,  in  relation  to  county
          property tax levy reductions resulting from medical assistance program
          expenditure reductions; and 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.  Section  1  of  part C of chapter 58 of the laws of 2005,
     2  authorizing reimbursements for expenditures made  by  or  on  behalf  of
     3  social  services  districts for medical assistance for needy persons and
     4  the administration thereof is amended by adding a new subdivision  (c-2)
     5  to read as follows:
     6    (c-2)  Notwithstanding  any  provisions of subdivision (c) or (c-1) of
     7  this section to the contrary, effective April 1, 2020,  for  the  period
     8  January  1,  2020  through December 31, 2020, and for each calendar year
     9  thereafter, the medical assistance expenditure  amount  for  the  social
    10  services  district  for such period shall be the greater of (1) zero; or
    11  (2) the previous calendar year's medical assistance  expenditure  amount
    12  minus  ten  percent of the medical assistance expenditure amount for the
    13  period January 1, 2019 through December 31, 2019.    Provided,  however,
    14  the  local  contribution  for a city with a population of one million or
    15  more shall not be reduced by more than two billion three hundred million
    16  dollars.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04019-01-9

        A. 6312                             2
     1    § 2. The general municipal law is amended by adding a new section  3-e
     2  to read as follows:
     3    §  3-e.  County  property  tax  levy  reduction resulting from medical
     4  assistance program expenditure  reductions.  Notwithstanding  any  other
     5  provision of law to the contrary, in the event a county's local contrib-
     6  ution to New York state's share of payments under the medical assistance
     7  program  are  reduced or eliminated as a result of changes in federal or
     8  state statute, the amount of such  reduction  or  elimination  shall  be
     9  applied  as an equal dollar amount reduction in the property tax levy of
    10  such county.
    11    § 3. Notwithstanding any other provision of law to the contrary, for a
    12  city with a population of one million or more, in the  event  the  local
    13  contribution  to  New  York  state's share of payments under the medical
    14  assistance program are reduced or eliminated as a result of  changes  in
    15  federal  or  state  statute, the amount of such reduction or elimination
    16  shall reduce city personal income  taxes  in  an  amount  equal  to  the
    17  reduction  in  such city's share of payments. Such reduction shall be an
    18  equal rate reduction applied to all tax brackets.
    19    § 4. The general municipal law is amended by adding a new section  3-f
    20  to read as follows:
    21    §  3-f.  Limitation  upon  real property tax levies by cities having a
    22  population of one million or more.  1. Unless otherwise provided by law,
    23  the amount of real property taxes that may be levied by or on behalf  of
    24  any city having a population of one million or more shall not exceed the
    25  tax levy limitation established pursuant to this section.
    26    2. When used in this section:
    27    (a) "Allowable levy growth factor" shall be the lesser of: (i) one and
    28  two  one-hundredths;  or  (ii) the sum of one plus the inflation factor;
    29  provided, however, that in no case shall the levy growth factor be  less
    30  than one.
    31    (b)  "Approved capital expenditures" means the expenditures associated
    32  with capital projects that have been approved by the qualified voters of
    33  the local government.
    34    (c) "Available carryover" means the sum of the amount by which the tax
    35  levy for the prior fiscal year was below the tax  levy  limit  for  such
    36  fiscal  year,  if  any, but no more than one and one-half percent of the
    37  tax levy limit for such fiscal year.
    38    (d) "Capital tax levy" means the tax levy necessary to support capital
    39  expenditures, if any.
    40    (e) "Coming fiscal year" means the fiscal year of the local government
    41  for which a tax levy limitation shall be  determined  pursuant  to  this
    42  section.
    43    (f)  "Inflation  factor" means the quotient of: (i) the average of the
    44  national consumer price indexes determined by the United States  depart-
    45  ment of labor for the twelve-month period ending six months prior to the
    46  start  of  the  coming  fiscal  year  minus  the average of the national
    47  consumer price indexes determined by the  United  States  department  of
    48  labor  for  the twelve-month period ending six months prior to the start
    49  of the prior fiscal year, divided by: (ii) the average of  the  national
    50  consumer  price  indexes  determined  by the United States department of
    51  labor for the twelve-month period ending six months prior to  the  start
    52  of the prior fiscal year, with the result expressed as a decimal to four
    53  places.
    54    (g) "Local government" means a city having a population of one million
    55  or more.

        A. 6312                             3
     1    (h)  "Prior fiscal year" means the fiscal year of the local government
     2  immediately preceding the coming fiscal year.
     3    (i) "Tax levy limitation" means the amount of taxes a local government
     4  is  authorized to levy pursuant to this section, provided, however, that
     5  the tax levy limit shall not include  the  local  government's  approved
     6  capital tax levy, if any.
     7    3.  (a)  Beginning  with  the  fiscal year that begins in two thousand
     8  nineteen, no local government shall adopt a budget that requires  a  tax
     9  levy  that is greater than the tax levy limitation for the coming fiscal
    10  year.
    11    (b) The state comptroller shall calculate the tax levy limitation  for
    12  each  local  government  by  the one hundred twentieth day preceding the
    13  commencement of each local government's fiscal year,  and  shall  notify
    14  each local government of the tax levy limitation so determined.
    15    (c) The tax levy limitation applicable to the coming fiscal year shall
    16  be determined as follows:
    17    (i)  Ascertain  the  total amount of taxes levied for the prior fiscal
    18  year.
    19    (ii) Add any payments in lieu of taxes that  were  receivable  in  the
    20  prior fiscal year.
    21    (iii)  Subtract  the  approved  capital  tax levy for the prior fiscal
    22  year, if any.
    23    (iv) Subtract the levy attributable to a large legal settlement  of  a
    24  tort  action excluded from the levy limitation in the prior fiscal year,
    25  if any.
    26    (v) Multiply the result by the allowable levy growth factor.
    27    (vi) Subtract any payments in lieu of taxes receivable in  the  coming
    28  fiscal year.
    29    (vii) Add the available carryover, if any.
    30    (d) In the event the city council of a local government has approved a
    31  legal  settlement  of  a  tort action against the government, the annual
    32  costs of which exceed ten percent of the property taxes  levied  by  the
    33  local  government  in the prior fiscal year, the state comptroller, upon
    34  application by the local government, may adjust the tax levy  limitation
    35  for  the  coming  fiscal  year  applicable  to such local government, by
    36  adding the annual costs of such settlement to the tax levy limitation.
    37    (e) The state comptroller shall determine the portion of the tax  levy
    38  of  each  local  government  that  is  attributable  to  any increase or
    39  decrease over the prior year in the cost of the local  government  share
    40  of  direct cash assistance to persons eligible for the federal-state-lo-
    41  cal temporary assistance to needy families program  or  the  state-local
    42  safety  net  assistance program and shall adjust the tax levy limitation
    43  for such local government to reflect such change.
    44    4. A local government may adopt a budget that requires a tax levy that
    45  is greater than the tax levy limitation for the coming fiscal year  only
    46  if  the  city  council  of such local government first enacts, by a two-
    47  thirds vote of the total voting power of such city council, a local  law
    48  to override such limitation for such coming fiscal year only.
    49    5.  In  the  event  a  local  government's actual tax levy for a given
    50  fiscal year exceeds the maximum allowable levy as  established  pursuant
    51  to  this  section due to clerical or technical errors, the local govern-
    52  ment shall place the excess amount of the levy in reserve in  accordance
    53  with such requirements as the state comptroller may prescribe, and shall
    54  use  such  funds  and any interest earned thereon to offset the tax levy
    55  for the ensuing fiscal year.

        A. 6312                             4
     1    § 5. Paragraphs j and k of subdivision 2 of section 23 of the  munici-
     2  pal home rule law are relettered paragraphs k and l, and a new paragraph
     3  j is added to read as follows:
     4    j.  Overrides the tax levy limitation applicable for the coming fiscal
     5  year in accordance with section three-f of the general municipal law.
     6    § 6. This act shall take effect immediately and sections four and five
     7  of  this act shall first apply to the levy of taxes by local governments
     8  for the fiscal year that begins in 2020.
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