Bill Text: NY A07464 | 2019-2020 | General Assembly | Introduced


Bill Title: Establishes a property tax cap in a city with a population of one million or more.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2019-05-06 - referred to real property taxation [A07464 Detail]

Download: New_York-2019-A07464-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          7464
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                       May 6, 2019
                                       ___________
        Introduced  by  M.  of  A.  MALLIOTAKIS -- read once and referred to the
          Committee on Real Property Taxation
        AN ACT to amend the real property tax law and the general municipal law,
          in relation to property taxes in a  city  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. Subdivision 1 of section 1805 of the real property tax  law
     2  is amended by adding a new paragraph (h) to read as follows:
     3    (h)  Provided further, this subdivision shall not apply to the assess-
     4  ment roll of a special assessing unit wholly  contained  within  a  city
     5  with a population of one million or more.
     6    §  2.  The  real  property  tax law is amended by adding a new section
     7  467-l to read as follows:
     8    § 467-l. Real property tax cap for certain persons  who  reside  in  a
     9  city  with a population of one million or more. 1. Real property located
    10  in a city with a population of one million or more and is owned  by  one
    11  or more persons, may be subject to a real property tax cap.
    12    2. Property shall be eligible for a tax cap if:
    13    (a)  the  income  of the owner or the combined income of the owners of
    14  the property for the income tax year immediately preceding the  date  of
    15  making  application  for  the  cap shall equal the income qualifications
    16  established by subdivision four of section four hundred  twenty-five  of
    17  this title.
    18    (b)  the  title of the property shall have been vested in the owner or
    19  one of the owners of the property for not less than twenty  years  prior
    20  to  the date of making application for a cap, provided, however, that if
    21  as the result of the death of a spouse in whose name title of the  prop-
    22  erty  was vested at the time of death the property becomes vested solely
    23  in the survivor by virtue of devise by  or  descent  from  the  deceased
    24  spouse,  the  time  of  ownership of the property by the deceased spouse
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09772-01-9

        A. 7464                             2
     1  shall be deemed also a time of ownership by the survivor and such owner-
     2  ship shall be deemed continuous for the purposes of computing such peri-
     3  od of thirty-six consecutive months. In the event of  a  transfer  by  a
     4  spouse  to the other spouse of all or part of the title to the property,
     5  the time of ownership of the property by the transferor spouse shall  be
     6  deemed also a time of ownership by the transferee spouse and such owner-
     7  ship shall be deemed continuous for the purposes of computing such peri-
     8  od  of  thirty-six  consecutive  months. Provided, further, that where a
     9  person is the owner of a present interest  in  a  parcel  under  a  life
    10  estate,  or  is  a vendee in possession under an installment contract of
    11  sale, or is a beneficial owner under a trust, or resides primarily in  a
    12  dwelling  which is owned by a corporation or partnership but is nonethe-
    13  less eligible for a cap, and that person has applied for and been grant-
    14  ed a cap pursuant to this section, that person shall be deemed to be the
    15  owner of the parcel for purposes of this section.
    16    (c)  the  property  is  used  exclusively  for  residential  purposes,
    17  provided, however, that in the event any portion of such property is not
    18  so  used  exclusively  for  residential  purposes  but is used for other
    19  purposes, such portion shall be subject to taxation  and  the  remaining
    20  portion only shall be entitled to a cap provided by this section.
    21    (d)  the  real  property  is the legal residence of and is occupied in
    22  whole or in part by the owner or by all of the owners of  the  property,
    23  provided that an owner who is absent while receiving health-related care
    24  as  an  inpatient  of  a residential health care facility, as defined in
    25  section twenty-eight hundred one of the  public  health  law,  shall  be
    26  deemed  to remain a legal resident and an occupant of the property while
    27  so confined and income accruing to that person shall be income  only  to
    28  the  extent  that  it  exceeds the amount paid by such owner, spouse, or
    29  co-owner for care in the facility; and  provided  further,  that  during
    30  such  confinement such property is not occupied by other than the spouse
    31  or co-owner of such owner.
    32    3. Beginning with the two thousand twenty  fiscal  year,  an  eligible
    33  person  residing  in a city with a population of one million or more may
    34  apply for a real property tax cap. The real property tax cap shall equal
    35  ten percent of a household's income for the taxable year.
    36    4. Application for such cap must be made by the owner, or all  of  the
    37  owners  of  the  property, on forms prescribed by the commissioner to be
    38  furnished by the appropriate assessing authority and shall  furnish  the
    39  information and be executed in the manner required or prescribed in such
    40  forms,  and  shall  be  filed in such assessor's office on or before the
    41  appropriate taxable status date.
    42    5. (a) At least sixty days prior to  the  appropriate  taxable  status
    43  date,  the assessing authority shall mail to each person who was granted
    44  a cap pursuant to this section on the latest completed  assessment  roll
    45  and application form and a notice that such application must be filed on
    46  or  before  the taxable status date and be approved in order for the cap
    47  to be granted. The assessing authority shall, within three days  of  the
    48  completion  and  filing of the tentative assessment roll, notify by mail
    49  any applicant who has included with his or her application at least  one
    50  self-addressed,  prepaid  envelope,  of  the  approval  or denial of the
    51  application; provided, however, that the assessing authority shall, upon
    52  the receipt and filing of the application, send by mail notification  of
    53  receipt to any applicant who has included two of such envelopes with the
    54  application. Where an applicant is entitled to a notice of denial pursu-
    55  ant  to  this  subdivision, such notice shall be on a form prescribed by
    56  the state board and shall state the reasons for such  denial  and  shall

        A. 7464                             3
     1  further state that the applicant may have such determination reviewed in
     2  the manner provided by law.
     3    (b) An owner eligible for the cap may request that a notice be sent to
     4  an adult third party. Such request shall be made on a form prescribed by
     5  the  state board and shall be submitted to the assessor of the assessing
     6  unit in which the eligible taxpayer resides no  later  than  sixty  days
     7  before  the first taxable status date to which it is to apply. Such form
     8  shall provide a section whereby the designated third party shall consent
     9  to such designation. Such request shall be effective upon receipt by the
    10  assessor. The assessor shall maintain a list of  all  eligible  property
    11  owners who have requested notices pursuant to this subdivision.
    12    (c)  A  notice  shall  be  sent to the designated third party at least
    13  thirty days prior to each ensuing taxable status date; provided that  no
    14  such  notice  need  be  sent  in  the  first year if the request was not
    15  received by the assessor at least sixty days before the applicable taxa-
    16  ble status date. Such notice shall read substantially as follows:
    17    "On behalf of (identify person or persons eligible for the  cap),  you
    18  are  advised that his, her, or their renewal application for the tax cap
    19  must be filed with the assessor no later  than  (enter  date).  You  are
    20  encouraged  to  remind  him,  her,  or  them  of that fact, and to offer
    21  assistance if needed, although you are under no legal obligation  to  do
    22  so. Your cooperation and assistance are greatly appreciated."
    23    (d)  The  obligation  to mail such notices shall cease if the eligible
    24  taxpayer cancels the request or ceases to qualify for the tax cap.
    25    (e) Failure to mail any notice required by this  subdivision,  or  the
    26  failure of a party to receive same, shall not affect the validity of the
    27  levy,  collection,  or  enforcement  of  taxes on property owned by such
    28  person, or in the case of a third party notice, on property owned by the
    29  person or persons eligible for a tax cap.
    30    6. Any conviction of having made any willful false  statement  in  the
    31  application for such cap, shall be punishable by a fine of not more than
    32  one  hundred  dollars  and  shall disqualify the applicant or applicants
    33  from further tax cap.
    34    § 3. The general municipal law is amended by adding a new section  3-e
    35  to read as follows:
    36    §  3-e.  Limitation  upon  real property tax levies by cities having a
    37  population of one million or more. 1. Unless otherwise provided by  law,
    38  the  amount of real property taxes that may be levied by or on behalf of
    39  any city having a population of one million or more shall not exceed the
    40  tax levy limitation established pursuant to this section.
    41    2. When used in this section:
    42    (a) "Allowable levy growth factor" shall be the lesser of: (i) one and
    43  two one-hundredths; or (ii) the sum of one plus  the  inflation  factor;
    44  provided,  however, that in no case shall the levy growth factor be less
    45  than one.
    46    (b) "Approved capital expenditures" means the expenditures  associated
    47  with capital projects that have been approved by the qualified voters of
    48  the local government.
    49    (c) "Available carryover" means the sum of the amount by which the tax
    50  levy  for  the  prior  fiscal year was below the tax levy limit for such
    51  fiscal year, if any, but no more than one and one-half  percent  of  the
    52  tax levy limit for such fiscal year.
    53    (d) "Capital tax levy" means the tax levy necessary to support capital
    54  expenditures, if any.

        A. 7464                             4
     1    (e) "Coming fiscal year" means the fiscal year of the local government
     2  for  which  a  tax  levy limitation shall be determined pursuant to this
     3  section.
     4    (f)  "Inflation  factor" means the quotient of: (i) the average of the
     5  national consumer price indexes determined by the United States  depart-
     6  ment of labor for the twelve-month period ending six months prior to the
     7  start  of  the  coming  fiscal  year  minus  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, divided by; (ii) the average of  the  national
    11  consumer  price  indexes  determined  by the United States department of
    12  labor for the twelve-month period ending six months prior to  the  start
    13  of the prior fiscal year, with the result expressed as a decimal to four
    14  places.
    15    (g) "Local government" means a city having a population of one million
    16  or more.
    17    (h)  "Prior fiscal year" means the fiscal year of the local government
    18  immediately preceding the coming fiscal year.
    19    (i) "Tax levy limitation" means the amount of taxes a local government
    20  is authorized to levy pursuant to this section, provided, however,  that
    21  the  tax  levy  limit  shall not include the local government's approved
    22  capital tax levy, if any.
    23    3. (a) Beginning with the fiscal year  that  begins  in  two  thousand
    24  twenty,  no  local  government  shall adopt a budget that requires a tax
    25  levy that is greater than the tax levy limitation for the coming  fiscal
    26  year.
    27    (b)  The state comptroller shall calculate the tax levy limitation for
    28  each local government by the one hundred  twentieth  day  preceding  the
    29  commencement  of  each  local government's fiscal year, and shall notify
    30  each local government of the tax levy limitation so determined.
    31    (c) The tax levy limitation applicable to the coming fiscal year shall
    32  be determined as follows:
    33    (i) Ascertain the total amount of taxes levied for  the  prior  fiscal
    34  year.
    35    (ii)  Add  any  payments  in lieu of taxes that were receivable in the
    36  prior fiscal year.
    37    (iii) Subtract the approved capital tax  levy  for  the  prior  fiscal
    38  year, if any.
    39    (iv)  Subtract  the levy attributable to a large legal settlement of a
    40  tort action excluded from the levy limitation in the prior fiscal  year,
    41  if any.
    42    (v) Multiply the result by the allowable levy growth factor.
    43    (vi)  Subtract  any payments in lieu of taxes receivable in the coming
    44  fiscal year.
    45    (vii) Add the available carryover, if any.
    46    (d) In the event the city council of a local government has approved a
    47  legal settlement of a tort action against  the  government,  the  annual
    48  costs  of  which  exceed ten percent of the property taxes levied by the
    49  local government in the prior fiscal year, the state  comptroller,  upon
    50  application  by the local government, may adjust the tax levy limitation
    51  for the coming fiscal year  applicable  to  such  local  government,  by
    52  adding the annual costs of such settlement to the tax levy limitation.
    53    (e)  The state comptroller shall determine the portion of the tax levy
    54  of each local  government  that  is  attributable  to  any  increase  or
    55  decrease  over  the prior year in the cost of the local government share
    56  of direct cash assistance to persons eligible for the  federal-state-lo-

        A. 7464                             5
     1  cal  temporary  assistance  to needy families program or the state-local
     2  safety net assistance program and shall adjust the tax  levy  limitation
     3  for such local government to reflect such change.
     4    4. A local government may adopt a budget that requires a tax levy that
     5  is  greater than the tax levy limitation for the coming fiscal year only
     6  if the city council of such local government first  enacts,  by  a  two-
     7  thirds  vote of the total voting power of such city council, a local law
     8  to override such limitation for such coming fiscal year only.
     9    5. In the event a local government's  actual  tax  levy  for  a  given
    10  fiscal  year  exceeds the maximum allowable levy as established pursuant
    11  to this section due to clerical or technical errors, the  local  govern-
    12  ment  shall place the excess amount of the levy in reserve in accordance
    13  with such requirements as the state comptroller may prescribe, and shall
    14  use such funds and any interest earned thereon to offset  the  tax  levy
    15  for the ensuing fiscal year.
    16    § 4. Severability clause. If any clause, sentence, paragraph, subdivi-
    17  sion,  section  or  part  of  this act shall be adjudged by any court of
    18  competent jurisdiction to be invalid, such judgment  shall  not  affect,
    19  impair,  or  invalidate  the remainder thereof, but shall be confined in
    20  its operation to the clause, sentence, paragraph,  subdivision,  section
    21  or part thereof directly involved in the controversy in which such judg-
    22  ment shall have been rendered. It is hereby declared to be the intent of
    23  the  legislature  that  this  act  would  have been enacted even if such
    24  invalid provisions had not been included herein.
    25    § 5. This act shall take effect immediately and shall first  apply  to
    26  the  levy  of taxes by local governments for the fiscal year that begins
    27  in 2020.
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