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A01059 Summary:

BILL NOA01059
 
SAME ASNo Same As
 
SPONSORGalef
 
COSPNSRMcDonald
 
MLTSPNSRPaulin
 
Amd 3-c, Gen Muni L
 
Exempts certain capital projects undertaken by a municipality jointly with another municipal corporation from the spending tax cap.
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A01059 Actions:

BILL NOA01059
 
01/10/2017referred to local governments
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A01059 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A1059
 
SPONSOR: Galef (MS)
  TITLE OF BILL: An act to amend the general municipal law, in relation to exempting certain capital projects undertaken by a municipality jointly with another municipal corporation from the spending tax cap   PURPOSE OR GENERAL IDEA OF BILL: The purpose of this legislation is to exclude municipal projects from the spending tax cap when undertaken jointly with a municipal corpo- ration.   SUMMARY OF SPECIFIC PROVISIONS: Section 1. Section 3-c of the General Municipal Law is amended by adding a new subdivision 8 to read as follows: 8. The provisions of this section shall not apply to any capital project undertaken by a local government jointly with another municipal corporation. Section 2. Establishes the effective date.   JUSTIFICATION: In 2011, the New York State Legislature adopted a Property Tax Cap set at 2% or the rate of inflation, whichever was less. The cap allies to local government, school and special (library, fire, sewer. and water) districts. The cap was imposed to halt the spiraling local taxes throughout the state. It was envisioned that the Tax Cap would encourage municipalities and municipal corporations to reduce spending through sharing services, consolidating operations and implementing cost saving mechanisms. Muni- cipalities. school and special district boards can vote to override the cap, but it must occur with majority approval (60% of local governing bodies and 60% of school district voters). There are exemptions to the Tax Cap in recognition that there are expenses that are not controlled by the locality or district boards. For example, statewide pension contribution increases that exceed payroll by two percentage points; capital costs (including debt service) for school districts (must obtain voter approval); and tort settlements or awards (personal injury cases caused by negligence) whose costs exceed live percent of the annual tax levy. There is no financial incentive for localities to work with a municipal corporation such as a school district on capital projects. This legis- lation would provide such an incentive through exclusion from the Tax Cap.   PRIOR LEGISLATIVE HISTORY: A. 6215 of 2016   FISCAL IMPLICATIONS: There are no fiscal implications to the State: however. there will he savings to the municipality or municipal corporation.   EFFECTIVE DATE: This act shall take effect immediately: provided, however, that the amendment to section 3-c of the General Municipal Law made by section one of this act shall not affect the repeal of such section and shall be deemed to repeal therewith.
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A01059 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          1059
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 10, 2017
                                       ___________
 
        Introduced by M. of A. GALEF, McDONALD -- Multi-Sponsored by -- M. of A.
          PAULIN -- read once and referred to the Committee on Local Governments
 
        AN  ACT  to  amend  the  general municipal law, in relation to exempting
          certain capital projects undertaken by  a  municipality  jointly  with
          another municipal corporation from the spending tax cap

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Section 3-c of the general  municipal  law  is  amended  by
     2  adding a new subdivision 8 to read as follows:
     3    8.  The  provisions  of  this  section  shall not apply to any capital
     4  project undertaken by a local government jointly with another  municipal
     5  corporation.
     6    §  2.  This act shall take effect immediately; provided, however, that
     7  the amendment to section 3-c  of  the  general  municipal  law  made  by
     8  section  one of this act shall not affect the repeal of such section and
     9  shall be deemed to repeal therewith.
 
 
 
 
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02854-01-7
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