STATE OF NEW YORK
________________________________________________________________________
1214--A
2017-2018 Regular Sessions
IN SENATE
January 6, 2017
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Introduced by Sens. LANZA, GOLDEN, AVELLA, FELDER, SAVINO -- read twice
and ordered printed, and when printed to be committed to the Committee
on Cities -- recommitted to the Committee on Cities in accordance with
Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT 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. The general municipal law is amended by adding a new
2 section 3-e to read as follows:
3 § 3-e. Limitation upon real property tax levies by cities having a
4 population of one million or more. 1. Unless otherwise provided by law,
5 the amount of real property taxes that may be levied by or on behalf of
6 any city having a population of one million or more shall not exceed the
7 tax levy limitation established pursuant to this section.
8 2. When used in this section:
9 (a) "Allowable levy growth factor" shall be the lesser of: (i) one and
10 two one-hundredths; or (ii) the sum of one plus the inflation factor;
11 provided, however, that in no case shall the levy growth factor be less
12 than one.
13 (b) "Approved capital expenditures" means the expenditures associated
14 with capital projects that have been approved by the qualified voters of
15 the local government.
16 (c) "Available carryover" means the sum of the amount by which the tax
17 levy for the prior fiscal year was below the tax levy limit for such
18 fiscal year, if any, but no more than one and one-half percent of the
19 tax levy limit for such fiscal year.
20 (d) "Capital tax levy" means the tax levy necessary to support capital
21 expenditures, if any.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00383-02-8
S. 1214--A 2
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 nineteen, 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-
S. 1214--A 3
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 § 2. Paragraphs j and k of subdivision 2 of section 23 of the munici-
17 pal home rule law are relettered paragraphs k and l, and a new paragraph
18 j is added to read as follows:
19 j. Overrides the tax levy limitation applicable for the coming fiscal
20 year in accordance with section three-e of the general municipal law.
21 § 3. This act shall take effect immediately and shall first apply to
22 the levy of taxes by local governments for the fiscal year that begins
23 in 2019.
