S T A T E O F N E W Y O R K
________________________________________________________________________
1621
2011-2012 Regular Sessions
I N A S S E M B L Y
January 11, 2011
___________
Introduced by M. of A. TEDISCO -- Multi-Sponsored by -- M. of A.
BURLING, BUTLER, CALHOUN, COOK, HAWLEY, KOLB, J. MILLER, MOLINARO,
RAIA -- read once and referred to the Committee on Real Property Taxa-
tion
AN ACT to amend the real property tax law, in relation to establishing a
city state-supported tax relief exemption and a county state-supported
tax relief exemption
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The real property tax law is amended by adding two new
sections 425-b and 425-c to read as follows:
S 425-B. CITY STATE-SUPPORTED TAX RELIEF (CITYSTAR) EXEMPTION. 1. REAL
PROPERTY SITUATE IN A CITY AND OWNED BY AN OWNER OR OWNERS GRANTED THE
SCHOOL TAX RELIEF EXEMPTION, PURSUANT TO SECTION FOUR HUNDRED
TWENTY-FIVE OF THIS TITLE, SHALL ALSO BE ELIGIBLE FOR A CITY STATE-SUP-
PORTED REAL PROPERTY TAX EXEMPTION PURSUANT TO THIS SECTION FOR CITY TAX
YEARS COMMENCING ON OR AFTER JANUARY FIRST, TWO THOUSAND FIFTEEN, IF
SUCH CITY MEETS THE FOLLOWING CRITERIA:
(A) THE CITY HAS A POPULATION OF LESS THAN ONE MILLION, AS DETERMINED
BY THE LATEST FEDERAL DECENNIAL CENSUS;
(B) THE LEGISLATIVE BODY OF SUCH CITY APPROVES A RESOLUTION PROVIDING
FOR SUCH CITY TAX RELIEF EXEMPTION;
(C) (1) INCREASES IN TOTAL CITY EXPENDITURES DURING THE CURRENT YEAR
DO NOT EXCEED THE LESSER OF (I) ONE HUNDRED TWENTY PER CENTUM OF THE
TOTAL CITY EXPENDITURES FOR THE BASE YEAR MULTIPLIED BY THE CONSUMER
PRICE INDEX, OR (II) FOUR PERCENT.
(2) FOR THE PURPOSES OF SUBPARAGRAPH ONE OF THIS PARAGRAPH, TOTAL CITY
EXPENDITURES SHALL NOT INCLUDE:
(I) EXPENDITURES RESULTING FROM TAX CERTIORARI PROCEEDINGS,
(II) EXPENDITURES RESULTING FROM COURT ORDERS OR JUDGMENTS AGAINST THE
CITY,
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD02011-01-1
A. 1621 2
(III) EMERGENCY EXPENDITURES WHICH ARE CERTIFIED BY THE STATE COMP-
TROLLER AS NECESSARY AS A RESULT OF DAMAGE TO OR DESTRUCTION OF A CITY
BUILDING OR EQUIPMENT,
(IV) CAPITAL EXPENDITURES FOR THE CONSTRUCTION, ACQUISITION, RECON-
STRUCTION, REHABILITATION OR IMPROVEMENT OF CITY FACILITIES, INCLUDING
DEBT SERVICE AND LEASE COSTS,
(V) EXPENDITURES ATTRIBUTABLE TO PROJECTED INCREASES IN CONSTRUCTION
COSTS,
(VI) NONRECURRING EXPENDITURES IN A PRIOR CITY FISCAL YEAR, AND
(VII) EXPENDITURES INCURRED DUE TO MERGERS OR SERVICE CONSOLIDATIONS
BETWEEN THE CITY AND ANY OTHER MUNICIPALITY DURING THE FISCAL YEAR IN
WHICH SUCH MERGER OR CONSOLIDATION OCCURS;
(D) THE CITY BUDGET ADOPTED BY THE CITY LEGISLATIVE BODY INCLUDES A
STATEMENT OF THE PROJECTED PERCENTAGE OF INCREASE OR DECREASE IN TOTAL
SPENDING DURING THE FISCAL YEAR, AND STATING THE REASONS FOR EXCLUDING
ANY INCREASE IN SPENDING IN FORMULATION OF THE CITY BUDGET; AND
(E) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE LEGISLA-
TIVE BODY OF THE CITY SHALL NOT AMEND A FINAL BUDGET IF SUCH AMENDMENT
RESULTS IN AN INCREASE IN EXCESS OF THE LIMITATION ESTABLISHED IN PARA-
GRAPH (C) OF THIS SUBDIVISION; EXCEPT
(1) THE INCREASED SPENDING IS THE RESULT OF AN ACTUAL INCREASE IN
CONSTRUCTION COSTS ABOVE THE PROJECT COSTS THEREOF AT THE TIME THE BUDG-
ET WAS ADOPTED; HOWEVER IF ACTUAL CONSTRUCTION COSTS ARE LESS THAN THE
PROJECT COSTS, SUCH EXCESS FUNDS SHALL BE USED TO REDUCE TAXES, AND
(2) THE INCREASED SPENDING IS PAID FROM GIFTS OR GRANTS IN AID NOT
INCLUDED IN THE BUDGET.
2. THE TAX RELIEF EXEMPTION PROVIDED BY THIS SECTION SHALL BE EQUAL TO
THE EXEMPTION GRANTED TO THE OWNER OR OWNERS PURSUANT TO SECTION FOUR
HUNDRED TWENTY-FIVE OF THIS TITLE FOR THE TWO THOUSAND SIXTEEN--TWO
THOUSAND SEVENTEEN SCHOOL YEAR.
3. NOT LATER THAN SEVEN DAYS AFTER THE ADOPTION OF A BUDGET, EACH CITY
SHALL TRANSMIT A STATEMENT TO THE STATE COMPTROLLER, DESCRIBING THE TAX
REVENUE LOST DURING THAT FISCAL YEAR DUE TO THE IMPLEMENTATION OF THE
PROVISIONS OF THIS SECTION. THE STATE COMPTROLLER SHALL CERTIFY THE
VALIDITY OF SUCH LOSSES WITHIN THIRTY DAYS OF RECEIPT OF SUCH STATEMENT.
UPON SUCH VALIDATION THE STATE COMPTROLLER SHALL PROVIDE FUNDS TO THE
CITY WITHIN THIRTY DAYS.
4. THE STATE SHALL APPROPRIATE AN AMOUNT EQUAL TO FORTY-FIVE AND ONE-
HALF PERCENT OF THE FUND APPROPRIATED BY THE STATE FOR THE IMPLEMENTA-
TION OF THE PROVISIONS OF THIS SECTION, WHICH SHALL BE PAID TO CITIES
HAVING A POPULATION OF ONE MILLION OR MORE ACCORDING TO THE LATEST
DECENNIAL FEDERAL CENSUS, AND SUCH AMOUNT SHALL BE USED TO REDUCE INCOME
OR REAL PROPERTY TAXES IN SUCH CITIES AT THE CITIES' DISCRETION.
5. FOR THE PURPOSES OF THIS SECTION:
(A) "BASE YEAR" SHALL MEAN THE CITY FISCAL YEAR IMMEDIATELY PRECEDING
THE COUNTY FISCAL YEAR FOR WHICH THE CITY BUDGET IS PREPARED.
(B) "CONSUMER PRICE INDEX" SHALL MEAN THE PERCENTAGE THAT REPRESENTS
THE AVERAGE OF THE NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE
UNITED STATES DEPARTMENT OF LABOR, FOR THE TWELVE MONTH PERIOD PRECEDING
JANUARY FIRST OF THE CURRENT YEAR.
(C) "CURRENT YEAR" SHALL MEAN THE CALENDAR YEAR IN WHICH THE CITY
BUDGET IS SUBMITTED FOR A VOTE BY THE CITY'S LEGISLATIVE BODY.
6. THE STATE SHALL APPROPRIATE ALL FUNDS NECESSARY TO MUNICIPALITIES
TO ADMINISTER THE PROVISIONS OF THIS SECTION AND TO IMPLEMENT ANY LAW,
REGULATION, OR RULE ADOPTED AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN
WHICH WOULD REQUIRE A MUNICIPALITY TO EXPEND ANY OF ITS AVAILABLE FUNDS.
A. 1621 3
NOTWITHSTANDING ANY INCONSISTENT PROVISION OF THIS SECTION, THE
PROVISIONS OF PARAGRAPH (C) OF SUBDIVISION ONE OF THIS SECTION SHALL NOT
APPLY TO ANY COUNTY WHICH DOES NOT INCREASE ITS PROPERTY TAX RATE, SALES
TAX RATE, OR THE RATE OF ANY OTHER TAX, DURING ITS CURRENT BUDGET YEAR.
S 425-C. COUNTY STATE-SUPPORTED TAX RELIEF (COUNTYSTAR) EXEMPTION. 1.
REAL PROPERTY SITUATE IN A COUNTY AND OWNED BY AN OWNER OR OWNERS GRANT-
ED THE SCHOOL TAX RELIEF EXEMPTION, PURSUANT TO SECTION FOUR HUNDRED
TWENTY-FIVE OF THIS TITLE, AND NOT RECEIVING THE TAX EXEMPTION ESTAB-
LISHED BY SECTION FOUR HUNDRED TWENTY-FIVE-B OF THIS TITLE SHALL ALSO BE
ELIGIBLE FOR A COUNTY REAL PROPERTY TAX EXEMPTION PURSUANT TO THIS
SECTION FOR COUNTY TAX YEARS COMMENCING ON OR AFTER JANUARY FIRST, TWO
THOUSAND FIFTEEN, IF SUCH COUNTY MEETS THE FOLLOWING CRITERIA:
(A) THE LEGISLATIVE BODY OF SUCH COUNTY APPROVES A RESOLUTION PROVID-
ING FOR SUCH TAX RELIEF EXEMPTION;
(B) (1) INCREASES IN TOTAL COUNTY EXPENDITURES DURING THE CURRENT YEAR
DO NOT EXCEED THE LESSER OF (I) ONE HUNDRED TWENTY PER CENTUM OF THE
TOTAL COUNTY EXPENDITURES FOR THE BASE YEAR MULTIPLIED BY THE CONSUMER
PRICE INDEX, OR (II) FOUR PERCENT.
(2) FOR THE PURPOSES OF SUBPARAGRAPH ONE OF THIS PARAGRAPH, TOTAL
COUNTY EXPENDITURES SHALL NOT INCLUDE:
(I) EXPENDITURES RESULTING FROM TAX CERTIORARI PROCEEDINGS,
(II) EXPENDITURES RESULTING FROM COURT ORDERS OR JUDGMENTS AGAINST THE
COUNTY,
(III) EMERGENCY EXPENDITURES WHICH ARE CERTIFIED BY THE STATE COMP-
TROLLER AS NECESSARY AS A RESULT OF DAMAGE TO OR DESTRUCTION OF A COUNTY
BUILDING OR EQUIPMENT,
(IV) CAPITAL EXPENDITURES FOR THE CONSTRUCTION, ACQUISITION, RECON-
STRUCTION, REHABILITATION OR IMPROVEMENT OF COUNTY FACILITIES, INCLUDING
DEBT SERVICE AND LEASE COSTS,
(V) EXPENDITURES ATTRIBUTABLE TO PROJECTED INCREASES IN CONSTRUCTION
COSTS,
(VI) NONRECURRING EXPENDITURES IN A PRIOR COUNTY FISCAL YEAR, AND
(VII) EXPENDITURES INCURRED DUE TO MERGERS OR SERVICE CONSOLIDATIONS
BETWEEN THE COUNTY AND ANY OTHER MUNICIPALITY DURING THE FISCAL YEAR IN
WHICH SUCH MERGER OR CONSOLIDATION OCCURS;
(C) THE COUNTY BUDGET ADOPTED BY THE COUNTY LEGISLATIVE BODY INCLUDES
A STATEMENT OF THE PROJECTED PERCENTAGE OF INCREASE OR DECREASE IN TOTAL
SPENDING DURING THE FISCAL YEAR, AND STATING THE REASONS FOR EXCLUDING
ANY INCREASE IN SPENDING IN FORMULATION OF THE COUNTY BUDGET; AND
(D) NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, THE LEGISLA-
TIVE BODY OF THE COUNTY SHALL NOT AMEND A FINAL BUDGET IF SUCH AMENDMENT
RESULTS IN AN INCREASE IN EXCESS OF THE LIMITATION ESTABLISHED IN PARA-
GRAPH (B) OF THIS SUBDIVISION; EXCEPT
(1) THE INCREASED SPENDING IS THE RESULT OF AN ACTUAL INCREASE IN
CONSTRUCTION COSTS ABOVE THE PROJECT COSTS THEREOF AT THE TIME THE BUDG-
ET WAS ADOPTED; HOWEVER IF ACTUAL CONSTRUCTION COSTS ARE LESS THAN THE
PROJECT COSTS, SUCH EXCESS FUNDS SHALL BE USED TO REDUCE TAXES, AND
(2) THE INCREASED SPENDING IS PAID FROM GIFTS OR GRANTS IN AID NOT
INCLUDED IN THE BUDGET.
2. THE TAX RELIEF EXEMPTION PROVIDED BY THIS SECTION SHALL BE EQUAL TO
TWO-THIRDS OF THE EXEMPTION GRANTED TO THE OWNER OR OWNERS PURSUANT TO
SECTION FOUR HUNDRED TWENTY-FIVE OF THIS TITLE FOR THE TWO THOUSAND
SIXTEEN--TWO THOUSAND SEVENTEEN SCHOOL YEAR BUT IN NO CASE SHALL THE
VALUE OF THE EXEMPTION BE LESS THAN ONE-HALF OF ONE PERCENT OF THE TWO-
THIRDS OF THE EXEMPTION GRANTED TO THE OWNER OR OWNERS PURSUANT TO
A. 1621 4
SECTION FOUR HUNDRED TWENTY-FIVE OF THIS TITLE FOR THE TWO THOUSAND
SIXTEEN--TWO THOUSAND SEVENTEEN SCHOOL YEAR.
3. NOT LATER THAN SEVEN DAYS AFTER THE ADOPTION OF A BUDGET, EACH
COUNTY SHALL TRANSMIT A STATEMENT TO THE STATE COMPTROLLER DESCRIBING
THE TAX REVENUE LOST DURING THAT FISCAL YEAR DUE TO THE IMPLEMENTATION
OF THE PROVISIONS OF THIS SECTION. THE STATE COMPTROLLER SHALL CERTIFY
THE VALIDITY OF SUCH LOSSES WITHIN THIRTY DAYS OF RECEIPT OF SUCH STATE-
MENT. UPON SUCH VALIDATION THE STATE COMPTROLLER SHALL PROVIDE FUNDS TO
THE COUNTY WITHIN THIRTY DAYS.
4. FOR THE PURPOSES OF THIS SECTION:
(A) "BASE YEAR" SHALL MEAN THE COUNTY FISCAL YEAR IMMEDIATELY PRECED-
ING THE COUNTY FISCAL YEAR FOR WHICH THE COUNTY BUDGET IS PREPARED;
(B) "CONSUMER PRICE INDEX" SHALL MEAN THE PERCENTAGE THAT REPRESENTS
THE AVERAGE OF THE NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE
UNITED STATES DEPARTMENT OF LABOR, FOR THE TWELVE MONTH PERIOD PRECEDING
JANUARY FIRST OF THE CURRENT YEAR; AND
(C) "CURRENT YEAR" SHALL MEAN THE CALENDAR YEAR IN WHICH THE COUNTY
BUDGET IS SUBMITTED FOR A VOTE BY THE COUNTY'S LEGISLATIVE BODY.
5. THE STATE SHALL APPROPRIATE ALL FUNDS NECESSARY TO MUNICIPALITIES
TO ADMINISTER THE PROVISIONS OF THIS SECTION AND TO IMPLEMENT ANY LAW,
REGULATION, OR RULE ADOPTED AFTER JANUARY FIRST, TWO THOUSAND FOURTEEN
WHICH WOULD REQUIRE A MUNICIPALITY TO EXPEND ANY OF ITS AVAILABLE FUNDS.
NOTWITHSTANDING ANY INCONSISTENT PROVISION OF THIS SECTION, THE
PROVISIONS OF PARAGRAPH (C) OF SUBDIVISION ONE OF SECTION FOUR HUNDRED
TWENTY-FIVE-B OF THIS TITLE SHALL NOT APPLY TO ANY COUNTY WHICH DOES NOT
INCREASE ITS PROPERTY TAX RATE, SALES TAX RATE, OR THE RATE OF ANY OTHER
TAX, DURING ITS CURRENT BUDGET YEAR.
S 2. This act shall take effect on the first of January next succeed-
ing the date on which it shall have become a law.