S T A T E O F N E W Y O R K
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8649--A
I N A S S E M B L Y
January 7, 2016
___________
Introduced by M. of A. KOLB -- read once and referred to the Committee
on Ways and Means -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the general municipal law and the education law, in
relation to the real property tax cap; and to repeal certain
provisions of such laws relating thereto
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Legislative intent. The legislature finds that when the
property tax cap was first enacted in 2011 that tangible mandate relief
is needed to be coupled with the cap in order to significantly reduce
property taxes. Since enactment, no substantial mandate relief has been
introduced and property taxes throughout the state continue to be high.
The property tax cap has kept the growth in property taxes down but has
done little in helping with providing the necessary relief to property
owners. On the other hand, without mandate relief, local governments and
school districts have been squeezed financially. They are now limited to
a tax cap that is tied to the Consumer Price Index (CPI) that has in
recent years been low. This has forced local governments and school
districts to struggle with budget concerns and a potential tax cap over-
ride. However, the current lack of taxpayer appetite for a tax cap
override at the school district level has forced school districts to
potentially cut services in order to pay for under and unfunded
mandates. This bill would create a true two percent property tax cap by
removing the property tax cap being tied to CPI and would allow for a
simple majority vote to override the cap. The legislature recognizes
that had real mandate relief been enacted when the cap was first enacted
these changes would not have been needed. Further, these two changes
would also make New York's property tax cap consistent with neighboring
state's property tax caps. A true two percent cap would create predict-
ability and fairness to local governments and school districts. Finally,
this bill would provide state aid to local governments and school
districts equal to the year-to-year increase in levy growth under the
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13280-04-6
A. 8649--A 2
property tax cap; therefore keeping property taxes flat for homeowners
and small businesses.
S 2. Paragraph (a) of subdivision 2 of section 3-c of the general
municipal law, as added by section 1 of part A of chapter 97 of the laws
of 2011, is amended to read as follows:
(a) "Allowable levy growth factor" shall be [the lesser of: (i)]
EQUAL TO one and two one-hundredths[; or (ii) the sum of one plus the
inflation factor; provided, however, that in no case shall the levy
growth factor be less than one].
S 3. Paragraph (d) of subdivision 2 of section 3-c of the general
municipal law is REPEALED.
S 4. Paragraph a of subdivision 2 of section 2023-a of the education
law, as added by section 2 of part A of chapter 97 of the laws of 2011,
is amended to read as follows:
a. "Allowable levy growth factor" shall be [the lesser of: (i)] EQUAL
TO one and two one-hundredths[; or (ii) the sum of one plus the
inflation factor; provided, however, that in no case shall the levy
growth factor be less than one].
S 5. Paragraph f of subdivision 2 of section 2023-a of the education
law is REPEALED.
S 6. Subdivision 5 of section 3-c of the general municipal law, as
added by section 1 of part A of chapter 97 of the laws of 2011, is
amended to read as follows:
5. A local government may adopt a budget that requires a tax levy that
is greater than the tax levy limit for the coming fiscal year, not
including any levy necessary to support the expenditures pursuant to
subparagraphs (i) through (iv) of paragraph [g] (G) of subdivision two
of this section, only if the governing body of such local government
first enacts, by a vote of [sixty] MORE THAN FIFTY percent of the total
voting power of such body, a local law to override such limit for such
coming fiscal year only, or in the case of a district or fire district,
a resolution, approved by a vote of sixty percent of the total voting
power of such body, to override such limit for such coming fiscal year
only.
S 7. Subdivision 6 of section 2023-a of the education law, as added by
section 2 of part A of chapter 97 of the laws of 2011, is amended to
read as follows:
6. (a) Notwithstanding any other provision of law to the contrary, in
the event the trustee, trustees or board of education of a school
district that is subject to the provisions of this section proposes a
budget that will require a tax levy that exceeds the tax levy limit for
the corresponding school year, not including any levy necessary to
support the expenditures pursuant to subparagraphs (i) through (iv) of
paragraph i of subdivision two of this section, then such budget shall
be approved if [sixty] MORE THAN FIFTY percent of the votes cast thereon
are in the affirmative.
(b) Where the trustee, trustees or board of education proposes a budg-
et subject to the requirements of paragraph (a) of this subdivision, the
ballot for such budget shall include the following statement in substan-
tially the same form: "Adoption of this budget requires a tax levy
increase of which exceeds the statutory tax levy increase limit
of for this school fiscal year and therefore exceeds the state tax
cap and must be approved by [sixty] MORE THAN FIFTY percent of the qual-
ified voters present and voting."
A. 8649--A 3
S 8. Subdivision 9 of section 2023-a of the education law, as added by
section 2 of part A of chapter 97 of the laws of 2011, is amended to
read as follows:
9. Nothing in this section shall preclude the trustee, trustees, or
board of education of a school district, in their discretion, from
submitting additional items of expenditures to the voters for approval
as separate propositions or the voters from submitting propositions
pursuant to sections two thousand eight and two thousand thirty-five of
this part; provided however, except in the case of a proposition submit-
ted for any expenditure contained within subparagraphs (i) through (iv)
of paragraph i of subdivision two of this section, if any proposition,
or propositions collectively that are subject to a vote on the same
date, would require an expenditure of money that would require a tax
levy and would result in the tax levy limit being exceeded for the
corresponding school year then such proposition shall be approved if
[sixty] MORE THAN FIFTY percent of the votes cast thereon are in the
affirmative.
S 9. Section 3-c of the general municipal law is amended by adding a
new subdivision 8 to read as follows:
8. A LOCAL GOVERNMENT SHALL RECEIVE STATE AID IF SUCH LOCAL GOVERNMENT
ADOPTS A BUDGET THAT IS EQUAL TO OR LOWER THAN THE TAX LEVY LIMIT. SUCH
STATE AID WOULD BE EQUAL TO A LOCAL GOVERNMENT'S YEAR-TO-YEAR ADOPTED
LEVY INCREASE WITHIN THE TAX LEVY LIMIT. IN NO EVENT SHALL THE STATE AID
FOR A LOCAL GOVERNMENT EXCEED THE ALLOWABLE LEVY GROWTH FACTOR AS
DEFINED IN PARAGRAPH (A) OF SUBDIVISION TWO OF THIS SECTION.
S 10. Section 2023-a of the education law is amended by adding a new
subdivision 10 to read as follows:
10. A SCHOOL DISTRICT SHALL RECEIVE STATE AID IF SUCH SCHOOL DISTRICT
ADOPTS A BUDGET THAT IS EQUAL TO OR LOWER THAN THE TAX LEVY LIMIT. SUCH
STATE AID WOULD BE EQUAL TO A SCHOOL DISTRICT'S YEAR-TO-YEAR ADOPTED
LEVY INCREASE WITHIN THE TAX LEVY LIMIT. IN NO EVENT SHALL THE STATE AID
FOR A SCHOOL DISTRICT EXCEED THE ALLOWABLE LEVY GROWTH FACTOR AS DEFINED
IN PARAGRAPH A OF SUBDIVISION TWO OF THIS SECTION.
S 11. This act shall take effect immediately; provided, however, that
the amendments to section 3-c of the general municipal law and section
2023-a of the education law made by sections two, four, five, six,
seven, eight, nine and ten of this act shall not affect the repeal of
such sections and shall expire and be deemed repealed therewith.