NY State Senate Bill 2017-S8412

Senate Bill S8412

2017-2018 Legislative Session

Relates to medical expenditure amounts and establishes limitations upon real property tax levies in cities of over 1,000,000

download bill text pdf

Archive: Last Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 07, 2018	referred to ways and means delivered to assembly passed senate ordered to third reading cal.1050 committee discharged and committed to rules
May 04, 2018	referred to local government

Votes

- May 7, 2018 - Floor Vote
  S8412
  
  48
  
  Aye
  
  14
  
  Nay
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: May 7, 2018
      
      aye (48)
      
      Addabbo Jr.
      
      Akshar
      
      Amedore
      
      Avella
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Croci
      
      DeFrancisco
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Helming
      
      Hoylman-Sigal
      
      Jacobs
      
      Kaminsky
      
      Kennedy
      
      Klein
      
      LaValle
      
      Lanza
      
      Larkin
      
      Little
      
      Marcellino
      
      Marchione
      
      Mayer
      
      Murphy
      
      O'Mara
      
      Ortt
      
      Peralta
      
      Phillips
      
      Ranzenhofer
      
      Ritchie
      
      Robach
      
      Savino
      
      Serino
      
      Serrano
      
      Seward
      
      Stewart-Cousins
      
      Tedisco
      
      Valesky
      
      Young
      
      nay (14)
      
      Alcantara
      
      Bailey
      
      Benjamin
      
      Comrie
      
      Dilan
      
      Gianaris
      
      Kavanagh
      
      Krueger
      
      Montgomery
      
      Parker
      
      Persaud
      
      Rivera
      
      Sanders Jr.
      
      Stavisky
      
      excused (1)
      
      Sepúlveda
  May 7, 2018 - Rules Committee Vote
  S8412
  
  19
  
  Aye
  
  1
  
  Nay
  
  5
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: May 7, 2018
      
      aye (19)
      
      Bonacic
      
      Breslin
      
      DeFrancisco
      
      Flanagan
      
      Griffo
      
      Hannon
      
      Kennedy
      
      Klein
      
      LaValle
      
      Lanza
      
      Larkin
      
      Little
      
      Marcellino
      
      Montgomery
      
      Ranzenhofer
      
      Robach
      
      Savino
      
      Seward
      
      Valesky
      
      nay (1)
      
      Dilan
      
      aye wr (5)
      
      Gianaris
      
      Krueger
      
      Parker
      
      Rivera
      
      Stewart-Cousins

co-Sponsors

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2017-S8412 (ACTIVE) - Details

Current Committee:: Assembly Ways And Means
Law Section:: General Municipal Law
Laws Affected:: Amd Part C §1, Chap 58 of 2005; add §§3-e & 3-f, Gen Muni L; amd §23, Munic Home R L
Versions Introduced in 2019-2020 Legislative Session:: S1059

2017-S8412 (ACTIVE) - Summary

Relates to medical expenditure amounts and to county property tax levy reductions resulting from medical assistance program expenditure reductions; and limits, in cities having a population of one million or more, the annual increase in real property taxes.

2017-S8412 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8412

SPONSOR: YOUNG
 
TITLE OF BILL:  An act to amend chapter 58 of the laws of 2005 author-
izing reimbursements for expenditures made by or on behalf of social
services districts for medical assistance for needy persons and the
administration thereof, in relation to medical assistance expenditure
amounts; to amend the general municipal law, in relation to county prop-
erty tax levy reductions resulting from medical assistance program
expenditure reductions; and 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

 
PURPOSE:

This bill provides for a takeover of the local share of Medicaid state-
wide over a 10-year period beginning in calendar year 2019. This bill
also ensures that any Medicaid cost savings to a county that takes
effect due to federal or state action are passed on as income tax
reductions in New York City, and as real property tax reductions for the
rest of the State.

 
SUMMARY OF PROVISIONS:

Section 1: Section 1 of chapter 58 of the laws of 2005 is amended by
adding a new subdivision (c-2) to provide for the takeover of the local
share of Medicaid costs over a 10-year period and limits the reduction
in cost for New York City to equal the reduction in cost to the rest of
the state.

Section 2: Adds a new section 3-e to the general municipal law which
provides that in the event federal or state statute is modified to elim-
inate or reduce a county's local contributions to New York's share of
payments under the Medicaid program, the amount of the reduction shall
be applied as a correlating reduction in the property tax levy of such
county.

Section 3: Provides that in the event federal or state statute is modi-
fied to eliminate or reduce local contributions to New York City's share
of payments under the Medicaid program, the amount of the reduction
shall be applied as a correlating reduction in New York City personal
income taxes.

Section 4 and 5: Adds a new § 3-f to the General Municipal Law to estab-
lish a real property tax levy cap for New York City.

 
JUSTIFICATION:

Since the enactment of the Medicaid program in 1965, local social
service districts (counties and the City of New York) have been required
to share in both the cost and administrative operation of the program.
The State is responsible for program design and, over the course of
several years, the overall administration of the program has been gradu-
ally shifting to the state. The counties' Medicaid share is currently
capped at 2015 levels. However, the localities continued to contribute
$7.6 billion to the program in FY 2018.


This bill would enact a phased-in state takeover of the local share of
Medicaid over a 10-year period, lifting substantial property tax pres-
sure on those counties. Furthermore, the bill ensures that New York's
tax burden on local property taxpayers outside of New York City is alle-
viated by requiring that any reduction in county Medicaid costs result-
ing from state or federal legislative action be passed on to resident
property taxpayers on a dollar for dollar basis. For New York City resi-
dents, the bill reduces the City income tax burden by requiring that any
reduction in City Medicaid costs resulting from state or federal legis-
lative action be passed on in the form of income tax relief.

New York State property taxes are among the highest taxes in the nation.
High property taxes jeopardize quality of life and the ability to home-
owners to remain in their homes. This bill would enact a 2 percent limit
on New York City's ability to raise property taxes and will relieve
taxpayers from unexpected high property tax increases.

 
LEGISLATIVE HISTORY:

New Bill

 
FISCAL IMPLICATIONS:

None in FY 2019.

 
EFFECTIVE DATE:
This act shall take effect immediately and sections four and five of
this act shall first apply to the levy of taxes by local governments for
the fiscal year that begins in 2019.

2017-S8412 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8412
 
                             I N  S E N A T E
 
                                May 4, 2018
                                ___________
 
 Introduced  by  Sens.  YOUNG,  AKSHAR,  FELDER,  GOLDEN,  HANNON, LANZA,
   MURPHY, PHILLIPS -- read twice and ordered printed, and  when  printed
   to be committed to the Committee on Local Government
 
 AN  ACT  to  amend chapter 58 of the laws of 2005 authorizing reimburse-
   ments for expenditures  made  by  or  on  behalf  of  social  services
   districts  for  medical  assistance for needy persons and the adminis-
   tration  thereof,  in  relation  to  medical  assistance   expenditure
   amounts;  to  amend  the  general municipal law, in relation to county
   property tax levy reductions resulting from medical assistance program
   expenditure reductions; and 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:
 
   Section 1. Section 1 of part C of chapter 58  of  the  laws  of  2005,
 authorizing  reimbursements  for  expenditures  made  by or on behalf of
 social services districts for medical assistance for needy  persons  and
 the  administration thereof is amended by adding a new subdivision (c-2)
 to read as follows:
   (C-2) NOTWITHSTANDING ANY PROVISIONS OF SUBDIVISION (C)  OR  (C-1)  OF
 THIS  SECTION  TO  THE CONTRARY, EFFECTIVE APRIL 1, 2019, FOR THE PERIOD
 JANUARY 1, 2019 THROUGH DECEMBER 31, 2019, AND FOR  EACH  CALENDAR  YEAR
 THEREAFTER,  THE  MEDICAL  ASSISTANCE  EXPENDITURE AMOUNT FOR THE SOCIAL
 SERVICES DISTRICT FOR SUCH PERIOD SHALL BE THE GREATER OF (1)  ZERO;  OR
 (2)  THE  PREVIOUS CALENDAR YEAR'S MEDICAL ASSISTANCE EXPENDITURE AMOUNT
 MINUS TEN PERCENT OF THE MEDICAL ASSISTANCE EXPENDITURE AMOUNT  FOR  THE
 PERIOD  JANUARY  1,  2018 THROUGH DECEMBER 31, 2018.  PROVIDED, HOWEVER,
 THE LOCAL CONTRIBUTION FOR A CITY WITH A POPULATION OF  ONE  MILLION  OR
 MORE SHALL NOT BE REDUCED BY MORE THAN TWO BILLION THREE HUNDRED MILLION
 DOLLARS.
   §  2. The general municipal law is amended by adding a new section 3-e
 to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD15743-04-8

 S. 8412                             2
 
   § 3-E. COUNTY PROPERTY  TAX  LEVY  REDUCTION  RESULTING  FROM  MEDICAL
 ASSISTANCE  PROGRAM  EXPENDITURE  REDUCTIONS.  NOTWITHSTANDING ANY OTHER
 PROVISION OF LAW TO THE CONTRARY, IN THE EVENT A COUNTY'S LOCAL CONTRIB-
 UTION TO NEW YORK STATE'S SHARE OF PAYMENTS UNDER THE MEDICAL ASSISTANCE
 PROGRAM  ARE  REDUCED OR ELIMINATED AS A RESULT OF CHANGES IN FEDERAL OR
 STATE STATUTE, THE AMOUNT OF SUCH  REDUCTION  OR  ELIMINATION  SHALL  BE
 APPLIED  AS AN EQUAL DOLLAR AMOUNT REDUCTION IN THE PROPERTY TAX LEVY OF
 SUCH COUNTY.
   § 3. Notwithstanding any other provision of law to the contrary, for a
 city with a population of one million or more, in the  event  the  local
 contribution  to  New  York  state's share of payments under the medical
 assistance program are reduced or eliminated as a result of  changes  in
 federal  or  state  statute, the amount of such reduction or elimination
 shall reduce city personal income  taxes  in  an  amount  equal  to  the
 reduction  in  such city's share of payments. Such reduction shall be an
 equal rate reduction applied to all tax brackets.
   § 4. The general municipal law is amended by adding a new section  3-f
 to read as follows:
   §  3-F.  LIMITATION  UPON  REAL PROPERTY TAX LEVIES BY CITIES HAVING A
 POPULATION OF ONE MILLION OR MORE.  1. UNLESS OTHERWISE PROVIDED BY LAW,
 THE AMOUNT OF REAL PROPERTY TAXES THAT MAY BE LEVIED BY OR ON BEHALF  OF
 ANY CITY HAVING A POPULATION OF ONE MILLION OR MORE SHALL NOT EXCEED THE
 TAX LEVY LIMITATION ESTABLISHED PURSUANT TO THIS SECTION.
   2. WHEN USED IN THIS SECTION:
   (A) "ALLOWABLE LEVY GROWTH FACTOR" SHALL BE THE LESSER OF: (I) 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.
   (B)  "APPROVED CAPITAL EXPENDITURES" MEANS THE EXPENDITURES ASSOCIATED
 WITH CAPITAL PROJECTS THAT HAVE BEEN APPROVED BY THE QUALIFIED VOTERS OF
 THE LOCAL GOVERNMENT.
   (C) "AVAILABLE CARRYOVER" MEANS THE SUM OF THE AMOUNT BY WHICH THE TAX
 LEVY FOR THE PRIOR FISCAL YEAR WAS BELOW THE TAX  LEVY  LIMIT  FOR  SUCH
 FISCAL  YEAR,  IF  ANY, BUT NO MORE THAN ONE AND ONE-HALF PERCENT OF THE
 TAX LEVY LIMIT FOR SUCH FISCAL YEAR.
   (D) "CAPITAL TAX LEVY" MEANS THE TAX LEVY NECESSARY TO SUPPORT CAPITAL
 EXPENDITURES, IF ANY.
   (E) "COMING FISCAL YEAR" MEANS THE FISCAL YEAR OF THE LOCAL GOVERNMENT
 FOR WHICH A TAX LEVY LIMITATION SHALL BE  DETERMINED  PURSUANT  TO  THIS
 SECTION.
   (F)  "INFLATION  FACTOR" MEANS THE QUOTIENT OF: (I) THE AVERAGE OF THE
 NATIONAL CONSUMER PRICE INDEXES DETERMINED BY THE UNITED STATES  DEPART-
 MENT OF LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE
 START  OF  THE  COMING  FISCAL  YEAR  MINUS  THE AVERAGE OF THE NATIONAL
 CONSUMER PRICE INDEXES DETERMINED BY THE  UNITED  STATES  DEPARTMENT  OF
 LABOR  FOR  THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO THE START
 OF THE PRIOR FISCAL YEAR, DIVIDED BY: (II) THE AVERAGE OF  THE  NATIONAL
 CONSUMER  PRICE  INDEXES  DETERMINED  BY THE UNITED STATES DEPARTMENT OF
 LABOR FOR THE TWELVE-MONTH PERIOD ENDING SIX MONTHS PRIOR TO  THE  START
 OF THE PRIOR FISCAL YEAR, WITH THE RESULT EXPRESSED AS A DECIMAL TO FOUR
 PLACES.
   (G) "LOCAL GOVERNMENT" MEANS A CITY HAVING A POPULATION OF ONE MILLION
 OR MORE.
   (H)  "PRIOR FISCAL YEAR" MEANS THE FISCAL YEAR OF THE LOCAL GOVERNMENT
 IMMEDIATELY PRECEDING THE COMING FISCAL YEAR.

 S. 8412                             3
 
   (I) "TAX LEVY LIMITATION" MEANS THE AMOUNT OF TAXES A LOCAL GOVERNMENT
 IS AUTHORIZED TO LEVY PURSUANT TO THIS SECTION, PROVIDED, HOWEVER,  THAT
 THE  TAX  LEVY  LIMIT  SHALL NOT INCLUDE THE LOCAL GOVERNMENT'S APPROVED
 CAPITAL TAX LEVY, IF ANY.
   3.  (A)  BEGINNING  WITH  THE  FISCAL YEAR THAT BEGINS IN TWO THOUSAND
 NINETEEN, NO LOCAL GOVERNMENT SHALL ADOPT A BUDGET THAT REQUIRES  A  TAX
 LEVY  THAT IS GREATER THAN THE TAX LEVY LIMITATION FOR THE COMING FISCAL
 YEAR.
   (B) THE STATE COMPTROLLER SHALL CALCULATE THE TAX LEVY LIMITATION  FOR
 EACH  LOCAL  GOVERNMENT  BY  THE ONE HUNDRED TWENTIETH DAY PRECEDING THE
 COMMENCEMENT OF EACH LOCAL GOVERNMENT'S FISCAL YEAR,  AND  SHALL  NOTIFY
 EACH LOCAL GOVERNMENT OF THE TAX LEVY LIMITATION SO DETERMINED.
   (C) THE TAX LEVY LIMITATION APPLICABLE TO THE COMING FISCAL YEAR SHALL
 BE DETERMINED AS FOLLOWS:
   (I)  ASCERTAIN  THE  TOTAL AMOUNT OF TAXES LEVIED FOR THE PRIOR FISCAL
 YEAR.
   (II) ADD ANY PAYMENTS IN LIEU OF TAXES THAT  WERE  RECEIVABLE  IN  THE
 PRIOR FISCAL YEAR.
   (III)  SUBTRACT  THE  APPROVED  CAPITAL  TAX LEVY FOR THE PRIOR FISCAL
 YEAR, IF ANY.
   (IV) SUBTRACT THE LEVY ATTRIBUTABLE TO A LARGE LEGAL SETTLEMENT  OF  A
 TORT  ACTION EXCLUDED FROM THE LEVY LIMITATION IN THE PRIOR FISCAL YEAR,
 IF ANY.
   (V) MULTIPLY THE RESULT BY THE ALLOWABLE LEVY GROWTH FACTOR.
   (VI) SUBTRACT ANY PAYMENTS IN LIEU OF TAXES RECEIVABLE IN  THE  COMING
 FISCAL YEAR.
   (VII) ADD THE AVAILABLE CARRYOVER, IF ANY.
   (D) IN THE EVENT THE CITY COUNCIL OF A LOCAL GOVERNMENT HAS APPROVED A
 LEGAL  SETTLEMENT  OF  A  TORT ACTION AGAINST THE GOVERNMENT, THE ANNUAL
 COSTS OF WHICH EXCEED TEN PERCENT OF THE PROPERTY TAXES  LEVIED  BY  THE
 LOCAL  GOVERNMENT  IN THE PRIOR FISCAL YEAR, THE STATE COMPTROLLER, UPON
 APPLICATION BY THE LOCAL GOVERNMENT, MAY ADJUST THE TAX LEVY  LIMITATION
 FOR  THE  COMING  FISCAL  YEAR  APPLICABLE  TO SUCH LOCAL GOVERNMENT, BY
 ADDING THE ANNUAL COSTS OF SUCH SETTLEMENT TO THE TAX LEVY LIMITATION.
   (E) THE STATE COMPTROLLER SHALL DETERMINE THE PORTION OF THE TAX  LEVY
 OF  EACH  LOCAL  GOVERNMENT  THAT  IS  ATTRIBUTABLE  TO  ANY INCREASE OR
 DECREASE OVER THE PRIOR YEAR IN THE COST OF THE LOCAL  GOVERNMENT  SHARE
 OF  DIRECT CASH ASSISTANCE TO PERSONS ELIGIBLE FOR THE FEDERAL-STATE-LO-
 CAL TEMPORARY ASSISTANCE TO NEEDY FAMILIES PROGRAM  OR  THE  STATE-LOCAL
 SAFETY  NET  ASSISTANCE PROGRAM AND SHALL ADJUST THE TAX LEVY LIMITATION
 FOR SUCH LOCAL GOVERNMENT TO REFLECT SUCH CHANGE.
   4. A LOCAL GOVERNMENT MAY ADOPT A BUDGET THAT REQUIRES A TAX LEVY THAT
 IS GREATER THAN THE TAX LEVY LIMITATION FOR THE COMING FISCAL YEAR  ONLY
 IF  THE  CITY  COUNCIL  OF SUCH LOCAL GOVERNMENT FIRST ENACTS, BY A TWO-
 THIRDS VOTE OF THE TOTAL VOTING POWER OF SUCH CITY COUNCIL, A LOCAL  LAW
 TO OVERRIDE SUCH LIMITATION FOR SUCH COMING FISCAL YEAR ONLY.
   5.  IN  THE  EVENT  A  LOCAL  GOVERNMENT'S ACTUAL TAX LEVY FOR A GIVEN
 FISCAL YEAR EXCEEDS THE MAXIMUM ALLOWABLE LEVY AS  ESTABLISHED  PURSUANT
 TO  THIS  SECTION DUE TO CLERICAL OR TECHNICAL ERRORS, THE LOCAL GOVERN-
 MENT SHALL PLACE THE EXCESS AMOUNT OF THE LEVY IN RESERVE IN  ACCORDANCE
 WITH SUCH REQUIREMENTS AS THE STATE COMPTROLLER MAY PRESCRIBE, AND SHALL
 USE  SUCH  FUNDS  AND ANY INTEREST EARNED THEREON TO OFFSET THE TAX LEVY
 FOR THE ENSUING FISCAL YEAR.
   § 5. Paragraphs j and k of subdivision 2 of section 23 of the  munici-
 pal home rule law are relettered paragraphs k and l, and a new paragraph
 j is added to read as follows:

 S. 8412                             4
 
   J.  OVERRIDES THE TAX LEVY LIMITATION APPLICABLE FOR THE COMING FISCAL
 YEAR IN ACCORDANCE WITH SECTION THREE-F OF THE GENERAL MUNICIPAL LAW.
   § 6. This act shall take effect immediately and sections four and five
 of  this act shall first apply to the levy of taxes by local governments
 for the fiscal year that begins in 2019.

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