NY State Senate Bill 2019-S3274

Senate Bill S3274

2019-2020 Legislative Session

Relates to the exclusion of uncollectible taxes from the limitation on real estate taxes in New York city

download bill text pdf

Archive: Last Bill Status - In Senate Committee Cities 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

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to cities
Feb 05, 2019	referred to cities

2019-S3274 (ACTIVE) - Details

See Assembly Version of this Bill:: A7297
Current Committee:: Senate Cities
Law Section:: General Municipal Law
Laws Affected:: Amd §3-b, Gen Muni L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S8004
2017-2018: S6294, A10288
2021-2022: S4930, A6980
2023-2024: S4209

2019-S3274 (ACTIVE) - Summary

Relates to the exclusion of uncollectible taxes from the limitation on real estate taxes in New York City.

2019-S3274 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3274

SPONSOR: LANZA
 
TITLE OF BILL:

An act to amend the general municipal law, in relation to the exclusion
of uncollectible taxes from the limitation on real estate taxes in New
York city

 
PURPOSE:

This legislation is designed to ensure that New York City is properly
crafting a budget and tax levy that is within the constitutional
restraints placed on its tax limit.

 
SUMMARY OF PROVISIONS:

Section 1: Identifies tax exemptions and abatements that cannot be
considered as "uncollectibles" for purposes of calculating the amount to
be raised on real property taxes by the city of New York.

 
JUSTIFICATION:

The State Constitution imposes a tax limit of 2.5W on the city of New
York. In order to stay within this constitutional limit, New York City
has taken a unique position that certain tax exemptions should be
considered as uncollectible and therefore allowed to be considered with-
in the allowable tax levy. Uncollectible taxes are generally reserved
for properties where taxes cannot be collected one tax year in good
faith, but are expected to be collected in future years. A traditional
example of an uncollectible would be delinquent taxes where an owner
cannot be found. A good faith attempt must be made to find this owner
and there is an expectation that the taxes will be collected the follow-
ing year. This scenario is easily distinguished from an exemption or
abatement where the taxes are not being collected by operation of law.
For example on a ten year abatement, there is no expectation that in
year two the taxes will be collectible the following year. This inaccu-
rate characterization has been identified by reports and this legis-
lation seeks to ensure New York City is properly operating within it's
constitutional tax limit.

 
LEGISLATIVE HISTORY:

2018: S.6294 - Passed Senate / A.10288 - Referred to Cities
2017:  S.6294 - Referred to Cities
2016: S.8004 - Passed Senate

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
Immediately.

2019-S3274 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3274
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             February 5, 2019
                                ___________
 
 Introduced  by  Sen.  LANZA  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Cities
 
 AN ACT to amend the general municipal law, in relation to the  exclusion
   of uncollectible taxes from the limitation on real estate taxes in New
   York city

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 3-b of the general  municipal  law  is  amended  by
 adding three new subdivisions 3, 4 and 5 to read as follows:
   3.  THE  AMOUNT  TO BE RAISED BY TAX ON REAL ESTATE IN ANY FISCAL YEAR
 COMMENCING ON OR AFTER JULY FIRST, TWO THOUSAND NINETEEN BY THE CITY  OF
 NEW  YORK  AND  THE  COUNTIES  CONTAINED  THEREIN  FOR  CITY  AND COUNTY
 PURPOSES, IN ADDITION TO PROVIDING FOR THE INTEREST ON AND THE PRINCIPAL
 OF ALL INDEBTEDNESS DESCRIBED IN SUBDIVISION ONE OF THIS SECTION,  SHALL
 ONLY  INCLUDE  AN ADDITIONAL AMOUNT FOR A RESERVE FOR THOSE TAXES, WHICH
 IT ESTIMATES IN EACH BUDGET YEAR IN GOOD FAITH WILL BE UNCOLLECTIBLE FOR
 THE PAYMENT OF SUCH INDEBTEDNESS, MINUS ANY AMOUNT COLLECTED DURING  THE
 FISCAL  YEAR BY THE CITY OF NEW YORK FROM PRIOR LEVIES INCLUDING BY REAL
 PROPERTY TAX LIEN SALES.
   4. FOR PURPOSES OF THIS SECTION, THE TERM "UNCOLLECTIBLE"  SHALL  MEAN
 AN  ESTIMATE OF THE AMOUNT THAT TAXPAYERS DO NOT PAY BECAUSE THEY CANNOT
 PAY OR BECAUSE THEY CHOOSE NOT TO PAY.
   5. THE RESERVE WHICH THE CITY OF NEW YORK AND THE  COUNTIES  CONTAINED
 THEREIN ESTIMATES SHALL BE UNCOLLECTIBLE FOR THE PAYMENT OF SUCH INDEBT-
 EDNESS  SHALL  NOT INCLUDE ANY ABATEMENT OR EXEMPTION AMOUNTS INCLUDING,
 BUT NOT LIMITED TO, THOSE ABATEMENT  AMOUNTS  AS  AUTHORIZED  BY:    (A)
 SECTION  FOUR  HUNDRED  SIXTY-SEVEN-A  OF THE REAL PROPERTY TAX LAW; (B)
 SECTION FOUR HUNDRED SIXTY-SEVEN-B OF THE REAL  PROPERTY  TAX  LAW;  (C)
 SECTION  FOUR  HUNDRED  SIXTY-SEVEN-C  OF THE REAL PROPERTY TAX LAW; (D)
 SECTION FOUR HUNDRED SIXTY-SEVEN-F OF THE REAL  PROPERTY  TAX  LAW;  (E)
 SECTION  FOUR  HUNDRED  SIXTY-SEVEN-H  OF THE REAL PROPERTY TAX LAW; (F)
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD07441-01-9

 S. 3274                             2
 
 SECTION FOUR HUNDRED SIXTY-SEVEN-I OF THE REAL  PROPERTY  TAX  LAW;  (G)
 SECTION  FOUR  HUNDRED  EIGHTY-NINE  OF  THE  REAL PROPERTY TAX LAW; (H)
 SECTION FOUR HUNDRED NINETY-NINE-B OF THE REAL  PROPERTY  TAX  LAW;  (I)
 SECTION  SIXTY-FIVE  OF  CHAPTER  TWENTY  OF  THE  LAWS  OF TWO THOUSAND
 FIFTEEN, OR ANY OTHER STATUTE AUTHORIZING THE ABATEMENT OR EXEMPTION  OF
 REAL PROPERTY TAXES.
   § 2. This act shall take effect immediately.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.