S T A T E   O F   N E W   Y O R K
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                                   5716
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 24, 2021
                                ___________
 
 Introduced by M. of A. CUSICK, BARNWELL, D. ROSENTHAL, PALMESANO, REILLY
   -- read once and referred to the Committee on Ways and Means
 
 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:
 
   Section 1. The general municipal  law  is  amended  by  adding  a  new
 section 3-d to read as follows:
   §  3-D.  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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01115-01-1

 A. 5716                             2
 
   (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.
   (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
 TWENTY-TWO, 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.

 A. 5716                             3
 
   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.
   § 2. 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:
   J.  OVERRIDES THE TAX LEVY LIMITATION APPLICABLE FOR THE COMING FISCAL
 YEAR IN ACCORDANCE WITH SECTION THREE-D OF THE GENERAL MUNICIPAL LAW.
   §  3.  This act shall take effect immediately and shall first apply to
 the levy of taxes by local governments for the fiscal year  that  begins
 in 2022.