NY State Senate Bill 2021-S5920

Senate Bill S5920

2021-2022 Legislative Session

Relates to directing any moneys derived from new or increased taxes to reduce local real property taxes

download bill text pdf

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations 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
Jan 05, 2022	referred to investigations and government operations
Mar 22, 2021	referred to investigations and government operations

2021-S5920 (ACTIVE) - Details

See Assembly Version of this Bill:: A4666
Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §171-a, Tax L; add §54-n, St Fin L
Versions Introduced in Other Legislative Sessions:: 2019-2020: S4156
2023-2024: S5306, A2926

2021-S5920 (ACTIVE) - Summary

Directs any moneys derived from new or increased taxes be used to reduce local real property taxes.

2021-S5920 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S5920

SPONSOR: MARTUCCI
 
TITLE OF BILL:

An act to amend the tax law and the state finance law, in relation to
disposition of revenue from new taxes and tax increases to reduce local
real property tax levies

 
PURPOSE:

This bill would require New York State to use any revenue from increas-
ing or imposing new taxes towards property tax relief by establishing
the Tax Reduction Utilization Security Target or TRUST fund bringing
financial responsibility and trust back to New York State.

 
SUMMARY OF PROVISIONS:

Section 1. Lays out the definitions for the tax increases and new taxes
that will be captured in this legislation.

Section 2. Establishes the Tax reduction utilization security target
(TRUST) fund where the revenue from increased/ new taxes will be depos-
ited and distributed to the localities. It also specifies that locali-
ties must use this money to reduce their tax levy.

Section 3. This act shall take effect on the first of January next
succeeding the date on which it shall have become a law.

 
JUSTIFICATION:

2019 has been a year of promises in New York State. Promises that new
revenue from taxing sports betting, marijuana, internet purchases, pros-
titution and more will solve all of New York's financial problems. The
only promise that has been missing from our legislative leaders is to
reduce the single largest burden on New Yorkers, and the primary reason
people are leaving our great state. It isn't because of the weather, and
it isn't because of mis-counting people in a census. It is because New
York has the highest property taxes in the nation. While I do not
support increasing taxes or creating new ones, if they are going to be
imposed that money should go back to help the people struggling to stay
in their homes. This bill would force the Governor and the Legislature
to take the money received from any tax increases or new taxes and
deliver it to localities where they would then be required to reduce
their tax levy by an equal amount. Property taxes are crushing our
seniors and young families and have caused a net out migration of 1
million people from our state since 2010. If we are going to legalize
and tax additional activities that some of our citizens chose to partic-
ipate in, the beneficiary must be property tax payers.

 
LEGISLATIVE HISTORY:

01/08/20 REFERRED TO INVESTIGATIONS AND GOVERNMENT OPERATIONS

 
FISCAL IMPLICATIONS:

None. Would prohibit additional state tax revenue.

 
LOCAL FISCAL IMPLICATIONS:
This bill will reduce local tax levies.

 
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which is shall have become law.

2021-S5920 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5920
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              March 22, 2021
                                ___________
 
 Introduced  by Sen. MARTUCCI -- read twice and ordered printed, and when
   printed to be committed to the Committee on Investigations and Govern-
   ment Operations
 
 AN ACT to amend the tax law and the state finance law,  in  relation  to
   disposition  of  revenue  from  new  taxes and tax increases to reduce
   local real property tax levies

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section  171-a  of  the tax law, as separately amended by
 chapters 481 and 484 of the laws of 1981, is amended  by  adding  a  new
 subdivision 3 to read as follows:
   3.  ANY  AMOUNTS RECEIVED FROM TAXES, INTEREST AND PENALTIES COLLECTED
 OR RECEIVED BY THE COMMISSIONER OR THE  COMMISSIONER'S  DULY  AUTHORIZED
 AGENT  AS  SET  FORTH AND PRESCRIBED BY SUBDIVISION ONE OF THIS SECTION,
 WHICH ARE ATTRIBUTABLE TO AN INCREASE IN THE RATE OF SUCH TAXES OVER ANY
 RATES WHICH WERE IN EFFECT ON THE EFFECTIVE DATE OF THIS SUBDIVISION, OR
 THE IMPOSITION OF NEW TAXES WHICH WERE NOT IMPOSED PRIOR TO SUCH  EFFEC-
 TIVE  DATE, SHALL BE DEPOSITED TO THE TAX REDUCTION UTILIZATION SECURITY
 TARGET FUND ESTABLISHED BY SECTION FIFTY-FOUR-N  OF  THE  STATE  FINANCE
 LAW. THE TAX COMMISSIONER AND THE COMPTROLLER SHALL MAINTAIN A SYSTEM OF
 ACCOUNTS  SHOWING  THE AMOUNT OF REVENUE COLLECTED OR RECEIVED FROM EACH
 OF THE TAXES IMPOSED BY THE SECTIONS ENUMERATED IN  SUBDIVISION  ONE  OF
 THIS  SECTION WHICH REPRESENT SUCH INCREASED AMOUNTS OR WHICH WERE FIRST
 IMPOSED AFTER THE EFFECTIVE DATE OF THIS SUBDIVISION.
   § 2. The state finance law is amended by adding a new section 54-n  to
 read as follows:
   §  54-N. TAX REDUCTION UTILIZATION SECURITY TARGET FUND.  1. BEGINNING
 APRIL FIRST, TWO THOUSAND  TWENTY-TWO,  AND  ANNUALLY  THEREAFTER,  EACH
 CITY,  VILLAGE AND TOWN OUTSIDE A VILLAGE SHALL RECEIVE AN APPROPRIATION
 OF STATE FUNDS FROM AMOUNTS RESULTING FROM THE INCREASE OR IMPOSITION OF
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08652-01-1

 S. 5920                             2
 
 ADDITIONAL TAXES AS DETERMINED  BY  SUBDIVISION  THREE  OF  SECTION  ONE
 HUNDRED SEVENTY-ONE-A OF THE TAX LAW.
   2.  THE  AMOUNT  APPROPRIATED TO EACH MUNICIPALITY SHALL BE THE ENTIRE
 AMOUNT UNDER SUBDIVISION THREE OF SECTION ONE HUNDRED  SEVENTY-ONE-A  OF
 THE  TAX  LAW  MULTIPLIED  BY THE PROPORTION WHICH THE FULL VALUE OF THE
 CITY, VILLAGE OR TOWN OUTSIDE A VILLAGE BEARS TO THE FULL VALUE  OF  THE
 STATE  TAKEN  AS  A WHOLE. "FULL VALUE" MEANS FOR EACH CITY, VILLAGE AND
 TOWN OUTSIDE A VILLAGE AN AMOUNT EQUAL TO  THE  TOTAL  TAXABLE  ASSESSED
 VALUE  OF  PROPERTY  ON  THE  MOST RECENTLY COMPLETED ASSESSMENT ROLL AS
 FILED WITH THE STATE COMPTROLLER DIVIDED BY THE FINAL STATE EQUALIZATION
 RATE ESTABLISHED FOR SUCH ROLL  BY  THE  COMMISSIONER  OF  TAXATION  AND
 FINANCE.
   3.  PAYMENTS  MADE  TO  CITIES,  VILLAGES  AND  TOWNS PURSUANT TO THIS
 SECTION SHALL BE USED TO REDUCE EACH MUNICIPALITY'S  REAL  PROPERTY  TAX
 LEVY.    AFTER  THE  INITIAL  DETERMINATION  OF THE ANNUAL TAX LEVY, THE
 ASSESSOR SHALL DEDUCT THE AMOUNT PAID  TO  THE  MUNICIPALITY  AND  SHALL
 ADJUST  THE  TAX LEVY BEFORE FILING THE WARRANT PURSUANT TO SECTION NINE
 HUNDRED FOUR OF THE REAL PROPERTY TAX LAW.
   4. PAYMENTS MADE PURSUANT TO THIS SECTION SHALL BE MADE ON  OR  BEFORE
 JUNE  THIRTIETH OF EACH STATE FISCAL YEAR TO THE CHIEF FISCAL OFFICER OF
 EACH CITY, VILLAGE AND TOWN ON AUDIT AND  WARRANT  OF  THE  STATE  COMP-
 TROLLER  OUT  OF MONEYS APPROPRIATED BY THE LEGISLATURE FOR SUCH PURPOSE
 TO THE CREDIT OF THE LOCAL ASSISTANCE FUND IN THE GENERAL  FUND  OF  THE
 STATE TREASURY.
   §  3. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a law.

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