NY State Senate Bill 2023-S1020

Senate Bill S1020

2023-2024 Legislative Session

Provides that a capital tax levy shall not be included within the definition of "tax levy limit"

download bill text pdf

Current Bill Status - In Senate Committee Local Government 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to local government
Jan 09, 2023	referred to local government

2023-S1020 (ACTIVE) - Details

Current Committee:: Senate Local Government
Law Section:: General Municipal Law
Laws Affected:: Amd §3-c, Gen Muni L
Versions Introduced in 2021-2022 Legislative Session:: S8331

2023-S1020 (ACTIVE) - Summary

Provides that a capital tax levy shall not be included within the definition of "tax levy limit"; defines "capital local expenditures" and "capital tax levy".

2023-S1020 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S1020

SPONSOR: COONEY
 
TITLE OF BILL:

An act to amend the general municipal law, in relation to capital tax
levies to support local tax expenditures; and providing for the repeal
of such provisions upon expiration thereof

 
SUMMARY OF PROVISIONS:

Section one amends subdivision 2 of section 3-c of the general municipal
law to add local capital expenditures to the list of exclusions from the
property tax cap calculation. Provides definitions for "local capital
expenditure" and "capital tax levy."

Section two is the effective date.

 
JUSTIFICATION:

The federal government has provided new funds to municipalities to
invest in critical infrastructure projects through the American Rescue

Plan Act and the Infrastructure Investment and Jobs Act. In response to
the COVID-19 pandemic the federal government recognized the need for our
cities, towns, and villages to invest in such needs as repairing bridg-
es, electrifying modes of mass transit, and removing the lead from our
homes and water systems. Municipalities need the ability to match these
funds and support projects ineligible for federal funding. To that end,
this bill excludes local capital expenditures from the calculation of
the property tax cap.

This legislation expands the local capital expenditure exclusion that
already applies to school districts to municipalities. The change will
increase compliance with the tax cap and promote economic development
throughout the state. To continue our economic recovery from the pandem-
ic it is critical that municipalities can invest in their infrastruc-
ture.

 
PRIOR LEGISLATIVE HISTORY:

2021-22: S.8331

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately and shall expire and be deemed
repealed three years after such date.

2023-S1020 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1020
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                              January 9, 2023
                                ___________
 
 Introduced  by  Sen.  COONEY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Local Government
 
 AN ACT to amend the general municipal law, in relation  to  capital  tax
   levies to support local tax expenditures; and providing for the repeal
   of such provisions upon expiration thereof

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (g) of subdivision 2 of section 3-c of the gener-
 al municipal law, as added by section 1 of part A of chapter 97  of  the
 laws of 2011, is amended and two new paragraphs (i) and (j) are added to
 read as follows:
   (g) "Tax levy limit" means the amount of taxes authorized to be levied
 by  or  on  behalf  of  a  local  government  pursuant  to this section,
 provided, however, that the tax levy limit shall not include the follow-
 ing:
   (i) a tax levy necessary for expenditures resulting from court  orders
 or  judgments  against  the local government arising out of tort actions
 for any amount that exceeds five percent of the total tax levied in  the
 prior fiscal year;
   (ii)  in years in which the system average actuarial contribution rate
 of the New York state and local employees' retirement system, as defined
 by paragraph ten of subdivision a of section nineteen-a of  the  retire-
 ment  and  social  security  law,  increases by more than two percentage
 points from the previous year, a tax levy necessary for expenditures for
 the coming fiscal year for local government  employer  contributions  to
 the  New  York  state  and  local employees' retirement system caused by
 growth in the system  average  actuarial  contribution  rate  minus  two
 percentage points;
   (iii) in years in which the system average actuarial contribution rate
 of  the  New  York state and local police and fire retirement system, as
 defined by paragraph eleven of subdivision a of  section  three  hundred

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02647-01-3

 S. 1020                             2
 
 nineteen-a  of the retirement and social security law, increases by more
 than two percentage points from the previous year, a tax levy  necessary
 for expenditures for the coming fiscal year for local government employ-
 er contributions to the New York state and local police and fire retire-
 ment  system  caused  by growth in the system average actuarial contrib-
 ution rate minus two percentage points;
   (iv) in years in which the normal contribution rate of  the  New  York
 state teachers' retirement system, as defined by paragraph a of subdivi-
 sion  two  of  section  five  hundred  seventeen  of  the education law,
 increases by more than two percentage points from the previous  year,  a
 tax levy necessary for expenditures for the coming fiscal year for local
 government  employer  contributions  to  the  New  York  state teachers'
 retirement system caused by growth in the normal contribution rate minus
 two percentage points; AND
   (V) A CAPITAL TAX LEVY.
   (I) "CAPITAL LOCAL EXPENDITURES" MEANS THE TAXES ASSOCIATED WITH BUDG-
 ETED EXPENDITURES RESULTING FROM THE  FINANCING,  REFINANCING,  ACQUISI-
 TION, DESIGN, CONSTRUCTION, RECONSTRUCTION, REHABILITATION, IMPROVEMENT,
 FURNISHING AND EQUIPPING OF, OR OTHERWISE PROVIDING FOR, CAPITAL FACILI-
 TIES  OR  CAPITAL EQUIPMENT FOR WHICH A PERIOD OF PROBABLE USEFULNESS IS
 PROVIDED IN SECTION 11.00 OF  THE  LOCAL  FINANCE  LAW,  INCLUDING  DEBT
 SERVICE  ON  OBLIGATIONS  ISSUED PURSUANT TO THE PROVISIONS OF THE LOCAL
 FINANCE LAW AND INCLUDING LEASE EXPENDITURES AND PAYMENTS  DUE  PURSUANT
 TO  INSTALLMENT  PURCHASE CONTRACTS ENTERED INTO PURSUANT TO SECTION ONE
 HUNDRED NINE-B OF THIS CHAPTER.
   (J) "CAPITAL TAX LEVY" MEANS THE TAX LEVY NECESSARY TO SUPPORT CAPITAL
 LOCAL EXPENDITURES, IF ANY.
   § 2. This act shall take effect immediately and shall  expire  and  be
 deemed repealed three years after such date.

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