§ 3-c. Limit upon real property tax levies by local governments. 1.
Unless otherwise provided by law, the amount of real property taxes that
may be levied by or on behalf of any local government, other than the
city of New York and the counties contained therein, shall not exceed
the tax levy limit 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) "Available carryover" means 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 an amount that equals one and one-half percent
of the tax levy limit for such fiscal year.

(c) "Coming fiscal year" means the fiscal year of the local government
for which a tax levy limit shall be determined pursuant to this section.

(d) "Inflation factor" means the quotient of: (i) 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 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.

(e) "Local government" means a county, city, town, village, fire
district, or special district including but not limited to a district
created pursuant to article twelve or twelve-A, or governed by article
thirteen of the town law, or created pursuant to article five-A, five-B
or five-D of the county law, chapter five hundred sixteen of the laws of
nineteen hundred twenty-eight, or chapter two hundred seventy-three of
the laws of nineteen hundred thirty-nine, and shall include town
improvements provided pursuant to articles three-A and twelve-C of the
town law but shall not include the city of New York or the counties
contained therein.

(f) "Prior fiscal year" means the fiscal year of the local government
immediately preceding the coming fiscal year.

(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
following:

(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
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 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
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
employer contributions to the New York state and local police and fire
retirement system caused by growth in the system average actuarial
contribution 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
subdivision 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.

(h) "Tax" or "taxes" shall include (i) a charge imposed upon real
property by or on behalf of a county, city, town, village or school
district for municipal or school district purposes, and (ii) special ad
valorem levies and special assessments as defined in subdivisions
fourteen and fifteen of section one hundred two of the real property tax
law.

3. (a) Subject to the provisions of subdivision five of this section,
beginning with the fiscal year that begins in two thousand twelve, no
local government shall adopt a budget that requires a tax levy that is
greater than the tax levy limit for the coming fiscal year. Provided
however the tax levy limit shall not prohibit a levy necessary to
support the expenditures pursuant to subparagraphs (i) through (iv) of
paragraph (g) of subdivision two of this section.

(b) (i) The commissioner of taxation and finance shall calculate a
quantity change factor for each local government for the coming fiscal
year based upon the physical or quantity change, as defined by section
twelve hundred twenty of the real property tax law, reported to the
commissioner of taxation and finance by the assessor or assessors
pursuant to section five hundred seventy-five of the real property tax
law. The quantity change factor shall show the percentage by which the
full value of the taxable real property in the local government has
changed due to physical or quantity change between the second final
assessment roll or rolls preceding the final assessment roll or rolls
upon which taxes are to be levied, and the final assessment roll or
rolls immediately preceding the final assessment roll or rolls upon
which taxes are to be levied. The commissioner of taxation and finance
shall, as appropriate, promulgate rules and regulations regarding the
calculation of the quantity change factor which may adjust the
calculation based on the development on tax exempt land.

(ii) After determining the quantity change factor for the local
government, the commissioner of taxation and finance shall proceed as
follows:

(A) If the quantity change factor is negative, the commissioner of
taxation and finance shall not determine a tax base growth factor for
the local government.

(B) If the quantity change factor is positive, the commissioner of
taxation and finance shall determine a tax base growth factor for the
local government which is equal to one plus the quantity change factor.

(iii) The commissioner of taxation and finance shall notify the state
comptroller and each local government of the applicable tax base growth
factors, if any, as soon thereafter as such factors are determined.

(c) Each local government shall calculate the tax levy limit
applicable to the coming fiscal year which shall be determined as
follows:

(i) Ascertain the total amount of taxes levied for the prior fiscal
year.

(ii) Multiply the result by the tax base growth factor, calculated
pursuant to paragraph (b) of this subdivision, if any.

(iii) Add any payments in lieu of taxes that were receivable in the
prior fiscal year.

(iv) Subtract the tax levy necessary to support expenditures pursuant
to subparagraph (i) of paragraph (g) of subdivision two of this section
for 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) Whenever the responsibility and associated cost of a local
government function is transferred to another local government, the
state comptroller shall determine the costs and savings on the affected
local governments attributable to such transfer for the first fiscal
year following the transfer, and notify such local governments of such
determination and that they shall adjust their tax levy limits
accordingly.

4. (a) When two or more local governments consolidate, the state
comptroller shall determine the tax levy limit for the consolidated
local government for the first fiscal year following the consolidation
based on the respective tax levy limits of the component local
governments that formed such consolidated local government from the last
fiscal year prior to the consolidation.

(b) When a local government dissolves, the state comptroller shall
determine the tax levy limit for the local government that assumes the
debts, liabilities, and obligations of such dissolved local government
for the first fiscal year following the dissolution based on the
respective tax levy limits of such dissolved local government and such
local government that assumes the debts, liabilities, and obligations of
such dissolved local government from the last fiscal year prior to the
dissolution.

(c) The tax levy limit established by this section shall not apply to
the first fiscal year after a local government is newly established or
constituted through a process other than consolidation or dissolution.

5. A local government may adopt a budget that requires a tax levy that
is greater than the tax levy limit for the coming fiscal year, not
including any levy necessary to support the expenditures pursuant to
subparagraphs (i) through (iv) of paragraph g of subdivision two of this
section, only if the governing body of such local government first
enacts, by a vote of sixty percent of the total voting power of such
body, a local law to override such limit for such coming fiscal year
only, or in the case of a district or fire district, a resolution,
approved by a vote of sixty percent of the total voting power of such
body, to override such limit for such coming fiscal year only.

6. In the event a local government's actual tax levy for a given
fiscal year exceeds the tax levy limit as established pursuant to this
section due to clerical or technical errors, the local government 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. If, upon examination pursuant to sections
thirty-three and thirty-four of this chapter, the state comptroller
finds that a local government levied taxes in excess of the applicable
tax levy limit, the local government, as soon as practicable, shall
place an amount equal to the excess amount of the levy in such reserve
in accordance with this subdivision.

7. All local governments subject to the provisions of this section
shall, prior to adopting a budget for the coming fiscal year, submit to
the state comptroller, in a form and manner as he or she may prescribe,
any information necessary for calculating the tax levy limit for the
coming fiscal year.