Establishes limitations upon real property tax levies in cities having a population of one million or more

5 Co-sponsors

• Joseph P. Addabbo Jr.
• Tony Avella
• Martin J. Golden
• Jeffrey D. Klein
• Diane J. Savino

BILL NUMBER:S2866A

Title of bill

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

Purpose

This bill would control the ever-rising property tax by limiting the amount by which the City of New York may increase property taxes each year.

Summary of provisions

Section 1 of the bill would add a new § 3-d to the General Municipal Law to establish a real property tax levy cap for New York City.

Under the property tax levy cap:

* New York City may not its property tax levy by more than 2 percent or the rate of inflation (whichever is less).

* New York City may exceed the tax levy cap only if the City Council, by a two-thirds vote by local law overriding the tax levy cap.

* The cap will have limited exceptions including:

o Personal injury settlements that exceed 10 percent of the taxing enti- ty's budget;

o Certain capital expenditures; and

o The increase or decrease in the city cost of state mandated social services assistance to persons eligible for public assistance (including those programs Temporary Assistance to Needy Families ("TANF") program, or the Safety Net Assistance Program ("SNAP")).

o The State Comptroller will determine the tax levy limitations for local governments that are consolidated or dissolved.

o Any excess levy funds that are collected due to clerical or technical errors will be held in reserve.

Justification

New York property taxes are among the highest taxes in the nation. When you combine State and local taxes, New York has the second highest prop- erty taxes in the nation. The median U.S. property tax paid is $1,917 and in New York it is $3,755--96 percent higher than the national medi- an. Moreover, New York has the highest local taxes in America as a percentage of personal income--79 percent above the national average.

New York City residents are looking for relief from high property tax increases. Such increases jeopardize their quality of life and the abil- ity to stay in their homes. This bill would limit, New York City's abil- ity to raise property levies, up to 2%. This bill will relieve taxpayers from unexpected high property tax increases.

This measure will force the City to budget more responsibly without looking at property taxpayers as a way to balance its budget. This proposal will allow property owners to budget for their property taxes. It will also prevent city government from burdening the people with outrageous increases. By limiting future increases, families _ and espe- cially those on fixed incomes -- would have a much better sense of what they need to budget. This bill will also help reign in out of control government spending.

Fiscal implications

This bill would benefit taxpayers in the City of New York by limiting the annual amount of real property taxes the City can levy.

Legislative history

2011: S.2086 - Reported and Committed to Finance/A.4741- Ways and Means

Effective date

This act shall take effect immediately and shall first apply to the levy of taxes by cities having a population of one million or more for the fiscal year that begins in 2013.