Requires municipalities to hold public hearings prior to overriding the tax levy limit

BILL NUMBER:S2669

Title of bill

An act to amend the general municipal law, in relation to requiring the conducting of a public hearing prior to enacting a local law or resolution to override the tax levy limit

Purpose

This legislation requires municipalities to hold public hear- ings prior to overriding the tax levy limit.

Summary of provisions

Section One - amends subdivision 5 of section 3-c of the general munici- pal law, as added by section 1 of part A of chapter 97 of the laws of 2011, is amended so that 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 holds a public hearing upon the proposal to exceed the tax levy limit and 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.

Section Two - this act shall take effect immediately, provided that the amendments to subdivision 5 of section 3-c of the general municipal law, made by section one of this act, shall not affect the expiration and repeal of such section one of this act, shall not affect the expiration and repeal of such section pursuant to section 13 of part A of chapter 97 of the laws of 2011, as amended, and shall expire and be deemed repealed therewith.

Justification

In 2011, the legislature passed a 2% property tax cap that provided much needed tax relief to the people of New York State. The 2% tax cap provided the incentive for municipalities and school districts to have a serious dialogue regarding their budgets before voting and "yes" to raising taxes.

Although municipalities and school districts have the authority to over- ride the 2% property tax cap, this legislation will require them to have a public hearing specifically designated to discussing the override. This public hearing will give tax payers the opportunity to discuss their concerns and opinions to their elected officials.

Legislative history

4/30/12 Referred to Local Government

Fiscal implications

None to state.

Effective date

This act shall take effect immediately, provided that the amendments to subdivision 5 of section 3-c of the general municipal law, made by section one of this act, shall not affect the expiration and repeal of such section one of this act, shall not affect the expira- tion and repeal of such section pursuant to section 13 of part A of chapter 97 of the laws of 2011. as amended, and shall expire and be deemed repealed therewith.