Exempts costs associated with revaluations or reassessments from the tax levy limit on real property

BILL NUMBER:S7082

Title of bill

An act to amend the general municipal law, in relation to exempting the costs associated with real property revaluation or reassessment for the tax levy limit

Purpose or general idea of bill

This bill exempts from the tax levy limit imposed on local governments all costs associated with real property revaluations or reassessments.

Summary of specific provisions

This bill amends Section 3-c(2)(g)(iv) of the general municipal law, as added by section 1 of part A of chapter 97 of the laws of 2011, by adding a new subparagraph (v) which provides that the tax levy limit shall not include the costs associated with real property revaluations or reassessments.

Justification

This bill is designed to encourage and assist local governments to update their real property assessments.

Because properties have appreciated/depreciated differently over time, real property assessments in numerous municipalities have become outdated and unfair. Reassessment ensures that property owners pay their fair share of the tax burden. It does not raise more tax dollars.

Municipalities have been reluctant to reassess - especially because of the high costs of reassessment. The recently enacted "tax cap" is further discouraging local governments from undertaking necessary reassessment of real property since the costs of reassessment are currently included in a local government's allowable tax levy limit.

This bill would allow local governments to exclude the costs of conducting reassessments of real property from the allowable tax levy cap.

Existing law

Current law does not address this issue.

Prior legislative history

2012: A.10466 referred to real property taxation

Fiscal implications

None

Effective date

Immediately. However, this act does not affect the repeal of general municipal law section 3-c as currently set forth therein.