Relates to allowing certain special assessing units other than cities to adjust their current base proportions

Title of bill

An act to amend the real property tax law, in relation to allowing certain special assessing units other than cities to adjust their current base proportions, adjusted base proportions for assessment rolls, and the base proportion in approved assessing units in Nassau county

Purpose

This legislation would limit the amount of property tax shift between homestead/non-homestead and class share apportionment for local governments within and including Nassau County and homestead/non-homestead apportioned local governments within Suffolk County (Town of Islip) for one year.

Summary of provisions

Section 1: Amends section 1803-a of the Real Property Tax Law by adding a new paragraph (bb) by extending for one year legislation which limits the amount of a property tax shift between classes of properties caused by large fluctuations in property values.

Section 2: Amends subparagraph (iv) of paragraph (a) of subdivision 3 of section 1903 of the real property tax law by extending for one year legislation which limits the amount of a property tax shift between homestead and non-homestead properties caused by large fluctuations in property values within such designated classes within Suffolk County.

Section 3: Amends Section 1903 of the Real Property Tax Law by adding a new subparagraph (xvii) to subdivision 3 to limit the amount of a property tax shift between homestead and non-homestead properties caused by large fluctuations in property values within Nassau County.

Justification

In both Nassau and Suffolk County, there is a large differential in property tax value increases between classes of property. This in turn causes a large property tax increase in one class of property. Presently, the amount of taxes which can be shifted from one class to another is generally capped at five percent, but for a number of years the legislature has extended provisions to cap that amount at 1 percent to better protect against large property tax shifts. This will create real property tax stability for another year for local governments using homestead/non-homestead and class share apportionment within and including Nassau County and homestead/nonhomestead apportioned local governments within Suffolk County (Town of Islip).

Legislative history

New Legislation.

Fiscal implications

There are no costs to the state or localities. This bill will allow for a more equitable distribution of real property taxes between classes of property.

Effective date

This act shall take effect immediately; provided, however, that section one of this act shall apply to the levy of taxes based on the 2016 assessment roll in a special assessing unit that is not a city and that section three of this act shall apply to the levy of taxes based on the 2016 assessment roll in approved assessing units in the county of Nassau that pass a local law, ordinance or resolution to adopt these provisions.