What's happening
This bill exempts certain public water, sewage, and health-related infrastructure costs from New York's local property tax levy limit.
Why it matters
Eases local government budgets for essential infrastructure. By exempting spending on public water systems, sewage treatment, and health/safety-related infrastructure from property tax cap limits, the bill allows localities to invest in critical upgrades or repairs without being constrained by strict tax levy limits.
Prioritizes public health and environmental safety. The exemption specifically targets infrastructure that has direct public health and safety impacts, potentially accelerating needed improvements to water quality, sewage treatment, and emergency infrastructure repairs.
May affect property tax dynamics but with targeted scope. While the overall tax levy limit remains, this change means residents could see higher property taxes in years when major infrastructure investments are necessary—though only for these essential services, not for general budgetary increases.
Responds to aging infrastructure concerns statewide. Given increasing reports of water contamination, sewer overflows, and failing infrastructure in New York, this legislative change gives municipalities more financial flexibility to address urgent or long-term infrastructure needs without seeking repeated voter overrides or state waivers.
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Who cares
Headline styles
Exclude Infrastructure From Tax Limit
Plain English, a few words. Used as the page title.
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History
- Referred to local governments
- Referred to local governments
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5470
2017-2018 Regular Sessions
IN ASSEMBLY
February 9, 2017
Introduced by M. of A. FAHY -- read once and referred to the Committee on Local Governments
AN ACT to amend the general municipal law, in relation to exempting the costs associated with certain infrastructure investments from the real property tax levy limit
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Paragraph (g) of subdivision 2 of section 3-c of the general municipal law, as added by section 1 of part A of chapter 97 of the laws of 2011, is amended to read as follows:
(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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03663-06-7
A. 5470 2
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;
(v) a tax levy necessary for expenditures resulting from a public water system as such term is defined for the purposes of the sanitary code of the state of New York as authorized by section two hundred twenty-five of the public health law; expenditures resulting from a sewage treatment works as such term is defined under section 17-1903 of the environmental conservation law; and expenditures to address health and safety issues related to infrastructure problems as prescribed by the department of health.
§ 2. Paragraph (a) of subdivision 3 of section 3-c of the general municipal law, as added by section 1 of part A of chapter 97 of the laws of 2011, is amended to read as follows:
(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)] (v) of paragraph (g) of subdivision two of this section.
§ 3. Subparagraph (iv) of paragraph (c) of subdivision 3 of section 3-c of the general municipal law, as added by section 1 of part A of chapter 97 of the laws of 2011, is amended to read as follows:
(iv) Subtract the tax levy necessary to support expenditures pursuant to [subparagraph] subparagraphs (i) and (v) of paragraph (g) of subdivision two of this section for the prior fiscal year, if any.
§ 4. This act shall take effect immediately; provided, however that the amendments to section 3-c of the general municipal law made by sections one, two and three of this act shall not affect the repeal of such section and shall be deemed repealed therewith.
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