What's happening
This bill limits 2018 property tax base proportion increases in certain New York cities, requiring adjustments and amended tax bills if necessary.
Why it matters
Prevents sudden property tax spikes for specific property classes in New York City for fiscal year 2018. , by capping any increase in a property class’s tax share (“base proportion”) at zero percent—meaning no class will pay a higher proportion than it did the previous year.
Requires local legislative bodies to adjust other property classes’ shares accordingly. so that the total tax burden still sums to 100%, potentially shifting responsibilities among classes rather than allowing unchecked increases in any single one.
Mandates corrective action if tax bills were already sent based on the old formula. , including revising base proportions, resetting tax rates, and issuing amended tax bills—ensuring compliance even if the law takes effect after the fiscal year has begun.
Temporarily prioritizes taxpayer stability and predictability. over the usual tax adjustment process, which could be particularly important for residents and businesses facing uncertainty about their tax liabilities.
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Who cares
Headline styles
Cap Tax Share Increases
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Substituted by A8323
- Ordered to third reading cal.2223
- Referred to rules
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Limit City Tax Increases
Signed by Governor · Sponsor Herman D. Farrell
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6626
2017-2018 Regular Sessions
IN SENATE
June 7, 2017
Introduced by Sen. GOLDEN -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the real property tax law, in relation to the determination of adjusted base proportions in special assessing units which are cities for the fiscal year two thousand eighteen
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 1 of section 1803-a of the real property tax law is amended by adding a new paragraph (cc) to read as follows:
(cc) Notwithstanding the provisions of paragraph (c) of this subdivision to the contrary, in a special assessing unit which is a city and for current base proportions to be determined in such special assessing unit's fiscal year two thousand eighteen, the current base proportion of any class shall not exceed the adjusted base proportion or adjusted proportion, whichever is appropriate, of the immediately preceding year. Where the computation performed pursuant to paragraph (b) of this subdivision would otherwise produce such result, the current base proportion of such class or classes shall be limited to a zero percent increase and the legislative body of such special assessing unit shall alter the current base proportion of any or all remaining classes so that the sum of the current base proportions equals one.
§ 2. In the event the special assessing unit which is a city has sent out real property tax bills for its fiscal year 2018 before this act shall have become a law, the city shall take such actions as are necessary, consistent with applicable state and local law, to effect the provisions of section one of this act, including, but not limited to, revising the current base proportions and adjusted base proportions, resetting the real property tax rates and sending amended real property tax bills. Provided, however, that nothing herein shall be deemed to affect the obligation of any taxpayer with respect to the payment of any installment of real property tax for such fiscal year which was due and
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13107-01-7
S. 6626 2
payable prior to the date such amended real property tax bills are sent; for this purpose, such obligations shall be determined in accordance with the applicable provisions of law that were in effect immediately prior to the effective date of this act, and such city shall be authorized to determine the date on which amended bills are to be sent and the installments of real property tax which are to be reflected therein.
§ 3. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the real property tax law, in relation to the determination of adjusted base proportions in special assessing units which are cities for the fiscal year two thousand eighteen
Purpose or general idea of bill
To cap the maximum class growth rate for class shares in New York City at zero percent for fiscal year 2018.
Summary of provisions
Section 1 of the bill would amend Section 1803-a of the Real Property Tax Law to provide that in New York City for fiscal year 2018 the current base proportion of any class shall not exceed the adjusted base proportion or base proportion, whichever is appropriate, of the immediately preceding year. It further provides that the computation for the current base proportion shall be limited to a 0% increase and the City Council shall adjust all remaining classes so that the sum of the current base proportions equals one.
Read the full memo (711 words)
Section 2 of the bill would authorize the City to take such actions as are necessary to effect the provisions of Section one, including, but not limited to revising the current base proportions and adjusted base proportions, resetting the real property tax rates and sending amended real property tax bills; provided however, nothing shall be deemed to affect the obligation of any taxpayer with respect to the payment of any installment of real property tax for such fiscal year which was due and payable prior to the date such amended real property tax bills are sent; for this purpose, such obligations shall be determined in accordance with the applicable provisions of law that were in effect immediately prior to the effective date of this act, and such City shall be authorized to determine the date on which amended bills are to be sent and the installments of real property tax which are to be reflected therein.
Section 3 of the bill provides that it shall take effect immediately.
Justification
State law requires New York City to adopt class shares based on rates calculated by the State Board of Real Property Services (SBRPS) in order to distribute the tax levy among the four classes of real property. This year the State Board's class equalization rates would cause the tax burden on property tax class one, comprised one-, two-, and three-family homes, to increase, as it has done over the past several years.
This bill is designed to provide relief for the residential property tax class one without placing a burden on to class two, which is the other residential tax class. The "uncapped" current base proportions of class one would grow by over 4 percent from fiscal year 2017, under the State Board's calculations. Currently, State law provides that the current base proportion of anyone class may not exceed the adjusted base proportion for that class from the prior year by more than five percent.
This legislation would adjust that rule, for one year only, to cap the maximum class growth at 0 percent for New York City. The effect of this change would be to reduce the amount by which the current base proportions for any class, including one, is allowed to grow, resulting in citywide savings of about $250 for a typical owner of a class one single family home. Under a cap of 0 percent, class two properties will see a decrease in the tax rate, making the rate the lowest it has been since fiscal year 2009. Similarly, Class 4's rate is also expected to decrease under a 0 percent cap. Class 3's rate is expected to increase, however this rate is expected be lower than it has been in the past 10 of 15 years.
Failure to enact this legislation would leave the City Council no option but to adopt the default SBRPS formula for establishing class shares. In that case, the estimated tax rate increase for class one would be over 6 percent, which when coupled with assessment increases, would cause significant increases in the tax bills for residential homeowners. That tax rate increase for class one, resulting from SBRPS procedures, is avoidable only through passage of this legislation.
Prior legislative history
New bill.
Fiscal implications
Undetermined.
Effective date
Immediately upon enactment.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.