What's happening
This bill allows New York City to exclude estimated uncollectible property taxes from real estate tax limitations, excluding abatements and exemptions.
Why it matters
Allows New York City to more accurately reflect actual, collectible property tax revenue when budgeting, by excluding amounts it estimates will not be collected. This could result in budgets that better match fiscal reality and reduce pressure to raise taxes or cut services due to overestimated revenues.
Clarifies the definition of “uncollectible” taxes as those unpaid due to inability or unwillingness to pay,. providing a more precise legal standard for budget planning and financial reporting.
Explicitly prohibits the city from including tax abatements or exemptions in its calculation of uncollectible taxes for this purpose,. ensuring that only truly uncollectible amounts influence the tax limitation and preventing double-counting of tax reductions.
May impact how much the city can legally levy in real estate taxes each year,. potentially giving more flexibility and stability in financial planning, which could affect city services, debt repayment, and future tax policy.
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Who cares
New York City budget officials
The bill would limit the reserve for uncollectible real estate taxes used to cover debt payments to a good-faith estimate of unpaid taxes, minus collections from prior levies.
New York City real estate taxpayers
The bill would restrict what the city can include in this reserve when calculating the amount to raise through real estate taxes.
Property tax abatement and exemption recipients
The bill would prohibit the city from counting any abatement or exemption amounts as uncollectible taxes in the debt-payment reserve.
New York City tax collection officials
Collections from prior tax levies, including real property tax lien sales, would have to offset the reserve.
Headline styles
Exclude Uncollectible Taxes Limit
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to cities
- Referred to cities
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 NYC Unpaid Tax Reserves
In Senate Committee · Cities · Sponsor Andrew J. Lanza
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7297
2019-2020 Regular Sessions
IN ASSEMBLY
April 22, 2019
Introduced by M. of A. CUSICK -- read once and referred to the Committee on Cities
AN ACT to amend the general municipal law, in relation to the exclusion of uncollectible taxes from the limitation on real estate taxes in New York city
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 3-b of the general municipal law is amended by adding three new subdivisions 3, 4 and 5 to read as follows:
3. The amount to be raised by tax on real estate in any fiscal year commencing on or after July first, two thousand nineteen by the city of New York and the counties contained therein for city and county purposes, in addition to providing for the interest on and the principal of all indebtedness described in subdivision one of this section, shall only include an additional amount for a reserve for those taxes, which it estimates in each budget year in good faith will be uncollectible for the payment of such indebtedness, minus any amount collected during the fiscal year by the city of New York from prior levies including by real property tax lien sales.
4. For purposes of this section, the term "uncollectible" shall mean an estimate of the amount that taxpayers do not pay because they cannot pay or because they choose not to pay.
5. The reserve which the city of New York and the counties contained therein estimates shall be uncollectible for the payment of such indebtedness shall not include any abatement or exemption amounts including, but not limited to, those abatement amounts as authorized by: (a) section four hundred sixty-seven-a of the real property tax law; (b) section four hundred sixty-seven-b of the real property tax law; (c) section four hundred sixty-seven-c of the real property tax law; (d) section four hundred sixty-seven-f of the real property tax law; (e) section four hundred sixty-seven-h of the real property tax law; (f)
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07441-01-9
A. 7297 2
section four hundred sixty-seven-i of the real property tax law; (g) section four hundred eighty-nine of the real property tax law; (h) section four hundred ninety-nine-b of the real property tax law; (i) section sixty-five of chapter twenty of the laws of two thousand fifteen, or any other statute authorizing the abatement or exemption of real property taxes.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.