What's happening
This bill allows New York City to exclude estimated uncollectible real estate taxes from tax limitation calculations while clarifying what counts as uncollectible.
Why it matters
Allows New York City to more accurately reflect true tax revenue needs. by excluding estimated uncollectible real estate taxes from tax limit calculations, potentially preventing artificial inflation of the city’s tax cap due to non-payment.
Defines “uncollectible” real estate taxes clearly. as amounts not paid because taxpayers either cannot or choose not to pay, providing clarity and consistency in budget planning.
Excludes abatements and exemptions from the uncollectible calculation,. ensuring that only genuinely unpaid taxes—not legal reductions or exemptions—are counted as uncollectible, which maintains transparency and prevents double-counting.
May impact city budgeting and borrowing decisions. by allowing a better match between projected tax revenues and actual collections, potentially leading to more prudent fiscal planning and limiting overestimation of available funds.
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Who cares
New York City budget officials
The bill would limit the reserve for uncollectible real estate taxes used to pay debt and require subtracting collections from prior levies, including tax lien sales.
New York City property taxpayers
The bill would restrict the additional amount raised for unpaid taxes to a good-faith estimate of taxes not paid, excluding abatements and exemptions.
Property tax abatement and exemption recipients
The bill would bar the city from counting their tax relief as uncollectible taxes in the debt-payment reserve.
Headline styles
Limit NYC Unpaid Tax Reserves
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.
Exclude Uncollectible Taxes Limit
In Assembly Committee · Cities · Sponsor Michael Cusick
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
3274
2019-2020 Regular Sessions
IN SENATE
February 5, 2019
Introduced by Sen. LANZA -- read twice and ordered printed, and when printed to be committed 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
S. 3274 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.
Sponsor's memo
Title of bill
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
Purpose
This legislation is designed to ensure that New York City is properly crafting a budget and tax levy that is within the constitutional restraints placed on its tax limit.
Summary of provisions
Section 1: Identifies tax exemptions and abatements that cannot be considered as "uncollectibles" for purposes of calculating the amount to be raised on real property taxes by the city of New York.
Justification
The State Constitution imposes a tax limit of 2.5W on the city of New York. In order to stay within this constitutional limit, New York City has taken a unique position that certain tax exemptions should be considered as uncollectible and therefore allowed to be considered with- in the allowable tax levy. Uncollectible taxes are generally reserved for properties where taxes cannot be collected one tax year in good faith, but are expected to be collected in future years. A traditional example of an uncollectible would be delinquent taxes where an owner cannot be found. A good faith attempt must be made to find this owner and there is an expectation that the taxes will be collected the follow- ing year. This scenario is easily distinguished from an exemption or abatement where the taxes are not being collected by operation of law. For example on a ten year abatement, there is no expectation that in year two the taxes will be collectible the following year. This inaccu- rate characterization has been identified by reports and this legis- lation seeks to ensure New York City is properly operating within it's constitutional tax limit.
Legislative history
2018: S.6294 - Passed Senate / A.10288 - Referred to Cities 2017: S.6294 - Referred to Cities 2016: S.8004 - Passed Senate
Fiscal implications
None.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.