What's happening
This bill exempts the costs of real property revaluations or reassessments from local government tax levy limits in New York.
Why it matters
Protects local service funding during reassessment years. By exempting revaluation or reassessment costs from tax levy limits, local governments can conduct necessary property assessments without being forced to cut other services or programs to stay within the cap.
Could stabilize property tax bills after reassessments. Since the costs of revaluation are often substantial and infrequent, spreading these expenses outside the tax cap may prevent sharp, temporary increases in tax rates that would otherwise be needed to absorb the cost in a single year.
May encourage more frequent and accurate property assessments. With the financial barrier of levy limits removed for these costs, municipalities might be more likely to keep property values up-to-date, leading to fairer tax distributions and potentially fewer legal disputes over assessments.
Slightly weakens overall tax cap restraint. While addressing a real fiscal challenge, this change creates a new, potentially exploitable exception to tax levy limits, which could lead to higher overall property taxes if not carefully managed and monitored.
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Who cares
Headline styles
Exclude Reassessment Costs from Cap
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to local government
- Referred to local government
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.
Property Reassessment Not in Tax Cap
In Assembly Committee · Real Property Taxation · Sponsor Thomas Abinanti
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4307
2019-2020 Regular Sessions
IN SENATE
March 7, 2019
Introduced by Sen. HARCKHAM -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government
AN ACT to amend the general municipal law, in relation to exempting the costs associated with real property revaluation or reassessment for the tax levy limit
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subparagraph (iv) of 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 and a new subparagraph (v) is added to read as follows:
(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) all costs associated with real property revaluations or reassessments.
§ 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.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04462-01-9
S. 4307 2
§ 3. Subdivision 5 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:
5. A local government may adopt a budget that requires a tax levy that is greater than the tax levy limit for the coming fiscal year, not including any levy necessary to support the expenditures pursuant to subparagraphs (i) through [(iv)] (v) of paragraph [g] (g) of subdivision two of this section, only if the governing body of such local government first enacts, by a vote of sixty percent of the total voting power of such body, a local law to override such limit for such coming fiscal year only, or in the case of a district or fire district, a resolution, approved by a vote of sixty percent of the total voting power of such body, to override such limit for such coming fiscal year only.
§ 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.
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 exempting the costs associated with real property revaluation or reassessment for the tax levy limit
Purpose or general idea of bill
This bill exempts from the tax levy limit imposed on local governments all costs associated with real property revaluations or reassessments.
Summary of specific provisions
This bill amends Section 3-c(2)g) (iv) of the general municipal law, as added by section 1 of part A of chapter 97 of the laws of 201 1, by adding a new subparagraph (v) which provides that the tax levy limit shall not include the costs associated with real property revaluations or reassessments.
Justification
This bill is designed to encourage and assist local governments to update their real property assessments. Because properties have appreciated/depreciated differently over time, real property assessments in numerous municipalities have become outdated and unfair. Reassessment ensures that property owners pay their fair share of the tax burden. It does not raise more tax dollars. Municipalities have been reluctant to reassess - especially because of the high costs of reassessment. The tax levy cap is further discouraging local governments from undertaking necessary reassessment of real property since the costs of reassessment are currently included in a local government's allowable tax levy limit. This bill would allow local governments to exclude the costs of conduct- ing reassessments of real property from the allowable tax levy cap.
Prior legislative history
2017-18: A1248 referred to real property taxation; 2015-16: A.638 referred to real property taxation; same as S.2607 (Latimer) referred to local government; 2013-14: A.1235 referred to real property taxation; Same as 5.7082 (Latimer) referred to local government; 2012: A.10466 referred to real property taxation
Fiscal implications
None
Effective date
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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