What's happening
This bill allows water district capital expenditures to be excluded from the property tax cap for local governments.
Why it matters
Could lead to more investment in water infrastructure. By exempting water district capital expenditures from the property tax cap, local governments may find it easier to fund repairs, upgrades, or expansion of water systems without being constrained by tight budget limits.
May impact property tax bills differently. While it keeps general property taxes in check, this change could result in higher taxes specifically earmarked for water infrastructure, potentially raising residents’ tax bills if significant water projects are undertaken.
Addresses a critical public health and safety need. Water infrastructure is essential for clean drinking water and fire protection. This exemption recognizes the unique importance and often urgent nature of water system projects, which might otherwise be delayed under strict tax caps.
Could set a precedent for other exemptions. Allowing this carveout might encourage similar requests from other special districts (like sewer or schools), potentially chipping away at the property tax cap’s effectiveness over time.
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Who cares
Headline styles
Exclude Water Costs from Tax Cap
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 7
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.
Remove Water Project Tax Cap
In Assembly Committee · Local Governments · Sponsor Charles Lavine
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5990
2019-2020 Regular Sessions
IN SENATE
May 16, 2019
Introduced by Sen. KAPLAN -- 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 excluding water district capital expenditures from the tax cap
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) a tax levy necessary to fund water district capital expenditures.
§ 2. This act shall take effect immediately; provided that the amendments to section 3-c of the general municipal law made by section one of this act shall not affect the repeal of such section and shall be deemed repealed therewith.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10071-02-9
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 excluding water district capital expenditures from the tax cap
Title of bill
An act to amend the general municipal law, in relation to excluding water district capital expenditures from the tax cap
Purpose or general idea of bill
This bill allows local governments that own and operate water systems to exclude capital expenditures from the tax cap calculation.
Summary of provisions
Section 1: Amends 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.
Adds a new subparagraph (v).
Section 2: Sets the effective date.
Justification
Water suppliers on Long Island and in upstate New York are seeking a revision to the 2011 Tax Cap law to allow local governments that own and operate water systems to exclude capital expenditures (including capital related debt service) from the tax cap calculations. The revision is needed so that critical water supply infrastructure can be upgraded and/or constructed without the consequences of exceeding the 2 percent tax cap. It should be noted that this exclusion currently applies to school districts and not to any other local governments.
The U.S Department of Homeland Security has designated water systems as critical infrastructure because of the vital services provided fire- fighting, healthcare (hospitals) etc. Other dependent and interdependent sectors such as energy, food, agriculture and transportation systems would suffer negative impacts from a denial of service in the Water Systems Sector.
From frequent pipe breaks to large system upgrades to rebuilding from storm damages, New York's aging drinking water network has no shortage of challenges. The latest estimate of repairing, replacing and updating New York's drinking water infrastructure (including treating for emerg- ing contaminants such as 1,4 dioxane, PFOA and PFOS) is $40 billion over 20 years. Therefore, smart and proactive investment in drinking water infrastructure is vital to national security and public health protection. Such capital investments should not be impeded by the current 2 percent tax cap.
Prior legislative history
New bill.
Fiscal implications
None to the state.
Effective date
This act shall take effect immediately; provided that the amendments to section 3-c of the general municipal law made by section one of this act shall not affect the repeal of such section and shall be deemed repealed therewith.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.