What's happening
This bill limits property tax base proportion increases for New York City in fiscal year 2020 to zero percent and allows amended tax bills.
Why it matters
Limits property tax shifts across classes. By capping base proportion increases for any property class at zero percent for NYC in fiscal year 2020, the bill prevents sudden or significant tax shifts between different classes of property (like residential, commercial, etc.), offering more predictability and stability for both taxpayers and city budgeting.
Mandates recalculation and possible redistribution. If any property class would see an increase under the normal calculation, this bill requires the city to redistribute proportions among other classes so that the overall total remains balanced at 100%. This could mean some classes have their proportions adjusted downward to offset others.
Requires amended tax bills and administrative action. If tax bills were already sent before this law takes effect, the city must issue revised bills reflecting the new limits, possibly leading to administrative adjustments and corrections for property owners—potentially resulting in refunds, credits, or new payment schedules for some taxpayers.
Clarifies taxpayer payment obligations. The bill explicitly states that any real property tax installments due before amended bills are sent must still be paid under the old rules, protecting the city’s immediate cash flow while ensuring future payments align with the new base proportions.
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Who cares
Property owners in cities that are special assessing units
The bill would cap each property class’s fiscal year 2020 current base proportion at the prior year’s adjusted proportion, limiting increases in class shares rather than individual tax bills.
City legislative bodies
They would have to adjust the remaining property classes’ proportions after applying the cap so that all class shares total one.
City tax administrators
If fiscal year 2020 tax bills had already been sent, they would have to take steps to implement the cap, potentially including resetting tax rates and sending amended bills.
Taxpayers with installments already due
The bill would preserve their payment obligations for installments due before amended bills are sent.
Headline styles
Cap Property Tax Share Hikes
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Substituted by A8138
- Ordered to third reading cal.1792
- 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.
Cap Property Tax Class Increases
Signed by Governor · Sponsor David Weprin
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6324
2019-2020 Regular Sessions
IN SENATE
June 5, 2019
Introduced by Sen. GOUNARDES -- 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
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 (gg) to read as follows:
(gg) 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 twenty, 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 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 2020 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 in this act 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13186-01-9
S. 6324 2
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.
§ 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
Summary of provisions
This bill would amend section 1803-a of the Real Property Tax Law to cap the maximum class growth rate at zero percent for fiscal year 2020.
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 of one-, two, and three-fa- mily homes) to increase, as it has done over the past several years.
This bill is designed to provide relief for residential property tax class one without placing a burden onto class two, which is the other residential tax class. The "uncapped" current base proportions of class one would grow by over 6.3 percent from fiscal year 2019, under the State Board's calculations. Currently, State law provides that the current base proportion of any single 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 share growth at 0.0 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 class one, is allowed to grow, resulting in citywide savings of about $321 for a typical owner of a class one single family home. Under a cap of 0.0 percent, class two properties will see a decrease in their tax rate, making that rate the lowest it has been since fiscal year 2009. Additionally, under a cap of 0.0 percent, the rate for class three properties increases by 3.7 percent from fiscal 2019, however, the change only brings that rate back up to a level similar to those from fiscal 2009 through 2013. Class four properties would see a very slight increase in their rate from fiscal 2018 which would keep their rate lower than it had been from fiscal 2015 through fiscal 2017.
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 six. percent, which, when coupled with assessment increases, would cause significant increases in the tax bills for residential homeowners. This tax rate increase for class one, resulting from SBRPS procedures, is avoidable only through passage of this legislation.
FISCAL. IMPLICATIONS:
There would be zero impact on expenditures and revenues as a result of this legislation.
Effective date
Immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.