Bill Text: NY A07464 | 2019-2020 | General Assembly | Introduced
Bill Title: Establishes a property tax cap in a city with a population of one million or more.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2020-01-08 - referred to real property taxation [A07464 Detail]
Download: New_York-2019-A07464-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 7464 2019-2020 Regular Sessions IN ASSEMBLY May 6, 2019 ___________ Introduced by M. of A. MALLIOTAKIS -- read once and referred to the Committee on Real Property Taxation AN ACT to amend the real property tax law and the general municipal law, in relation to property taxes in a city with a population of one million or more The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Subdivision 1 of section 1805 of the real property tax law 2 is amended by adding a new paragraph (h) to read as follows: 3 (h) Provided further, this subdivision shall not apply to the assess- 4 ment roll of a special assessing unit wholly contained within a city 5 with a population of one million or more. 6 § 2. The real property tax law is amended by adding a new section 7 467-l to read as follows: 8 § 467-l. Real property tax cap for certain persons who reside in a 9 city with a population of one million or more. 1. Real property located 10 in a city with a population of one million or more and is owned by one 11 or more persons, may be subject to a real property tax cap. 12 2. Property shall be eligible for a tax cap if: 13 (a) the income of the owner or the combined income of the owners of 14 the property for the income tax year immediately preceding the date of 15 making application for the cap shall equal the income qualifications 16 established by subdivision four of section four hundred twenty-five of 17 this title. 18 (b) the title of the property shall have been vested in the owner or 19 one of the owners of the property for not less than twenty years prior 20 to the date of making application for a cap, provided, however, that if 21 as the result of the death of a spouse in whose name title of the prop- 22 erty was vested at the time of death the property becomes vested solely 23 in the survivor by virtue of devise by or descent from the deceased 24 spouse, the time of ownership of the property by the deceased spouse EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09772-01-9A. 7464 2 1 shall be deemed also a time of ownership by the survivor and such owner- 2 ship shall be deemed continuous for the purposes of computing such peri- 3 od of thirty-six consecutive months. In the event of a transfer by a 4 spouse to the other spouse of all or part of the title to the property, 5 the time of ownership of the property by the transferor spouse shall be 6 deemed also a time of ownership by the transferee spouse and such owner- 7 ship shall be deemed continuous for the purposes of computing such peri- 8 od of thirty-six consecutive months. Provided, further, that where a 9 person is the owner of a present interest in a parcel under a life 10 estate, or is a vendee in possession under an installment contract of 11 sale, or is a beneficial owner under a trust, or resides primarily in a 12 dwelling which is owned by a corporation or partnership but is nonethe- 13 less eligible for a cap, and that person has applied for and been grant- 14 ed a cap pursuant to this section, that person shall be deemed to be the 15 owner of the parcel for purposes of this section. 16 (c) the property is used exclusively for residential purposes, 17 provided, however, that in the event any portion of such property is not 18 so used exclusively for residential purposes but is used for other 19 purposes, such portion shall be subject to taxation and the remaining 20 portion only shall be entitled to a cap provided by this section. 21 (d) the real property is the legal residence of and is occupied in 22 whole or in part by the owner or by all of the owners of the property, 23 provided that an owner who is absent while receiving health-related care 24 as an inpatient of a residential health care facility, as defined in 25 section twenty-eight hundred one of the public health law, shall be 26 deemed to remain a legal resident and an occupant of the property while 27 so confined and income accruing to that person shall be income only to 28 the extent that it exceeds the amount paid by such owner, spouse, or 29 co-owner for care in the facility; and provided further, that during 30 such confinement such property is not occupied by other than the spouse 31 or co-owner of such owner. 32 3. Beginning with the two thousand twenty fiscal year, an eligible 33 person residing in a city with a population of one million or more may 34 apply for a real property tax cap. The real property tax cap shall equal 35 ten percent of a household's income for the taxable year. 36 4. Application for such cap must be made by the owner, or all of the 37 owners of the property, on forms prescribed by the commissioner to be 38 furnished by the appropriate assessing authority and shall furnish the 39 information and be executed in the manner required or prescribed in such 40 forms, and shall be filed in such assessor's office on or before the 41 appropriate taxable status date. 42 5. (a) At least sixty days prior to the appropriate taxable status 43 date, the assessing authority shall mail to each person who was granted 44 a cap pursuant to this section on the latest completed assessment roll 45 and application form and a notice that such application must be filed on 46 or before the taxable status date and be approved in order for the cap 47 to be granted. The assessing authority shall, within three days of the 48 completion and filing of the tentative assessment roll, notify by mail 49 any applicant who has included with his or her application at least one 50 self-addressed, prepaid envelope, of the approval or denial of the 51 application; provided, however, that the assessing authority shall, upon 52 the receipt and filing of the application, send by mail notification of 53 receipt to any applicant who has included two of such envelopes with the 54 application. Where an applicant is entitled to a notice of denial pursu- 55 ant to this subdivision, such notice shall be on a form prescribed by 56 the state board and shall state the reasons for such denial and shallA. 7464 3 1 further state that the applicant may have such determination reviewed in 2 the manner provided by law. 3 (b) An owner eligible for the cap may request that a notice be sent to 4 an adult third party. Such request shall be made on a form prescribed by 5 the state board and shall be submitted to the assessor of the assessing 6 unit in which the eligible taxpayer resides no later than sixty days 7 before the first taxable status date to which it is to apply. Such form 8 shall provide a section whereby the designated third party shall consent 9 to such designation. Such request shall be effective upon receipt by the 10 assessor. The assessor shall maintain a list of all eligible property 11 owners who have requested notices pursuant to this subdivision. 12 (c) A notice shall be sent to the designated third party at least 13 thirty days prior to each ensuing taxable status date; provided that no 14 such notice need be sent in the first year if the request was not 15 received by the assessor at least sixty days before the applicable taxa- 16 ble status date. Such notice shall read substantially as follows: 17 "On behalf of (identify person or persons eligible for the cap), you 18 are advised that his, her, or their renewal application for the tax cap 19 must be filed with the assessor no later than (enter date). You are 20 encouraged to remind him, her, or them of that fact, and to offer 21 assistance if needed, although you are under no legal obligation to do 22 so. Your cooperation and assistance are greatly appreciated." 23 (d) The obligation to mail such notices shall cease if the eligible 24 taxpayer cancels the request or ceases to qualify for the tax cap. 25 (e) Failure to mail any notice required by this subdivision, or the 26 failure of a party to receive same, shall not affect the validity of the 27 levy, collection, or enforcement of taxes on property owned by such 28 person, or in the case of a third party notice, on property owned by the 29 person or persons eligible for a tax cap. 30 6. Any conviction of having made any willful false statement in the 31 application for such cap, shall be punishable by a fine of not more than 32 one hundred dollars and shall disqualify the applicant or applicants 33 from further tax cap. 34 § 3. The general municipal law is amended by adding a new section 3-e 35 to read as follows: 36 § 3-e. Limitation upon real property tax levies by cities having a 37 population of one million or more. 1. Unless otherwise provided by law, 38 the amount of real property taxes that may be levied by or on behalf of 39 any city having a population of one million or more shall not exceed the 40 tax levy limitation established pursuant to this section. 41 2. When used in this section: 42 (a) "Allowable levy growth factor" shall be the lesser of: (i) one and 43 two one-hundredths; or (ii) the sum of one plus the inflation factor; 44 provided, however, that in no case shall the levy growth factor be less 45 than one. 46 (b) "Approved capital expenditures" means the expenditures associated 47 with capital projects that have been approved by the qualified voters of 48 the local government. 49 (c) "Available carryover" means the sum of the amount by which the tax 50 levy for the prior fiscal year was below the tax levy limit for such 51 fiscal year, if any, but no more than one and one-half percent of the 52 tax levy limit for such fiscal year. 53 (d) "Capital tax levy" means the tax levy necessary to support capital 54 expenditures, if any.A. 7464 4 1 (e) "Coming fiscal year" means the fiscal year of the local government 2 for which a tax levy limitation shall be determined pursuant to this 3 section. 4 (f) "Inflation factor" means the quotient of: (i) the average of the 5 national consumer price indexes determined by the United States depart- 6 ment of labor for the twelve-month period ending six months prior to the 7 start of the coming fiscal year minus the average of the national 8 consumer price indexes determined by the United States department of 9 labor for the twelve-month period ending six months prior to the start 10 of the prior fiscal year, divided by; (ii) the average of the national 11 consumer price indexes determined by the United States department of 12 labor for the twelve-month period ending six months prior to the start 13 of the prior fiscal year, with the result expressed as a decimal to four 14 places. 15 (g) "Local government" means a city having a population of one million 16 or more. 17 (h) "Prior fiscal year" means the fiscal year of the local government 18 immediately preceding the coming fiscal year. 19 (i) "Tax levy limitation" means the amount of taxes a local government 20 is authorized to levy pursuant to this section, provided, however, that 21 the tax levy limit shall not include the local government's approved 22 capital tax levy, if any. 23 3. (a) Beginning with the fiscal year that begins in two thousand 24 twenty, no local government shall adopt a budget that requires a tax 25 levy that is greater than the tax levy limitation for the coming fiscal 26 year. 27 (b) The state comptroller shall calculate the tax levy limitation for 28 each local government by the one hundred twentieth day preceding the 29 commencement of each local government's fiscal year, and shall notify 30 each local government of the tax levy limitation so determined. 31 (c) The tax levy limitation applicable to the coming fiscal year shall 32 be determined as follows: 33 (i) Ascertain the total amount of taxes levied for the prior fiscal 34 year. 35 (ii) Add any payments in lieu of taxes that were receivable in the 36 prior fiscal year. 37 (iii) Subtract the approved capital tax levy for the prior fiscal 38 year, if any. 39 (iv) Subtract the levy attributable to a large legal settlement of a 40 tort action excluded from the levy limitation in the prior fiscal year, 41 if any. 42 (v) Multiply the result by the allowable levy growth factor. 43 (vi) Subtract any payments in lieu of taxes receivable in the coming 44 fiscal year. 45 (vii) Add the available carryover, if any. 46 (d) In the event the city council of a local government has approved a 47 legal settlement of a tort action against the government, the annual 48 costs of which exceed ten percent of the property taxes levied by the 49 local government in the prior fiscal year, the state comptroller, upon 50 application by the local government, may adjust the tax levy limitation 51 for the coming fiscal year applicable to such local government, by 52 adding the annual costs of such settlement to the tax levy limitation. 53 (e) The state comptroller shall determine the portion of the tax levy 54 of each local government that is attributable to any increase or 55 decrease over the prior year in the cost of the local government share 56 of direct cash assistance to persons eligible for the federal-state-lo-A. 7464 5 1 cal temporary assistance to needy families program or the state-local 2 safety net assistance program and shall adjust the tax levy limitation 3 for such local government to reflect such change. 4 4. A local government may adopt a budget that requires a tax levy that 5 is greater than the tax levy limitation for the coming fiscal year only 6 if the city council of such local government first enacts, by a two- 7 thirds vote of the total voting power of such city council, a local law 8 to override such limitation for such coming fiscal year only. 9 5. In the event a local government's actual tax levy for a given 10 fiscal year exceeds the maximum allowable levy as established pursuant 11 to this section due to clerical or technical errors, the local govern- 12 ment shall place the excess amount of the levy in reserve in accordance 13 with such requirements as the state comptroller may prescribe, and shall 14 use such funds and any interest earned thereon to offset the tax levy 15 for the ensuing fiscal year. 16 § 4. Severability clause. If any clause, sentence, paragraph, subdivi- 17 sion, section or part of this act shall be adjudged by any court of 18 competent jurisdiction to be invalid, such judgment shall not affect, 19 impair, or invalidate the remainder thereof, but shall be confined in 20 its operation to the clause, sentence, paragraph, subdivision, section 21 or part thereof directly involved in the controversy in which such judg- 22 ment shall have been rendered. It is hereby declared to be the intent of 23 the legislature that this act would have been enacted even if such 24 invalid provisions had not been included herein. 25 § 5. This act shall take effect immediately and shall first apply to 26 the levy of taxes by local governments for the fiscal year that begins 27 in 2020.
