Bill Text: NY A08313 | 2023-2024 | General Assembly | Amended
Bill Title: Adjusts the school tax relief (STAR) exemption for homes located outside a city with a population greater than one million for the 2024--2025 school years and thereafter (Part A); relates to a real property tax freeze to reimburse qualifying homeowners for increases in local property taxes on their primary residences (Part B); provides for supplemental state assistance to be paid to cities, counties, towns and villages that are compliant with the property tax levy limits (Part C).
Spectrum: Partisan Bill (Republican 4-0)
Status: (Introduced - Dead) 2024-01-03 - referred to real property taxation [A08313 Detail]
Download: New_York-2023-A08313-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 8313--A 2023-2024 Regular Sessions IN ASSEMBLY November 27, 2023 ___________ Introduced by M. of A. WALSH -- read once and referred to the Committee on Real Property Taxation -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the real property tax law, in relation to adjusting the school tax relief (STAR) exemption for homes located outside a city with a population greater than one million (Part A); to amend the tax law, the education law and the general municipal law, in relation to a real property tax freeze (Part B); and to amend the state finance law, in relation to providing supplemental state assistance to local governments that are compliant with certain property tax levy limits (Part C) The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act enacts into law components of legislation relating 2 to certain real property taxes. Each component is wholly contained with- 3 in a Part identified as Parts A through C. The effective date for each 4 particular provision contained within such Part is set forth in the last 5 section of such Part. Any provision in any section contained within a 6 Part, including the effective date of the Part, which makes reference to 7 a section "of this act", when used in connection with that particular 8 component, shall be deemed to mean and refer to the corresponding 9 section of the Part in which it is found. Section three of this act sets 10 forth the general effective date of this act. 11 PART A 12 Section 1. Subparagraph (vi) of paragraph (b) of subdivision 2 of 13 section 425 of the real property tax law, as added by section 1 of part 14 D-1 of chapter 57 of the laws of 2007, and clause (A) as further amended 15 by subdivision (b) of section 1 of part W of chapter 56 of the laws of EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD13365-05-3A. 8313--A 2 1 2010, is amended and a new subparagraph (vii) is added to read as 2 follows: 3 (vi) For the two thousand nine--two thousand ten school year [and4thereafter] through the two thousand twenty-three--two thousand twenty- 5 four school year, for homes located outside a city with a population 6 greater than one million: 7 (A) The base figure for the enhanced STAR exemption shall equal the 8 prior year's base figure multiplied by the percentage increase in the 9 consumer price index for urban wage earners and clerical workers (CPI-W) 10 published by the United States department of labor, bureau of labor 11 statistics, for the third quarter of the calendar year preceding the 12 applicable school year, as compared to the third quarter of the prior 13 calendar year. If a base figure as so determined is not exactly equal to 14 a multiple of one hundred dollars, it shall be rounded to the nearest 15 multiple of one hundred dollars. It shall be the responsibility of the 16 commissioner to annually determine such base figures. 17 (B) The base figure for the basic STAR exemption shall be thirty thou- 18 sand dollars. 19 (vii) For the two thousand twenty-four--two thousand twenty-five 20 school year and thereafter, for homes located outside a city with a 21 population greater than one million, notwithstanding any other provision 22 of this section, the enhanced STAR exemption shall equal fifty percent 23 of the median assessed value of all homes outside a city with a popu- 24 lation greater than one million, as calculated by the comptroller and 25 the commissioner. 26 § 2. This act shall take effect immediately. 27 PART B 28 Section 1. Section 606 of the tax law is amended by adding a new 29 subsection (bbb) to read as follows: 30 (bbb) Real property tax freeze credit. (1) As used in this subsection: 31 (A) The term "freeze-compliant budget" means a budget of a taxing 32 jurisdiction that has met the requirements of section two thousand twen- 33 ty-three-c of the education law or section three-d of the general munic- 34 ipal law, whichever is applicable. 35 (B) The terms "independent special district" and "dependent school 36 district" have the same meaning as set forth in section three-d of the 37 general municipal law. 38 (C) The term "STAR exemption" means the school tax relief exemption 39 authorized by section four hundred twenty-five of the real property tax 40 law. 41 (D) The term "taxing jurisdiction" means a county, city, town, 42 village, school district or an independent special district, except that 43 such term shall not include a city with a population of one million or 44 more, nor shall it include a county wholly located within such a city. 45 (E) The term "levy credit factor" means the allowable levy growth 46 factor for a taxing jurisdiction, as determined pursuant to section 47 three-c of the general municipal law or section two thousand twenty- 48 three-a of the education law, minus one. 49 (2) An individual taxpayer who meets the eligibility standards set 50 forth in paragraph three of this subsection and whose primary residence 51 is located in a taxing jurisdiction that has a freeze-compliant budget 52 for the fiscal year starting in two thousand twenty-five, two thousand 53 twenty-six or two thousand twenty-seven, whichever is applicable, shall 54 be allowed a credit against the taxes imposed by this article. SubjectA. 8313--A 3 1 to the provisions of paragraph six of this subsection, such credit shall 2 be determined as follows: 3 (A) If a school district other than a dependent school district has a 4 freeze-compliant budget for its fiscal year starting in two thousand 5 twenty-five, a credit shall be allowed for the eligible taxpayer's two 6 thousand twenty-five taxable year in the amount that is the greater of 7 (i) the amount by which the real property taxes imposed upon such resi- 8 dence by or on behalf of that school district for the fiscal year start- 9 ing in two thousand twenty-five exceeds the real property taxes so 10 imposed for the fiscal year starting in two thousand twenty-four, or 11 (ii) the product of the real property taxes imposed upon such residence 12 by or on behalf of that school district for the fiscal year starting in 13 two thousand twenty-four multiplied by the levy credit factor for that 14 school district for the fiscal year starting in two thousand twenty- 15 five. 16 (B) If a taxing jurisdiction, other than a school district or a city 17 with a dependent school district, has a freeze-compliant budget for its 18 fiscal year starting in two thousand twenty-six, a credit shall be 19 allowed for the eligible taxpayer's two thousand twenty-six taxable year 20 in the amount that is the greater of (i) the amount by which the real 21 property taxes imposed upon such residence by or on behalf of that 22 taxing jurisdiction for the fiscal year starting in two thousand twen- 23 ty-six exceeds the real property taxes so imposed for the fiscal year 24 starting in two thousand twenty-five, or (ii) the product of the real 25 property taxes imposed upon such residence by or on behalf of that 26 taxing jurisdiction for the fiscal year starting in two thousand twen- 27 ty-five multiplied by the levy credit factor for that taxing jurisdic- 28 tion for the fiscal year starting in two thousand twenty-six. 29 (C) If a school district other than a dependent school district has a 30 freeze-compliant budget for its fiscal year starting in two thousand 31 twenty-six, a credit shall be allowed for the eligible taxpayer's two 32 thousand twenty-six taxable year in the amount by which the real proper- 33 ty taxes imposed upon such residence by or on behalf of such school 34 district for the fiscal year starting in two thousand twenty-six exceeds 35 the real property taxes so imposed for the fiscal year identified as 36 follows: 37 (i) if the school district's budget for the fiscal year starting in 38 two thousand twenty-five was a freeze-compliant budget, a credit shall 39 be allowed for the eligible taxpayer's two thousand twenty-six taxable 40 year in the amount of the credit for school district taxes allowed for 41 the eligible taxpayer's two thousand twenty-five taxable year; together 42 with the amount that is the greater of (I) the amount by which the real 43 property taxes imposed upon such residence by or on behalf of that 44 school district for the fiscal year starting in two thousand twenty-six 45 exceeds the real property taxes so imposed for the fiscal year starting 46 in two thousand twenty-five, or (II) the product of the real property 47 taxes imposed upon such residence by or on behalf of such school 48 district for the fiscal year starting in two thousand twenty-five multi- 49 plied by the levy credit factor for that school district for the fiscal 50 year starting in two thousand twenty-six. 51 (ii) if the school district's budget for the fiscal year starting in 52 two thousand twenty-five was not a freeze-compliant budget, a credit 53 shall be allowed for the eligible taxpayer's two thousand twenty-six 54 taxable year in the amount that is the greater of (I) the amount by 55 which the real property taxes imposed upon such residence by or on 56 behalf of that school district for the fiscal year starting in two thou-A. 8313--A 4 1 sand twenty-six exceeds the real property taxes so imposed for the 2 fiscal year starting in two thousand twenty-five, or (II) the product of 3 the real property taxes imposed upon such residence by or on behalf of 4 such school district for the fiscal year starting in two thousand twen- 5 ty-five multiplied by the levy credit factor for such school district 6 for the fiscal year starting in two thousand twenty-six. 7 (D) If a taxing jurisdiction, other than a school district or a city 8 with a dependent school district, has a freeze-compliant budget for its 9 fiscal year starting in two thousand twenty-seven: 10 (i) if the taxing jurisdiction's budget for the fiscal year starting 11 in two thousand twenty-six was a freeze-compliant budget, a credit shall 12 be allowed for the eligible taxpayer's two thousand twenty-seven taxable 13 year in the amount of the credit for the taxes imposed by or on behalf 14 of such taxing jurisdiction allowed for the eligible taxpayer's two 15 thousand twenty-six taxable year; together with the amount that is the 16 greater of (I) the amount by which the real property taxes imposed upon 17 such residence by or on behalf of such taxing jurisdiction for the 18 fiscal year starting in two thousand twenty-seven exceeds the real prop- 19 erty taxes imposed upon such residence by or on behalf of that taxing 20 jurisdiction for the fiscal year starting in two thousand twenty-six, or 21 (II) the product of the real property taxes imposed upon such residence 22 by or on behalf of such taxing jurisdiction for the fiscal year starting 23 in two thousand twenty-six multiplied by the levy credit factor for such 24 taxing jurisdiction for the fiscal year starting in two thousand twen- 25 ty-seven. 26 (ii) if the taxing jurisdiction's budget for the fiscal year starting 27 in two thousand twenty-six was not a freeze-compliant budget, a credit 28 shall be allowed for the eligible taxpayer's two thousand twenty-seven 29 taxable year in the amount that is the greater of (I) the amount by 30 which the real property taxes imposed upon such residence by or on 31 behalf of such taxing jurisdiction for the fiscal year starting in two 32 thousand twenty-seven exceeds the real property taxes so imposed for the 33 fiscal year starting in two thousand twenty-six, or (II) the product of 34 the real property taxes imposed upon such residence by or on behalf of 35 such taxing jurisdiction for the fiscal year starting in two thousand 36 twenty-six multiplied by the levy credit factor for such taxing juris- 37 diction for the fiscal year starting in two thousand twenty-seven. 38 (E) If a city with a dependent school district has a freeze-compliant 39 budget for its fiscal year starting in two thousand twenty-five, a tax 40 credit shall be allowed for the eligible taxpayer's two thousand twen- 41 ty-five taxable year in the amount equivalent to sixty-seven percent of 42 the amount that is the greater of (i) the amount by which the real prop- 43 erty taxes imposed upon such residence by or on behalf of that city for 44 the fiscal year starting in two thousand twenty-five exceeds the real 45 property taxes so imposed for the fiscal year starting in two thousand 46 twenty-four, or (ii) the product of the real property taxes imposed upon 47 such residence by or on behalf of such city for the fiscal year starting 48 in two thousand twenty-four multiplied by the levy credit factor for 49 such city for the fiscal year starting in two thousand twenty-five. 50 (F) If a city with a dependent school district has a freeze-compliant 51 budget for its fiscal year starting in two thousand twenty-six: 52 (i) if the city's budget for the fiscal year starting in two thousand 53 twenty-five was a freeze-compliant budget, a credit shall be allowed for 54 the eligible taxpayer's two thousand twenty-six taxable year in an 55 amount equivalent to thirty-three percent of the amount that is the 56 greater of (I) the amount by which the real property taxes imposed uponA. 8313--A 5 1 such residence by that city for the fiscal year starting in two thousand 2 twenty-five exceeds the real property taxes so imposed for the fiscal 3 year starting in two thousand twenty-four, or (II) the product of the 4 real property taxes imposed upon such residence by or on behalf of such 5 city for the fiscal year starting in two thousand twenty-four multiplied 6 by the levy credit factor for such city for the fiscal year starting in 7 two thousand twenty-five; together with the amount of the credit for the 8 taxes imposed by or on behalf of such city allowed for the eligible 9 taxpayer's two thousand twenty-five taxable year; and together with an 10 amount equivalent to sixty-seven percent of the amount that is the 11 greater of (I) the amount by which the real property taxes imposed upon 12 such residence by that city for the fiscal year starting in two thousand 13 twenty-six exceeds the real property taxes so imposed for the fiscal 14 year starting in two thousand twenty-five; or (II) the product of the 15 real property taxes imposed upon such residence by or on behalf of such 16 city for the fiscal year starting in two thousand twenty-five multiplied 17 by the levy credit factor for such city for the fiscal year starting in 18 two thousand twenty-six; and a credit shall be allowed for the eligible 19 taxpayer's two thousand twenty-seven taxable year in an amount equiv- 20 alent to thirty-three percent of the amount that is the greater of (I) 21 the amount by which the real property taxes imposed upon such residence 22 by that city for the fiscal year starting in two thousand twenty-six 23 exceeds the real property taxes so imposed for the fiscal year starting 24 in two thousand twenty-five, or (II) the product of the real property 25 taxes imposed upon such residence by or on behalf of such city for the 26 fiscal year starting in two thousand twenty-five multiplied by the levy 27 credit factor for such city for the fiscal year starting in two thousand 28 twenty-six; together with an amount equivalent to forty-nine and one- 29 quarter percent of the amount of the credit for the taxes imposed by or 30 on behalf of such city allowed for the eligible taxpayer's two thousand 31 twenty-five taxable year. 32 (ii) if the city's budget for the fiscal year starting in two thousand 33 twenty-five was not a freeze-compliant budget, a credit shall be allowed 34 for the eligible taxpayer's two thousand twenty-six taxable year in an 35 amount equivalent to sixty-seven percent of the amount that is the 36 greater of (I) the amount by which the real property taxes imposed upon 37 such residence by that city for the fiscal year starting in two thousand 38 twenty-six exceeds the real property taxes so imposed for the fiscal 39 year starting in two thousand twenty-five or (II) the product of the 40 real property taxes imposed upon such residence by or on behalf of such 41 city for the fiscal year starting in two thousand twenty-five multiplied 42 by the levy credit factor for such city for the fiscal year starting in 43 two thousand twenty-six; and a credit shall be allowed for the eligible 44 taxpayer's two thousand twenty-seven taxable year in an amount equiv- 45 alent to thirty-three percent of the amount that is the greater of (I) 46 the amount by which the real property taxes imposed upon such residence 47 by that city for the fiscal year starting in two thousand twenty-six 48 exceeds the real property taxes so imposed for the fiscal year starting 49 in two thousand twenty-five or (II) the product of the real property 50 taxes imposed upon such residence by or on behalf of such city for the 51 fiscal year starting in two thousand twenty-five multiplied by the levy 52 credit factor for such city for the fiscal year starting in two thousand 53 twenty-six. 54 (G) If a city with a dependent school district has a freeze-compliant 55 budget for its fiscal year starting in two thousand twenty-five but does 56 not have a freeze-compliant budget for its fiscal year starting in twoA. 8313--A 6 1 thousand twenty-six, a tax credit shall be allowed for the eligible 2 taxpayer's two thousand twenty-six taxable year an amount representing 3 thirty-three percent of the amount that is the greater of (I) the amount 4 by which the real property taxes imposed upon such residence by that 5 city for the fiscal year starting in two thousand twenty-five exceeds 6 the real property taxes so imposed for the fiscal year starting in two 7 thousand twenty-four or (II) the product of the real property taxes 8 imposed upon such residence by or on behalf of such city for the fiscal 9 year starting in two thousand twenty-four multiplied by the levy credit 10 factor for such city for the fiscal year starting in two thousand twen- 11 ty-five. 12 (3) To be eligible for such credit, the taxpayer (or taxpayers filing 13 joint returns) must meet the following criteria: 14 (A) For the two thousand twenty-five taxable year, the taxpayer's 15 primary residence must have qualified for the STAR exemption for the two 16 thousand twenty-five--two thousand twenty-six school year, or would have 17 so qualified if an application for such exemption had been submitted in 18 a timely manner. 19 (B) For the two thousand twenty-six taxable year, the taxpayer's 20 primary residence must have qualified for the STAR exemption for the two 21 thousand twenty-six--two thousand twenty-seven school year, or would 22 have so qualified if an application for such exemption had been submit- 23 ted in a timely manner. 24 (C) For the two thousand twenty-seven taxable year, the taxpayer's 25 primary residence must have qualified for the STAR exemption for the two 26 thousand twenty-seven--two thousand twenty-eight school year, or would 27 have so qualified if an application for such exemption had been submit- 28 ted in a timely manner. 29 (4) For each year this credit is allowed, the commissioner shall 30 determine the taxpayer's eligibility for this credit utilizing the 31 information available to the commissioner. When the commissioner has 32 determined a taxpayer to be eligible for this credit, the commissioner 33 shall advance a payment of the amount determined in accordance with this 34 subsection. The taxpayer shall not apply for such credit in conjunction 35 with the filing of his or her return. A taxpayer who has failed to 36 receive an advance payment that he or she believes was due to him or 37 her, or who has received an advance payment that he or she believes is 38 less than the amount that was due to him or her, may request payment of 39 the claimed deficiency in a manner prescribed by the commissioner. 40 (5) If the amount of the credit allowed under this subsection, if any, 41 shall exceed the taxpayer's tax for the taxable year, the excess shall 42 be treated as an overpayment of tax to be credited or refunded in 43 accordance with the provisions of section six hundred eighty-six of this 44 article, provided, however, that no interest shall be paid thereon. 45 (6) The following provisions shall apply to the calculation of the 46 credit pursuant to paragraph two of this subsection: 47 (A) If the tax bill pertaining to the eligible taxpayer's primary 48 residence includes taxes levied by or on behalf of multiple taxing 49 jurisdictions, the credit shall be based upon the change in the aggre- 50 gate tax liability of such residence, provided that any tax appearing on 51 the tax bill that is not attributable to a freeze-compliant budget shall 52 be disregarded when determining the aggregate tax liability of such 53 residence. 54 (B) If the tax bill pertaining to the eligible taxpayer's primary 55 residence includes relevied taxes or other taxes that were previouslyA. 8313--A 7 1 billed but not paid, those taxes shall be disregarded when determining 2 the aggregate tax liability of such residence. 3 (C) If the tax bill pertaining to the eligible taxpayer's primary 4 residence includes usage charges, unit charges or other charges that are 5 based upon the consumption of a service, those charges shall be disre- 6 garded when determining the aggregate tax liability of such residence. 7 (D) Notwithstanding the foregoing provisions of this subsection, no 8 credit shall be allowed to the extent that the tax liability of the 9 eligible taxpayer's primary residence increased due to one or more of 10 the following events: 11 (i) A physical improvement to the eligible taxpayer's primary resi- 12 dence. 13 (ii) A removal or reduction of an exemption on the eligible taxpayer's 14 primary residence, including a reduction of the STAR exempt amount 15 calculated pursuant to subdivision two of section four hundred twenty- 16 five of the real property tax law. 17 (iii) A revaluation that caused the assessment of the eligible taxpay- 18 er's primary residence to increase by a percentage that is greater than 19 the applicable change in level of assessment. As used herein, the terms 20 "revaluation" and "change in level of assessment" shall have the same 21 meanings as set forth in sections one hundred two and twelve hundred 22 twenty of the real property tax law, respectively. 23 (E) In the case of property consisting of a cooperative apartment 24 corporation that is described by paragraph (k) of subdivision two of 25 section four hundred twenty-five of the real property tax law, an eligi- 26 ble owner shall be allowed a credit in the amount equal to sixty percent 27 of the average tax credit in that taxing jurisdiction for that fiscal 28 year, as determined by the commissioner, or in the case of a cooperative 29 apartment corporation that is described by subparagraph (iv) of para- 30 graph (k) of subdivision two of section four hundred twenty-five of the 31 real property tax law, a credit of twenty percent of such average tax 32 credit. 33 (F) In the case of property consisting of a mobile home that is 34 described by paragraph (l) of subdivision two of section four hundred 35 twenty-five of the real property tax law, an eligible owner shall be 36 allowed a credit in the amount equal to twenty-five percent of the aver- 37 age tax credit in that taxing jurisdiction for that fiscal year, as 38 determined by the commissioner. 39 (G) In the case of a city with a dependent school district, it shall 40 be presumed that sixty-seven percent of the city tax bill is for school 41 district purposes and that thirty-three percent is for general city 42 purposes. 43 (H) The amount of the credit shall be rounded to the nearest dollar, 44 except where such amount is greater than zero and less than one dollar 45 and fifty cents, in which case the amount of the credit shall be rounded 46 up to two dollars. 47 (7) No credit shall be allowed under this subsection in relation to 48 property located within a city with a population of one million or more. 49 § 2. The education law is amended by adding a new section 2023-c to 50 read as follows: 51 § 2023-c. Certification of compliance with property tax freeze 52 requirements. A school district that is subject to the provisions of 53 section two thousand twenty-three-a of this part must comply with the 54 requirements of subdivision two of this section in order to render its 55 taxpayers eligible for the real property tax freeze credit authorized by 56 subsection (bbb) of section six hundred six of the tax law for a fiscalA. 8313--A 8 1 year starting in two thousand twenty-five. The property tax cuts will 2 be extended for a second year in jurisdictions which comply with the tax 3 cap and have a state approved government efficiency plan which demon- 4 strate three year savings and efficiencies of at least one percent per 5 year from shared services, cooperation agreements and/or mergers or 6 efficiencies. The director of the budget shall consider past efficien- 7 cies, shared services and reforms in their approval process. While 8 localities may offer a variety of approaches it is anticipated that the 9 county government or board of cooperative educational services will 10 convene and facilitate a process and submit a county wide or board of 11 cooperative educational services region wide plan for approval. A 12 school district that is subject to the provisions of section two thou- 13 sand twenty-three-a of this part must comply with the requirements of 14 subdivision two and either subdivision three or subdivision four of this 15 section in order to render its taxpayers eligible for the real property 16 tax freeze credit authorized by subsection (bbb) of section six hundred 17 six of the tax law for a fiscal year starting in two thousand twenty- 18 six. 19 1. Definitions. As used in this section: 20 a. "Mergers" means: reorganizations of eligible school districts 21 pursuant to sections fifteen hundred five, fifteen hundred eleven 22 through fifteen hundred thirteen, fifteen hundred twenty-four, fifteen 23 hundred twenty-six, seventeen hundred five, eighteen hundred one through 24 eighteen hundred three, or twenty-two hundred eighteen of this title; or 25 reorganizations, consolidations, or dissolutions of eligible school 26 districts in which one or more eligible school districts are terminated 27 and another eligible school district assumes jurisdiction over the 28 terminated school district or districts pursuant to any other provision 29 of law. 30 b. "Cooperation agreements" means agreements entered into between 31 eligible school districts to implement the sharing or consolidation of 32 functions or services, including but not limited to: procurement, real 33 estate and facility management, fleet management, business and financial 34 services, administrative services, payroll administration, time and 35 attendance, benefits administration and other transactional human 36 resources functions, contract management, grants management, transporta- 37 tion services, facilities and function, human services facilities and 38 functions, customer service facilities and functions and information 39 technology infrastructure, process, services and functions. 40 c. "Eligible school district" means a school district that is subject 41 to section two thousand twenty-three-a of this part, but shall not mean 42 a school district that is subject to article fifty-two of this title. 43 d. "Government efficiency plan" means a plan that identifies cooper- 44 ation agreements, shared services and/or mergers or efficiencies to be 45 fully implemented by one or more eligible school districts that are 46 signatories to the plan. 47 e. "Lead district" means the eligible school district that is partic- 48 ipating in a government efficiency plan with more than one signatory 49 that has elected to submit the government efficiency plan to the direc- 50 tor of the budget on behalf of all signatories to the plan. 51 f. "Shared services" means functional consolidations by which one 52 eligible school district completely provides a service or function for 53 another eligible school district, which no longer engages in that func- 54 tion or service; shared or cooperative services between and among eligi- 55 ble school districts; and regionalized delivery of services between and 56 among eligible school districts. These shared services may be forA. 8313--A 9 1 services or functions including but not limited to: procurement, real 2 estate and facility management, fleet management, business and financial 3 services, administrative services, payroll administration, time and 4 attendance, benefits administration and other transactional human 5 resources functions, contract management, grants management, transporta- 6 tion services, facilities and functions, human services facilities and 7 functions, customer service facilities and functions and information 8 technology infrastructure, processes, services and functions. 9 2. Certification of compliance with tax levy limit. a. Upon the 10 adoption of the budget of an eligible school district, the chief execu- 11 tive officer of such school district shall certify to the state comp- 12 troller, the commissioner of taxation and finance and the commissioner 13 that the budget so adopted does not exceed the tax levy limit prescribed 14 by section two thousand twenty-three-a of this part. Such certification 15 shall be made in a form and manner prescribed by the state comptroller 16 in consultation with the commissioner of taxation and finance and the 17 commissioner. 18 b. In order for such certification to give rise to a real property tax 19 freeze credit under subsection (bbb) of section six hundred six of the 20 tax law, such certification shall be made no later than the twenty-first 21 day of the fiscal year to which it applies. 22 c. If such a certification has been made and the actual tax levy of 23 the school district exceeds the applicable tax levy limit, the excess 24 amount shall be placed in reserve and used in the manner prescribed by 25 subdivision five of section two thousand twenty-three-a of this part, 26 even if a tax levy in excess of the tax levy limit had been duly author- 27 ized for the applicable fiscal year by the school district voters. 28 d. Notwithstanding any provision of law to the contrary, every school 29 district that is subject to the provisions of section two thousand twen- 30 ty-three-a of this part shall report both its proposed budget and its 31 adopted budget to the office of the state comptroller and the commis- 32 sioner at the time and in the manner as they may prescribe, whether or 33 not such budget has been or will be certified as provided by this subdi- 34 vision. 35 3. School district government efficiency plans submitted by lead 36 district. a. The superintendent of each lead district shall submit to 37 the director of the budget by June first, two thousand twenty-six, a 38 government efficiency plan that demonstrates three year savings and 39 efficiencies of at least one percent per year from shared services, 40 cooperation agreements and/or mergers or efficiencies over the aggregate 41 two thousand twenty-five--two thousand twenty-six school year tax levies 42 for all eligible school districts that are signatories to such plan. 43 (i) The superintendent of each eligible school district that is a 44 signatory to a government efficiency plan shall submit to the super- 45 intendent of the lead district by May fifteenth, two thousand twenty- 46 six, a written certification that the eligible school district agrees to 47 undertake its best efforts to fully implement by the end of the two 48 thousand twenty-seven--two thousand twenty-eight school year the cooper- 49 ation agreements, mergers, efficiencies and/or shared services specified 50 for the eligible school district in such plan. 51 (ii) The chief financial officer of a school district that is a signa- 52 tory to a government efficiency plan shall submit to the superintendent 53 of the lead district by May fifteenth, two thousand twenty-six, a writ- 54 ten certification that in his or her professional opinion, full imple- 55 mentation by the end of the two thousand twenty-seven--two thousand 56 twenty-eight school year of the cooperation agreements, mergers, effi-A. 8313--A 10 1 ciencies and/or shared services that are to be taken by such school 2 district itself as specified in such plan will result in the savings set 3 forth in such plan attributable to such school district. 4 (iii) The chief financial officer of each eligible school district 5 that is a signatory to a government efficiency plan shall submit to the 6 lead district by May fifteenth, two thousand twenty-six, a written 7 certification that in his or her professional opinion, full implementa- 8 tion of the cooperation agreements, mergers, efficiencies and/or shared 9 services as specified for all of the eligible school districts that are 10 signatories to such plan will result in savings over the aggregate two 11 thousand twenty-five--two thousand twenty-six school year tax levies for 12 all eligible school districts that are signatories to such plan of at 13 least one percent in each of the two thousand twenty-seven--two thousand 14 twenty-eight, the two thousand twenty-eight--two thousand twenty-nine 15 and the two thousand twenty-nine--two thousand thirty school years. 16 b. The chief financial officer of each lead district shall submit the 17 following documents to the director of the budget on or before June 18 first, two thousand twenty-six: (i) the government efficiency plan; 19 (ii) a list of all eligible school districts that are signatories to 20 such plan; (iii) all of the certifications required by paragraph a of 21 this subdivision; and (iv) an analysis of the aggregate amount of 22 savings set forth in such plan attributable to all eligible school 23 districts that are signatories to such plan that will be achieved if the 24 cooperation agreements, mergers, efficiencies and/or shared services 25 identified in such plan are fully implemented by the end of the two 26 thousand twenty-seven--two thousand twenty-eight school year. The 27 director of the budget shall review such documents and shall consider 28 past efficiencies, shared services and reforms in their approval process 29 to determine whether the requirements of this subdivision have been met 30 with respect to each eligible school district that is a signatory to the 31 government efficiency plan and shall notify the commissioner of taxation 32 and finance of such determinations no later than July thirty-first, two 33 thousand twenty-six. 34 4. School district government efficiency plans submitted by a single 35 eligible school district. a. While localities may offer a variety of 36 approaches it is anticipated that the county government or board of 37 cooperative educational services will convene and facilitate a process 38 and submit a county wide or board of cooperative educational services 39 region wide plan for approval. As such, eligible school districts are 40 strongly encouraged to develop a single government efficiency plan for 41 all of the eligible school districts in their board of cooperation 42 educational services district. However, the superintendent of each 43 eligible school district that is not participating in a government effi- 44 ciency plan with more than one signatory may submit to the director of 45 the budget by June first, two thousand twenty-six, a government effi- 46 ciency plan that demonstrates three year savings and efficiencies of at 47 least one percent per year from shared services, cooperation agreements 48 and/or mergers or efficiencies over such eligible school district's two 49 thousand twenty-five--two thousand twenty-six school year tax levy. 50 (i) In the event an eligible school district chooses to submit such a 51 government efficiency plan, the superintendent of such eligible school 52 district shall submit to the director of the budget by June first, two 53 thousand twenty-six, a written certification that such eligible school 54 district agrees to undertake its best efforts to fully implement by the 55 end of the two thousand twenty-seven--two thousand twenty-eight schoolA. 8313--A 11 1 year the cooperation agreements, mergers, efficiencies and/or shared 2 services specified in such plan. 3 (ii) In the event a school district chooses to submit such a govern- 4 ment efficiency plan, the chief financial officer of such eligible 5 school district shall submit to the director of the budget by June 6 first, two thousand twenty-six, an analysis of the savings set forth in 7 such plan that will be achieved if the cooperation agreements, shared 8 services and/or mergers or efficiencies identified in such plan are 9 fully implemented by the end of the two thousand twenty-seven--two thou- 10 sand twenty-eight school year, as well as a written certification that 11 in his or her professional opinion, full implementation of the cooper- 12 ation agreements, mergers, efficiencies and/or shared services as speci- 13 fied in such plan will result in savings over its two thousand twenty- 14 five--two thousand twenty-six school year tax levy of at least one 15 percent in each of the two thousand twenty-seven--two thousand twenty- 16 eight, the two thousand twenty-eight--two thousand twenty-nine and the 17 two thousand twenty-nine--two thousand thirty school years. 18 b. The director of the budget shall review the documents referred to 19 in paragraph a of this subdivision and shall consider past efficiencies, 20 shared services and reforms in their approval process to determine 21 whether the requirements of this subdivision have been met with respect 22 to an eligible school district that has submitted a government efficien- 23 cy plan and shall notify the commissioner of taxation and finance of 24 such determination no later than July thirty-first, two thousand twen- 25 ty-six. 26 § 3. The general municipal law is amended by adding a new section 3-d 27 to read as follows: 28 § 3-d. Certification of compliance with property tax freeze require- 29 ments. A municipal corporation or an independent special district that 30 is subject to the provisions of section three-c of this article must 31 comply with the requirements of subdivision two of this section in order 32 to render its taxpayers eligible for the real property tax freeze credit 33 authorized by subsection (bbb) of section six hundred six of the tax law 34 for a fiscal year starting in two thousand twenty-six. The property tax 35 cuts will be extended for a second year in jurisdictions which comply 36 with the tax cap and have a state approved government efficiency plan 37 which demonstrate three year savings and efficiencies of at least one 38 percent per year from shared services, cooperation agreements and/or 39 mergers or efficiencies. The director of the budget shall consider past 40 efficiencies, shared services and reforms in their approval process. 41 While localities may offer a variety of approaches it is anticipated 42 that the county government or board of cooperative educational services 43 will convene and facilitate a process and submit a county wide or board 44 of cooperative educational services region wide plan for approval. A 45 municipal corporation or an independent special district that is subject 46 to the provisions of section three-c of this article must comply with 47 the requirements of subdivision two and either subdivision three or 48 subdivision four of this section in order to render its taxpayers eligi- 49 ble for the real property tax freeze credit authorized by subsection 50 (bbb) of section six hundred six of the tax law for a fiscal year start- 51 ing in two thousand twenty-seven. Provided however, that a city with a 52 dependent school district must comply with the requirements of subdivi- 53 sion two of this section in order to render its taxpayers eligible for 54 the real property tax freeze credit authorized by subsection (bbb) of 55 section six hundred six of the tax law for a fiscal year starting in two 56 thousand twenty-five and comply with the requirements of subdivision twoA. 8313--A 12 1 of this section, and both the city and its dependent school district 2 must jointly comply with the requirements of subdivision three or subdi- 3 vision four of this section, in order to render its taxpayers eligible 4 for the real property tax freeze credit authorized by subsection (bbb) 5 of section six hundred six of the tax law for a fiscal year starting in 6 two thousand twenty-six or two thousand twenty-seven. 7 1. Definitions. As used in this section: 8 (a) "Mergers" means: consolidations or dissolutions of local govern- 9 ment units in accordance with article seventeen-A of this chapter or 10 reorganizations, consolidations, or dissolutions of local government 11 units in which one or more local government units are terminated and 12 another local government unit assumes jurisdiction over the terminated 13 local government unit or units pursuant to any other provision of law. 14 (b) "Cooperation agreements" means agreements entered into between 15 local government units to implement the sharing or consolidation of 16 functions or services, including but not limited to: procurement, real 17 estate and facility management, fleet management, business and financial 18 services, administrative services, payroll administration, time and 19 attendance, benefits administration and other transactional human 20 resources functions, contract management, grants management, transporta- 21 tion services, facilities and function, human services facilities and 22 functions, customer service facilities and functions and information 23 technology infrastructure, process, services and functions. 24 (c) "Dependent school district" means a school district that is 25 subject to article fifty-two of the education law and that has a popu- 26 lation of less than one million. 27 (d) "Government efficiency plan" means a plan that identifies cooper- 28 ation agreements, shared services and/or mergers or efficiencies to be 29 fully implemented by one or more local government units that are signa- 30 tories to the plan. 31 (e) "Independent special district" means a special district as defined 32 by section one hundred two of the real property tax law that either (i) 33 has a separate independent elected board, and either has the authority 34 to levy a tax, or can require a municipal corporation to levy a tax on 35 its behalf, or (ii) has a separate independent board appointed by the 36 governing body of another municipal corporation and either has the 37 authority to levy a tax or can require a municipal corporation to levy a 38 tax on its behalf. 39 (f) "Lead local government unit" means the local government unit that 40 is participating in a government efficiency plan with more than one 41 signatory that has elected to submit the government efficiency plan to 42 the director of the budget on behalf of all signatories to the plan. 43 (g) "Local government unit" means a municipal corporation or an inde- 44 pendent special district that is subject to the provisions of section 45 three-c of this article. 46 (h) "Shared services" means functional consolidations by which one 47 local government unit completely provides a service or function for 48 another local government unit, which no longer engages in that function 49 or service; shared or cooperative services between and among local 50 government units; and regionalized delivery of services between and 51 among local government units. These shared services may be for services 52 or functions including but not limited to: procurement, real estate and 53 facility management, fleet management, business and financial services, 54 administrative services, payroll administration, time and attendance, 55 benefits administration and other transactional human resources func- 56 tions, contract management, grants management, transportation services,A. 8313--A 13 1 facilities and functions, human services facilities and functions, 2 customer service facilities and functions and information technology 3 infrastructure, processes, services and functions. 4 2. Certification of compliance with tax levy limit. (a) Upon the 5 adoption of the budget of a local government unit, the chief executive 6 officer or budget officer of such local government unit shall certify to 7 the state comptroller and the commissioner of taxation and finance that 8 the budget so adopted does not exceed the tax levy limit prescribed in 9 section three-c of this article and, if the governing body of the local 10 government unit did enact a local law or approve a resolution to over- 11 ride the tax levy limit, that such local law or resolution was subse- 12 quently repealed. Such certification shall be made in a form and manner 13 prescribed by the state comptroller in consultation with the commission- 14 er of taxation and finance. 15 (b) In order for such certification to give rise to a real property 16 tax freeze credit under subsection (bbb) of section six hundred six of 17 the tax law, such certification shall be made no later than the twenty- 18 first day of the fiscal year to which it applies. 19 (c) Notwithstanding any other law to the contrary, if such a certif- 20 ication has been made and the actual tax levy of the local government 21 unit exceeds the applicable tax levy limit, the excess amount shall be 22 placed in reserve and used in the manner prescribed by subdivision six 23 of section three-c of this article, even if a tax levy in excess of the 24 tax levy limit had been authorized for the applicable fiscal year by a 25 duly adopted local law or resolution. 26 (d) Notwithstanding any provision of law to the contrary, every local 27 government unit shall report both its proposed budget and its adopted 28 budget to the office of the state comptroller at the time and in the 29 manner as he or she may prescribe, whether or not such budget has been 30 or will be certified as provided by this subdivision. 31 3. Local government government efficiency plans submitted by lead 32 local government unit. (a) The chief executive officer or budget officer 33 of each lead local government unit shall submit to the director of the 34 budget by June first, two thousand twenty-six, a government efficiency 35 plan that demonstrates three year savings and efficiencies of at least 36 one percent per year from shared services, cooperation agreements and/or 37 mergers or efficiencies over the aggregate tax levies for fiscal years 38 beginning in two thousand twenty-five for all local government units and 39 dependent school districts that are signatories to such plan. 40 (i) The chief executive officer or budget officer of each local 41 government unit and dependent school district that is a signatory to a 42 government efficiency plan shall submit to the chief executive officer 43 or budget officer of the lead local government unit by May fifteenth, 44 two thousand twenty-six, a written certification that the local govern- 45 ment unit or dependent school district agrees to undertake its best 46 efforts to fully implement by the end of the local fiscal year beginning 47 in two thousand twenty-eight the cooperation agreements, mergers, effi- 48 ciencies and/or shared services specified for the local government unit 49 or dependent school district in such plan. 50 (ii) The chief financial officer of a local government unit and the 51 chief fiscal officer of the dependent school district, that is a signa- 52 tory to a government efficiency plan shall submit to the chief executive 53 officer of the lead local government unit by May fifteenth, two thousand 54 twenty-six, a written certification that in his or her professional 55 opinion, full implementation by the end of the local fiscal year begin- 56 ning in two thousand twenty-eight, of the cooperation agreements, merg-A. 8313--A 14 1 ers, efficiencies and/or shared services that are to be taken by such 2 local government unit itself as specified in such plan will result in 3 the savings set forth in the government efficiency plan attributable to 4 such local government unit or dependent school district. 5 (iii) The chief financial officer of each local government unit and 6 dependent school district that is a signatory to a government efficiency 7 plan shall submit to the lead local government unit by May fifteenth, 8 two thousand twenty-six, a written certification that in his or her 9 professional opinion, full implementation of the cooperation agreements, 10 mergers, efficiencies and/or shared services as specified for all of the 11 local government units and dependent school districts that are signato- 12 ries to such plan will result in savings over the aggregate tax levies 13 for fiscal years beginning in two thousand twenty-five for all local 14 government units that are signatories to such plan of at least one 15 percent in each of the fiscal years beginning in two thousand twenty- 16 eight, beginning in two thousand twenty-nine and beginning in two thou- 17 sand thirty. 18 (b) The chief financial officer of each lead local government unit 19 shall submit the following documents to the director of the budget on or 20 before June first, two thousand twenty-six: (i) the government effi- 21 ciency plan; (ii) a list of all local government units and dependent 22 school districts that are signatories to such plan; (iii) all of the 23 certifications required by paragraph (a) of this subdivision; and (iv) 24 an analysis of the aggregate amount of savings set forth in such plan 25 attributable to all local government units and dependent school 26 districts that are signatories to such plan that will be achieved if the 27 cooperation agreements, shared services and/or mergers or efficiencies 28 identified in such plan are fully implemented by the end of the local 29 fiscal year beginning in two thousand twenty-eight. The director of the 30 budget shall review such documents and shall consider past efficiencies, 31 shared services and reforms in their approval process to determine 32 whether the requirements of this subdivision have been met with respect 33 to each local government unit and dependent school district that is a 34 signatory to the government efficiency plan and shall notify the commis- 35 sioner of taxation and finance of such determinations no later than July 36 thirty-first, two thousand twenty-six. 37 4. Local government government efficiency plans submitted by a single 38 local government unit. (a) While localities may offer a variety of 39 approaches it is anticipated that the county government or board of 40 cooperative educational services will convene and facilitate a process 41 and submit a county wide or board of cooperative educational services 42 region wide plan for approval. As such, local government units are 43 strongly encouraged to develop a single government efficiency plan for 44 all of the local government units in their county. However, the chief 45 executive officer or budget officer of each local government unit that 46 is not participating in a government efficiency plan with more than one 47 signatory may submit to the director of the budget by June first, two 48 thousand twenty-six, a government efficiency plan that demonstrates 49 three year savings and efficiencies of at least one percent per year 50 from shared services, cooperation agreements and/or mergers or efficien- 51 cies over such local government unit's tax levy for the fiscal year 52 beginning in two thousand twenty-five. 53 (i) In the event a local government unit chooses to submit such a 54 government efficiency plan, the chief executive officer or budget offi- 55 cer of such local government unit shall submit to the director of the 56 budget by June first, two thousand twenty-six, a written certificationA. 8313--A 15 1 that such local government unit agrees to undertake its best efforts to 2 fully implement by the end of the local fiscal year beginning in two 3 thousand twenty-eight the cooperation agreements, mergers, efficiencies 4 and/or shared services specified in such plan. 5 (ii) In the event a local government unit chooses to submit such a 6 government efficiency plan, the chief financial officer of such local 7 government unit shall submit to the director of the budget by June 8 first, two thousand twenty-six, an analysis of the savings set forth in 9 such plan that will be achieved if the cooperation agreements, shared 10 services and/or mergers or efficiencies identified in such plan are 11 fully implemented by the end of the local fiscal year beginning in two 12 thousand twenty-eight, as well as a written certification that in his or 13 her professional opinion, full implementation of the cooperation agree- 14 ments, mergers, efficiencies and/or shared services as specified in such 15 plan will result in savings over its tax levy for the fiscal year begin- 16 ning in two thousand twenty-five of at least one percent in each of the 17 fiscal years beginning in two thousand twenty-eight, beginning in two 18 thousand twenty-nine and beginning in two thousand thirty. 19 (b) The director of the budget shall review the documents referred to 20 in paragraph (a) of this subdivision and shall consider past efficien- 21 cies, shared services and reforms in their approval process to determine 22 whether the requirements of this subdivision have been met with respect 23 to a local government unit that has submitted a government efficiency 24 plan and shall notify the commissioner of taxation and finance of such 25 determination no later than July thirty-first, two thousand twenty-six. 26 § 4. This act shall take effect immediately. 27 PART C 28 Section 1. The state finance law is amended by adding a new section 29 54-n to read as follows: 30 § 54-n. Supplemental state assistance to property tax limit compliant 31 local governments. 1. Beginning with the state fiscal year beginning 32 April first, two thousand twenty-five, and in each state fiscal year 33 thereafter, there shall be paid to the cities, counties, towns and 34 villages of the state that are in compliance with the property tax limit 35 established pursuant to section three-c of the general municipal law, a 36 supplemental apportionment of state aid in the amounts provided in this 37 section, in addition to the amounts provided for by section fifty-four 38 of this article. 39 2. The total pool of funding for the supplemental apportionment to be 40 paid pursuant to subdivision one of this section shall be equal to the 41 difference between the appropriation for aid and incentives to munici- 42 palities in the prior state fiscal year's enacted budget and the amount 43 appropriated in the two thousand eight--two thousand nine enacted budg- 44 et, adjusted for inflation as determined by the consumer price index and 45 calculated in the same manner as determined by the secretary of the 46 United States treasury for purposes of section 1(f) of the United States 47 Internal Revenue Code of 1954, as amended. For purposes of this section, 48 the term "consumer price index" shall mean the Chained Consumer Price 49 Index for All Urban Consumers (C-CPI-U) published by the United States 50 department of labor, bureau of labor statistics. 51 3. Eligible cities, counties, towns and villages pursuant to subdivi- 52 sion one of this section shall receive a portion of the supplemental 53 assistance under this section equal to the portion of their share of the 54 amount provided for pursuant to section fifty-four of this article.A. 8313--A 16 1 4. Payments under this section shall be made pursuant to the same 2 schedule provided for in section fifty-four of this article. 3 5. Any additional monies in the total pool of funding as described in 4 subdivision two of this section at the end of a fiscal year resulting 5 from cities, counties, towns and villages that overrode the property tax 6 limit established pursuant to section three-c of the general municipal 7 law shall not be reappropriated. 8 § 2. This act shall take effect immediately. 9 § 2. Severability clause. If any clause, sentence, paragraph, subdivi- 10 sion, section or part of this act shall be adjudged by any court of 11 competent jurisdiction to be invalid, such judgment shall not affect, 12 impair, or invalidate the remainder thereof, but shall be confined in 13 its operation to the clause, sentence, paragraph, subdivision, section 14 or part thereof directly involved in the controversy in which such judg- 15 ment shall have been rendered. It is hereby declared to be the intent of 16 the legislature that this act would have been enacted even if such 17 invalid provisions had not been included herein. 18 § 3. This act shall take effect immediately provided, however, that 19 the applicable effective dates of Parts A through C of this act shall be 20 as specifically set forth in the last section of such Parts.
