NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A10296
SPONSOR: Rules (Weprin) TITLE OF BILL:
An act to amend the real property tax law, in relation to the determi-
nation of adjusted base proportions in special assessing units which are
cities
PURPOSE OR GENERAL IDEA OF BILL:
This bill would amend section 1803-a of the Real Property Tax Law to
allow the local legislative body to amend the cap on the maximum class
growth rate as long as it does not exceed 5 percent for fiscal year
2023.
SUMMARY OF PROVISIONS:
Section one of this bill adds a new paragraph (mm) to subdivision one
of section 1803-a of the Real Property Tax Law to allow the New York
City Council to increase or decrease the class shares, which are
percentages of the overall property tax levy that each individual prop-
erty tax class must meet, by up to five percent compared to the FY24 tax
year, so long as the Council makes such determination by November 1st,
2024.
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. In
most years the State Board's class equalization rates cause the tax
burden on property tax class one, consisting of one-, two-, and three-
family homes, to increase.
Currently, state law provides that the current base proportion of any
one class may not exceed the adjusted base proportion for that class
from the prior year by more than five percent. This bill will permit the
local legislative body to lower the cap on the maximum growth rate of
any tax class's share of the overall tax levy. Flexibility to lower said
cap will allow the Council to adopt fiscal 2023 tax rates that balance
providing relief for the residential property tax class one without
placing undue burdens on the other property tax classes.
Failure to enact this legislation would leave the New York City Council
no option but to adopt the default SBRPS formula for establishing class
shares, thus forcing tax rates that may unfairly burden one property tax
class over another. This bill enables the City Council flexibility in
setting real property tax rates in order to ensure that no single subset
of property owners sees a massive spike in their tax liability compared
to the prior tax year.
FISCAL IMPLICATIONS:
None.
EFFECTIVE DATE:
Immediate
STATE OF NEW YORK
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10296
IN ASSEMBLY
May 17, 2024
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Weprin) --
read once and referred to the Committee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to the determi-
nation of adjusted base proportions in special assessing units which
are cities
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 1803-a of the real property tax
2 law is amended by adding a new paragraph (mm) to read as follows:
3 (mm) Notwithstanding the provisions of paragraph (c) of this subdivi-
4 sion to the contrary, in a special assessing unit which is a city and
5 for current base proportions to be determined in such special assessing
6 unit's fiscal year two thousand twenty-five, the percent increase of the
7 current base proportion of any class over the adjusted base proportion
8 or adjusted proportions, whichever is appropriate, of the immediately
9 preceding year shall be determined by the local legislative body of such
10 special assessing unit, provided that such percent increase shall be no
11 more than five percent, and provided further, that the local legislative
12 body shall make such determination by November first, two thousand twen-
13 ty-four.
14 § 2. In the event the special assessing unit which is a city has sent
15 out real property tax bills for its fiscal year 2025 before this act
16 shall have become a law, the city shall take such actions as are neces-
17 sary, consistent with applicable state and local law, to effect the
18 provisions of section one of this act, including, but not limited to,
19 revising the current base proportions and adjusted base proportions,
20 resetting the real property tax rates and sending amended real property
21 tax bills. Provided, however, that nothing in this act shall be deemed
22 to affect the obligation of any taxpayer with respect to the payment of
23 any installment of real property tax for such fiscal year which was due
24 and payable prior to the date such amended real property tax bills are
25 sent; for this purpose, such obligations shall be determined in accord-
26 ance with the applicable provisions of law that were in effect imme-
27 diately prior to the effective date of this act, and such city shall be
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD15494-01-4
A. 10296 2
1 authorized to determine the date on which amended bills are to be sent
2 and the installments of real property tax which are to be reflected
3 therein.
4 § 3. This act shall take effect immediately.
