NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A2926
SPONSOR: Jensen
 
TITLE OF BILL:
An act to amend the tax law and the state finance law, in relation to
disposition of revenue from new taxes and tax increases to reduce local
real property tax levies
 
PURPOSE:
This bill would require New York State to use any revenue from increas-
ing or imposing new taxes towards property tax relief by establishing
the Tax Reduction Utilization Security Target or TRUST fund bringing
financial responsibility and trust back to New York State.
 
SUMMARY OF PROVISIONS:
Section 1. Lays out the definitions for the tax increases and new taxes
that will be captured in this legislation.
Section 2. Establishes the Tax reduction utilization security target
(TRUST) fund where the revenue from increased/ new taxes will be depos-
ited and distributed to the localities. It also specifies that locali-
ties must use this money to reduce their tax levy.
Section 3. This act shall take effect on the first of January next
succeeding the date on which it shall have become a law.
 
JUSTIFICATION:
2019 was a year of promises in New York State, promises that new revenue
from taxing sports betting, marijuana, internet purchases, legalizing
prostitution, and more will solve all of New York's financial problems.
The only promise that has been missing from our legislative leaders is
to reduce the single largest burden on New Yorkers, and the primary
reason people are leaving our great state. It isn't because of the
weather, and it isn't because of mis-counting people in a census. It is
because New York has the highest property taxes in the nation. While I
do not support increasing taxes or creating new ones, if they are going
to be imposed that money should go back to help the people struggling to
stay in their homes. This bill would force the Governor and the Legisla-
ture to take the money received from any tax increases or new taxes and
deliver it to localities where they would then be required to reduce
their tax levy by an equal amount. Property taxes are crushing our
seniors and young families and have caused a net out migration of 1
million people from our state since 2010. If we are going to legalize
and tax additional activities that some of our citizens chose to partic-
ipate in, the beneficiary must be property taxpayers.
 
LEGISLATIVE HISTORY:
A.4666 of 2021/22
 
FISCAL IMPLICATIONS:
None.
 
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which is shall have become law.
STATE OF NEW YORK
________________________________________________________________________
2926
2023-2024 Regular Sessions
IN ASSEMBLY
February 1, 2023
___________
Introduced by M. of A. JENSEN -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law and the state finance law, in relation to
disposition of revenue from new taxes and tax increases to reduce
local real property tax levies
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 171-a of the tax law, as separately amended by
2 chapters 481 and 484 of the laws of 1981, is amended by adding a new
3 subdivision 3 to read as follows:
4 3. Any amounts received from taxes, interest and penalties collected
5 or received by the commissioner or the commissioner's duly authorized
6 agent as set forth and prescribed by subdivision one of this section,
7 which are attributable to an increase in the rate of such taxes over any
8 rates which were in effect on the effective date of this subdivision, or
9 the imposition of new taxes which were not imposed prior to such effec-
10 tive date, shall be deposited to the tax reduction utilization security
11 target fund established by section fifty-four-n of the state finance
12 law. The tax commissioner and the comptroller shall maintain a system of
13 accounts showing the amount of revenue collected or received from each
14 of the taxes imposed by the sections enumerated in subdivision one of
15 this section which represent such increased amounts or which were first
16 imposed after the effective date of this subdivision.
17 § 2. The state finance law is amended by adding a new section 54-n to
18 read as follows:
19 § 54-n. Tax reduction utilization security target fund. 1. Beginning
20 April first, two thousand twenty-four, and annually thereafter, each
21 city, village and town outside a village shall receive an appropriation
22 of state funds from amounts resulting from the increase or imposition of
23 additional taxes as determined by subdivision three of section one
24 hundred seventy-one-a of the tax law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD04881-01-3
A. 2926 2
1 2. The amount appropriated to each municipality shall be the entire
2 amount under subdivision three of section one hundred seventy-one-a of
3 the tax law multiplied by the proportion which the full value of the
4 city, village or town outside a village bears to the full value of the
5 state taken as a whole. "Full value" means for each city, village and
6 town outside a village an amount equal to the total taxable assessed
7 value of property on the most recently completed assessment roll as
8 filed with the state comptroller divided by the final state equalization
9 rate established for such roll by the commissioner of taxation and
10 finance.
11 3. Payments made to cities, villages and towns pursuant to this
12 section shall be used to reduce each municipality's real property tax
13 levy. After the initial determination of the annual tax levy, the
14 assessor shall deduct the amount paid to the municipality and shall
15 adjust the tax levy before filing the warrant pursuant to section nine
16 hundred four of the real property tax law.
17 4. Payments made pursuant to this section shall be made on or before
18 June thirtieth of each state fiscal year to the chief fiscal officer of
19 each city, village and town on audit and warrant of the state comp-
20 troller out of moneys appropriated by the legislature for such purpose
21 to the credit of the local assistance fund in the general fund of the
22 state treasury.
23 § 3. This act shall take effect on the first of January next succeed-
24 ing the date on which it shall have become a law.