Imposes a surcharge of twenty percent additional tax on properties owned by persons or businesses from states which have financed the transportation of persons into such city for the purpose of making them a public charge; applies to cities with a population of one million or more.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A8606
SPONSOR: Rajkumar
 
TITLE OF BILL:
An act to amend the real property tax law, in relation to imposing a
surcharge on certain properties in a city with a population of one
million or more
 
PURPOSE OR GENERAL IDEA OF BILL:
To impose a real property tax surcharge on properties owned by people
and organizations from states that transport people into this state for
the purpose of making them a public charge.
 
SUMMARY OF PROVISIONS:
Section 1 amends the real property tax law by adding a new section 307-b
authorizing any city with a population of one million or more to impose
a real property tax surcharge on owners from states that transport
people into this state for the purpose of making them a public charge.
It also makes such properties ineligible for most reductions in real
property tax obligations.
Section 2 is the effective date.
 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):
 
JUSTIFICATION:
Section 149 of the Social Services Law states, "Any person who knowingly
brings, or causes to be brought, a needy person from out of the state
into this state for the purpose of making him a public charge, shall be
guilty of a misdemeanor...and shall be obligated to convey such person
out of the state or to support him at his own expense."
Beginning in 2022, certain states began financing the transportation of
people to New York City, forcing the city to provide them with housing
under the right to shelter established by a consent decree in the case
of Callahan v. Carey. As of December 2023, one state had transported
over 33,600 people to New York City, costing the city over $708 million
to provide them shelter. The ongoing costs have prompted the city to
make cuts in other services.
This bill enforces the intent of Section 149 of the Social Services Law:
people and organizations from these states are contributing tax dollars
to their home states that finance transportation of people to New York
to make them a public charge, in effect causing them to be brought to
Our Great State. Therefore a surcharge on property owned by people and
organizations from those states is a reasonable way to finance the shel-
tering of tens of thousands of people. It will also disincentivize
states to continue transporting people into our state to make them a
public charge.
 
PRIOR LEGISLATIVE HISTORY:
New bill.
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None.
 
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
8606
IN ASSEMBLY
January 12, 2024
___________
Introduced by M. of A. RAJKUMAR -- read once and referred to the Commit-
tee on Real Property Taxation
AN ACT to amend the real property tax law, in relation to imposing a
surcharge on certain properties 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. The real property tax law is amended by adding a new
2 section 307-b to read as follows:
3 § 307-b. Additional tax on certain real property in a city with a
4 population of one million or more. 1. Notwithstanding any provision of
5 any general, specific or local law to the contrary, any city with a
6 population of one million or more is hereby authorized and empowered to
7 adopt and amend local laws in accordance with this section imposing an
8 additional tax on certain real property. Such surcharge shall be the
9 imposition of a tax rate which is twenty percent higher than the other-
10 wise applicable tax rate.
11 2. (a) A local law enacted pursuant to this section may provide for a
12 surcharge on the real property tax on any commercial or residential
13 property of any class in which majority ownership is held by a resident
14 or residents of, or a business, partnership, firm or corporation which
15 is incorporated or has its main offices in, a state which has been
16 determined by the department of finance to have financed the transporta-
17 tion of persons into the city for the purpose of making such persons a
18 public charge, within the past three years.
19 (b) Except as otherwise provided in this section, such tax may be
20 imposed, administered, collected and enforced by the commissioner of
21 finance of such city by such means and in such manner as other taxes
22 that are now imposed, administered, collected and enforced by such
23 commissioner in accordance with the charter or administrative code of
24 any such city or as otherwise may be provided by any such local law.
25 3. Any property or owner thereof which is subject to a surcharge under
26 this section shall be ineligible for any tax abatement, reduction credit
27 or payment in lieu of taxes, except for: a refund of any overpayment of
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14016-01-4
A. 8606 2
1 taxes; a refund due to a redetermination of a property's assessed value;
2 credits for the construction low-income or permanently rent regulated
3 property; or for costs of capital improvements relating to energy or
4 water efficiency.
5 4. The department of finance of any city with a population of one
6 million or more, in coordination with the state department of taxation
7 and finance, shall annually determine which states, if any, financed the
8 transportation of persons into the city for the purpose of making such
9 persons a public charge. The department of finance shall promulgate
10 rules to carry out the provisions of this section.
11 § 2. This act shall take effect immediately.