NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8629
SPONSOR: 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
SUMMARY OF PROVISIONS:
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
2026.
JUSTIFICATION:
In order to determine how much of the levy to collect from each of the
four tax classes next fiscal year, State law requires New York City to
adopt class shares based on the equalization rates calculated by the
State Board of Real Property Services (SBRPS). In most years, the rates
provided by SBRPS would cause an increase to the tax burden for owners
of class one property, comprised of one-to-three-family homes.
Currently, State law provides that the current base proportion of any of
the City's four tax classes may not exceed the adjusted base proportion
from the prior year by more than five percent. This bill would permit
the local legislative body to lower the cap on the maximum allowable
growth rate for the share of the overall tax levy paid by each class.
Flexibility to lower this cap would allow the Council to adopt balanced
tax rates for Fiscal 2026 that provide relief for class one homeowners
without placing undue burden on the other property tax classes.
The equalization rates have caused class one's tax rate to increase in
ten of the past fifteen years, with six of those years seeing increases
of over two percent. Conversely, the other three classes have seen much
more balanced oscillations in their tax rates, with increases of over
two percent only occurring three years for class three, one year for
class four, and never for class two.
Failure to enact this legislation would leave the City Council no option
but to adopt the default SBRPS formula for establishing class shares. In
that case, tax rates for class one and two may increase uncontrollably,
and cause significant increases in the tax bills for residential home-
owners. Limiting the tax rate increases for classes one and two that
would result from SIAPS procedures is avoidable only through passage of
this legislation.
FISCAL IMPLICATION:
There would be zero impact on expenditures and revenues to result from
passing this legislation.
EFFECTIVE DATE:
Immediately.
STATE OF NEW YORK
________________________________________________________________________
8629
2025-2026 Regular Sessions
IN ASSEMBLY
May 22, 2025
___________
Introduced by 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 (nn) to read as follows:
3 (nn) 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-six, 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 December first, two thousand twen-
13 ty-five.
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 2026 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 effectuate 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13075-01-5
A. 8629 2
1 sent; for this purpose, such obligations shall be determined in accord-
2 ance with the applicable provisions of law that were in effect imme-
3 diately prior to the effective date of this act, and such city shall be
4 authorized to determine the date on which amended bills are to be sent
5 and the installments of real property tax which are to be reflected
6 therein.
7 § 3. This act shall take effect immediately.
