A09026 Summary:

BILL NOA09026
 
SAME ASNo Same As
 
SPONSORSchimel
 
COSPNSRArroyo, Duprey, Cahill, Abinanti, Dilan, Solages, Lupinacci, Lupardo, Steck, Montesano, Rivera, Lifton, Jaffee, Graf, Hawley, Brabenec, Raia, Stirpe
 
MLTSPNSRCrouch, Magee, Simon
 
Amd 3-c, Gen Muni L; amd 2023-a, Ed L
 
Enacts the "two percent is two percent property tax cap act" relating to the formula for the real property tax cap.
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A09026 Actions:

BILL NOA09026
 
01/19/2016referred to ways and means
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A09026 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A9026
 
SPONSOR: Schimel (MS)
  TITLE OF BILL: An act to amend the general municipal law and the education law, in relation to the formula for the real property tax cap   PURPOSE: The bill would allow municipalities and school districts to only be subject to a two percent property tax cap.   SUMMARY OF PROVISIONS: Section 1 entitles this bill as the "two percent is two percent property tax cap act". Section 2 amends paragraph 1 of subdivision 2 of section 3-c of the general municipal law, as added by section 1 of part A of chapter 97 of the laws of 2011, to remove language that ties the allowable levy growth to the rate of inflation and allows municipalities to only be subject to a two percent allowable levy growth limit. Section 3 amends paragraph a of subdivision 2 of section 2023-a of the education law, as added by 2 of part A of chapter 97 of the laws of 2011, to remove language that ties the allowable levy growth to the rate of inflation and allows school districts to only be subject to a two percent allowable levy growth limit. Section 4 sets the effective date.   JUSTIFICATION: Chapter 97 of the laws of 2011 imposed a tax levy limit on municipality tax levies. Although many refer to this law as a 2 percent tax cap this is not an accurate depiction of the law. Under the tax levy limit, the amount of taxes that may be levied by or on behalf of a municipality cannot increase by more than 2 percent, or the rate of inflation, which- ever is lower. As a result of low inflation in recent months, the allow- able levy growth factor for municipalities in 2015 was .73 percent, which is significantly lower than 2 percent. Year to year changes in tax levy percentages mean budget planning uncertainty for municipal corpo- rations and school districts. In terms of revenue, the difference between a tax levy limit of .73 percent and 2 percent is hundreds of thousands of dollars, which can be used to prevent staff cuts, the elim- ination of services, and programs in our local governments and schools.   LEGISLATIVE HISTORY: New Legislation   FISCAL IMPLICATIONS: None to the state.   EFFECTIVE DATE: This act shall take effect immediately.
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A09026 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          9026
 
                   IN ASSEMBLY
 
                                    January 19, 2016
                                       ___________
 
        Introduced by M. of A. SCHIMEL, ARROYO, DUPREY, CAHILL, ABINANTI, DILAN,
          SOLAGES,  LUPINACCI  --  Multi-Sponsored  by -- M. of A. SIMON -- read
          once and referred to the Committee on Ways and Means
 
        AN ACT to amend the general municipal law  and  the  education  law,  in
          relation to the formula for the real property tax cap
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. This act shall be known  and  may  be  cited  as  the  "two
     2  percent is two percent property tax cap act".
     3    §  2.  Paragraph  (a)  of  subdivision 2 of section 3-c of the general
     4  municipal law, as added by section 1 of part A of chapter 97 of the laws
     5  of 2011, is amended to read as follows:
     6    (a) "Allowable levy growth factor" shall be [the lesser of:  (i)]  one
     7  and  two  one-hundredths[;  or  (ii)  the  sum of one plus the inflation
     8  factor; provided, however, that in no case shall the levy growth  factor
     9  be less than one].
    10    §  3.  Paragraph a of subdivision 2 of section 2023-a of the education
    11  law, as added by section 2 of part A of chapter 97 of the laws of  2011,
    12  is amended to read as follows:
    13    a.  "Allowable  levy  growth factor" shall be [the lesser of: (i)] one
    14  and two one-hundredths[; or (ii) the  sum  of  one  plus  the  inflation
    15  factor;  provided, however, that in no case shall the levy growth factor
    16  be less than one].
    17    § 4. This act shall take effect immediately; provided,  however,  that
    18  the  amendments  to  section  3-c  of  the general municipal law made by
    19  section one of this act shall not affect the repeal of such section  and
    20  shall  be  deemed repealed therewith; provided, further, that the amend-
    21  ments to section 2023-a of the education law made by section two of this
    22  act shall not affect the repeal of such  section  and  shall  be  deemed
    23  repealed therewith.
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13547-01-6
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