BILL NUMBER: S5412
SPONSOR: LANZA
 
TITLE OF BILL:
An act to amend the general municipal law and the municipal home rule
law, in relation to establishing limitations upon real property tax
levies in cities with a population of one million or more
 
PURPOSE OR GENERAL IDEA OF BILL:
This bill would control the ever-rising property tax by limiting the
amount by which the City of New York may increase property taxes each
year.
 
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of the bill would add a new § 3-e to the General Municipal Law
to establish a real property tax levy cap for New York City. Under the
property tax levy cap:
*New York City may not its property tax levy by more than 2 percent or
the rate of inflation (whichever is less).
*New York City may exceed the tax levy cap only if the City Council, by
a two-thirds vote by local law overriding the tax levy cap.
*The cap will have limited exceptions including:
*Personal injury settlements that exceed 10 percent of the taxing enti-
ty's budget;
*Certain capital expenditures; and
*The increase or decrease in the city cost of state mandated social
services assistance to persons eligible for public assistance (including
those programs Temporary Assistance to Needy Families ("TANF") program,
or the Safety Net Assistance Program ("SNAP")
*The State Comptroller will determine the tax levy limitations for local
governments that are consolidated or dissolved.
*Any excess levy funds that are collected due to clerical or technical
errors will be held in reserve.
 
JUSTIFICATION:
New York property taxes are among the highest taxes in the nation. When
you combine State and local taxes, New York has the second highest prop-
erty taxes in the nation. The median U.S. property tax paid is $1,917
and in New York it is $3,755--96 percent higher than the national medi-
an. Moreover, New York has the highest local taxes in America as a
percentage of personal income -- 79 percent above the national average.
New York City residents are looking for relief from high property tax
increases. Such increases jeopardize their quality of life and the abil-
ity to stay in their homes. This bill would limit New York City's abili-
ty to raise property levies, up to 2'0. This bill will relieve taxpayers
from unexpected high property tax increases.
This measure will force the City to budget more responsibly without
looking at property taxpayers as a way to balance its budget. This
proposal will allow property owners to budget for their property taxes.
It will also prevent city government from burdening the people with
outrageous increases. By limiting future increases, families and espe-
cially those on fixed incomes-would have a much better sense of what
they need to budget. This bill will also help reign in out of control
government spending.
 
PRIOR LEGISLATIVE HISTORY:
2024: S.4095 - Referred to Cities / A.5716 - Referred to Ways & Means
2023: S.4095 - Referred to Cities / A.5716 - Referred to Ways & Means
2022: S.4921 - Referred to Cities / A.5716 - Referred to Ways & Means
2021: S.4921 - Referred to Cities / A.5716 - Referred to Ways & Means
2020: S.1758 - Referred to Cities / A.991 - Referred to Ways & Means
2019: S.1758 - Referred to Cities / A.991 - Referred to Ways & Means
2018: S.1214-A - Third Reading Calendar / A.2015-A - Passed Assembly
2017: S.1214 - Third Reading Calendar / A.1090 -Referred to Ways & Means
2016: S.3709 - Passed Senate / A.6492 - Referred to Ways & Means
2015: S.3709 - Passed Senate / A.0198 - Referred to Ways & Means
2014: S.4547 - 3rd Reading Calendar / A.6431 -Referred to Ways & Means
2013: 5.4547 - 3rd Reading Calendar / A.6431 - Referred to Ways & Means
2012: S.2366 - Referred to Cities / A.4741 - Referred to Ways & Means
2011: 5.2366 - Reported to Finance / A.4741 - Referred to Ways & Means
 
FISCAL IMPLICATIONS:
This bill would benefit taxpayers in the City of New York by limiting
the annual amount of real property taxes the City can levy.
 
EFFECTIVE DATE:
This act shall take effect immediately and shall first apply to the levy
of taxes by local governments for the fiscal year that begins in