§ 3-C — Limit upon real property tax levies by local governments

New York § 3-C

• Jurisdiction: New York
• Law GMU: General Municipal
• Art. 2: General Municipal Finances

Text

§ 3-c. Limit upon real property tax levies by local governments. 1.\nUnless otherwise provided by law, the amount of real property taxes that\nmay be levied by or on behalf of any local government, other than the\ncity of New York and the counties contained therein, shall not exceed\nthe tax levy limit established pursuant to this section.\n 2. When used in this section:\n (a) "Allowable levy growth factor" shall be the lesser of: (i) one and\ntwo one-hundredths; or (ii) the sum of one plus the inflation factor;\nprovided, however, that in no case shall the levy growth factor be less\nthan one.\n (b) "Available carryover" means the amount by which the tax levy for\nthe prior fiscal year was below the tax levy limit for such fiscal year,\nif any, but no more than an amount that equals one and one-half percent\nof the tax levy limit for such fiscal year.\n (c) "Coming fiscal year" means the fiscal year of the local government\nfor which a tax levy limit shall be determined pursuant to this section.\n (d) "Inflation factor" means the quotient of: (i) the average of the\nnational consumer price indexes determined by the United States\ndepartment of labor for the twelve-month period ending six months prior\nto the start of the coming fiscal year minus the average of the national\nconsumer price indexes determined by the United States department of\nlabor for the twelve-month period ending six months prior to the start\nof the prior fiscal year, divided by: (ii) the average of the national\nconsumer price indexes determined by the United States department of\nlabor for the twelve-month period ending six months prior to the start\nof the prior fiscal year, with the result expressed as a decimal to four\nplaces.\n (e) "Local government" means a county, city, town, village, fire\ndistrict, or special district including but not limited to a district\ncreated pursuant to article twelve or twelve-A, or governed by article\nthirteen of the town law, or created pursuant to article five-A, five-B\nor five-D of the county law, chapter five hundred sixteen of the laws of\nnineteen hundred twenty-eight, or chapter two hundred seventy-three of\nthe laws of nineteen hundred thirty-nine, and shall include town\nimprovements provided pursuant to articles three-A and twelve-C of the\ntown law but shall not include the city of New York or the counties\ncontained therein.\n (f) "Prior fiscal year" means the fiscal year of the local government\nimmediately preceding the coming fiscal year.\n (g) "Tax levy limit" means the amount of taxes authorized to be levied\nby or on behalf of a local government pursuant to this section,\nprovided, however, that the tax levy limit shall not include the\nfollowing:\n (i) a tax levy necessary for expenditures resulting from court orders\nor judgments against the local government arising out of tort actions\nfor any amount that exceeds five percent of the total tax levied in the\nprior fiscal year;\n (ii) in years in which the system average actuarial contribution rate\nof the New York state and local employees' retirement system, as defined\nby paragraph ten of subdivision a of section nineteen-a of the\nretirement and social security law, increases by more than two\npercentage points from the previous year, a tax levy necessary for\nexpenditures for the coming fiscal year for local government employer\ncontributions to the New York state and local employees' retirement\nsystem caused by growth in the system average actuarial contribution\nrate minus two percentage points;\n (iii) in years in which the system average actuarial contribution rate\nof the New York state and local police and fire retirement system, as\ndefined by paragraph eleven of subdivision a of section three hundred\nnineteen-a of the retirement and social security law, increases by more\nthan two percentage points from the previous year, a tax levy necessary\nfor expenditures for the coming fiscal year for local government\nemployer contributions to the New York state and local police and fire\nretirement system caused by growth in the system average actuarial\ncontribution rate minus two percentage points;\n (iv) in years in which the normal contribution rate of the New York\nstate teachers' retirement system, as defined by paragraph a of\nsubdivision two of section five hundred seventeen of the education law,\nincreases by more than two percentage points from the previous year, a\ntax levy necessary for expenditures for the coming fiscal year for local\ngovernment employer contributions to the New York state teachers'\nretirement system caused by growth in the normal contribution rate minus\ntwo percentage points.\n (h) "Tax" or "taxes" shall include (i) a charge imposed upon real\nproperty by or on behalf of a county, city, town, village or school\ndistrict for municipal or school district purposes, and (ii) special ad\nvalorem levies and special assessments as defined in subdivisions\nfourteen and fifteen of section one hundred two of the real property tax\nlaw.\n 3. (a) Subject to the provisions of subdivision five of this section,\nbeginning with the fiscal year that begins in two thousand twelve, no\nlocal government shall adopt a budget that requires a tax levy that is\ngreater than the tax levy limit for the coming fiscal year. Provided\nhowever the tax levy limit shall not prohibit a levy necessary to\nsupport the expenditures pursuant to subparagraphs (i) through (iv) of\nparagraph (g) of subdivision two of this section.\n (b) (i) The commissioner of taxation and finance shall calculate a\nquantity change factor for each local government for the coming fiscal\nyear based upon the physical or quantity change, as defined by section\ntwelve hundred twenty of the real property tax law, reported to the\ncommissioner of taxation and finance by the assessor or assessors\npursuant to section five hundred seventy-five of the real property tax\nlaw. The quantity change factor shall show the percentage by which the\nfull value of the taxable real property in the local government has\nchanged due to physical or quantity change between the second final\nassessment roll or rolls preceding the final assessment roll or rolls\nupon which taxes are to be levied, and the final assessment roll or\nrolls immediately preceding the final assessment roll or rolls upon\nwhich taxes are to be levied. The commissioner of taxation and finance\nshall, as appropriate, promulgate rules and regulations regarding the\ncalculation of the quantity change factor which may adjust the\ncalculation based on the development on tax exempt land.\n (ii) After determining the quantity change factor for the local\ngovernment, the commissioner of taxation and finance shall proceed as\nfollows:\n (A) If the quantity change factor is negative, the commissioner of\ntaxation and finance shall not determine a tax base growth factor for\nthe local government.\n (B) If the quantity change factor is positive, the commissioner of\ntaxation and finance shall determine a tax base growth factor for the\nlocal government which is equal to one plus the quantity change factor.\n (iii) The commissioner of taxation and finance shall notify the state\ncomptroller and each local government of the applicable tax base growth\nfactors, if any, as soon thereafter as such factors are determined.\n (c) Each local government shall calculate the tax levy limit\napplicable to the coming fiscal year which shall be determined as\nfollows:\n (i) Ascertain the total amount of taxes levied for the prior fiscal\nyear.\n (ii) Multiply the result by the tax base growth factor, calculated\npursuant to paragraph (b) of this subdivision, if any.\n (iii) Add any payments in lieu of taxes that were receivable in the\nprior fiscal year.\n (iv) Subtract the tax levy necessary to support expenditures pursuant\nto subparagraph (i) of paragraph (g) of subdivision two of this section\nfor the prior fiscal year, if any.\n (v) Multiply the result by the allowable levy growth factor.\n (vi) Subtract any payments in lieu of taxes receivable in the coming\nfiscal year.\n (vii) Add the available carryover, if any.\n (d) Whenever the responsibility and associated cost of a local\ngovernment function is transferred to another local government, the\nstate comptroller shall determine the costs and savings on the affected\nlocal governments attributable to such transfer for the first fiscal\nyear following the transfer, and notify such local governments of such\ndetermination and that they shall adjust their tax levy limits\naccordingly.\n 4. (a) When two or more local governments consolidate, the state\ncomptroller shall determine the tax levy limit for the consolidated\nlocal government for the first fiscal year following the consolidation\nbased on the respective tax levy limits of the component local\ngovernments that formed such consolidated local government from the last\nfiscal year prior to the consolidation.\n (b) When a local government dissolves, the state comptroller shall\ndetermine the tax levy limit for the local government that assumes the\ndebts, liabilities, and obligations of such dissolved local government\nfor the first fiscal year following the dissolution based on the\nrespective tax levy limits of such dissolved local government and such\nlocal government that assumes the debts, liabilities, and obligations of\nsuch dissolved local government from the last fiscal year prior to the\ndissolution.\n (c) The tax levy limit established by this section shall not apply to\nthe first fiscal year after a local government is newly established or\nconstituted through a process other than consolidation or dissolution.\n 5. A local government may adopt a budget that requires a tax levy that\nis greater than the tax levy limit for the coming fiscal year, not\nincluding any levy necessary to support the expenditures pursuant to\nsubparagraphs (i) through (iv) of paragraph g of subdivision two of this\nsection, only if the governing body of such local government first\nenacts, by a vote of sixty percent of the total voting power of such\nbody, a local law to override such limit for such coming fiscal year\nonly, or in the case of a district or fire district, a resolution,\napproved by a vote of sixty percent of the total voting power of such\nbody, to override such limit for such coming fiscal year only.\n 6. In the event a local government's actual tax levy for a given\nfiscal year exceeds the tax levy limit as established pursuant to this\nsection due to clerical or technical errors, the local government shall\nplace the excess amount of the levy in reserve in accordance with such\nrequirements as the state comptroller may prescribe, and shall use such\nfunds and any interest earned thereon to offset the tax levy for the\nensuing fiscal year. If, upon examination pursuant to sections\nthirty-three and thirty-four of this chapter, the state comptroller\nfinds that a local government levied taxes in excess of the applicable\ntax levy limit, the local government, as soon as practicable, shall\nplace an amount equal to the excess amount of the levy in such reserve\nin accordance with this subdivision.\n 7. All local governments subject to the provisions of this section\nshall, prior to adopting a budget for the coming fiscal year, submit to\nthe state comptroller, in a form and manner as he or she may prescribe,\nany information necessary for calculating the tax levy limit for the\ncoming fiscal year.\n