Provides that in a special assessing unit which is a city and for current base proportions to be determined in such assessing unit's fiscal year 2014, the current base proportion shall not exceed the adjusted base proportion of the immediately preceding year by more than one percent.
TITLE OF BILL: An act to amend the real property tax law, in relation to the determination of adjusted base proportions in special assessing units which are cities for the fiscal year two thousand fourteen
SUMMARY OF PROVISIONS: This bill would amend section 1803-a of the Real Property Tax Law to cap the maximum class growth rate at one percent for fiscal year 2014.
JUSTIFICATION: State law requires New York City to adopt class shares based on rates calculated by the State Board of Real Property Services (SBRPS) in order to distribute the tax levy among the four classes of real property. This year the State Board's class equalization rates would cause the tax burden on property tax class one, comprised one-, two-, and three-family homes, to increase, as it has done over the past several years.
This bill is designed to provide relief for the residential property tax class one without placing a burden on to class two which is the other residential tax class. The "uncapped" current base proportions of class one would grow by over 4 percent from fiscal year 2013, under the State Board's calculations. Currently. State law provides that the current base proportion of anyone class may not exceed the adjusted base proportion for that class from the prior year by more than five percent.
This legislation would adjust that rule, for one year only, to cap the maximum class growth at 1 percent for New York City. The effect of this change would be to reduce the amount by which the current base proportions for any class, including one, is allowed to grow, resulting in citywide savings of about $120 for a typical owner of a class one single family home. Bringing the cap any lower than 1 percent would provide greater savings to class one owners, but would cause the tax rate for class two to increase Under a cap of 1 percent, class two properties will see virtually the same tax rate as they did in fiscal year 2013.
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, the estimated tax rate increase for class one would be over 6%, which when coupled with assessment increases, would cause significant increases in the tax bills for residential homeowners That tax rate increase for class one, resulting from SBRPS procedures, is avoidable only through passage of this legislation.
FISCAL IMPLICATION: Council Finance estimates this legislation, like all similar previous legislations, will have no impact on expenditures and revenues.
EFFECTIVE DATE: Immediately.
STATE OF NEW YORK ________________________________________________________________________ 5737 2013-2014 Regular Sessions IN SENATE June 10, 2013 ___________Introduced by Sen. GOLDEN -- read twice and ordered printed, and when printed to be committed to the Committee on Local Government 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 for the fiscal year two thousand fourteen THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Subdivision 1 of section 1803-a of the real property tax law is amended by adding a new paragraph (y) to read as follows: (Y) NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH (C) OF THIS SUBDIVI- SION TO THE CONTRARY, IN A SPECIAL ASSESSING UNIT WHICH IS A CITY AND FOR CURRENT BASE PROPORTIONS TO BE DETERMINED IN SUCH SPECIAL ASSESSING UNIT'S FISCAL YEAR TWO THOUSAND FOURTEEN, THE CURRENT BASE PROPORTION OF ANY CLASS SHALL NOT EXCEED THE ADJUSTED BASE PROPORTION OR ADJUSTED PROPORTION, WHICHEVER IS APPROPRIATE, OF THE IMMEDIATELY PRECEDING YEAR BY MORE THAN ONE PERCENT. WHERE THE COMPUTATION PERFORMED PURSUANT TO PARAGRAPH (B) OF THIS SUBDIVISION WOULD OTHERWISE PRODUCE SUCH RESULT, THE CURRENT BASE PROPORTION OF SUCH CLASS OR CLASSES SHALL BE LIMITED TO A ONE PERCENT INCREASE AND THE LEGISLATIVE BODY OF SUCH SPECIAL ASSESS- ING UNIT SHALL ALTER THE CURRENT BASE PROPORTION OF ANY OR ALL REMAINING CLASSES SO THAT THE SUM OF THE CURRENT BASE PROPORTIONS EQUALS ONE. S 2. In the event the special assessing unit which is a city has sent out real property tax bills for its fiscal year 2014 before this act shall have become a law, the city shall take such actions as are neces- sary, consistent with applicable state and local law, to effect the provisions of section one of this act, including, but not limited to, revising the current base proportions and adjusted base proportions, resetting the real property tax rates and sending amended real property tax bills. Provided, however, that nothing in this act shall be deemed to affect the obligation of any taxpayer with respect to the payment of any installment of real property tax for such fiscal year which was dueEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11382-01-3 S. 5737 2
and payable prior to the date such amended real property tax bills are sent; for this purpose, such obligations shall be determined in accord- ance with the applicable provisions of law that were in effect imme- diately prior to the effective date of this act, and such city shall be authorized to determine the date on which amended bills are to be sent and the installments of real property tax which are to be reflected therein. S 3. This act shall take effect immediately.