Source: https://www.nysenate.gov/legislation/bills/2017/S8412
Timestamp: 2018-12-14 08:24:06
Document Index: 392406934

Matched Legal Cases: ['§1', '§3', '§23', '§ 3', '§  2', '§ 3', '§ 3', '§ 4', '§  3', '§ 5', '§ 6']

NY State Senate Bill S8412
senate Bill S8412
Relates to medical expenditure amounts and establishes limitations upon real property tax levies in cities of over 1,000,000
Get Status Alerts for S8412
ordered to third reading cal.1050
S8412 - Details
Amd Part C §1, Chap 58 of 2005; add §§3-e & 3-f, Gen Muni L; amd §23, Munic Home R L
S8412 - Summary
S8412 - Sponsor Memo
BILL NUMBER: S8412
amounts; to amend the general municipal law, in relation to county prop-
erty tax levy reductions resulting from medical assistance program
expenditure reductions; and 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
This bill provides for a takeover of the local share of Medicaid state-
wide over a 10-year period beginning in calendar year 2019. This bill
also ensures that any Medicaid cost savings to a county that takes
effect due to federal or state action are passed on as income tax
reductions in New York City, and as real property tax reductions for the
share of Medicaid costs over a 10-year period and limits the reduction
in cost for New York City to equal the reduction in cost to the rest of
payments under the Medicaid program, the amount of the reduction shall
be applied as a correlating reduction in the property tax levy of such
Section 3: Provides that in the event federal or state statute is modi-
fied to eliminate or reduce local contributions to New York City's share
of payments under the Medicaid program, the amount of the reduction
shall be applied as a correlating reduction in New York City personal
Section 4 and 5: Adds a new § 3-f to the General Municipal Law to estab-
lish a real property tax levy cap for New York City.
capped at 2015 levels. However, the localities continued to contribute
$7.6 billion to the program in FY 2018.
This bill would enact a phased-in state takeover of the local share of
Medicaid over a 10-year period, lifting substantial property tax pres-
sure on those counties. Furthermore, the bill ensures that New York's
tax burden on local property taxpayers outside of New York City is alle-
viated by requiring that any reduction in county Medicaid costs result-
ing from state or federal legislative action be passed on to resident
property taxpayers on a dollar for dollar basis. For New York City resi-
dents, the bill reduces the City income tax burden by requiring that any
reduction in City Medicaid costs resulting from state or federal legis-
lative action be passed on in the form of income tax relief.
New York State property taxes are among the highest taxes in the nation.
High property taxes jeopardize quality of life and the ability to home-
owners to remain in their homes. This bill would enact a 2 percent limit
on New York City's ability to raise property taxes and will relieve
taxpayers from unexpected high property tax increases.
This act shall take effect immediately and sections four and five of
this act shall first apply to the levy of taxes by local governments for
the fiscal year that begins in 2019.
S8412 - Bill Text download pdf
Introduced  by  Sens.  YOUNG,  AKSHAR,  FELDER,  GOLDEN,  HANNON, LANZA,
MURPHY, PHILLIPS -- read twice and ordered printed, and  when  printed
amounts;  to  amend  the  general municipal law, in relation to county
municipal home rule law, in relation to establishing limitations  upon
THIS  SECTION  TO  THE CONTRARY, EFFECTIVE APRIL 1, 2019, FOR THE PERIOD
JANUARY 1, 2019 THROUGH DECEMBER 31, 2019, AND FOR  EACH  CALENDAR  YEAR
THEREAFTER,  THE  MEDICAL  ASSISTANCE  EXPENDITURE AMOUNT FOR THE SOCIAL
SERVICES DISTRICT FOR SUCH PERIOD SHALL BE THE GREATER OF (1)  ZERO;  OR
(2)  THE  PREVIOUS CALENDAR YEAR'S MEDICAL ASSISTANCE EXPENDITURE AMOUNT
MINUS TEN PERCENT OF THE MEDICAL ASSISTANCE EXPENDITURE AMOUNT  FOR  THE
PERIOD  JANUARY  1,  2018 THROUGH DECEMBER 31, 2018.  PROVIDED, HOWEVER,
THE LOCAL CONTRIBUTION FOR A CITY WITH A POPULATION OF  ONE  MILLION  OR
MORE SHALL NOT BE REDUCED BY MORE THAN TWO BILLION THREE HUNDRED MILLION
§  2. The general municipal law is amended by adding a new section 3-e
LBD15743-04-8
S. 8412                             2
§ 3-E. COUNTY PROPERTY  TAX  LEVY  REDUCTION  RESULTING  FROM  MEDICAL
ASSISTANCE  PROGRAM  EXPENDITURE  REDUCTIONS.  NOTWITHSTANDING ANY OTHER
§ 3. Notwithstanding any other provision of law to the contrary, for a
city with a population of one million or more, in the  event  the  local
contribution  to  New  York  state's share of payments under the medical
assistance program are reduced or eliminated as a result of  changes  in
federal  or  state  statute, the amount of such reduction or elimination
shall reduce city personal income  taxes  in  an  amount  equal  to  the
reduction  in  such city's share of payments. Such reduction shall be an
equal rate reduction applied to all tax brackets.
§ 4. The general municipal law is amended by adding a new section  3-f
§  3-F.  LIMITATION  UPON  REAL PROPERTY TAX LEVIES BY CITIES HAVING A
POPULATION OF ONE MILLION OR MORE.  1. UNLESS OTHERWISE PROVIDED BY LAW,
THE AMOUNT OF REAL PROPERTY TAXES THAT MAY BE LEVIED BY OR ON BEHALF  OF
ANY CITY HAVING A POPULATION OF ONE MILLION OR MORE SHALL NOT EXCEED THE
TAX LEVY LIMITATION ESTABLISHED PURSUANT TO THIS SECTION.
TWO  ONE-HUNDREDTHS;  OR  (II) THE SUM OF ONE PLUS THE INFLATION FACTOR;
PROVIDED, HOWEVER, THAT IN NO CASE SHALL THE LEVY GROWTH FACTOR BE  LESS
(B)  "APPROVED CAPITAL EXPENDITURES" MEANS THE EXPENDITURES ASSOCIATED
LEVY FOR THE PRIOR FISCAL YEAR WAS BELOW THE TAX  LEVY  LIMIT  FOR  SUCH
FISCAL  YEAR,  IF  ANY, BUT NO MORE THAN ONE AND ONE-HALF PERCENT OF THE
FOR WHICH A TAX LEVY LIMITATION SHALL BE  DETERMINED  PURSUANT  TO  THIS
(G) "LOCAL GOVERNMENT" MEANS A CITY HAVING A POPULATION OF ONE MILLION
S. 8412                             3
3.  (A)  BEGINNING  WITH  THE  FISCAL YEAR THAT BEGINS IN TWO THOUSAND
NINETEEN, NO LOCAL GOVERNMENT SHALL ADOPT A BUDGET THAT REQUIRES  A  TAX
LEVY  THAT IS GREATER THAN THE TAX LEVY LIMITATION FOR THE COMING FISCAL
(B) THE STATE COMPTROLLER SHALL CALCULATE THE TAX LEVY LIMITATION  FOR
EACH  LOCAL  GOVERNMENT  BY  THE ONE HUNDRED TWENTIETH DAY PRECEDING THE
COMMENCEMENT OF EACH LOCAL GOVERNMENT'S FISCAL YEAR,  AND  SHALL  NOTIFY
(I)  ASCERTAIN  THE  TOTAL AMOUNT OF TAXES LEVIED FOR THE PRIOR FISCAL
(II) ADD ANY PAYMENTS IN LIEU OF TAXES THAT  WERE  RECEIVABLE  IN  THE
(III)  SUBTRACT  THE  APPROVED  CAPITAL  TAX LEVY FOR THE PRIOR FISCAL
(IV) SUBTRACT THE LEVY ATTRIBUTABLE TO A LARGE LEGAL SETTLEMENT  OF  A
TORT  ACTION EXCLUDED FROM THE LEVY LIMITATION IN THE PRIOR FISCAL YEAR,
(VI) SUBTRACT ANY PAYMENTS IN LIEU OF TAXES RECEIVABLE IN  THE  COMING
(D) IN THE EVENT THE CITY COUNCIL OF A LOCAL GOVERNMENT HAS APPROVED A
LEGAL  SETTLEMENT  OF  A  TORT ACTION AGAINST THE GOVERNMENT, THE ANNUAL
COSTS OF WHICH EXCEED TEN PERCENT OF THE PROPERTY TAXES  LEVIED  BY  THE
LOCAL  GOVERNMENT  IN THE PRIOR FISCAL YEAR, THE STATE COMPTROLLER, UPON
APPLICATION BY THE LOCAL GOVERNMENT, MAY ADJUST THE TAX LEVY  LIMITATION
FOR  THE  COMING  FISCAL  YEAR  APPLICABLE  TO SUCH LOCAL GOVERNMENT, BY
(E) THE STATE COMPTROLLER SHALL DETERMINE THE PORTION OF THE TAX  LEVY
OF  EACH  LOCAL  GOVERNMENT  THAT  IS  ATTRIBUTABLE  TO  ANY INCREASE OR
DECREASE OVER THE PRIOR YEAR IN THE COST OF THE LOCAL  GOVERNMENT  SHARE
OF  DIRECT CASH ASSISTANCE TO PERSONS ELIGIBLE FOR THE FEDERAL-STATE-LO-
CAL TEMPORARY ASSISTANCE TO NEEDY FAMILIES PROGRAM  OR  THE  STATE-LOCAL
SAFETY  NET  ASSISTANCE PROGRAM AND SHALL ADJUST THE TAX LEVY LIMITATION
FOR SUCH LOCAL GOVERNMENT TO REFLECT SUCH CHANGE.
IS GREATER THAN THE TAX LEVY LIMITATION FOR THE COMING FISCAL YEAR  ONLY
IF  THE  CITY  COUNCIL  OF SUCH LOCAL GOVERNMENT FIRST ENACTS, BY A TWO-
THIRDS VOTE OF THE TOTAL VOTING POWER OF SUCH CITY COUNCIL, A LOCAL  LAW
TO OVERRIDE SUCH LIMITATION FOR SUCH COMING FISCAL YEAR ONLY.
5.  IN  THE  EVENT  A  LOCAL  GOVERNMENT'S ACTUAL TAX LEVY FOR A GIVEN
FISCAL YEAR EXCEEDS THE MAXIMUM ALLOWABLE LEVY AS  ESTABLISHED  PURSUANT
TO  THIS  SECTION DUE TO CLERICAL OR TECHNICAL ERRORS, THE LOCAL GOVERN-
MENT SHALL PLACE THE EXCESS AMOUNT OF THE LEVY IN RESERVE IN  ACCORDANCE
USE  SUCH  FUNDS  AND ANY INTEREST EARNED THEREON TO OFFSET THE TAX LEVY
§ 5. Paragraphs j and k of subdivision 2 of section 23 of the  munici-
pal home rule law are relettered paragraphs k and l, and a new paragraph
j is added to read as follows:
S. 8412                             4
YEAR IN ACCORDANCE WITH SECTION THREE-F OF THE GENERAL MUNICIPAL LAW.
§ 6. This act shall take effect immediately and sections four and five
of  this act shall first apply to the levy of taxes by local governments
for the fiscal year that begins in 2019.