NY Gen Mun L § 3-C (2021)
2021 New York Laws GMU - General Municipal Article 2 - General Municipal Finances 3-C - Limit Upon Real Property Tax Levies by Local Governments.

§  3-c.  Limit  upon real property tax levies by local governments. 1. Unless otherwise provided by law, the amount of real property taxes that may be levied by or on behalf of any local government,  other  than  the city  of  New  York and the counties contained therein, shall not exceed the tax levy limit established pursuant to this section.   2. When used in this section:  (a) "Allowable levy growth factor" shall be the lesser of: (i) one and 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 than one.  (b) "Available carryover" means the amount by which the tax  levy  for the prior fiscal year was below the tax levy limit for such fiscal year, if  any, but no more than an amount that equals one and one-half percent of the tax levy limit for such fiscal year.  (c) "Coming fiscal year" means the fiscal year of the local government for which a tax levy limit shall be determined pursuant to this section.  (d) "Inflation factor" means the quotient of: (i) the average  of  the national   consumer  price  indexes  determined  by  the  United  States department of labor for the twelve-month period ending six months  prior to the start of the coming fiscal year minus the average of the national consumer  price  indexes  determined  by the United States department of labor for the twelve-month period ending six months prior to  the  start of  the  prior fiscal year, divided by: (ii) the average of the national consumer price indexes determined by the  United  States  department  of labor  for  the twelve-month period ending six months prior to the start of the prior fiscal year, with the result expressed as a decimal to four places.  (e) "Local government" means  a  county,  city,  town,  village,  fire district,  or  special  district including but not limited to a district created pursuant to article twelve or twelve-A, or governed  by  article thirteen  of the town law, or created pursuant to article five-A, five-B or five-D of the county law, chapter five hundred sixteen of the laws of nineteen hundred twenty-eight, or chapter two hundred  seventy-three  of the  laws  of  nineteen  hundred  thirty-nine,  and  shall  include town improvements provided pursuant to articles three-A and twelve-C  of  the town  law  but  shall  not  include the city of New York or the counties contained therein.  (f) "Prior fiscal year" means the fiscal year of the local  government immediately preceding the coming fiscal year.  (g) "Tax levy limit" means the amount of taxes authorized to be levied by  or  on  behalf  of  a  local  government  pursuant  to this section, provided, however, that  the  tax  levy  limit  shall  not  include  the following:  (i)  a tax levy necessary for expenditures resulting from court orders or judgments against the local government arising out  of  tort  actions for  any amount that exceeds five percent of the total tax levied in the prior fiscal year;  (ii) in years in which the system average actuarial contribution  rate of the New York state and local employees' retirement system, as defined by  paragraph  ten  of  subdivision  a  of  section  nineteen-a  of  the retirement  and  social  security  law,  increases  by  more  than   two percentage  points  from  the  previous  year,  a tax levy necessary for expenditures for the coming fiscal year for  local  government  employer contributions  to  the  New  York  state and local employees' retirement system caused by growth in the  system  average  actuarial  contribution rate minus two percentage points;  (iii) in years in which the system average actuarial contribution rate of  the  New  York state and local police and fire retirement system, as  defined by paragraph eleven of subdivision a of  section  three  hundred nineteen-a  of the retirement and social security law, increases by more than two percentage points from the previous year, a tax levy  necessary for  expenditures  for  the  coming  fiscal  year  for  local government employer contributions to the New York state and local police  and  fire retirement  system  caused  by  growth  in  the system average actuarial contribution rate minus two percentage points;  (iv) in years in which the normal contribution rate of  the  New  York state  teachers'  retirement  system,  as  defined  by  paragraph  a  of subdivision two of section five hundred seventeen of the education  law, increases  by  more than two percentage points from the previous year, a tax levy necessary for expenditures for the coming fiscal year for local government employer  contributions  to  the  New  York  state  teachers' retirement system caused by growth in the normal contribution rate minus two percentage points.  (h)  "Tax"  or  "taxes"  shall  include (i) a charge imposed upon real property by or on behalf of a county,  city,  town,  village  or  school district  for municipal or school district purposes, and (ii) special ad valorem levies  and  special  assessments  as  defined  in  subdivisions fourteen and fifteen of section one hundred two of the real property tax law.   3.  (a) Subject to the provisions of subdivision five of this section, beginning with the fiscal year that begins in two  thousand  twelve,  no local  government  shall adopt a budget that requires a tax levy that is greater than the tax levy limit for the  coming  fiscal  year.  Provided however  the  tax  levy  limit  shall  not  prohibit a levy necessary to support the expenditures pursuant to subparagraphs (i) through  (iv)  of paragraph (g) of subdivision two of this section.  (b)  (i)  The  commissioner  of taxation and finance shall calculate a quantity change factor for each local government for the  coming  fiscal year  based  upon the physical or quantity change, as defined by section twelve hundred twenty of the real property  tax  law,  reported  to  the commissioner  of  taxation  and  finance  by  the  assessor or assessors pursuant to section five hundred seventy-five of the real  property  tax law.  The  quantity change factor shall show the percentage by which the full value of the taxable real property  in  the  local  government  has changed  due  to  physical  or  quantity change between the second final assessment roll or rolls preceding the final assessment  roll  or  rolls upon  which  taxes  are  to  be levied, and the final assessment roll or rolls immediately preceding the final  assessment  roll  or  rolls  upon which  taxes  are to be levied. The commissioner of taxation and finance shall, as appropriate, promulgate rules and  regulations  regarding  the calculation   of  the  quantity  change  factor  which  may  adjust  the calculation based on the development on tax exempt land.  (ii) After determining  the  quantity  change  factor  for  the  local government,  the  commissioner  of taxation and finance shall proceed as follows:  (A) If the quantity change factor is  negative,  the  commissioner  of taxation  and  finance  shall not determine a tax base growth factor for the local government.  (B) If the quantity change factor is  positive,  the  commissioner  of taxation  and  finance  shall determine a tax base growth factor for the local government which is equal to one plus the quantity change factor.  (iii) The commissioner of taxation and finance shall notify the  state comptroller  and each local government of the applicable tax base growth factors, if any, as soon thereafter as such factors are determined.  (c)  Each  local  government  shall  calculate  the  tax  levy   limit applicable  to  the  coming  fiscal  year  which  shall be determined as follows:  (i)  Ascertain  the  total amount of taxes levied for the prior fiscal year.  (ii) Multiply the result by the tax  base  growth  factor,  calculated pursuant to paragraph (b) of this subdivision, if any.  (iii)  Add  any  payments in lieu of taxes that were receivable in the prior fiscal year.  (iv) Subtract the tax levy necessary to support expenditures  pursuant to  subparagraph (i) of paragraph (g) of subdivision two of this section for the prior fiscal year, if any.  (v) Multiply the result by the allowable levy growth factor.  (vi) Subtract any payments in lieu of taxes receivable in  the  coming fiscal year.  (vii) Add the available carryover, if any.  (d)  Whenever  the  responsibility  and  associated  cost  of  a local government function is transferred  to  another  local  government,  the state  comptroller shall determine the costs and savings on the affected local governments attributable to such transfer  for  the  first  fiscal year  following  the transfer, and notify such local governments of such determination  and  that  they  shall  adjust  their  tax  levy   limits accordingly.   4.  (a)  When  two  or  more  local governments consolidate, the state comptroller shall determine the tax  levy  limit  for  the  consolidated local  government  for the first fiscal year following the consolidation based  on  the  respective  tax  levy  limits  of  the  component  local governments that formed such consolidated local government from the last fiscal year prior to the consolidation.  (b)  When  a  local  government dissolves, the state comptroller shall determine the tax levy limit for the local government that  assumes  the debts,  liabilities,  and obligations of such dissolved local government for the first  fiscal  year  following  the  dissolution  based  on  the respective  tax  levy limits of such dissolved local government and such local government that assumes the debts, liabilities, and obligations of such dissolved local government from the last fiscal year prior  to  the dissolution.  (c)  The tax levy limit established by this section shall not apply to the first fiscal year after a local government is newly  established  or constituted through a process other than consolidation or dissolution.   5. A local government may adopt a budget that requires a tax levy that is  greater  than  the  tax  levy  limit for the coming fiscal year, not including any levy necessary to support  the  expenditures  pursuant  to subparagraphs (i) through (iv) of paragraph g of subdivision two of this section,  only  if  the  governing  body  of such local government first enacts, by a vote of sixty percent of the total  voting  power  of  such body,  a  local  law  to override such limit for such coming fiscal year only, or in the case of a  district  or  fire  district,  a  resolution, approved  by  a  vote of sixty percent of the total voting power of such body, to override such limit for such coming fiscal year only.   6. In the event a local government's  actual  tax  levy  for  a  given fiscal  year  exceeds the tax levy limit as established pursuant to this section due to clerical or technical errors, the local government  shall place  the  excess amount of the levy in reserve in accordance with such requirements as the state comptroller may prescribe, and shall use  such funds  and  any  interest  earned thereon to offset the tax levy for the ensuing  fiscal  year.  If,  upon  examination  pursuant   to   sections thirty-three  and  thirty-four  of  this  chapter, the state comptroller  finds that a local government levied taxes in excess of  the  applicable tax  levy  limit,  the  local  government, as soon as practicable, shall place an amount equal to the excess amount of the levy in  such  reserve in accordance with this subdivision.   7.  All  local  governments  subject to the provisions of this section shall, prior to adopting a budget for the coming fiscal year, submit  to the  state comptroller, in a form and manner as he or she may prescribe, any information necessary for calculating the tax  levy  limit  for  the coming fiscal year.