2023 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.