Bill > S01635

This bill modifies the formula for calculating property tax levy limits for local governments and school districts by changing how they determine their tax base. Specifically, instead of using the tax levy from the immediately prior fiscal year, the bill requires governments and school districts to find the highest total amount of taxes levied over the previous five fiscal years, which provides more flexibility in calculating their tax levy limit. The new method allows entities to select the highest tax levy year from the past five years as the baseline for calculations, potentially giving them more room to adjust their tax levy. The bill amends both the General Municipal Law and the Education Law to implement this change, which affects how local governments and school districts can set their property tax rates. The calculation process remains similar to the existing law, involving steps such as multiplying the base amount by a tax base growth factor, adding payments in lieu of taxes, subtracting certain expenditures, and applying an allowable levy growth factor. The bill is designed to provide more options for local governments and school districts in managing their tax levies while maintaining the overall structure of the existing tax cap mechanism.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S1635