Bill > A02418

This bill amends the New York Real Property Tax Law to authorize local governments (counties, cities, towns, and villages) to impose service charges on certain tax-exempt properties. A service charge is defined as a fee to help cover the costs of essential services like police and fire protection, street maintenance, sanitation, and water supply. The bill specifically allows these service charges to be levied on tax-exempt properties that are not used exclusively for charitable, hospital, educational, or cemetery purposes. The service charge will be calculated based on the assessed value of the tax-exempt property and the amount the local government spent on these services in the previous year, with a rate determined by dividing total expenditures by the total assessed value of all properties in the jurisdiction. Importantly, the service charge cannot exceed 10% of what the property would owe if it were taxable, and local governments must first adopt a local law or resolution after a public hearing to implement these charges. The bill aims to help local governments recoup some costs for providing services to tax-exempt properties, while also providing protections to prevent excessive fees. The new provisions will take effect on the first of April following the bill's passage and will apply to assessments with a taxable status date on or after that date.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A2418