Bill > S04614

This bill establishes a mechanism to use revenue from new or increased taxes to directly reduce local property tax levies. Specifically, the bill creates a "tax reduction utilization security target fund" that will require the state tax commissioner and comptroller to track and segregate any tax revenues that come from tax rate increases or newly imposed taxes. Starting April 1, 2026, these funds will be distributed to cities, villages, and towns based on their proportion of the state's total property value. Each municipality will receive an amount calculated by determining its "full value" (total taxable assessed property value divided by the state equalization rate) as a percentage of the statewide total. When municipalities receive these funds, they must use them to reduce their annual real property tax levy by deducting the state payment from their tax warrant before finalizing local tax bills. The payments will be made by June 30th each year from the state's local assistance fund, providing a direct mechanism to offset local property tax burdens using new state tax revenues. The bill aims to provide property tax relief by creating a transparent, formulaic approach to redistributing additional tax collections.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S4614