Bill > S05412

This bill establishes a tax levy limitation for cities with a population of one million or more, beginning in fiscal year 2026. The bill creates a complex formula for calculating the maximum amount of property taxes that can be levied annually, which includes several key provisions. The tax levy increase is capped at the lesser of 1.02% or the inflation rate (based on the Consumer Price Index), with a minimum growth factor of 1. The calculation involves multiple steps, including examining the previous year's tax levy, subtracting certain approved capital expenditures and large legal settlements, and allowing for a limited carryover of unused tax levy capacity. Local governments can exceed this limit only by passing a local law with a two-thirds vote of the city council. The state comptroller will calculate and notify each local government of its specific tax levy limitation, and will also make adjustments for changes in public assistance program costs. If a city accidentally exceeds the tax levy limit due to clerical errors, it must place the excess amount in reserve to offset the next year's taxes. This bill aims to provide a standardized, predictable approach to property tax increases in large cities while maintaining some flexibility for local governments.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S5412