Bill Text: NY A03390 | 2023-2024 | General Assembly | Introduced


Bill Title: Relates to a ten-year state takeover of the local share of Medicaid outside of New York city; provides a twenty-year state takeover of fifty percent of the local share of Medicaid in New York city; creates a commission to reform public assistance benefits; expands the state earned income tax credit from thirty percent to forty-five percent of the federal credit amount; offers the option for individuals to receive the state earned income tax credit in monthly installments; expands the child and dependent care tax credit; provides for state assumption of the growth in property taxes for school districts and local governments that remain under the real property tax cap; creates a real property tax redesign team required to produce recurring savings; subjects New York city to the property tax cap.

Spectrum: Partisan Bill (Republican 17-0)

Status: (Introduced) 2024-01-03 - referred to ways and means [A03390 Detail]

Download: New_York-2023-A03390-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          3390

                               2023-2024 Regular Sessions

                   IN ASSEMBLY

                                    February 2, 2023
                                       ___________

        Introduced  by  M.  of  A. RA, BARCLAY, BLANKENBUSH, BRABENEC, DiPIETRO,
          FITZPATRICK, FRIEND, J. M. GIGLIO, GOODELL, HAWLEY, MILLER, MORINELLO,
          NORRIS, PALMESANO, WALSH, SMULLEN, MANKTELOW -- read once and referred
          to the Committee on Ways and Means

        AN ACT to amend part C of chapter 58 of the laws of  2005,  relating  to
          authorizing  reimbursements  for  expenditures made by or on behalf of
          social services districts for medical assistance for needy persons and
          the administration thereof, in relation to providing  for  a  ten-year
          state takeover of the local share of Medicaid outside of New York City
          (Part  A); providing for a twenty-year state takeover of fifty percent
          of the local share of Medicaid in New York City (Part B); to amend the
          social services law, in relation to creating the Commission to  Reform
          Public Assistance Benefits (Part C); to amend the tax law, in relation
          to expanding the state earned income tax credit from thirty percent to
          forty-five percent of the federal credit amount (Part D); to amend the
          tax law, in relation to offering the option for individuals to receive
          the  state  earned income tax credit in monthly installments (Part E);
          to amend the tax law, in relation to expanding the child and dependent
          care tax credit; and to repeal certain provisions of such law relating
          thereto (Part F); to amend the state finance law, the  education  law,
          and  the  general municipal law, in relation to the state assuming the
          growth in property taxes for school districts  and  local  governments
          that  remain  under  the  real property tax cap (Part G); to amend the
          general municipal law, in relation to creating a property tax redesign
          team; and providing for the repeal of such provisions upon  expiration
          thereof  (Part  H);  and  to  amend  the general municipal law and the
          municipal home rule law, in relation to establishing limitations  upon
          real property tax levies in cities with a population of one million or
          more (Part I)

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07375-01-3

        A. 3390                             2

     1    Section 1. Legislative findings and intent. New York  State  is  at  a
     2  very  critical  moment  in  its history. Many recent articles have cited
     3  information provided by the United States Census Bureau that shows  over
     4  one  million people have left the New York area since 2010, and this can
     5  be  attributed  to  the high cost of living forced on New York taxpayers
     6  through high taxes and a lack of  job  opportunities.  Our  high  taxes,
     7  particularly  our  high  property  taxes,  have  contributed to New York
     8  consistently being ranked near the bottom when compared to other  states
     9  for  business tax climate and total combined tax burden. By doing little
    10  to reform the structural reasons behind the high cost of living  in  New
    11  York,  the  state government has failed to make life better for families
    12  and businesses in every region.
    13    To compound this problem, New York spends  a  high  amount  on  public
    14  assistance  programs  that are meant to help citizens escape poverty and
    15  become self-sufficient, but include income thresholds that  create  what
    16  are known as "benefit cliffs".  These benefit cliffs occur when an indi-
    17  vidual  or  family  receiving  public  benefits  hits a specified dollar
    18  amount in income and immediately loses eligibility to receive a  certain
    19  public  assistance  benefit.  When this happens, the state is creating a
    20  situation where New Yorkers would actually see a reduction in real take-
    21  home pay because the value of the public assistance  benefit  they  will
    22  lose  is worth more than the increased income they would receive through
    23  working. This means that low-income New Yorkers,  through  no  fault  of
    24  their  own,  will  find  it difficult to accept a job, more hours, or an
    25  increase in pay as the financial well-being of their family  is  threat-
    26  ened  by  working  more.  Work should be incentivized, and no New Yorker
    27  should ever be faced with a situation where working hard and  earning  a
    28  larger salary can actually lead to a decrease in real take-home pay.
    29    These  problems require state government officials to make hard choic-
    30  es, and make long-term structural changes in order to see real  systemic
    31  changes to our economy in the long run. Therefore, the legislature finds
    32  it  necessary  to implement a ten-year state takeover of the local share
    33  of Medicaid outside of New York City, create the  Commission  to  Reform
    34  Public  Assistance  Benefits to implement a new payment method to eradi-
    35  cate the benefit cliffs, expand the state earned income tax credit  from
    36  thirty percent to forty-five percent of the federal credit amount, offer
    37  the option for individuals to receive the state earned income tax credit
    38  in monthly installments, expand the child and dependent care tax credit,
    39  assume  the  growth  in  property  taxes  for school districts and local
    40  governments that remain under the real property  tax  cap  to  take  the
    41  burden  off of homeowners, create a property tax redesign team that will
    42  produce recurring savings and subject New York City to the real property
    43  tax cap.  These structural changes will help make New York more  compet-
    44  itive, and a more attractive place to build a business and raise a fami-
    45  ly. They will also provide low-income New Yorkers with additional oppor-
    46  tunities to better their situation and rise out of poverty.
    47    §  2. This act enacts into law major components of legislation provid-
    48  ing for a ten-year state takeover of the local share of Medicaid outside
    49  of New York City, providing for a twenty-year state  takeover  of  fifty
    50  percent  of  the  local share of Medicaid in New York City, creating the
    51  Commission to Reform Public Assistance  Benefits,  expanding  the  state
    52  earned  income  tax  credit from thirty percent to forty-five percent of
    53  the federal credit  amount,  offering  the  option  for  individuals  to
    54  receive  the  state  earned  income  tax credit in monthly installments,
    55  expanding the child and dependent care tax credit, assuming  the  growth
    56  in property taxes for school districts and local governments that remain

        A. 3390                             3

     1  under  the  real  property tax cap to take the burden off of homeowners,
     2  creating a property tax redesign  team  required  to  produce  recurring
     3  savings  and subjecting New York City to the real property tax cap. Each
     4  component  is  wholly  contained  within  a  Part  identified as Parts A
     5  through I. The effective date for each  particular  provision  contained
     6  within  such  Part  is  set  forth in the last section of such Part. Any
     7  provision in any section contained within a Part, including  the  effec-
     8  tive date of the Part, which makes reference to a section "of this act",
     9  when  used in connection with that particular component, shall be deemed
    10  to mean and refer to the corresponding section of the Part in  which  it
    11  is found. Section four of this act sets forth the general effective date
    12  of this act.

    13                                   PART A

    14    Section 1. Subdivision (c) of section 1 of part C of chapter 58 of the
    15  laws  of  2005  relating  to authorizing reimbursements for expenditures
    16  made by or on behalf of social services districts for medical assistance
    17  for needy persons and the administration thereof is amended  and  twelve
    18  new subdivisions (c-2), (c-3), (c-4), (c-5), (c-6), (c-7), (c-8), (c-9),
    19  (c-10), (c-11),(c-12) and (c-13) are added to read as follows:
    20    (c)  Commencing  with  the  calendar  year  beginning January 1, 2006,
    21  calendar year social services district  medical  assistance  expenditure
    22  amounts  for each social services district shall be calculated by multi-
    23  plying the results of the calculations performed pursuant  to  paragraph
    24  (b) of this section by a non-compounded trend factor, as follows:
    25    (i) 2006 (January 1, 2006 through December 31, 2006):  3.5%;
    26    (ii)  2007  (January 1, 2007 through December 31, 2007):  6.75% (3.25%
    27  plus the prior year's 3.5%);
    28    (iii) 2008 (January 1, 2008 through December 31,  2008):    9.75%  (3%
    29  plus the prior year's 6.75%);
    30    (iv)  2009  (January  1,  2009  through  December  31, 2009), and each
    31  succeeding  calendar  year  through  2024:  prior  year's  trend  factor
    32  percentage plus 3%.
    33    (c-2)  Notwithstanding  the  provisions of section 368-a of the social
    34  services law, or any other provision of law, commencing with the  period
    35  January 1, 2024 through December 31, 2024, calendar year social services
    36  district medical assistance expenditure amounts for each social services
    37  district  shall  be  reduced  by 10% from the 2023 expenditures. No less
    38  than 100% of the annual savings from this medical assistance expenditure
    39  reduction, compared to the prior year  medical  assistance  expenditure,
    40  shall be used for property tax levy reductions, or property tax rebates,
    41  effective in the local government's 2025 fiscal year. This section shall
    42  not apply to a city with a population of one million or more.
    43    (c-3)  Notwithstanding  the  provisions of section 368-a of the social
    44  services law, or any other provision of law, commencing with the  period
    45  January 1, 2025 through December 31, 2025, calendar year social services
    46  district medical assistance expenditure amounts for each social services
    47  district  shall  be  reduced  by 20% from the 2023 expenditures. No less
    48  than 100% of the annual savings from this medical assistance expenditure
    49  reduction, compared to the prior year  medical  assistance  expenditure,
    50  shall be used for property tax levy reductions, or property tax rebates,
    51  effective in the local government's 2026 fiscal year. This section shall
    52  not apply to a city with a population of one million or more.
    53    (c-4)  Notwithstanding  the  provisions of section 368-a of the social
    54  services law, or any other provision of law, commencing with the  period

        A. 3390                             4

     1  January 1, 2026 through December 31, 2026, calendar year social services
     2  district medical assistance expenditure amounts for each social services
     3  district  shall  be  reduced  by 30% from the 2023 expenditures. No less
     4  than 100% of the annual savings from this medical assistance expenditure
     5  reduction,  compared  to  the prior year medical assistance expenditure,
     6  shall be used for property tax levy reductions, or property tax rebates,
     7  effective in the local government's 2027 fiscal year. This section shall
     8  not apply to a city with a population of one million or more.
     9    (c-5) Notwithstanding the provisions of section 368-a  of  the  social
    10  services  law, or any other provision of law, commencing with the period
    11  January 1, 2027 through December 31, 2027, calendar year social services
    12  district medical assistance expenditure amounts for each social services
    13  district shall be reduced by 40% from the  2023  expenditures.  No  less
    14  than 100% of the annual savings from this medical assistance expenditure
    15  reduction,  compared  to  the prior year medical assistance expenditure,
    16  shall be used for property tax levy reductions, or property tax rebates,
    17  effective in the local government's 2028 fiscal year. This section shall
    18  not apply to a city with a population of one million or more.
    19    (c-6) Notwithstanding the provisions of section 368-a  of  the  social
    20  services  law, or any other provision of law, commencing with the period
    21  January 1, 2028 through December 31, 2028, calendar year social services
    22  district medical assistance expenditure amounts for each social services
    23  district shall be reduced by 50% from the 2023 expenditures;  and  shall
    24  remain  eliminated each year thereafter. No less than 100% of the annual
    25  savings from this medical assistance expenditure reduction, compared  to
    26  the prior year medical assistance expenditure, shall be used for proper-
    27  ty  tax levy reductions, or property tax rebates, effective in the local
    28  government's 2029 fiscal year. This section shall not apply  to  a  city
    29  with a population of one million or more.
    30    (c-7)  Notwithstanding  the  provisions of section 368-a of the social
    31  services law, or any other provision of law, commencing with the  period
    32  January 1, 2029 through December 31, 2029, calendar year social services
    33  district medical assistance expenditure amounts for each social services
    34  district  shall  be reduced by 60% from the 2023 expenditures; and shall
    35  remain eliminated each year thereafter. No less than 100% of the  annual
    36  savings  from this medical assistance expenditure reduction, compared to
    37  the prior year medical assistance expenditure, shall be used for proper-
    38  ty tax levy reductions, or property tax rebates, effective in the  local
    39  government's  2030  fiscal  year. This section shall not apply to a city
    40  with a population of one million or more.
    41    (c-8) Notwithstanding the provisions of section 368-a  of  the  social
    42  services  law, or any other provision of law, commencing with the period
    43  January 1, 2030 through December 31, 2030, calendar year social services
    44  district medical assistance expenditure amounts for each social services
    45  district shall be reduced by 70% from the 2023 expenditures;  and  shall
    46  remain  eliminated each year thereafter. No less than 100% of the annual
    47  savings from this medical assistance expenditure reduction, compared  to
    48  the prior year medical assistance expenditure, shall be used for proper-
    49  ty  tax levy reductions, or property tax rebates, effective in the local
    50  government's 2031 fiscal year. This section shall not apply  to  a  city
    51  with a population of one million or more.
    52    (c-9)  Notwithstanding  the  provisions of section 368-a of the social
    53  services law, or any other provision of law, commencing with the  period
    54  January 1, 2031 through December 31, 2031, calendar year social services
    55  district medical assistance expenditure amounts for each social services
    56  district  shall  be reduced by 80% from the 2023 expenditures; and shall

        A. 3390                             5

     1  remain eliminated each year thereafter. No less than 100% of the  annual
     2  savings  from this medical assistance expenditure reduction, compared to
     3  the prior year medical assistance expenditure, shall be used for proper-
     4  ty  tax levy reductions, or property tax rebates, effective in the local
     5  government's 2032 fiscal year. This section shall not apply  to  a  city
     6  with a population of one million or more.
     7    (c-10)  Notwithstanding  the provisions of section 368-a of the social
     8  services law, or any other provision of law, commencing with the  period
     9  January 1, 2032 through December 31, 2032, calendar year social services
    10  district medical assistance expenditure amounts for each social services
    11  district  shall  be reduced by 90% from the 2023 expenditures; and shall
    12  remain eliminated each year thereafter. No less than 100% of the  annual
    13  savings  from this medical assistance expenditure reduction, compared to
    14  the prior year medical assistance expenditure, shall be used for proper-
    15  ty tax levy reductions, or property tax rebates, effective in the  local
    16  government's  2033  fiscal  year. This section shall not apply to a city
    17  with a population of one million or more.
    18    (c-11) Notwithstanding the provisions of section 368-a of  the  social
    19  services  law, or any other provision of law, commencing with the period
    20  January 1, 2033 through December 31, 2033, calendar year social services
    21  district medical assistance expenditure amounts for each social services
    22  district shall be reduced by 100% from the 2023 expenditures; and  shall
    23  remain  eliminated each year thereafter. No less than 100% of the annual
    24  savings from this medical assistance expenditure reduction, compared  to
    25  the prior year medical assistance expenditure, shall be used for proper-
    26  ty  tax levy reductions, or property tax rebates, effective in the local
    27  government's 2034 fiscal year. This section shall not apply  to  a  city
    28  with a population of one million or more.
    29    (c-12)  Notwithstanding  the  provisions of section seven of this act,
    30  any county that opted into the local  sales  tax  intercept  methodology
    31  shall  receive  a  proportionate reduction in the sales tax intercept as
    32  described in subdivisions (c-2),  (c-3),  (c-4),  (c-5),  (c-6),  (c-7),
    33  (c-8), (c-9), (c-10) and (c-11) of this section and use these recaptured
    34  funds  for  property  tax  reductions  in the same manner as other local
    35  jurisdictions as described.
    36    (c-13) The minimum amount  of  annual  property  tax  levy  reductions
    37  resulting from savings achieved as defined in subdivisions (c-2), (c-3),
    38  (c-4),  (c-5),  (c-6),  (c-7),  (c-8),  (c-9), (c-10) and (c-11) of this
    39  section, shall be determined by the state comptroller and transmitted to
    40  each local government one hundred eighty days in advance of the start of
    41  the fiscal year for which the property tax reduction is to be effective.
    42    § 2. This act shall take effect immediately.

    43                                   PART B

    44    Section 1. Notwithstanding the provisions of part C of chapter  58  of
    45  the  laws  of  2005 and section 368-a of the social services law, or any
    46  other provision of law, in cities with a population of  one  million  or
    47  more:
    48    (a)  commencing  with  the period January 1, 2024 through December 31,
    49  2024, calendar year social services district medical assistance expendi-
    50  ture amounts for each social services district shall be reduced by  2.5%
    51  from the 2023 expenditures. No less than 100% of the annual savings from
    52  this  medical  assistance  expenditure  reduction, compared to the prior
    53  year medical assistance expenditure, shall be used for property tax levy

        A. 3390                             6

     1  reductions, or property tax rebates, effective in the local government's
     2  2025 fiscal year;
     3    (b)  commencing  with  the period January 1, 2025 through December 31,
     4  2025, calendar year social services district medical assistance expendi-
     5  ture amounts for each social services district shall be  reduced  by  5%
     6  from the 2023 expenditures. No less than 100% of the annual savings from
     7  this  medical  assistance  expenditure  reduction, compared to the prior
     8  year medical assistance expenditure, shall be used for property tax levy
     9  reductions, or property tax rebates, effective in the local government's
    10  2026 fiscal year;
    11    (c) commencing with the period January 1, 2026  through  December  31,
    12  2026, calendar year social services district medical assistance expendi-
    13  ture  amounts for each social services district shall be reduced by 7.5%
    14  from the 2023 expenditures. No less than 100% of the annual savings from
    15  this medical assistance expenditure reduction,  compared  to  the  prior
    16  year medical assistance expenditure, shall be used for property tax levy
    17  reductions, or property tax rebates, effective in the local government's
    18  2027 fiscal year;
    19    (d)  commencing  with  the period January 1, 2027 through December 31,
    20  2027, calendar year social services district medical assistance expendi-
    21  ture amounts for each social services district shall be reduced  by  10%
    22  from the 2023 expenditures. No less than 100% of the annual savings from
    23  this  medical  assistance  expenditure  reduction, compared to the prior
    24  year medical assistance expenditure, shall be used for property tax levy
    25  reductions, or property tax rebates, effective in the local government's
    26  2028 fiscal year;
    27    (e) commencing with the period January 1, 2028  through  December  31,
    28  2028, calendar year social services district medical assistance expendi-
    29  ture amounts for each social services district shall be reduced by 12.5%
    30  from the 2023 expenditures; and shall remain eliminated each year there-
    31  after. No less than 100% of the annual savings from this medical assist-
    32  ance  expenditure  reduction, compared to the prior year medical assist-
    33  ance expenditure, shall be used for property  tax  levy  reductions,  or
    34  property  tax  rebates,  effective in the local government's 2029 fiscal
    35  year;
    36    (f) commencing with the period January 1, 2029  through  December  31,
    37  2029, calendar year social services district medical assistance expendi-
    38  ture  amounts  for each social services district shall be reduced by 15%
    39  from the 2023 expenditures; and shall remain eliminated each year there-
    40  after. No less than 100% of the annual savings from this medical assist-
    41  ance expenditure reduction, compared to the prior year  medical  assist-
    42  ance  expenditure,  shall  be  used for property tax levy reductions, or
    43  property tax rebates, effective in the local  government's  2030  fiscal
    44  year;
    45    (g)  commencing  with  the period January 1, 2030 through December 31,
    46  2030, calendar year social services district medical assistance expendi-
    47  ture amounts for each social services district shall be reduced by 17.5%
    48  from the 2023 expenditures; and shall remain eliminated each year there-
    49  after. No less than 100% of the annual savings from this medical assist-
    50  ance expenditure reduction, compared to the prior year  medical  assist-
    51  ance  expenditure,  shall  be  used for property tax levy reductions, or
    52  property tax rebates, effective in the local  government's  2031  fiscal
    53  year;
    54    (h)  commencing  with  the period January 1, 2031 through December 31,
    55  2031, calendar year social services district medical assistance expendi-
    56  ture amounts for each social services district shall be reduced  by  20%

        A. 3390                             7

     1  from the 2023 expenditures; and shall remain eliminated each year there-
     2  after. No less than 100% of the annual savings from this medical assist-
     3  ance  expenditure  reduction, compared to the prior year medical assist-
     4  ance  expenditure,  shall  be  used for property tax levy reductions, or
     5  property tax rebates, effective in the local  government's  2032  fiscal
     6  year;
     7    (i)  commencing  with  the period January 1, 2032 through December 31,
     8  2032, calendar year social services district medical assistance expendi-
     9  ture amounts for each social services district shall be reduced by 22.5%
    10  from the 2023 expenditures; and shall remain eliminated each year there-
    11  after. No less than 100% of the annual savings from this medical assist-
    12  ance expenditure reduction, compared to the prior year  medical  assist-
    13  ance  expenditure,  shall  be  used for property tax levy reductions, or
    14  property tax rebates, effective in the local  government's  2033  fiscal
    15  year;
    16    (j)  commencing  with  the period January 1, 2033 through December 31,
    17  2033, calendar year social services district medical assistance expendi-
    18  ture amounts for each social services district shall be reduced  by  25%
    19  from the 2023 expenditures; and shall remain eliminated each year there-
    20  after. No less than 100% of the annual savings from this medical assist-
    21  ance  expenditure  reduction, compared to the prior year medical assist-
    22  ance expenditure, shall be used for property  tax  levy  reductions,  or
    23  property  tax  rebates,  effective in the local government's 2034 fiscal
    24  year;
    25    (k) commencing with the period January 1, 2034  through  December  31,
    26  2034, calendar year social services district medical assistance expendi-
    27  ture amounts for each social services district shall be reduced by 27.5%
    28  from the 2023 expenditures; and shall remain eliminated each year there-
    29  after. No less than 100% of the annual savings from this medical assist-
    30  ance  expenditure  reduction, compared to the prior year medical assist-
    31  ance expenditure, shall be used for property  tax  levy  reductions,  or
    32  property  tax  rebates,  effective in the local government's 2035 fiscal
    33  year;
    34    (l) commencing with the period January 1, 2035  through  December  31,
    35  2035, calendar year social services district medical assistance expendi-
    36  ture  amounts  for each social services district shall be reduced by 30%
    37  from the 2023 expenditures; and shall remain eliminated each year there-
    38  after. No less than 100% of the annual savings from this medical assist-
    39  ance expenditure reduction, compared to the prior year  medical  assist-
    40  ance  expenditure,  shall  be  used for property tax levy reductions, or
    41  property tax rebates, effective in the local  government's  2036  fiscal
    42  year;
    43    (m)  commencing  with  the period January 1, 2036 through December 31,
    44  2036, calendar year social services district medical assistance expendi-
    45  ture amounts for each social services district shall be reduced by 32.5%
    46  from the 2023 expenditures; and shall remain eliminated each year there-
    47  after. No less than 100% of the annual savings from this medical assist-
    48  ance expenditure reduction, compared to the prior year  medical  assist-
    49  ance  expenditure,  shall  be  used for property tax levy reductions, or
    50  property tax rebates, effective in the local  government's  2037  fiscal
    51  year;
    52    (n)  commencing  with  the period January 1, 2037 through December 31,
    53  2037, calendar year social services district medical assistance expendi-
    54  ture amounts for each social services district shall be reduced  by  35%
    55  from the 2023 expenditures; and shall remain eliminated each year there-
    56  after. No less than 100% of the annual savings from this medical assist-

        A. 3390                             8

     1  ance  expenditure  reduction, compared to the prior year medical assist-
     2  ance expenditure, shall be used for property  tax  levy  reductions,  or
     3  property  tax  rebates,  effective in the local government's 2038 fiscal
     4  year;
     5    (o)  commencing  with  the period January 1, 2038 through December 31,
     6  2038, calendar year social services district medical assistance expendi-
     7  ture amounts for each social services district shall be reduced by 37.5%
     8  from the 2023 expenditures; and shall remain eliminated each year there-
     9  after. No less than 100% of the annual savings from this medical assist-
    10  ance expenditure reduction, compared to the prior year  medical  assist-
    11  ance  expenditure,  shall  be  used for property tax levy reductions, or
    12  property tax rebates, effective in the local  government's  2039  fiscal
    13  year;
    14    (p)  commencing  with  the period January 1, 2039 through December 31,
    15  2039, calendar year social services district medical assistance expendi-
    16  ture amounts for each social services district shall be reduced  by  40%
    17  from the 2023 expenditures; and shall remain eliminated each year there-
    18  after. No less than 100% of the annual savings from this medical assist-
    19  ance  expenditure  reduction, compared to the prior year medical assist-
    20  ance expenditure, shall be used for property  tax  levy  reductions,  or
    21  property  tax  rebates,  effective in the local government's 2040 fiscal
    22  year;
    23    (q) commencing with the period January 1, 2040  through  December  31,
    24  2040, calendar year social services district medical assistance expendi-
    25  ture amounts for each social services district shall be reduced by 42.5%
    26  from the 2023 expenditures; and shall remain eliminated each year there-
    27  after. No less than 100% of the annual savings from this medical assist-
    28  ance  expenditure  reduction, compared to the prior year medical assist-
    29  ance expenditure, shall be used for property  tax  levy  reductions,  or
    30  property  tax  rebates,  effective in the local government's 2041 fiscal
    31  year;
    32    (r) commencing with the period January 1, 2041  through  December  31,
    33  2041, calendar year social services district medical assistance expendi-
    34  ture  amounts  for each social services district shall be reduced by 45%
    35  from the 2023 expenditures; and shall remain eliminated each year there-
    36  after. No less than 100% of the annual savings from this medical assist-
    37  ance expenditure reduction, compared to the prior year  medical  assist-
    38  ance  expenditure,  shall  be  used for property tax levy reductions, or
    39  property tax rebates, effective in the local  government's  2042  fiscal
    40  year;
    41    (s)  commencing  with  the period January 1, 2042 through December 31,
    42  2042, calendar year social services district medical assistance expendi-
    43  ture amounts for each social services district shall be reduced by 47.5%
    44  from the 2023 expenditures; and shall remain eliminated each year there-
    45  after. No less than 100% of the annual savings from this medical assist-
    46  ance expenditure reduction, compared to the prior year  medical  assist-
    47  ance  expenditure,  shall  be  used for property tax levy reductions, or
    48  property tax rebates, effective in the local  government's  2043  fiscal
    49  year;
    50    (t)  commencing  with  the period January 1, 2043 through December 31,
    51  2043, calendar year social services district medical assistance expendi-
    52  ture amounts for each social services district shall be reduced  by  50%
    53  from the 2023 expenditures; and shall remain eliminated each year there-
    54  after. No less than 100% of the annual savings from this medical assist-
    55  ance  expenditure  reduction, compared to the prior year medical assist-
    56  ance expenditure, shall be used for property  tax  levy  reductions,  or

        A. 3390                             9

     1  property  tax  rebates,  effective in the local government's 2044 fiscal
     2  year.
     3    §  2.  Notwithstanding  the  provisions  of section seven of part C of
     4  chapter 58 of the laws of 2005, any county that  opted  into  the  local
     5  sales  tax intercept methodology shall receive a proportionate reduction
     6  in the sales tax intercept as described in section one of this  act  and
     7  use  those  recaptured  funds  for  property  tax reductions in the same
     8  manner as other local jurisdictions as described.
     9    § 3. The minimum amount of annual property tax levy reductions result-
    10  ing from savings achieved as defined in section one of this  act,  shall
    11  be  determined  by  the  state comptroller and transmitted to each local
    12  government one hundred eighty days in advance of the start of the fiscal
    13  year for which the property tax reduction is to be effective.
    14    § 4. This act shall take effect immediately.

    15                                   PART C

    16    Section 1. The social services law is amended by adding a new  article
    17  11-A to read as follows:
    18                                ARTICLE 11-A
    19               COMMISSION TO REFORM PUBLIC ASSISTANCE BENEFITS
    20  Section 500. Definitions.
    21          501. Commission to reform public assistance benefits.
    22          502. Powers and duties of the commission.
    23    § 500. Definitions. As used in this article:
    24    1.  "Commission" shall mean the commission to reform public assistance
    25  benefits established pursuant to this article.
    26    2. "Public assistance benefits" shall include family assistance, safe-
    27  ty net assistance, veteran  assistance,  medical  assistance  for  needy
    28  persons,  institutional  care  for  adults, child care granted at public
    29  expense, and any other form of governmental assistance  for  individuals
    30  and/or families as determined by the commission.
    31    3.  "Real  take-home pay" shall mean the total amount of income for an
    32  individual and/or family  when  including  public  assistance  benefits,
    33  salary earned through employment and any other form of compensation.
    34    §  501.  Commission to reform public assistance benefits. 1.  There is
    35  hereby created the commission  to  reform  public  assistance  benefits,
    36  which  shall  consist  of  the  following seventeen members who shall be
    37  appointed within thirty days after the effective date of this section:
    38    a. The commissioner of the office of temporary and disability  assist-
    39  ance  or  his  or her designee and who shall serve as the chairperson of
    40  the commission;
    41    b. The commissioner of the office of children and family  services  or
    42  his or her designee;
    43    c. The commissioner of labor or his or her designee;
    44    d. The commissioner of health or his or her designee;
    45    e. The director of the division of budget or his or her designee;
    46    f. Three members appointed by the temporary president of the senate;
    47    g. Three members appointed by the speaker of the assembly;
    48    h. Three members appointed by the minority leader of the senate;
    49    i. Three members appointed by the minority leader of the assembly.
    50    2.  No member of the commission shall be disqualified from holding any
    51  public office or employment, nor shall he or she forfeit any such office
    52  or employment by virtue of his or her appointment pursuant to this arti-
    53  cle. Members of the commission shall receive no compensation  for  their
    54  service,  but  shall  be  allowed  their  actual  and necessary expenses

        A. 3390                            10

     1  incurred in the performance of their functions pursuant to this article.
     2  A member of the commission may be removed by  the  appointing  authority
     3  only for good cause, after notice and opportunity to be heard. Vacancies
     4  shall be filled in the same manner as original appointments.
     5    §  502.  Powers  and duties of the commission. 1. The commission shall
     6  conduct a study to examine the current payment method for public assist-
     7  ance benefits and identify any and all income levels that exist where an
     8  individual or family would become ineligible for any  public  assistance
     9  benefit.
    10    a.  The  commission  may  require  the  production of any documents or
    11  information the commission deems reasonably necessary  to  conduct  this
    12  study.
    13    b.  The  commission shall, within ninety days of the effective date of
    14  this article, issue a report providing details on the  results  of  such
    15  study  to the governor and the legislature, and the report shall also be
    16  made widely available to the public via, among other things, publication
    17  on a website maintained  by  the  office  of  temporary  and  disability
    18  assistance.
    19    2.  Beginning  within ten days after the issuance of the report issued
    20  pursuant to subdivision one of this section, the commission  shall  hold
    21  at  least  one  public  hearing  in  each of the following regions: Long
    22  Island; New York City; Hudson Valley; Capital District;  North  Country;
    23  Central New York; Finger Lakes; Western New York; and Southern Tier.
    24    a. During the public hearings, the commission shall hear the testimony
    25  of  voluntary  witnesses,  may compel the testimony of witnesses and may
    26  require the production of any documents or  information  the  commission
    27  deems reasonably necessary to carry out its responsibilities.
    28    b.  After review, study, and receipt of public comment, the commission
    29  shall issue a report within one hundred eighty  days  of  the  effective
    30  date  of  this  article  that  includes  a new payment method for public
    31  assistance benefits that ensures  an  individual's  or  family's  public
    32  assistance  benefits  are not eliminated at specified income levels, but
    33  rather decreased to ensure an individual's or  family's  real  take-home
    34  pay increases as a result of any increase in income due to employment.
    35    c.  Notwithstanding any other provision of law, such payment method as
    36  determined by the commission shall have the force of  law  unless  acted
    37  upon by the legislature.
    38    § 2. This act shall take effect immediately.

    39                                   PART D

    40    Section  1.  Paragraph  1  of subsection (d) of section 606 of the tax
    41  law, as amended by section 1 of part Q of chapter  63  of  the  laws  of
    42  2000, is amended to read as follows:
    43    (1)  General.  A taxpayer shall be allowed a credit as provided herein
    44  equal to (i) the applicable  percentage  of  the  earned  income  credit
    45  allowed  under  section  thirty-two of the internal revenue code for the
    46  same taxable year, (ii) reduced by the credit permitted under subsection
    47  (b) of this section.
    48    The applicable percentage shall be (i) seven and one-half percent  for
    49  taxable  years  beginning  in  nineteen  hundred  ninety-four,  (ii) ten
    50  percent for taxable years beginning  in  nineteen  hundred  ninety-five,
    51  (iii)  twenty percent for taxable years beginning after nineteen hundred
    52  ninety-five and  before  two  thousand,  (iv)  twenty-two  and  one-half
    53  percent  for  taxable  years  beginning in two thousand, (v) twenty-five
    54  percent for taxable years beginning in two thousand  one,  (vi)  twenty-

        A. 3390                            11

     1  seven  and  one-half percent for taxable years beginning in two thousand
     2  two, [and] (vii) thirty percent for taxable years beginning in two thou-
     3  sand three, and (viii) forty-five percent for taxable years beginning in
     4  two thousand twenty-three and thereafter. Provided, however, that if the
     5  reversion  event,  as  defined in this paragraph, occurs, the applicable
     6  percentage shall be twenty percent for taxable years ending on or  after
     7  the  date  on  which  the  reversion event occurred. The reversion event
     8  shall be deemed to have occurred on the date on  which  federal  action,
     9  including  but  not  limited to, administrative, statutory or regulatory
    10  changes, materially reduces or eliminates New York state's allocation of
    11  the federal temporary assistance for  needy  families  block  grant,  or
    12  materially  reduces  the ability of the state to spend federal temporary
    13  assistance for needy families block grant funds for  the  earned  income
    14  credit  or  to  apply  state  general fund spending on the earned income
    15  credit toward the temporary assistance for needy  families  block  grant
    16  maintenance of effort requirement, and the commissioner of the office of
    17  temporary and disability assistance shall certify the date of such event
    18  to  the  commissioner of taxation and finance, the director of the divi-
    19  sion of the budget, the speaker of the assembly and the temporary presi-
    20  dent of the senate.
    21    § 2. This act shall take effect immediately and shall apply to taxable
    22  years beginning on and after January 1, 2023.

    23                                   PART E

    24    Section 1. Section 686 of the tax law  is  amended  by  adding  a  new
    25  subsection (j) to read as follows:
    26    (j)  Earned  income  tax  credit.--A  taxpayer  eligible to receive an
    27  earned income tax credit pursuant  to  subsection  (d)  of  section  six
    28  hundred  six  of  this  article  or an enhanced earned income tax credit
    29  pursuant to subsection (d-1) of section six hundred six of this  article
    30  shall  be  prescribed the option to receive such credit in the following
    31  manner: (i) for amounts equal to or less than two hundred  dollars,  the
    32  payment  or  refund  shall  be  made  in a lump sum, (ii) for amounts in
    33  excess of two hundred dollars and less than two  thousand  four  hundred
    34  dollars,  the payment or refund shall be two hundred dollars a month for
    35  the number of months equal to the total amount thereof  divided  by  two
    36  hundred  and rounded down to the nearest whole number, and the remaining
    37  balance of such payment or refund shall be made in the first month ther-
    38  eafter, and (iii) for amounts equal to or greater than two thousand four
    39  hundred dollars, the payment or refund shall be paid  in  equal  monthly
    40  payments equal to the total amount thereof divided by twelve.
    41    § 2. This act shall take effect on the one hundred twentieth day after
    42  it  shall  have become a law. Effective immediately, the commissioner of
    43  taxation and finance is  authorized  to  make  any  addition,  amendment
    44  and/or repeal of any rule or regulation necessary for the implementation
    45  of this act on its effective date on or before such date.

    46                                   PART F

    47    Section  1.  Paragraph  1  of subsection (c) of section 606 of the tax
    48  law, as amended by section 1 of part M of chapter  63  of  the  laws  of
    49  2000, is amended to read as follows:
    50    (1)  A  taxpayer shall be allowed a credit as provided herein equal to
    51  the applicable percentage of the credit allowable under section  twenty-
    52  one  of  the  internal  revenue  code for the same taxable year (without

        A. 3390                            12

     1  regard to whether the taxpayer in fact claimed  the  credit  under  such
     2  section  twenty-one  for  such  taxable year). The applicable percentage
     3  shall be the sum of (i) [twenty] sixty-two percent and (ii) a multiplier
     4  multiplied  by  a  fraction.  For  taxable  years  beginning in nineteen
     5  hundred ninety-six and nineteen hundred ninety-seven, the  numerator  of
     6  such  fraction  shall be the lesser of (i) four thousand dollars or (ii)
     7  fourteen thousand dollars less the New York adjusted  gross  income  for
     8  the  taxable  year,  provided,  however, the numerator shall not be less
     9  than zero. For the taxable year beginning in  nineteen  hundred  ninety-
    10  eight,  the  numerator of such fraction shall be the lesser of (i) thir-
    11  teen thousand dollars or (ii) thirty thousand dollars less the New  York
    12  adjusted  gross  income  for  the  taxable  year, provided, however, the
    13  numerator shall not be less than zero. For taxable  years  beginning  in
    14  nineteen  hundred  ninety-nine,  the numerator of such fraction shall be
    15  the lesser of (i)  fifteen  thousand  dollars  or  (ii)  fifty  thousand
    16  dollars  less  the  New York adjusted gross income for the taxable year,
    17  provided, however, the numerator shall not be less than zero. For  taxa-
    18  ble years beginning after nineteen hundred ninety-nine, the numerator of
    19  such  fraction  shall  be  the lesser of (i) fifteen thousand dollars or
    20  (ii) sixty-five thousand dollars less the New York adjusted gross income
    21  for the taxable year, provided, however, the numerator shall not be less
    22  than zero. The denominator of  such  fraction  shall  be  four  thousand
    23  dollars  for  taxable years beginning in nineteen hundred ninety-six and
    24  nineteen hundred ninety-seven, thirteen thousand dollars for the taxable
    25  year beginning in nineteen hundred ninety-eight,  and  fifteen  thousand
    26  dollars for taxable years beginning after nineteen hundred ninety-eight.
    27  The multiplier shall be ten percent for taxable years beginning in nine-
    28  teen  hundred  ninety-six,  forty percent for taxable years beginning in
    29  nineteen hundred ninety-seven, [and] eighty percent  for  taxable  years
    30  beginning  [after  nineteen  hundred  ninety-seven]  in nineteen hundred
    31  ninety-eight, and one hundred thirty-eight  percent  for  taxable  years
    32  beginning  after two thousand twenty-three. Provided, however, for taxa-
    33  ble years beginning after nineteen hundred  ninety-nine,  for  a  person
    34  whose  New  York  adjusted  gross  income  is  less  than forty thousand
    35  dollars, such applicable percentage shall be equal to  (i)  one  hundred
    36  percent,  plus (ii) ten percent multiplied by a fraction whose numerator
    37  shall be the lesser of (i) fifteen thousand dollars or (ii) forty  thou-
    38  sand  dollars  less  the  New York adjusted gross income for the taxable
    39  year, provided such numerator shall not be less  than  zero,  and  whose
    40  denominator  shall  be fifteen thousand dollars.  Provided, however, for
    41  taxable years beginning after two thousand twenty-three,  for  a  person
    42  whose  New  York  adjusted  gross  income  is  less  than forty thousand
    43  dollars, such applicable percentage shall be equal to  (i)  two  hundred
    44  percent, plus (ii) twenty percent multiplied by a fraction whose numera-
    45  tor  shall  be  the lesser of (i) fifteen thousand dollars or (ii) forty
    46  thousand dollars less the New York adjusted gross income for the taxable
    47  year, provided such numerator shall not be less  than  zero,  and  whose
    48  denominator  shall  be fifteen thousand dollars. Provided, further, that
    49  if the reversion event, as defined in this paragraph, occurs, the appli-
    50  cable percentage shall, for taxable years ending on or after the date on
    51  which the reversion event occurred, be determined using the rules speci-
    52  fied in this paragraph applicable to taxable years beginning in nineteen
    53  hundred ninety-nine.  The  reversion  event  shall  be  deemed  to  have
    54  occurred  on the date on which federal action, including but not limited
    55  to, administrative, statutory or regulatory changes, materially  reduces
    56  or  eliminates  New  York  state's  allocation  of the federal temporary

        A. 3390                            13

     1  assistance for needy families block grant,  or  materially  reduces  the
     2  ability  of  the  state  to spend federal temporary assistance for needy
     3  families block grant funds for the  credit  for  certain  household  and
     4  dependent  care  services  necessary  for gainful employment or to apply
     5  state general fund spending on the  credit  for  certain  household  and
     6  dependent  care  services  necessary  for  gainful employment toward the
     7  temporary assistance for  needy  families  block  grant  maintenance  of
     8  effort  requirement, and the commissioner of the office of temporary and
     9  disability assistance shall certify  the  date  of  such  event  to  the
    10  commissioner, the director of the division of the budget, the speaker of
    11  the assembly and the temporary president of the senate.
    12    §  2. Paragraph 1-a of subsection (c) of section 606 of the tax law is
    13  REPEALED.
    14    § 3. This act shall take effect immediately.

    15                                   PART G

    16    Section 1. The state finance law is amended by adding  a  new  section
    17  54-n to read as follows:
    18    §  54-n.  Aid  to  local  governments for real property tax. 1.  Defi-
    19  nitions. As used in this section:
    20    (a) The term "freeze-compliant budget" means  a  budget  of  a  taxing
    21  jurisdiction that has zero percent growth of the real property tax levy.
    22    (b)  The  term "independent special district" means a special district
    23  as defined by section one hundred two of the real property tax law  that
    24  either  (i) has a separate independent elected board, and either has the
    25  authority to levy a tax, or can require a municipal corporation to  levy
    26  a  tax on its behalf, or (ii) has a separate independent board appointed
    27  by the governing body of another municipal corporation  and  either  has
    28  the  authority  to  levy a tax or can require a municipal corporation to
    29  levy a tax on its behalf.
    30    (c) The term "dependent school district" means a school district  that
    31  is  subject  to  article  fifty-two  of the education law and that has a
    32  population of less than one million.
    33    (d) The  term  "taxing  jurisdiction"  means  a  county,  city,  town,
    34  village, school district or an independent special district; except that
    35  such  term  shall not include a city with a population of one million or
    36  more, nor shall it include a county wholly located within such a city.
    37    (e) The term "tax levy limit" means the allowable levy  growth  factor
    38  for  a taxing jurisdiction, as determined pursuant to section three-c of
    39  the general municipal law or section two thousand twenty-three-a of  the
    40  education law.
    41    (f)  The term "coming fiscal year" means the fiscal year of the taxing
    42  jurisdiction for which a tax levy limit shall be determined,  as  deter-
    43  mined  pursuant  to  section  three-c  of  the  general municipal law or
    44  section two thousand twenty-three-a of the education law.
    45    2. The state shall provide aid to a taxing jurisdiction that enacts  a
    46  freeze-compliant  budget for the coming fiscal year equal to two percent
    47  of a taxing jurisdiction's  prior  fiscal  year  levy.  Subject  to  the
    48  provisions  of  subdivision  three  of  this  section, such aid shall be
    49  determined as follows:
    50    (a) If a taxing jurisdiction other than a  dependent  school  district
    51  has  not  previously  received  aid  pursuant  to this chapter and has a
    52  freeze-compliant budget for its coming fiscal year,  aid  equal  to  two
    53  percent  of  the  taxing  jurisdiction's  prior fiscal year levy will be
    54  provided.

        A. 3390                            14

     1    (b) If a taxing jurisdiction other than a  dependent  school  district
     2  has  previously received aid pursuant to this chapter, the taxing juris-
     3  diction shall continue to receive the aid amount designated in paragraph
     4  (a) of this subdivision for each fiscal  year  the  taxing  jurisdiction
     5  enacted a freeze-compliant budget.
     6    3.  The  following shall apply to the calculation of the state aid for
     7  counties pursuant to subdivision two of this section. For counties  that
     8  qualify  for  the aid pursuant to subdivision two of this section, state
     9  aid shall be calculated after taking into  account  the  reduced  county
    10  property  tax levy provisions found in paragraph (iv) of subdivision (c)
    11  of section one of part C of chapter fifty-eight of the laws of two thou-
    12  sand five, has been subtracted from the prior year levy.
    13    § 2. The education law is amended by adding a new  section  2023-c  to
    14  read as follows:
    15    §  2023-c. Certification of compliance with state aid to local govern-
    16  ments for real property. A  school  district  that  is  subject  to  the
    17  provisions  of  section two thousand twenty-three-a of this article must
    18  comply with the requirements of subdivision two of this section in order
    19  to be eligible for the aid authorized by  section  fifty-four-n  of  the
    20  state finance law.
    21    1.  Definition.  As  used  in this section: "Eligible school district"
    22  means a school district that is subject to section two thousand  twenty-
    23  three-a  of  this  article, but shall not mean a school district that is
    24  subject to article fifty-two of this chapter.
    25    2. Certification of compliance with  tax  levy  limit.  (a)  Upon  the
    26  adoption  of the budget of an eligible school district, the chief execu-
    27  tive officer of such school district shall certify to  the  state  comp-
    28  troller,  the  commissioner of taxation and finance and the commissioner
    29  that the budget so adopted does  not  exceed  the  zero  percent  growth
    30  prescribed  by  section  fifty-four-n  of  the  state  finance law. Such
    31  certification shall be made in a form and manner prescribed by the state
    32  comptroller in  consultation  with  the  commissioner  of  taxation  and
    33  finance and the commissioner.
    34    (b)  In  order  for  such  certification to give rise to the aid under
    35  section fifty-four-n of the state finance law, such certification  shall
    36  be  made  no later than the twenty-first day of the fiscal year to which
    37  it applies.
    38    (c) If such a certification has been made and the actual tax  levy  of
    39  the school district exceeds zero percent growth, the excess amount shall
    40  be  placed  in  reserve and used in the manner prescribed by subdivision
    41  five of section two thousand twenty-three-a of this article.
    42    (d) Notwithstanding any provision of law to the contrary, every school
    43  district that is subject to the provisions of section two thousand twen-
    44  ty-three-a of this article shall report both its proposed budget and its
    45  adopted budget to the state comptroller and the commissioner at the time
    46  and in the manner as they may prescribe, whether or not such budget  has
    47  been or will be certified as provided by this subdivision.
    48    (e)  The director of the budget shall review the documents referred to
    49  in paragraph (a) of this subdivision to determine whether  the  require-
    50  ments  of  section  fifty-four-n  of the state finance law have been met
    51  with respect to an eligible school  district  and  shall  determine  the
    52  total aid payment amount for that fiscal year.
    53    §  3. The general municipal law is amended by adding a new section 3-d
    54  to read as follows:
    55    § 3-d. Certification of compliance with state aid to local governments
    56  for real property.  1.  A  local  government  that  is  subject  to  the

        A. 3390                            15

     1  provisions  of  section  three-c  of  this  article must comply with the
     2  requirements of subdivision two of section  fifty-four-n  of  the  state
     3  finance  law  in  order  to  be  eligible  for aid authorized by section
     4  fifty-four-n of the state finance law.
     5    2.  Certification  of  compliance  with  tax  levy limit. (a) Upon the
     6  adoption of the budget of a local government unit, the  chief  executive
     7  officer or budget officer of such local government unit shall certify to
     8  the  state comptroller and the commissioner of taxation and finance that
     9  the budget so adopted does not exceed the zero percent growth prescribed
    10  by section fifty-four-n of the state  finance  law.  Such  certification
    11  shall  be  made in a form and manner prescribed by the state comptroller
    12  in consultation with the commissioner  of  taxation  and  finance.  Such
    13  certification shall be made in a form and manner prescribed by the state
    14  comptroller  in  consultation  with  the  commissioner  of  taxation and
    15  finance. For the purposes of this section, a local government unit means
    16  a municipal corporation or  an  independent  special  district  that  is
    17  subject to the provisions of section three-c of this article.
    18    (b)  In  order  for  such  certification to give rise to the aid under
    19  section fifty-four-n of the state finance law, such certification  shall
    20  be  made  no later than the twenty-first day of the fiscal year to which
    21  it applies.
    22    (c) Notwithstanding any other law to the contrary, if such  a  certif-
    23  ication  has  been  made and the actual tax levy of the local government
    24  unit exceeds the applicable zero percent growth, the excess amount shall
    25  be placed in reserve and used in the manner  prescribed  by  subdivision
    26  six of section three-c of this article.
    27    (d)  Notwithstanding any provision of law to the contrary, every local
    28  government unit shall report both its proposed budget  and  its  adopted
    29  budget  to  the  office  of the state comptroller at the time and in the
    30  manner as he or she may prescribe, whether or not such budget  has  been
    31  or will be certified as provided by this subdivision.
    32    § 4. This act shall take effect immediately.

    33                                   PART H

    34    Section  1. The general municipal law is amended by adding a new arti-
    35  cle 12-J to read as follows:
    36                                ARTICLE 12-J
    37                       REAL PROPERTY TAX REDESIGN TEAM
    38  Section 239-aaa. Creation of the real property tax redesign team.
    39    § 239-aaa. Creation of the real property tax redesign team. 1.   There
    40  is  hereby  established the real property tax redesign team, which shall
    41  consist of twenty members appointed by the governor.  As  used  in  this
    42  article, the following terms shall have the following meanings:
    43    a. "State officer or employee" shall have the same meaning as given in
    44  section seventy-three of the public officers law;
    45    b.  "Local  government"  shall  mean  county,  city,  town, village or
    46  special district;
    47    c. "School district" shall mean a common, union free, central, city or
    48  central high school district;
    49    d. "Mandate" shall mean (i) any legal requirement that a local govern-
    50  ment or school district provide or undertake  any  program,  project  or
    51  activity,  or  increase spending for an existing program, project, regu-
    52  lation or activity on behalf of  New  York  state;  or  (ii)  any  legal
    53  requirement that a local government or school district grant a new prop-
    54  erty  tax exemption or broaden the eligibility, or increase the value of

        A. 3390                            16

     1  an existing property tax exemption; or (iii) any legal requirement  that
     2  otherwise would likely have the effect of raising property taxes.
     3    2.  The members of the team shall include: state officers or employees
     4  with relevant expertise; two members of the New York state assembly, one
     5  recommended by the speaker of the assembly and one  recommended  by  the
     6  minority  leader  of  the  assembly;  two  members of the New York state
     7  senate, one recommended by the temporary president of the senate and one
     8  recommended by the minority leader of the senate; and stakeholders  with
     9  expertise in the areas of:
    10    a. local governments;
    11    b. school districts;
    12    c. businesses;
    13    d. property tax assessment;
    14    e. local government budgeting;
    15    f. economic development; and
    16    g. other relevant areas.
    17    3.  Vacancies  shall  be  filled  by the governor. Members of the team
    18  shall serve at the pleasure of the governor.
    19    4. The governor shall designate a chair or co-chairs  from  among  the
    20  members of the team.
    21    5. The director of the budget shall serve as an ex-officio, non-voting
    22  member of the team.
    23    6.  The  duties and obligations of the real property tax redesign team
    24  shall consist of  making  cost  savings  recommendations  regarding  the
    25  structure  of  the  New  York state property tax system and the adminis-
    26  tration of mandated programs. The real property tax redesign team shall:
    27    a. through the approval of a majority of its  total  members,  develop
    28  recommendations that result in annual recurring savings of at least five
    29  hundred million dollars;
    30    b.  solicit  and  consider  input  from  a  broad and diverse range of
    31  groups, organizations and individuals with interest or expertise in  the
    32  redesign  or implementation of real property taxes in New York to assist
    33  in the development of cost savings recommendations; and
    34    c. convene within sixty days after the effective date of this  article
    35  and continue to convene twice every month thereafter for a period not to
    36  exceed one year.
    37    7. The team shall submit a final report one year after the first meet-
    38  ing  of  the team to the senate, assembly and governor for consideration
    39  in the following fiscal year's state budget. The  report  shall  consist
    40  of:
    41    a.  specific cost savings with a recommended procedure for implementa-
    42  tion;
    43    b. any necessary actions to be taken by the state  legislature,  local
    44  governments or school districts for each recommendation;
    45    c. recurring annual savings of each recommendation; and
    46    d. the total recurring annual savings for all recommendations.
    47    §  2.  This  act  shall  take  effect  immediately and shall be deemed
    48  repealed five years after it shall have become a law.

    49                                   PART I

    50    Section 1. The general municipal  law  is  amended  by  adding  a  new
    51  section 3-e to read as follows:
    52    §  3-e.  Limitation  upon  real property tax levies by cities having a
    53  population of one million or more.  1. Unless otherwise provided by law,
    54  the amount of real property taxes that may be levied by or on behalf  of

        A. 3390                            17

     1  any city having a population of one million or more shall not exceed the
     2  tax levy limitation established pursuant to this section.
     3    2. When used in this section:
     4    (a) "Allowable levy growth factor" shall be the lesser of: (i) one and
     5  two  one-hundredths;  or  (ii) the sum of one plus the inflation factor;
     6  provided, however, that in no case shall the levy growth factor be  less
     7  than one.
     8    (b)  "Approved capital expenditures" means the expenditures associated
     9  with capital projects that have been approved by the qualified voters of
    10  the local government.
    11    (c) "Available carryover" means the sum of the amount by which the tax
    12  levy for the prior fiscal year was below the tax  levy  limit  for  such
    13  fiscal  year,  if  any, but no more than one and one-half percent of the
    14  tax levy limit for such fiscal year.
    15    (d) "Capital tax levy" means the tax levy necessary to support capital
    16  expenditures, if any.
    17    (e) "Coming fiscal year" means the fiscal year of the local government
    18  for which a tax levy limitation shall be  determined  pursuant  to  this
    19  section.
    20    (f)  "Inflation  factor" means the quotient of: (i) the average of the
    21  national consumer price indexes determined by the United States  depart-
    22  ment of labor for the twelve-month period ending six months prior to the
    23  start  of  the  coming  fiscal  year  minus  the average of the national
    24  consumer price indexes determined by the  United  States  department  of
    25  labor  for  the twelve-month period ending six months prior to the start
    26  of the prior fiscal year, divided by: (ii) the average of  the  national
    27  consumer  price  indexes  determined  by the United States department of
    28  labor for the twelve-month period ending six months prior to  the  start
    29  of the prior fiscal year, with the result expressed as a decimal to four
    30  places.
    31    (g) "Local government" means a city having a population of one million
    32  or more.
    33    (h)  "Prior fiscal year" means the fiscal year of the local government
    34  immediately preceding the coming fiscal year.
    35    (i) "Tax levy limitation" means the amount of taxes a local government
    36  is authorized to levy pursuant to this section, provided, however,  that
    37  the  tax  levy  limit  shall not include the local government's approved
    38  capital tax levy, if any.
    39    3. (a) Beginning with the fiscal year  that  begins  in  two  thousand
    40  twenty-four,  no  local  government shall adopt a budget that requires a
    41  tax levy that is greater than the tax levy  limitation  for  the  coming
    42  fiscal year.
    43    (b)  The state comptroller shall calculate the tax levy limitation for
    44  each local government by the one hundred  twentieth  day  preceding  the
    45  commencement  of  each  local government's fiscal year, and shall notify
    46  each local government of the tax levy limitation so determined.
    47    (c) The tax levy limitation applicable to the coming fiscal year shall
    48  be determined as follows:
    49    (i) Ascertain the total amount of taxes levied for  the  prior  fiscal
    50  year.
    51    (ii)  Add  any  payments  in lieu of taxes that were receivable in the
    52  prior fiscal year.
    53    (iii) Subtract the approved capital tax  levy  for  the  prior  fiscal
    54  year, if any.

        A. 3390                            18

     1    (iv)  Subtract  the levy attributable to a large legal settlement of a
     2  tort action excluded from the levy limitation in the prior fiscal  year,
     3  if any.
     4    (v) Multiply the result by the allowable levy growth factor.
     5    (vi)  Subtract  any payments in lieu of taxes receivable in the coming
     6  fiscal year.
     7    (vii) Add the available carryover, if any.
     8    (d) In the event the city council of a local government has approved a
     9  legal settlement of a tort action against  the  government,  the  annual
    10  costs  of  which  exceed ten percent of the property taxes levied by the
    11  local government in the prior fiscal year, the state  comptroller,  upon
    12  application  by the local government, may adjust the tax levy limitation
    13  for the coming fiscal year  applicable  to  such  local  government,  by
    14  adding the annual costs of such settlement to the tax levy limitation.
    15    (e)  The state comptroller shall determine the portion of the tax levy
    16  of each local  government  that  is  attributable  to  any  increase  or
    17  decrease  over  the prior year in the cost of the local government share
    18  of direct cash assistance to persons eligible for the  federal-state-lo-
    19  cal  temporary  assistance  to needy families program or the state-local
    20  safety net assistance program and shall adjust the tax  levy  limitation
    21  for such local government to reflect such change.
    22    4. A local government may adopt a budget that requires a tax levy that
    23  is  greater than the tax levy limitation for the coming fiscal year only
    24  if the city council of such local government first  enacts,  by  a  two-
    25  thirds  vote of the total voting power of such city council, a local law
    26  to override such limitation for such coming fiscal year only.
    27    5. In the event a local government's  actual  tax  levy  for  a  given
    28  fiscal  year  exceeds the maximum allowable levy as established pursuant
    29  to this section due to clerical or technical errors, the  local  govern-
    30  ment  shall place the excess amount of the levy in reserve in accordance
    31  with such requirements as the state comptroller may prescribe, and shall
    32  use such funds and any interest earned thereon to offset  the  tax  levy
    33  for the ensuing fiscal year.
    34    §  2. Paragraphs j and k of subdivision 2 of section 23 of the munici-
    35  pal home rule law are relettered paragraphs k and l, and a new paragraph
    36  j is added to read as follows:
    37    j.  Overrides the tax levy limitation applicable for the coming fiscal
    38  year in accordance with section three-e of the general municipal law.
    39    § 3. This act shall take effect immediately and shall first  apply  to
    40  the  levy  of taxes by local governments for the fiscal year that begins
    41  in 2024.
    42    § 3. Severability clause. If any clause, sentence, paragraph, subdivi-
    43  sion, section or part of this act shall be  adjudged  by  any  court  of
    44  competent  jurisdiction  to  be invalid, such judgment shall not affect,
    45  impair, or invalidate the remainder thereof, but shall  be  confined  in
    46  its  operation  to the clause, sentence, paragraph, subdivision, section
    47  or part thereof directly involved in the controversy in which such judg-
    48  ment shall have been rendered. It is hereby declared to be the intent of
    49  the legislature that this act would  have  been  enacted  even  if  such
    50  invalid provisions had not been included herein.
    51    §  4.  This act shall take effect immediately; provided, however, that
    52  the applicable effective date of Parts A through I of this act shall  be
    53  as specifically set forth in the last section of such Parts.
feedback