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. LBD07375-01-3A. 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 remainA. 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 periodA. 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 shallA. 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 levyA. 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, orA. 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 expensesA. 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 (withoutA. 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 temporaryA. 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 theA. 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 ofA. 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 ofA. 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.