New York Assembly Bill A05926

New York 2025-2026 Regular Session

• Introduced: 2/25/25
• Refer: 2/25/25
• Refer: 1/7/26

Caption

Provides that the tax levy limit shall be equal to a zero percent increase over the prior year tax levy when the difference between the total amount of taxes levied for the prior year less the tax levy limit results in a negative number.

Summary

This bill amends the Education Law provision governing school district tax levy limits. It adds a rule that if the calculation of the prior year taxes levied minus the tax levy limit produces a negative number, the school district’s tax levy limit is reset to a zero percent increase over the prior year tax levy. In practical terms, the bill prevents the formula from producing a negative allowable levy growth amount and instead floors the limit at no increase. The bill also requires affected school districts to submit information needed to calculate the tax levy limit to the state comptroller, the commissioner of education, and the commissioner of taxation and finance by March 1 each year, in a form prescribed by the comptroller. It further makes the district’s levy-limit determination subject to review by the commissioner of education and the commissioner of taxation and finance. The act would take effect immediately.

Impact

The bill would affect school district budgeting and local property tax levy calculations under the state’s school tax cap framework. By establishing a zero-percent floor when the levy-limit formula would otherwise yield a negative result, it would prevent districts from being required to adopt a lower-than-prior-year levy limit under that circumstance. It also strengthens state oversight by formalizing annual reporting and review by the comptroller, the education commissioner, and the taxation and finance commissioner, potentially affecting school districts, local taxpayers, and state education and fiscal agencies.

Sentiment

No committee transcript or recorded vote information was provided, so there is no direct evidence of debate, support, or opposition in the available materials. Based on the bill text alone, the measure appears technical and administrative, aimed at clarifying how the school tax levy limit is calculated and reviewed rather than making a broad policy change. The caption suggests the proposal is intended to address an edge case in the tax cap formula, which may indicate a practical, noncontroversial purpose, but the available record does not show how legislators or stakeholders reacted.

Contention

The main point of potential contention is the effect on school district taxing authority and taxpayer protections. Supporters would likely view the bill as a clarification that avoids an anomalous negative levy-limit result and provides clearer administrative procedures. Opponents, if any, would likely focus on the possibility that setting a zero-percent floor could reduce downward pressure on school property taxes or make the tax cap less restrictive in certain cases. Because there are no transcripts or votes, no specific individuals or groups are identified as holding these views in the available record.