Relates to the determination of adjusted base proportions in special assessing units which are cities for fiscal year 2026.
Summary
This bill amends the Real Property Tax Law to create a special rule for certain special assessing units that are cities when determining current base proportions for fiscal year 2026. For those cities, the local legislative body—not the default state formula—would determine the percentage increase in the current base proportion of any class over the prior year’s adjusted base proportion, subject to a cap of 5 percent. The local legislative body must make that determination by December 1, 2025.
The bill also addresses the situation where a city has already issued fiscal year 2026 property tax bills before the act becomes law. In that case, the city must take whatever steps are necessary under state and local law to implement the new proportions, including revising base proportions, resetting tax rates, and sending amended tax bills. The bill preserves taxpayers’ obligations for installments that were already due and payable before amended bills are issued.
Impact
The bill would temporarily alter how certain city-based special assessing units calculate adjusted base proportions for property tax purposes in fiscal year 2026, shifting discretion to the local legislative body within a 5 percent limit. It would affect the administration of real property tax rates, tax bill preparation, and potentially the amount owed by taxpayers in affected cities, while authorizing amended bills and rate resets if original bills were already sent.
Sentiment
The available voting history suggests the bill was received favorably in committee, passing the Assembly Ways and Means Committee 32-2 and the Assembly Rules Committee 29-0. That pattern indicates broad support for the measure, with only limited opposition at the committee stage. No committee transcript is available, so the record does not show detailed debate or stated concerns.
Contention
The main point of contention appears to be the shift from a standard statutory calculation to local legislative discretion for determining base proportion increases, even though the increase is capped at 5 percent. Potential concerns likely center on local control versus uniform tax administration, the possibility of tax bill revisions after bills have already been issued, and the administrative burden of recalculating rates and sending amended bills. The small number of negative votes in Ways and Means suggests some disagreement, but no specific objections are documented in the available materials.
Relates to increasing the number of units subject to an assessment cap; provides that the assessment roll of a special assessing unit wholly contained within a city shall identify those parcels classified in class two which have fewer than thirty-five residential units.
Implements transfer assessments for any class one or class two parcel in any special assessing unit wholly contained within a city which has had a transfer of title within the fiscal year where the market value of such parcel, as determined by the New York city department of finance, is greater than the assessed value of such parcel.