Relates to the determination of adjusted base proportions in special assessing units which are cities

◆ The sponsor's argument

Why Andrew Gounardes says this is needed

In order to determine how much of the levy to collect from each of the four tax classes next fiscal year, State law requires New York City to adopt class shares based on the equalization rates calculated by the State Board of Real Property Services (SBRPS). In most years, the rates provided by SBRPS would cause an increase to the tax burden for owners of class one property, comprising one-to-three-family homes. Currently, State law provides that the current base proportion of any of the City's four tax classes may not exceed the adjusted base proportion from the prior year by more than five percent. This bill would permit the local legislative body to lower the cap on the maximum allowable growth rate for the share of the overall tax levy paid by each class. Flexibility to lower this cap would allow the Council to adopt balanced tax rates for Fiscal 2027 that provide relief for class one homeowners without placing undue burden on the other property tax classes. The equalization rates have caused class one's tax rate to increase in nine of the past fifteen years, with six of those years seeing increases of over two percent. Conversely, the other three classes have seen much more balanced oscillations in their tax rates, with increases of over two percent only occurring in three years for class three, one year for class four, and never for class two. Failure to enact this legislation would leave the City Council no option but to adopt the default SBRPS formula for establishing class shares. In that case, tax rates for class one and two may increase uncontrollably, and cause significant increases in the tax bills for residential home- owners. Limiting the tax rate increases for classes one and two that would result from SBRPS procedures is avoidable only through passage of this legislation.

This is the sponsor's own case for the bill, quoted from their memorandum. It is not Agora's description of what the bill does.