Res. No. 1166
Title
RESOLUTION AMENDING AND RESTATING THE RESOLUTION TO PROVIDE THE AMOUNTS NECESSARY FOR THE SUPPORT OF THE GOVERNMENT OF THE CITY OF NEW YORK AND THE COUNTIES THEREIN AND FOR THE PAYMENT OF INDEBTEDNESS THEREOF, FOR THE FISCAL YEAR BEGINNING ON JULY 1, 2003 AND ENDING ON JUNE 30, 2004, BY THE LEVY OF TAXES ON THE REAL PROPERTY IN THE CITY OF NEW YORK, IN ACCORDANCE WITH THE PROVISIONS OF THE CONSTITUTION OF THE STATE OF NEW YORK, THE REAL PROPERTY TAX LAW AND THE CHARTER OF THE CITY OF NEW YORK.
Body
By Council Member David I. Weprin
Whereas, on April 15, 2003, pursuant to the Section 249 of the Charter of the City of New York ("the Charter"), the Mayor of the City of New York (the "Mayor") submitted to the Council of the City of New York (the "Council"), the executive budget for the support of the government of the City of New York and the counties therein (collectively, the "City") for the fiscal year beginning on July 1, 2003 and ending on June 30, 2004 ("Fiscal 2004"); and
Whereas, on May 25, 2003, pursuant to Section 1514 of the Charter, the Commissioner of the Department of Finance (the "Commissioner") delivered, to the Council, the certified assessment rolls for all real property assessable for taxation in the City in each borough thereof for Fiscal 2004, a certified copy of which is in the Office of the Clerk of the City pursuant to Section 516, Real Property Tax Law (the "Fiscal 2004 Assessment Rolls"); and
Whereas, on June 27, 2003, the Council adopted a resolution in which the Council computed and certified the current base proportion, the current percentage and the base percentage of each class of real property in the City for Fiscal 2004 pursuant to Section 1803-a(1), Real Property Tax Law (the "Current Base Proportion Resolution"); and
Whereas, on June 27, 2003, pursuant to Section 1803-a, Real Property Tax Law, the Council adopted a resolution in which the Council adjusted the current base proportion of each class of real property in the City for Fiscal 2004, to reflect the additions to, and full or partial removal from, the Fiscal 2004 Assessment Rolls (the "Adjusted Base Proportion Resolution"); and
Whereas, on June 27, 2003, pursuant to Section 254 of the Charter, the Council adopted the budget for the support of the government of the City and for the payment of indebtedness thereof for Fiscal 2004 (the" Fiscal 2004 Budget"); and
Whereas, on June 27, 2003, pursuant to Section 1515(a) of the Charter, the Mayor prepared and submitted to the Council, a statement setting forth the amount of the Fiscal 2004 Budget as approved by the Council (the "Fiscal 2004 Budget Statement") and an estimate of the probable amount of receipts into the City treasury during Fiscal 2004 from all the sources of revenue of the general fund and all receipts other than those of the general fund and taxes on real property, a copy of which is attached hereto as Exhibit A (the "Fiscal 2004 Revenue Estimate"); and
Whereas, on June 27, 2003, pursuant to Section 1516 of the Charter, the Council adopted a resolution to provide the amounts necessary for the support of the government of the City, among other things, by the levy of taxes on real property in the City (the "Tax Fixing Resolution"); and
Whereas, after the adoption of the Current Base Proportion Resolution, the Adjusted Base Proportion Resolution, the Fiscal 2004 Budget and the Tax Fixing Resolution, Section 1803-a, Real Property Tax Law, was amended to lower the allowable percent increase in the current base proportion as compared with the previous year's adjusted base proportion from 5.0 percent to 2.0 percent; and
Whereas the amendment to Section 1803-a, Real Property Tax Law, requires the amending and restating of the Tax Fixing Resolution;
NOW THEREFORE, be it resolved by The Council of The City of New York as follows:
Section 1. Fixing of Real Property Tax Rates for Fiscal 2004.
a. Determining the Amount of the Real Property Tax Levy.
(i) The total amount of the Fiscal 2004 Budget as set forth in the Fiscal 2004 Budget Statement is $43,658,214,665.
(ii) The estimate of the probable amount of receipts into the City treasury during Fiscal 2004 from all the sources of revenue of the general fund and all receipts other than those of the general fund and taxes on real property as set forth in the Fiscal 2004 Revenue Estimate is $32,340,801,665.
(iii) Pursuant to Section 1516 of the Charter, the Council hereby determines that the amount required to be raised by tax on real property, including surcharges, shall be $11,317,413,000, which is derived from deducting the amount set forth in the Fiscal 2004 Revenue Estimate from the amount of the Fiscal 2004 Budget.
(iv) In order to achieve a real property tax yield of $11,317,413,000, including surcharges, due to provision for uncollectible taxes and refunds and collection of levies from prior years, the Council hereby determines that a real property tax levy of $12,250,660,984 will be required, calculated as follows:
Not Subject to the 2 1/2 Percent Tax Limitation:
For Debt Service:
Funded Debt $2,606,239,572
Amount Required for Debt Service and Financing as:
Provision for Uncollectible Taxes $216,986,336
Provision for Refund $49,050,877
Collection of Prior Years' Levies ($51,123,449) $2,821,153,336
Subject to the 2 1/2 Percent Tax Limitation:
For Debt Service:
Temporary Debt
Interest on Temporary Debt For
General Operating Expenses: $42,109,000
Funds Required: $8,669,064,428
Amount Required for Debt Service and Operating Expenses as:
Provision for Uncollectible Taxes $725,261,648
Provision for Refunds $163,949,123
Collection of Prior Years' Levies ($170,876,551) 9,429,507,648
TOTAL REAL PROPERTY TAX LEVY $12,250,660,984
The Council hereby determines that such amount, levied at such rates on the classes of real property pursuant to paragraph (iv) of subsection b below, together with surcharges, will produce a balanced budget within generally accepted accounting principles for municipalities.
(v) The real property tax levy, net of provision for uncollectible taxes and refunds and the collection of levies from prior years, determined pursuant to clause (iv) above shall be applied as follows:
(A) For payment of debt service not subject to the 2 1/2 percent tax limitation:(
$2,606,239,572
(B) For debt service on short-term debt subject to the 2 1/2 percent tax limitation:
$42,109,000
(C) To provide for conducting the public business of the City and to pay the appropriated expenditures for the counties therein as set forth in the Fiscal 2004 Budget in excess of the amount of revenues estimated in the Fiscal 2004 Revenue Estimate: $8,669,064,428
b. Authorizing and Fixing the Real Property Tax Rates.
(i) Assessed Valuation Calculations of Taxable Real Property in the City. The Fiscal 2004 Assessment Rolls set forth the following valuations by class within each borough of the City.
(A) The assessed valuation by class of real property for the purpose of taxation in each borough of the City, exclusive of the assessed valuation of veterans' real property exempt under state law from tax for general purposes but subject to tax for school purposes is set forth below:
Assessment by Class of Property Subject to Taxation
for all Purposes
Borough
All One, Two
and Three Family Residential
Real Property*
All Other
Residential Real Property
Utility
Real
Property
All Other
Real
Property
Assessment of
Property Subject
to Taxation for
All Purposes
Manhattan
$456,381,383
$22,967,701,816
$2,589,810,839
$34,566,257,800
$60,580,151,838
The Bronx
976,489,041
2,348,886,348
731,231,624
1,744,587,534
5,801,194,547
Brooklyn
3,512,648,653
4,426,055,665
1,440,117,167
3,815,917,239
13,194,738,724
Queens
5,040,125,922
4,526,542,514
1,775,218,997
5,265,610,447
16,607,497,880
Staten Island
1,793,350,496
203,284,277
485,245,610
936,203,988
3,418,084,371
TOTAL
$11,778,995,495
$34,472,470,620
$7,021,624,237
$46,328,577,008
$99,601,667,360
(B) The assessed valuation by class of veterans' real property exempt under state law from tax for general purposes but subject to tax for school purposes in each borough of the City is set forth below:
Assessment by Class of Veterans' Property Exempted under State
Law from Tax for General Purposes
but Subject to Tax for School Purposes
Borough
All One, Two
and Three Family Residential
Real Property*
All Other
Residential Real Property
Utility Real Property
All Other
Real Property
Total Assessment
of Veterans'
Property
Exempted under
State Law from Tax
for General
Purposes but
Subject to Tax for
School Purposes
Manhattan
$631,111
$58,047,512
$0
$5,000
$58,683,623
The Bronx
11,838,948
2,979,890
|10 13|
9,387
14,828,225
Brooklyn
36,304,531
5,862,016
|10 13|
23,665
42,190,212
Queens
70,722,597
27,096,868
|10 13|
20,583
97,840,048
Staten Island
38,241,812
643,729
|10 13|
2,550
38,888,091
TOTAL
$157,738,999
$94,630,015
$0
$61,185
$252,430,199
*Includes condominiums of three stories or fewer that have always been condominiums.
(ii) Chapter 389 of the Laws of 1997 established a new real property tax exemption providing school tax relief (Section 425, Real Property Tax Law). Pursuant to subdivision 8 of Section 425, the assessment by tax class of property subject to taxation for all purposes and the assessment by tax class of veterans' real property exempt under state law from tax for general purposes but subject to tax for school purposes has been increased by the amounts shown below for purposes of: (a) determining the City's tax and debt limits pursuant to law; (b) determining the amount of taxes to be levied; (c) calculating tax rates by class; and (d) apportioning taxes among classes in a special assessing unit under Article 18, Real Property Tax Law.
(A) The assessed valuation by class of real property for the purpose of taxation in each borough of the City exempted under Section 425, Real Property Tax Law, exclusive of the assessed valuation of veterans' real property exempt under state law from tax for general purposes but subject to tax for school purposes is set forth below:
Assessment by Class of Property Exempted under Section 425,
Real Property Tax Law, for All Purposes
Borough
All One, Two
and Three Family Residential Real Property*
All Other
Residential Real Property**
Utility Real
Property
Exempted under Section 425,
Real Property
Tax Law, for All Purposes
Manhattan
$4,145,334
$163,459,271
$42,900
$167,647,505
The Bronx
58,464,365
19,048,935
11,700
77,525,000
Brooklyn
188,754,597
40,933,726
35,750
229,724,073
Queens
284,145,976
94,192,755
60,450
378,399,181
Staten Island
110,950,482
2,888,764
9,852
113,849,098
TOTAL
$646,460,754
$320,523,451
$160,652
$967,144,857
(B) The assessed valuation by class of veterans' real property exempt under state law from tax for general purposes and exempt under Section 425, Real Property Tax Law, for school purposes in each borough of the city is set forth below:
Assessment by Class of Veterans' Property Exempted under Section 425,
Real Property Tax Law, for School Purposes
Borough
All One, Two
and Three Family
Residential Real
Property*
All Other
Residential Real
Property**
Total Assessment
of Veterans'
Property
Exempted under
Section 425,
Real Property
Tax Law,
for School Purposes
Manhattan
$3,140
$1,396
$4,536
The Bronx
10,614
3,216
13,830
Brooklyn
28,947
5,960
34,907
Queens
18,449
3,175
21,624
Staten Island
11,161
178
11,339
TOTAL
$72,311
$13,925
$86,236
*Includes condominiums of three stories or fewer that have always been condominiums.
** Only residential real property held in the cooperative or condominium form of ownership qualifies for the real property tax exemption providing school tax relief.
(iii) Operating Limit Provisions. The Council hereby determines that the amount to be raised by tax on real property for the Fiscal 2004 Budget, together with surcharges, pursuant to clause (iii) of subsection (a) of Section 1 hereof does not exceed the limit imposed by Section 10, Article VIII of the Constitution of the State of New York, as amended, and Article 12-A, Real Property Tax Law (the "Operating Limit Provisions").
(A) The Operating Limit Provisions require that the City not levy taxes on real property in any fiscal year in excess of an amount equal to a combined total of two and one-half percent (2 1/2 %) of the average full valuation of taxable real property, less (i) the amount to be raised by tax on real property in such year for the payment of the interest on and the redemption of certificates or other evidence of indebtedness described therein and (ii) the aggregate amount of district charges, exclusive of debt service, imposed in such year by business improvement districts pursuant to Article 19-A, General Municipal Law.
(B) The Operating Limit Provisions require that average full valuations of taxable real property be determined by taking the assessed valuations of taxable real property on the last completed assessment roll and the four (4) preceding assessment rolls of the City and applying thereto the special equalization ratios which such assessed valuations of each such roll bear to the full valuations as fixed and determined by the State Office of Real Property Services ("ORPS") pursuant to Section 1251, Real Property Tax Law, as shown below:
Fiscal Year
Assessed
Valuations
Assessment
Percentage
Full
Valuations
2000.........................................................................
$80,885,286,485
0.2466
$328,001,972,770
2001.........................................................................
84,319,741,571
0.2340
360,340,775,944
2002.........................................................................
89,539,563,218
0.2283
392,201,328,156
2003.........................................................................
94,506,250,871
0.2204
428,794,241,701
2004.........................................................................
99,854,097,559
0.2037
490,201,755,322
AVERAGE
$399,908,014,779
2 1/2 percent thereof for Fiscal 2004.........................................................................$9,997,700,369
Less debt service subject to the 2 1/2 percent tax limitation:
Temporary debt
Interest on temporary debt...............................................................................($42,109,000)
Less aggregate amount of district charges subject to the 2 1/2 percent tax
limitation............................................................................................................................($62,114,878)
Constitutional amount subject to the limitation that may be raised
for other than debt service in accordance with the provisions of Section 10,
Article VIII, of the State Constitution $9,893,476,491
(iv) Adjusted Base Proportions. Pursuant to the Adjusted Base Proportion Resolution, the Council certified the following adjusted base proportions to be used in determining the Fiscal 2004 tax rates for the four classes of properties:
All One-, Two- and Three-Family
Residential Real Property*...............................................................14.0902
All Other Residential Real Property.................................................35.5629
Utility Real Property...........................................................................7.1175
All Other Real Property..................................................................43.2294
Total........100.0000
*Includes condominiums of three stories or fewer that have always been condominiums.
(v) Tax Rates on Adjusted Base Proportions.
(A) Pursuant to Section 1516 of the Charter, the Council hereby authorizes and fixes the rates of tax for Fiscal 2004 (1) by class upon each dollar of assessed valuation of real property subject to taxation for all purposes of, and within, the City, as fixed in cents and thousandths of a cent per dollar of assessed valuation, as follows:
All One, Two and Three Family Residential Real Property*
All Residential Real Property
Utility Real Property
All Other Real Property
Subject to the 2 1/2 percent tax limitation as authorized by Article VIII, Section 10, of the State Constitution including a reserve for uncollectible taxes.........................................................
0.11183
0.09711
0.09558
0.08799
Not subject to the 2 1/2 percent tax limitation as authorized by Article VIII, Sections 10 and 11 of the State Constitution including a reserve for uncollectible taxes...................................
0.03367
0.02909
0.02860
0.02632
Decimal rate on adjusted proportion for all purposes............................................
0.14550
0.12620
0.12418
0.11431
*Includes condominiums of three stories or fewer that have always been condominiums.
and (2) by class upon each dollar of assessed valuation of veterans' real property exempt under state law from tax for general purposes but subject to tax for school purposes of, and within, the City, as fixed in cents and thousandths of a cent per dollar of assessed valuation, as follows:
All One, Two and Three Family Residential Real Property*
All Other Residential Real
Property
Utility
Real Property
All Other Real Property
Subject to the 2 1/2 percent tax limitation as authorized by Article VIII, Section 10, of the State Constitution including a reserve for uncollectible taxes......................................................
0.07179
0.06257
0.00000
0.05675
Not subject to the 2 1/2 percent tax limitation as authorized by Article VIII, Sections 10 and 11, of the State Constitution including a reserve for uncollectible taxes................................
0.00582
0.00507
0.00000
0.00460
Decimal rate on adjusted proportion for all veterans' property exempted under state law from tax for general purposes but subject to tax for school purposes.......................................................
0.07761
0.06764
0.00000
0.06135
*Includes condominiums of three stories or fewer that have always been condominiums.
Section 2. Authorization of the Amendment and Restatement of the Levy of Real Property Taxes for Fiscal 2004
a. Pursuant to Section 1517 of the Charter, the Council hereby authorizes and directs the Commissioner to (i) set down in the Fiscal 2004 Assessment Rolls, opposite to the several sums set down as the valuation of real property, the amended and restated respective sums, in dollars and cents, to be paid as a tax thereon, rejecting the fractions of a cent and add and set down the aggregate valuations of real property in the boroughs of the City and (ii) send a certificate of such aggregate valuation in each such borough to the Comptroller of the State.
b. Pursuant to Section 1518 of the Charter, immediately upon the completion of the Fiscal 2004 Assessment Rolls, the City Clerk shall procure the proper amended and restated warrants in the form attached hereto as Exhibit B to be signed by the Public Advocate of the City ("Public Advocate") and counter-signed by the City Clerk authorizing and requiring the Commissioner to collect the several sums therein mentioned according to law and immediately thereafter the Fiscal 2004 Assessment Rolls of each borough shall be delivered by the Public Advocate to the Commissioner with proper warrants, so signed and counter-signed, annexed thereto.
Section 3. Effective Date. The Tax Fixing Resolution, as hereby amended and restated, shall remain in full force and effect, and this resolution shall take effect as of the date hereof.
EXHIBIT A
FISCAL 2004 BUDGET STATEMENT
AND FISCAL 2004 REVENUE ESTIMATE
EXHIBIT B
FORM OF WARRANT
WARRANT
To Martha E. Stark, the Commissioner of Finance of the City of New York:
You are hereby authorized and required, in accordance with the provisions of the Real Property Tax Law and the Charter of the City of New York, to collect the real property tax on the properties named and described in the real property assessment roll in accordance with the assessments thereon and the tax rates fixed by the City Council for the fiscal year beginning on July 1, 2003.
Public Advocate of the
City of New York
Clerk of the City of
New York
(SEAL)
( The tax fixing resolution adopted by the Council on June 27, 2003 projected the amount of property tax revenue necessary for the payment of debt service for Fiscal 2004 to be $2,606,239,572. However, since the adoption of the June 27, 2003 tax fixing resolution, the budget for Fiscal 2003 has been modified( by budget modification MN-8 for Fiscal 2003) to recognize an additional 4110,000,000 and appropriate this amount to the fiscal 2003 Budget Stabilization Account to prepay debt service on long-term bonds for Fiscal 2004. The Fiscal 2004 Budget has not yet been modified to reflect this prepayment. Even with this reduction in debt service, the amount levied by tax on real property for the Fiscal 2004 Budget, together with surcharges, does not exceed the Operating Limit Provisions as defined in clause (iii) of subsection (b) of Section 1 hereof.
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