Property Tax Cap For Fire Districts Elise Amodeo Monitoring and - - PDF document

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Property Tax Cap For Fire Districts Elise Amodeo Monitoring and - - PDF document

May 06, 2023 229 likes •472 views

Property Tax Cap For Fire Districts Elise Amodeo Monitoring and Analysis Unit 1 1 Topics for Todays Session COVID 19 Related Issues Overview of Property Tax Cap Legislation Common Errors Reporting Requirements And Tax

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Property Tax Cap For Fire Districts

Elise Amodeo Monitoring and Analysis Unit

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Topics for Today’s Session

  • COVID‐19 Related Issues
  • Overview of Property Tax Cap Legislation
  • Common Errors
  • Reporting Requirements

– And Tax Cap Form Walk‐Through

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Issues Relating to COVID‐19

  • The Tax cap law is still in effect

– As of 9/10/20 the tax cap law has not been suspended

  • All expenses, including COVID‐19 expenses,

are subject to the tax cap

– As of 9/10/20 COVID‐19 expenses have not been exempted from the tax levy limit

  • Information for local governments on

common issues regarding COVID‐19:

– www.osc.state.ny.us/localgov/general‐ information‐faqs‐related‐to‐covid19.pdf

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Tax Cap Legislation

  • Tax cap limits total levy set by local governments, not

assessed value or tax rate.

  • It generally limits the amount local governments and school

districts can increase property taxes by 2% OR the rate of inflation, whichever is less, unless they officially override the tax levy limitation.

Property Tax Cap ‐ Summary

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Tax Cap Legislation

Fire District Revenues, FYE 2019

83% 17%

REAL PROPERTY TAXES ALL OTHER REVENUES

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Tax Cap Legislation

  • Generally, fire districts have their own tax levy limit and are

NOT part of the municipality’s tax cap.

  • Levies for fire protection districts (as opposed to fire districts)

are part of the municipality’s tax levy limit.

Fire District vs. Fire Protection District

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Tax Cap Legislation

  • Blended fire districts are fire districts that have the town

board as their fire commissioners; therefore, they are not independent.

  • They do not file separately for tax cap purposes.
  • They are reported within the town’s AFR
  • There are only six blended fire districts in New York State.

Blended Fire Districts

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Tax Cap Legislation

  • Prior Year Levy
  • Tax Base Growth Factor
  • Allowable Levy Growth Factor – 2% or rate of inflation,

whichever is less

  • Payments in Lieu of Taxes (PILOTs)
  • Available Carryover
  • Transfers of Function
  • Exclusions (Retirement & Tort Costs)

Calculation Involves Several Components

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Tax Cap Formula

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Tax Cap Legislation

Allowable Levy Growth Factor ‐ Fire Districts

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Tax Cap Legislation

  • The law allows fire districts to override the levy limit by

passing a resolution. – Must be adopted by 60% of the total governing board (e.g., three out of five). – Must be passed prior to the adoption of the budget.

Override

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Tax Cap Legislation

  • In the event that a fire district levies more than the amount

allowable under the tax levy limit without a proper override, the fire district must place the excess amount in a reserve. – Must be in an interest bearing account. – Must be used to offset the tax levy the following fiscal year.

  • If, prior to the adoption of the budget, the fire district passed

a resolution to override, no reserve is required.

Consequences of Exceeding the Limit

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Common Errors

  • Not filing the form with the Officeof the New York State

Comptroller (OSC) – Districts that fail to complete and submit the form are more likely to adopt a levy that exceeds the limit.

  • Filing Errors on the form

– Improper use of tax cap reserve line

  • Only for amounts levied in excess for the prior year, not

for capital or equipment reserve amounts. – Entering budget amount instead of tax levy

  • Do not include other revenues; only include taxes

levied on the tax roll.

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Reporting Requirements

  • Fire districts must calculate their levy limit and report the data

to the Office of the New York State Comptroller: – Using our online services application. – Prior to adoption of budget. – Must be submitted even when an override has been passed.

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Reporting Requirements

  • Enrollment

– Provides access to our tax cap application. – User ID and password required.

  • Contact our office if you need assistance.

– Must assign rights and roles depending on responsibilities. – Instructions can be found on our website:

http://www.osc.state.ny.us/localgov/realprop/pdf/EnrollmentInstructions.pdf

Online Reporting Application

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OSC Online Reporting System

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Contact Information

  • Department of Taxation and Finance

– Tax Base Growth Factor – 518‐591‐5233 – https://www.tax.ny.gov/research/property/cap.htm

  • Office of the State Comptroller

– 1‐866‐321‐8503 – Option 1 – Technical, Enrollment, Password Issues – Option 3 – Tax Cap application questions – Email: LGSAMonitoring@osc.ny.gov – www.osc.state.ny.us/localgov/realprop/index.htm

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Thank You

Division of Local Government and School Accountability localtraining@osc.ny.gov