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A02432 Summary:

BILL NOA02432
 
SAME ASNo Same As
 
SPONSORGiglio JM
 
COSPNSR
 
MLTSPNSR
 
Amd §92, St Fin L
 
Increases the amount in the tax stabilization reserve fund to 5% of state fiscal year disbursements.
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A02432 Actions:

BILL NOA02432
 
01/26/2023referred to ways and means
01/03/2024referred to ways and means
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A02432 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A2432
 
SPONSOR: Giglio JM
  TITLE OF BILL: An act to amend the state finance law, in relation to increasing the amount of money that may be maintained in the tax stabilization reserve fund   PURPOSE OR GENERAL IDEA OF BILL:: Increases the amount allowed by law to the tax stabilization reserve fund, or "rainy day fund," to 5% of state fiscal year disbursements. Currently. the amount allowed by law in this fund is 2% of state fiscal year disbursements.   SUMMARY OF PROVISIONS:: Section 1. Subdivisions 3 and 4 of section 92 of the state finance law shall be amended. Subdivision 3 requires any cash surplus remaining in the general fund over and above the norm at the close of each fiscal year be transferred from or retained in such fund. All of such surplus moneys shall be transferred to the tax stabilization reserve fund. Any balance of such surplus moneys, thereafter retained in the general fund, shall be retained in such fund and be available for the reduction of state taxes. Subdivision 4 requires that in the event that at the close of any fiscal year the receipts derived from the taxes, fees and other sources shall fall below the norm for such fiscal year, there shall be transferred from the tax stabilization reserve fund to the general fund to the extent that there are sufficient moneys in the tax stabilization reserve fund, an amount equal to the difference between the norm and the amount of such receipts. Section 2. This act shall take effect immediately.   JUSTIFICATION:: New York's debt continues to grow and residents are bearing an increas- ing tax burden. Many local governments and school districts, particular- ly upstate. are being forced to increase property taxes to pay bills and continue their operation. Additionally. New York's high cost of living and doing business has led to a decline population, particularly of those people under the age of 35. This is a common sense piece of legis- lation that is only a small step toward solving complicated issues. It will provide the State with the ability to place more money in the tax stabilization reserve fund, basically meaning a "rainy day fund" to be used for the reduction of or an offset to an increase of state taxes.   PRIOR LEGISLATIVE HISTORY:: 10/20/21 referred to ways and means 01/05/22 referred to ways and means Subdivisions 3 and 4 of section 92 of the state finance law. as sepa- rately amended by chapter 405 and 957 of the laws of 1981 provide that only 2 percent of state fiscal year disbursements may be placed in the tax stabilization reserve fund.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:: Minimal   EFFECTIVE DATE:: This act shall take effect immediately.
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A02432 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2432
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 26, 2023
                                       ___________
 
        Introduced  by  M.  of  A. J. M. GIGLIO -- read once and referred to the
          Committee on Ways and Means
 
        AN ACT to amend the state finance law, in  relation  to  increasing  the
          amount  of  money  that  may  be  maintained  in the tax stabilization
          reserve fund
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Subdivisions  3  and 4 of section 92 of the state finance
     2  law, as separately amended by chapters 405 and 957 of the laws of  1981,
     3  are amended to read as follows:
     4    3.  At the close of each fiscal year any cash surplus remaining in the
     5  general fund over and above the norm  for  such  fiscal  year  shall  be
     6  transferred  from or retained in such fund as hereinafter in this subdi-
     7  vision provided. There shall be transferred  to  the  tax  stabilization
     8  reserve  fund  all of such surplus moneys, up to and including an amount
     9  equivalent to two-tenths of one per centum of  such  norm,  unless  such
    10  transfer  would  increase  such  reserve  fund to an amount in excess of
    11  [two] five per centum of the amount of the norm for such fiscal year, in
    12  which event such transfer shall  be  limited  to  such  amount  as  will
    13  increase such reserve fund to such [two] five per centum limitation. Any
    14  balance  of  such  surplus  moneys,  thereafter remaining in the general
    15  fund, shall be retained in such fund and be available for the  reduction
    16  of state taxes.
    17    4.  In  the  event  that  at the close of any fiscal year the receipts
    18  derived from the taxes, fees and other  sources,  required  to  be  paid
    19  during  such  fiscal  year into the general fund of the state shall fall
    20  below the norm for such fiscal year, there shall be transferred from the
    21  tax stabilization reserve fund to the general fund to  the  extent  that
    22  there  are  sufficient  moneys in the tax stabilization reserve fund, an
    23  amount equal to the difference between the norm and the amount  of  such
    24  receipts. If such transfer reduces the tax stabilization reserve fund to
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02824-01-3

        A. 2432                             2
 
     1  an  amount  less  than [two] five per centum of the norm for such fiscal
     2  year, the amount so transferred shall be repaid in  cash  prior  to  the
     3  computation and payment of any transfer to the fund pursuant to subdivi-
     4  sion  three of this section in not less than three equal annual install-
     5  ments within the period of six years or less next succeeding the date of
     6  such transfer; provided, however, that if any  such  annual  installment
     7  shall  increase  such  reserve fund to an amount in excess of [two] five
     8  per centum of the amount of the norm for the then current  fiscal  year,
     9  such  installment  shall be limited to such amount as will increase such
    10  reserve fund to such [two] five per centum  limitation  and  no  further
    11  repayment of the whole or any part of such transfer shall be required in
    12  any subsequent fiscal year.  Repayments to the tax stabilization reserve
    13  fund shall be stipulated in annual budget bills.
    14    § 2. This act shall take effect immediately.
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