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Bill

S 6163

Provides for state aid for certain cities, towns, villages or fire districts adversely affected by a concentration of tax exempt property

2025 Regular Session Introduced by Rachel May and 2 co-sponsors

Summary of S 6163 – State Aid for Municipalities Adversely Affected by Concentration of Tax-Exempt PropertyNote: The available information is limited to the bill’s title, status, s

REFERRED TO LOCAL GOVERNMENT
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Bill Summary · S 6163

Summary of S 6163 – State Aid for Municipalities Adversely Affected by Concentration of Tax-Exempt Property

Note: The available information is limited to the bill’s title, status, sponsors, and related items. The bill’s full text would specify the exact provisions, eligibility criteria, funding formulas, and timelines.

Overview

  • Bill: S 6163
  • Title: Provides for state aid for certain cities, towns, villages or fire districts adversely affected by a concentration of tax exempt property
  • Status: Referred to Local Government (introduced March 6, 2025)
  • Primary sponsor: James Skoufis
  • Cosponsors: Rachel May, Lea Webb
  • Related companion/alternate numbers include A 8400 (companion) and numerous prior-session related bills (e.g., A 1026, A 1079, A 425, A 790, A 10053, A 732, A 2089, A 5219, S 7283)

Purpose and Intent

  • The bill aims to provide state financial assistance to certain municipalities (cities, towns, villages, or fire districts) that suffer a reduced local revenue base due to a high concentration of property that is exempt from local taxes.
  • The underlying goal is to mitigate fiscal strain on local governments whose tax bases are diminished by tax-exempt properties, helping to maintain essential services and prevent disproportionate tax increases on other taxpayers.

Key Provisions (as typically found in this policy area)

Note: The exact language and specifics would be in the bill text. The following outline reflects common elements such measures include and what readers should look for in the final text.
- Eligibility Criteria
- Which municipalities qualify (e.g., thresholds for concentration of tax-exempt property, population size, or revenue impact).
- Definitions of “tax exempt property” and “concentration” used for eligibility.
- Calculation and Amount of Aid
- How the state would determine aid (e.g., based on revenue shortfall, reliance on property tax levy, or lost aid revenue).
- Any caps, floors, or percentage limits of aid relative to need.
- Whether aid is a one-time grant or ongoing annual funding.
- Funding Source and Administration
- The state department or agency responsible for administering the program (likely a state department of local government or finance).
- Annual budgeting or appropriation requirements.
- Reporting, audit, and accountability provisions.
- Conditions and Compliance
- Any requirements municipalities must meet to receive or retain aid (e.g., maintenance of services, levy limits, reporting standards).
- Sunset or renewable terms, and evaluation timelines.
- Relationship to Local Property Tax Policy
- How aid interacts with local tax policy, potential impact on property tax rates, and any incentives or constraints for local decision-making.

Who Is Affected

  • Municipal entities with significant tax-exempt property burdens:
    • Cities
    • Towns
    • Villages
    • Fire districts
  • Potentially affected residents and local taxpayers who may benefit from stabilized services or reduced tax pressure if aid mitigates revenue losses.

Fiscal and Administrative Impact (Expected)

  • Potential increase in state expenditures to fund aid distributions.
  • Administrative workload for the administering agency to determine eligibility, calculate aid, and monitor compliance.
  • Possible long-term impact on local budgeting practices and service provision.

Legislative Status and Next Steps

  • Currently referred to the Local Government committee; no committee vote or floor action noted in the provided information.
  • Related bills (companion and prior-session proposals) suggest ongoing legislative interest in addressing revenue shortfalls from tax-exempt properties, which may influence amendments or alignment with A 8400 (companion bill) and other related measures.
  • Observers should watch for the bill’s text, fiscal impact statement, committee hearings, and any amendments or companion actions in the Assembly.

What to Look For in the Full Text

  • Exact eligibility thresholds and concentration definitions.
  • The calculation method for the aid amount and any caps.
  • The funding source (annual appropriation, dedicated fund) and timeline for implementation.
  • Reporting, accountability, and sunset provisions.
  • Interaction with existing property tax laws and any potential tax relief implications for residents.

Compiled from official sources — confirm details with the bill’s official record.

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