NYC-WTC_000195490

NYC 9/11 Public Portal Document

the 1981 proportions, as adjusted annually for physical change. In addition, during this period the City Council had discretion in setting class shares as long as each class’s share was within five percent of the previous year’s share.

Since 1992, class shares have been adjusted annually for relative changes in market value (subject to a “cap” of five,percent over the prior year’s share) in addition to physical change. The resulting shares are called adjusted base proportions. In 1993 and 1995-2001, State legislation lowered the five percent cap.

Components of the Tax Levy: The 2000 real property tax is the primary source of revenue for the General Debt Service Fund. Under the State Constitution, the City’s ability toilevy a real property tax for the payment of principal and interest on the City’s long-term debt is unlimited. There is a limit, however, on the amount of real property tax/that can be raised for operating purposes. This operating limit is equal to 2.5 percent of the

/ Real Property Tax Operating Limit /

Fiscal Operating Limit ' I Unused Margin Year ($ Millions) ' ($ Millions) i (Percent)

1983 $2,718.1 $15.1 \ 0.6% 1984 3,181.6 &09.7 \ 6.6 1985 3,589.1 ,407.6 '11.4 1986 4,010.5 361.7 9.0 1987 4,432.0 476,0 10.7 1988 4,969.5 537.2 10.8 1989 6,808.5 1,812.2 26.6 1990 7*789.1 2,387.8 30.7 1991 9,109.3 2,892.9 31.8 1992 ’ 16,631.8 4,369.0 41.1 1993 < 11,945.0 5,475.1 45.8 1994 I '13,853.8 7,932.9 57.3 1995 I ,'13,380.2 7,832.6 58.5 1996 '; ; 8,633.4 3,451.2 40.0 1997 ' i i' '/,857.2 2,924.0 i 37.2 1998< ! 7,599.7 1,665.5 21.9 1999 ! 7,170.3 862.6 12.0 2000, V ; 7,268.7 45.5 0.6 2001 ' , ' 7,573.1 140.4 1.9

average full value of taxable real estate for the current and prior four years, less payments for City short-term debt and business improvement district levies. In addition, total debt outstanding including business improvement district debt may not exteed 10 percent of the five-year average full value. ORPS estimates the full value as of January 1 for each of the five years of the average. The 1999 market'value survey, which reflected the second year increase in real estate market values since 1989, was incorporated into the calculation of 2001 ’s operating limit.

The levy is also divided into a levy for education and for ‘other’ or non-education operating purposes. Veterans receive a partial exemption on their assessed value for the purpose of calculating the tax they pay for ‘other’ operating purposes. They are, however, required to pay their full share of the levy for education purposesi.

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