NY A05671

Defines "service charge" as a charge imposed by counties, cities, towns, or villages on real property to defray costs for police protection, fire protection, street and highway maintenance and lighting, sanitation, and water supply.

Requires tax-exempt properties (except those used exclusively for charitable, hospital, educational, or cemetery purposes) to be subject to service charges computed based on the assessed value of the exempt property and municipal expenditures for chargeable services.

Caps service charges at no more than 10 percent of the property tax liability the property would owe if subject to taxation.

Exempts municipal corporation property within its own corporate limits from service charges, and allows exemptions for municipal property outside corporate limits if the governing board agrees in writing.

Requires municipalities to adopt a local law, ordinance, or resolution after a public hearing before imposing service charges on tax-exempt properties; effective April 1 of the year following enactment.