NY A05397

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

Requires tax-exempt property (except charitable, hospital, educational, and cemetery properties) to be subject to service charges calculated as a percentage of the property's assessed value.

Limits service charges to a maximum of 10 percent of the property tax liability the property would owe if it were taxable.

Exempts property owned by municipal corporations within their corporate limits from service charges, and exempts property owned by municipal corporations outside their limits if the governing board agrees in writing.

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