New York Constitution Article XVI - Taxation
New York Constitution – Article XVI: Taxation
Article XVI of the New York State Constitution outlines the state’s taxation powers, limitations, and provisions to ensure fairness and fiscal integrity in levying taxes. Below is a summary of each section along with its core intent:
Section 1 – Power of Taxation; Exemptions from Taxation
"The power of taxation shall never be surrendered, suspended or contracted away... Exemptions from taxation may be granted only by general laws."
Affirms the state’s sovereign power to tax.
Tax exemptions must be created through general laws, not special favors.
Prohibits the state from giving away or suspending its taxing authority.
Section 2 – Assessment of Property for Taxation
"All real property in the state... shall be assessed for taxation at its full value..."
Requires property to be assessed at full market value, unless otherwise provided by law.
Ensures uniformity and fairness in property tax assessments.
Section 3 – Deduction for Indebtedness
"Laws may be passed to allow the deduction from the value of taxable property of debts owed by the owner."
Allows the Legislature to pass laws that permit debt deductions when calculating taxable property value.
Section 4 – Power of Legislature in Tax Matters
"The legislature shall have the power to provide, by law, for the payment of taxes... and to prescribe the manner in which they shall be collected."
Confers broad authority on the Legislature to establish tax procedures, collections, and remedies.
Section 5 – Taxpayer Actions and Remedies
Provides mechanisms for taxpayers to challenge tax laws or assessments under due process and equal protection principles.
Section 6 – Income Tax Allocation
"No income tax law shall be deemed to violate this constitution because it is graduated in rate..."
Graduated income taxes (higher rates for higher incomes) are constitutionally permitted.
Protects progressive income tax structures from legal challenge.
🧾 Summary:
Article XVI ensures that:
Tax powers remain with the state.
Property and income taxes are handled fairly and consistently.
Tax exemptions are applied universally.
The Legislature retains the authority to define tax rules and systems.
Progressive taxation (graduated income tax) is explicitly allowed.
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