Bill Text: NY A00939 | 2021-2022 | General Assembly | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Provides a New York state residential property tax relief act for public education aid apportionment for certain school years; provides for the repeal of such provisions upon the expiration thereof.

Spectrum: Moderate Partisan Bill (Democrat 11-3)

Status: (Introduced - Dead) 2022-02-11 - print number 939b [A00939 Detail]

Download: New_York-2021-A00939-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         939--A

                               2021-2022 Regular Sessions

                   IN ASSEMBLY

                                       (Prefiled)

                                     January 6, 2021
                                       ___________

        Introduced  by M. of A. JEAN-PIERRE, THIELE -- read once and referred to
          the Committee on Education  --  committee  discharged,  bill  amended,
          ordered reprinted as amended and recommitted to said committee

        AN  ACT  to amend the education law, in relation to providing a New York
          state residential property tax relief act  for  public  education  aid
          apportionment  for  certain school years; and providing for the repeal
          of such provisions upon the expiration thereof

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  This act shall be known and may be cited as the "New York
     2  state residential real property tax relief act for public education."
     3    § 2. Legislative findings. The  legislature  finds  that  the  current
     4  primary  and  secondary education funding system, which is based largely
     5  upon real property taxation, is antiquated and creates serious  dispari-
     6  ties  in  educational opportunity and inequities with regard to distrib-
     7  ution of the system's financial burden. The quality  of  education  that
     8  children  receive varies widely by geographic region, as does the oppor-
     9  tunity for children to participate in extracurricular  activities.    In
    10  addition, taxpayers throughout the state receive real property tax bills
    11  from  their  local  school  districts based on the value of their homes,
    12  which is subject to multiple factors beyond their control,  rather  than
    13  their financial ability to pay, creating serious regional distortions in
    14  the  relative  cost  of  living.  The legislature further finds that our
    15  children should not be penalized based upon the geographic  location  of
    16  their home, nor should financial support for the educational system fall
    17  more heavily on those who are less able to bear the burden. The legisla-
    18  ture  therefore  must  take  immediate action to provide relief to those
    19  areas most impacted by these disparities through the residential proper-
    20  ty tax relief aid determined through a residential property  tax  relief
    21  aid  formula.  The legislature further orders an education funding study

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD03525-03-1
        A. 939--A                           2

     1  to examine long-term funding alternatives  for  the  state  primary  and
     2  secondary  educational  system  that  allows all children throughout the
     3  state to receive the same educational opportunities.
     4    §  3.  Section  3602  of  the education law is amended by adding a new
     5  subdivision 42 to read as follows:
     6    42. New York state residential property  tax  relief  act  for  public
     7  education. a. Eligibility. (1) Each school district shall be eligible to
     8  receive  a New York state residential property tax relief act for public
     9  education aid apportionment in the two thousand twenty-two--two thousand
    10  twenty-three school year, which shall equal the residential property tax
    11  levy reduction apportionment.
    12    (2) Each school district shall be eligible to receive a New York state
    13  residential property tax relief act for public education aid  apportion-
    14  ment  in  the two thousand twenty-three--two thousand twenty-four school
    15  year in the same amount as in the base year.
    16    (3) Each school district shall be eligible to receive a New York state
    17  residential property tax relief act for public education aid  apportion-
    18  ment  in  the  two thousand twenty-four--two thousand twenty-five school
    19  year in an amount equal to the New York state residential  property  tax
    20  relief  act  for  public education aid apportionment in the two thousand
    21  twenty-three--two thousand twenty-four school year multiplied by one and
    22  seven hundred sixty-nine ten-thousandths (1.0769).
    23    b. Purpose. Funds allocated under this  subdivision  shall  be  solely
    24  used  for  the  purpose  of reducing the residential tax levy defined in
    25  subparagraph one of paragraph a of subdivision sixteen of this section.
    26    c. "Residential real property tax levy reduction  apportionment."  (1)
    27  School  districts  other than districts with a city with a population of
    28  one hundred twenty-five thousand or more, shall be eligible for residen-
    29  tial real property tax levy if: (i) the residential tax levy calculation
    30  is equal to or greater than fifty percent; and (ii) the combined  wealth
    31  ratio is less than two and five-tenths (2.5).
    32    (2)  "Residential  tax  levy  calculation"  shall  equal  the quotient
    33  arrived at when dividing the residential real property tax levy  defined
    34  pursuant  to  subparagraph  one of paragraph a of subdivision sixteen of
    35  this section divided by the  total  actual  expenditures  for  the  year
    36  commencing  in  the calendar year one year prior to the calendar year in
    37  which the base year began.
    38    (3) For eligible school districts, the "residential real property  tax
    39  levy  reduction  apportionment" shall mean the product of: (i) the posi-
    40  tive difference, if any, between the residential  tax  levy  calculation
    41  defined  pursuant to this subparagraph minus fifty percent multiplied by
    42  (ii) the residential real property tax levy.
    43    d. Method of payment. Notwithstanding any other provision  of  law  to
    44  the contrary, the New York state residential property tax relief act for
    45  public  education  aid  shall  be  paid  pursuant  to section thirty-six
    46  hundred nine-i of this part.
    47    e. Definition. As used in this subdivision, "total real  property  tax
    48  levy"  shall  mean  the  total  real  property tax levy specified in the
    49  school district budget for the year commencing in the calendar year  two
    50  years prior to the calendar year in which the base year began. The final
    51  update  of  such  data shall be reported by the commissioner of taxation
    52  and finance to the commissioner by February fifteenth of the base  year.
    53  The  commissioner  of  taxation  and  finance shall adopt regulations as
    54  appropriate to assure the  appropriate  collection,  classification  and
    55  reporting  of  such  data  for  the  purposes of paying state aid to the
    56  schools.
        A. 939--A                           3

     1    § 4. The opening paragraph of subdivision 1 of section 3609-a  of  the
     2  education  law,  as amended by section 32 of part B of chapter 57 of the
     3  laws of 2007, is amended to read as follows:
     4    The GSPS appropriation shall be used to support payments made pursuant
     5  to  this  section,  plus  apportionments  made pursuant to section seven
     6  hundred one,  seven  hundred  eleven,  seven  hundred  fifty-one,  seven
     7  hundred  fifty-three, thirty-two hundred two, thirty-six hundred nine-b,
     8  thirty-six hundred forty-one and forty-four hundred five of  this  chap-
     9  ter, any other applicable allocations made pursuant to this chapter, but
    10  not paid pursuant to the schedule prescribed by this section or sections
    11  thirty-six  hundred  nine-b,  thirty-six hundred nine-d [or], thirty-six
    12  hundred nine-f or thirty-six hundred nine-i of this [article] part; plus
    13  any unconsolidated law provisions which apply to  programs  funded  from
    14  such appropriation; plus any sums paid out upon audit of the state comp-
    15  troller  as  final  adjustments of apportionments originally claimed and
    16  payable pursuant to this subdivision in prior school  years;  plus  sums
    17  paid  out  as  prior  year  adjustments,  to the extent an allowance was
    18  included in such appropriation  for  such  purpose.  Any  apportionments
    19  provided  by  this chapter shall be paid in accordance with this section
    20  unless specifically exempted.
    21    § 5. The education law is amended by adding a new  section  3609-i  to
    22  read as follows:
    23    §  3609-i. Moneys apportioned to school districts for reimbursement of
    24  apportionments pursuant to the New York state residential  property  tax
    25  relief  act  for  public  education. 1. As used in this section, "school
    26  district" shall mean a public school district eligible for an apportion-
    27  ment of aid under subdivision four of section thirty-six hundred two  of
    28  this article.
    29    2.  Moneys apportioned to school districts for reimbursement of appor-
    30  tionments pursuant to the New York state residential property tax relief
    31  act for public education pursuant to subdivision  forty-two  of  section
    32  thirty-six hundred two of this part shall be disbursed as follows:
    33    a.  On  or  after  the first business day of July of each school year,
    34  commencing July first, two thousand twenty-two, a school district  shall
    35  be  paid  an  amount  equal  to fifty percent of the payments on October
    36  first of the current school year.
    37    b. The remaining balance shall be paid after February first,  provided
    38  that  the  amounts paid on or before February first shall not be subject
    39  to recalculation.
    40    c. No payment may be made  pursuant  to  this  subdivision  until  the
    41  amount  for  each  school  district  is certified by the commissioner of
    42  taxation and finance and transmitted to the commissioner.  Such  certif-
    43  ication  shall  be  made  on or before January first so as to facilitate
    44  payments to be made pursuant to this section.
    45    3. Moneys paid pursuant to this section shall be payable to the treas-
    46  urer of each city school district, and the treasurer of each union  free
    47  school  district  and  of each central school district and of each other
    48  school district, if there be a treasurer, otherwise to the collector  or
    49  other  disbursing  officer  of  such  district,  who shall apply for and
    50  receive the same as soon as payable.
    51    4. Any payment to a school district pursuant to this section shall  be
    52  general  receipts  of  the  district  and  shall  be used solely for the
    53  reduction of the residential tax levy.
    54    5. Notwithstanding  any  other  provision  of  law  to  the  contrary,
    55  payments made to school districts under this section shall be considered
        A. 939--A                           4

     1  general  aid payments made pursuant to section thirty-six hundred nine-a
     2  of this part.
     3    6.  It  is the intent of the governor to submit and of the legislature
     4  to enact for each fiscal year after  the  two  thousand  twenty-two--two
     5  thousand  twenty-three fiscal year in an annual budget bill an appropri-
     6  ation in the amount to be paid to school districts pursuant to  subdivi-
     7  sion forty-two of section thirty-six hundred two of this part.
     8    §  6.  Paragraph  a  of subdivision 7 of section 1608 of the education
     9  law, as amended by chapter 514 of the laws of 2016, is amended  to  read
    10  as follows:
    11    a.  Each  year,  commencing with the proposed budget for the two thou-
    12  sand--two thousand one school year, the trustee  or  board  of  trustees
    13  shall prepare a property tax report card, pursuant to regulations of the
    14  commissioner, and shall make it publicly available by transmitting it to
    15  local  newspapers  of general circulation, appending it to copies of the
    16  proposed budget made publicly available as required by  law,  making  it
    17  available  for distribution at the annual meeting, and otherwise dissem-
    18  inating it as required by  the  commissioner.  Such  report  card  shall
    19  include: (i) the amount of total spending and total estimated school tax
    20  levy  that  would  result  from  adoption of the proposed budget and the
    21  percentage increase or decrease in total spending and total  school  tax
    22  levy  from the school district budget for the preceding school year; and
    23  (ii) the district's tax levy limit determined pursuant  to  section  two
    24  thousand  twenty-three-a  of  this  title,  and the estimated school tax
    25  levy, excluding any levy necessary to support the expenditures  pursuant
    26  to  subparagraphs  (i) through (iv) of paragraph i of subdivision two of
    27  section two thousand twenty-three-a of this  title,  that  would  result
    28  from adoption of the proposed budget; and (iii) the projected enrollment
    29  growth  for  the  school  year for which the budget is prepared, and the
    30  percentage change in enrollment from the previous  year;  and  (iv)  the
    31  percentage increase in the consumer price index, as defined in paragraph
    32  c  of  this subdivision; and (v) the projected amount of the unappropri-
    33  ated unreserved fund balance that will be retained if the proposed budg-
    34  et is adopted, the projected amount of the reserved  fund  balance,  the
    35  projected amount of the appropriated fund balance, the percentage of the
    36  proposed  budget that the unappropriated unreserved fund balance repres-
    37  ents, the actual unappropriated unreserved fund balance retained in  the
    38  school district budget for the preceding school year, and the percentage
    39  of  the  school  district  budget for the preceding school year that the
    40  actual unappropriated unreserved fund balance represents[, and a  sched-
    41  ule  of  reserve  funds,  setting forth the name of each reserve fund, a
    42  description of its purpose, the balance as of the  close  of  the  third
    43  quarter of the current school district fiscal year and a brief statement
    44  explaining any plans for the use of each such reserve fund for the ensu-
    45  ing  fiscal year]; and (vi) the amount of the New York state residential
    46  property tax relief act for public education amount used to  reduce  the
    47  residential tax levy for the ensuing fiscal year.
    48    §  7.  Paragraph  a  of subdivision 7 of section 1716 of the education
    49  law, as amended by chapter 514 of the laws of 2016, is amended  to  read
    50  as follows:
    51    a.  Each  year,  commencing with the proposed budget for the two thou-
    52  sand--two thousand one school year, the board of education shall prepare
    53  a property tax report card, pursuant to regulations of the commissioner,
    54  and shall make it publicly available by transmitting it to local newspa-
    55  pers of general circulation, appending it  to  copies  of  the  proposed
    56  budget  made  publicly available as required by law, making it available
        A. 939--A                           5

     1  for distribution at the annual meeting, and otherwise  disseminating  it
     2  as required by the commissioner. Such report card shall include: (i) the
     3  amount  of total spending and total estimated school tax levy that would
     4  result  from adoption of the proposed budget and the percentage increase
     5  or decrease in total spending and total school tax levy from the  school
     6  district  budget  for the preceding school year; and (ii) the district's
     7  tax  levy  limit   determined   pursuant   to   section   two   thousand
     8  twenty-three-a of this title, and the estimated school tax levy, exclud-
     9  ing  any levy necessary to support the expenditures pursuant to subpara-
    10  graphs (i) through (iv) of paragraph i of subdivision two of section two
    11  thousand twenty-three-a of this title, that would result  from  adoption
    12  of  the  proposed  budget; and (iii) the projected enrollment growth for
    13  the school year for which the budget is  prepared,  and  the  percentage
    14  change  in  enrollment  from  the previous year; and (iv) the percentage
    15  increase in the consumer price index, as defined in paragraph c of  this
    16  subdivision;  and  (v)  the projected amount of the unappropriated unre-
    17  served fund balance that will be retained  if  the  proposed  budget  is
    18  adopted, the projected amount of the reserved fund balance, the project-
    19  ed  amount  of  the  appropriated  fund  balance,  the percentage of the
    20  proposed budget that the unappropriated unreserved fund balance  repres-
    21  ents,  the actual unappropriated unreserved fund balance retained in the
    22  school district budget for the preceding school  year[,  a  schedule  of
    23  reserve   funds,  setting  forth  the  name  of  each  reserve  fund,  a
    24  description of its purpose, the balance as of the  close  of  the  third
    25  quarter of the current school district fiscal year and a brief statement
    26  explaining any plans for the use of each such reserve fund for the ensu-
    27  ing fiscal year and the percentage of the school district budget for the
    28  preceding  school  year  that  the actual unappropriated unreserved fund
    29  balance represents]; and (vi) the amount of the New York state  residen-
    30  tial  property tax relief act for public education amount used to reduce
    31  the residential tax levy for the ensuing fiscal year.
    32    § 8. This act shall take effect immediately and shall apply to  school
    33  years commencing on and after July 1, 2022; provided that the provisions
    34  of this act shall expire and be deemed repealed on July 1, 2025.  Effec-
    35  tive  immediately,  the addition, amendment and/or repeal of any rule or
    36  regulation necessary for the implementation of this act on its effective
    37  date are authorized to be made and completed on or before such effective
    38  date.