Bill Text: NY S01388 | 2021-2022 | General Assembly | Amended
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: Partisan Bill (Democrat 6-0)
Status: (Introduced - Dead) 2022-01-26 - PRINT NUMBER 1388B [S01388 Detail]
Download: New_York-2021-S01388-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 1388--B 2021-2022 Regular Sessions IN SENATE January 11, 2021 ___________ Introduced by Sens. BROOKS, GAUGHRAN, KAMINSKY, REICHLIN-MELNICK, SKOUF- IS, THOMAS -- read twice and ordered printed, and when printed to be committed to the Committee on Education -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said commit- tee -- recommitted to the Committee on Education in accordance with Senate Rule 6, sec. 8 -- 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 EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD03525-04-2S. 1388--B 2 1 areas most impacted by these disparities through the residential proper- 2 ty tax relief aid determined through a residential property tax relief 3 aid formula. The legislature further orders an education funding study 4 to examine long-term funding alternatives for the state primary and 5 secondary educational system that allows all children throughout the 6 state to receive the same educational opportunities. 7 § 3. Section 3602 of the education law is amended by adding a new 8 subdivision 42 to read as follows: 9 42. New York state residential property tax relief act for public 10 education. a. Eligibility. (1) Each school district shall be eligible to 11 receive a New York state residential property tax relief act for public 12 education aid apportionment in the two thousand twenty-two--two thousand 13 twenty-three school year, which shall equal the residential property tax 14 levy reduction apportionment. 15 (2) Each school district shall be eligible to receive a New York state 16 residential property tax relief act for public education aid apportion- 17 ment in the two thousand twenty-three--two thousand twenty-four school 18 year in the same amount as in the base year. 19 (3) Each school district shall be eligible to receive a New York state 20 residential property tax relief act for public education aid apportion- 21 ment in the two thousand twenty-four--two thousand twenty-five school 22 year in an amount equal to the New York state residential property tax 23 relief act for public education aid apportionment in the two thousand 24 twenty-three--two thousand twenty-four school year multiplied by one and 25 seven hundred sixty-nine ten-thousandths (1.0769). 26 b. Purpose. Funds allocated under this subdivision shall be solely 27 used for the purpose of reducing the residential tax levy defined in 28 subparagraph one of paragraph a of subdivision sixteen of this section. 29 c. "Residential real property tax levy reduction apportionment." (1) 30 School districts other than districts with a city with a population of 31 one hundred twenty-five thousand or more, shall be eligible for residen- 32 tial real property tax levy if: (i) the residential tax levy calculation 33 is equal to or greater than fifty percent; (ii) the combined wealth 34 ratio is less than two and five-tenths (2.5); and (iii) such district is 35 in compliance with the tax levy limit in the manner prescribed by 36 section three-c of the general municipal law. 37 (2) "Residential tax levy calculation" shall equal the quotient 38 arrived at when dividing the residential real property tax levy defined 39 pursuant to subparagraph one of paragraph a of subdivision sixteen of 40 this section divided by the total actual expenditures for the year 41 commencing in the calendar year one year prior to the calendar year in 42 which the base year began. 43 (3) For eligible school districts, the "residential real property tax 44 levy reduction apportionment" shall mean the product of: (i) the posi- 45 tive difference, if any, between the residential tax levy calculation 46 defined pursuant to this subparagraph minus fifty percent multiplied by 47 (ii) the residential real property tax levy. 48 d. Method of payment. Notwithstanding any other provision of law to 49 the contrary, the New York state residential property tax relief act for 50 public education aid shall be paid pursuant to section thirty-six 51 hundred nine-i of this part. 52 e. Definition. As used in this subdivision, "total real property tax 53 levy" shall mean the total real property tax levy specified in the 54 school district budget for the year commencing in the calendar year two 55 years prior to the calendar year in which the base year began. The final 56 update of such data shall be reported by the commissioner of taxationS. 1388--B 3 1 and finance to the commissioner by February fifteenth of the base year. 2 The commissioner of taxation and finance shall adopt regulations as 3 appropriate to assure the appropriate collection, classification and 4 reporting of such data for the purposes of paying state aid to the 5 schools. 6 § 4. The opening paragraph of subdivision 1 of section 3609-a of the 7 education law, as amended by section 32 of part B of chapter 57 of the 8 laws of 2007, is amended to read as follows: 9 The GSPS appropriation shall be used to support payments made pursuant 10 to this section, plus apportionments made pursuant to section seven 11 hundred one, seven hundred eleven, seven hundred fifty-one, seven 12 hundred fifty-three, thirty-two hundred two, thirty-six hundred nine-b, 13 thirty-six hundred forty-one and forty-four hundred five of this chap- 14 ter, any other applicable allocations made pursuant to this chapter, but 15 not paid pursuant to the schedule prescribed by this section or sections 16 thirty-six hundred nine-b, thirty-six hundred nine-d [or], thirty-six 17 hundred nine-f or thirty-six hundred nine-i of this [article] part; plus 18 any unconsolidated law provisions which apply to programs funded from 19 such appropriation; plus any sums paid out upon audit of the state comp- 20 troller as final adjustments of apportionments originally claimed and 21 payable pursuant to this subdivision in prior school years; plus sums 22 paid out as prior year adjustments, to the extent an allowance was 23 included in such appropriation for such purpose. Any apportionments 24 provided by this chapter shall be paid in accordance with this section 25 unless specifically exempted. 26 § 5. The education law is amended by adding a new section 3609-i to 27 read as follows: 28 § 3609-i. Moneys apportioned to school districts for reimbursement of 29 apportionments pursuant to the New York state residential property tax 30 relief act for public education. 1. As used in this section, "school 31 district" shall mean a public school district eligible for an apportion- 32 ment of aid under subdivision four of section thirty-six hundred two of 33 this part. 34 2. Moneys apportioned to school districts for reimbursement of appor- 35 tionments pursuant to the New York state residential property tax relief 36 act for public education pursuant to subdivision forty-two of section 37 thirty-six hundred two of this part shall be disbursed as follows: 38 a. On or after the first business day of July of each school year, 39 commencing July first, two thousand twenty-two, a school district shall 40 be paid an amount equal to fifty percent of the payments on October 41 first of the current school year. 42 b. The remaining balance shall be paid after February first, provided 43 that the amounts paid on or before February first shall not be subject 44 to recalculation. 45 c. No payment may be made pursuant to this subdivision until the 46 amount for each school district is certified by the commissioner of 47 taxation and finance and transmitted to the commissioner. Such certif- 48 ication shall be made on or before January first so as to facilitate 49 payments to be made pursuant to this section. 50 3. Moneys paid pursuant to this section shall be payable to the treas- 51 urer of each city school district, and the treasurer of each union free 52 school district and of each central school district and of each other 53 school district, if there be a treasurer, otherwise to the collector or 54 other disbursing officer of such district, who shall apply for and 55 receive the same as soon as payable.S. 1388--B 4 1 4. Any payment to a school district pursuant to this section shall be 2 general receipts of the district and shall be used solely for the 3 reduction of the residential tax levy. 4 5. Any payment to a school district pursuant to this section shall be 5 made in compliance with the tax levy limit in the manner prescribed by 6 section three-c of the general municipal law. 7 6. Notwithstanding any other provision of law to the contrary, 8 payments made to school districts under this section shall be considered 9 general aid payments made pursuant to section thirty-six hundred nine-a 10 of this part. 11 7. It is the intent of the governor to submit and of the legislature 12 to enact for each fiscal year after the two thousand twenty-two--two 13 thousand twenty-three fiscal year in an annual budget bill an appropri- 14 ation in the amount to be paid to school districts pursuant to subdivi- 15 sion forty-two of section thirty-six hundred two of this part. 16 § 6. Paragraph a of subdivision 7 of section 1608 of the education 17 law, as amended by chapter 514 of the laws of 2016, is amended to read 18 as follows: 19 a. Each year, commencing with the proposed budget for the two thou- 20 sand--two thousand one school year, the trustee or board of trustees 21 shall prepare a property tax report card, pursuant to regulations of the 22 commissioner, and shall make it publicly available by transmitting it to 23 local newspapers of general circulation, appending it to copies of the 24 proposed budget made publicly available as required by law, making it 25 available for distribution at the annual meeting, and otherwise dissem- 26 inating it as required by the commissioner. Such report card shall 27 include: (i) the amount of total spending and total estimated school tax 28 levy that would result from adoption of the proposed budget and the 29 percentage increase or decrease in total spending and total school tax 30 levy from the school district budget for the preceding school year; and 31 (ii) the district's tax levy limit determined pursuant to section two 32 thousand twenty-three-a of this title, and the estimated school tax 33 levy, excluding any levy necessary to support the expenditures pursuant 34 to subparagraphs (i) through (iv) of paragraph i of subdivision two of 35 section two thousand twenty-three-a of this title, that would result 36 from adoption of the proposed budget; and (iii) the projected enrollment 37 growth for the school year for which the budget is prepared, and the 38 percentage change in enrollment from the previous year; and (iv) the 39 percentage increase in the consumer price index, as defined in paragraph 40 c of this subdivision; and (v) the projected amount of the unappropri- 41 ated unreserved fund balance that will be retained if the proposed budg- 42 et is adopted, the projected amount of the reserved fund balance, the 43 projected amount of the appropriated fund balance, the percentage of the 44 proposed budget that the unappropriated unreserved fund balance repres- 45 ents, the actual unappropriated unreserved fund balance retained in the 46 school district budget for the preceding school year, and the percentage 47 of the school district budget for the preceding school year that the 48 actual unappropriated unreserved fund balance represents[, and a sched-49ule of reserve funds, setting forth the name of each reserve fund, a50description of its purpose, the balance as of the close of the third51quarter of the current school district fiscal year and a brief statement52explaining any plans for the use of each such reserve fund for the ensu-53ing fiscal year]; and (vi) the amount of the New York state residential 54 property tax relief act for public education amount used to reduce the 55 residential tax levy for the ensuing fiscal year.S. 1388--B 5 1 § 7. Paragraph a of subdivision 7 of section 1716 of the education 2 law, as amended by chapter 514 of the laws of 2016, is amended to read 3 as follows: 4 a. Each year, commencing with the proposed budget for the two thou- 5 sand--two thousand one school year, the board of education shall prepare 6 a property tax report card, pursuant to regulations of the commissioner, 7 and shall make it publicly available by transmitting it to local newspa- 8 pers of general circulation, appending it to copies of the proposed 9 budget made publicly available as required by law, making it available 10 for distribution at the annual meeting, and otherwise disseminating it 11 as required by the commissioner. Such report card shall include: (i) the 12 amount of total spending and total estimated school tax levy that would 13 result from adoption of the proposed budget and the percentage increase 14 or decrease in total spending and total school tax levy from the school 15 district budget for the preceding school year; and (ii) the district's 16 tax levy limit determined pursuant to section two thousand 17 twenty-three-a of this title, and the estimated school tax levy, exclud- 18 ing any levy necessary to support the expenditures pursuant to subpara- 19 graphs (i) through (iv) of paragraph i of subdivision two of section two 20 thousand twenty-three-a of this title, that would result from adoption 21 of the proposed budget; and (iii) the projected enrollment growth for 22 the school year for which the budget is prepared, and the percentage 23 change in enrollment from the previous year; and (iv) the percentage 24 increase in the consumer price index, as defined in paragraph c of this 25 subdivision; and (v) the projected amount of the unappropriated unre- 26 served fund balance that will be retained if the proposed budget is 27 adopted, the projected amount of the reserved fund balance, the project- 28 ed amount of the appropriated fund balance, the percentage of the 29 proposed budget that the unappropriated unreserved fund balance repres- 30 ents, the actual unappropriated unreserved fund balance retained in the 31 school district budget for the preceding school year[, a schedule of32reserve funds, setting forth the name of each reserve fund, a33description of its purpose, the balance as of the close of the third34quarter of the current school district fiscal year and a brief statement35explaining any plans for the use of each such reserve fund for the ensu-36ing fiscal year and the percentage of the school district budget for the37preceding school year that the actual unappropriated unreserved fund38balance represents]; and (vi) the amount of the New York state residen- 39 tial property tax relief act for public education amount used to reduce 40 the residential tax levy for the ensuing fiscal year. 41 § 8. This act shall take effect immediately and shall apply to school 42 years commencing on and after July 1, 2022; provided that the provisions 43 of this act shall expire and be deemed repealed July 1, 2025. Effective 44 immediately, the addition, amendment and/or repeal of any rule or regu- 45 lation necessary for the implementation of this act on its effective 46 date are authorized to be made and completed on or before such effective 47 date.
