Bill Text: NY S01388 | 2021-2022 | General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html
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-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 1388 2021-2022 Regular Sessions IN SENATE January 11, 2021 ___________ Introduced by Sens. BROOKS, GAUGHRAN, SKOUFIS, THOMAS -- read twice and ordered printed, and when printed to be committed to the Committee on Education 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 22 to examine long-term funding alternatives for the state primary and EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD03525-01-1S. 1388 2 1 secondary educational system that allows all children throughout the 2 state to receive the same educational opportunities. 3 § 3. Section 3602 of the education law is amended by adding a new 4 subdivision 42 to read as follows: 5 42. New York state residential property tax relief act for public 6 education. a. Eligibility. (1) Each school district shall be eligible to 7 receive a New York state residential property tax relief act for public 8 education aid apportionment in the two thousand twenty-two--two thousand 9 twenty-three school year, which shall equal the greater of: (i) the sum 10 of the tax equalization aid apportionment, the tax limitation ceiling 11 aid apportionment, and the wealth adjusted tax rate aid apportionment; 12 or (ii) the residential property tax levy reduction apportionment. 13 (2) Each school district shall be eligible to receive a New York state 14 residential property tax relief act for public education aid apportion- 15 ment in the two thousand twenty-three--two thousand twenty-four school 16 year in the same amount as in the base year. 17 (3) Each school district shall be eligible to receive a New York state 18 residential property tax relief act for public education aid apportion- 19 ment in the two thousand twenty-four--two thousand twenty-five school 20 year in an amount equal to the New York state residential property tax 21 relief act for public education aid apportionment in the two thousand 22 twenty-three--two thousand twenty-four school year multiplied by one and 23 seven hundred sixty-nine ten-thousandths (1.0769). 24 b. Purpose. Funds allocated under this subdivision shall be solely 25 used for the purpose of reducing the residential tax levy defined in 26 subparagraph one of paragraph a of subdivision sixteen of this section. 27 c. Tax equalization aid apportionment. (1) School districts other than 28 districts within a city with a population of one hundred twenty-five 29 thousand or more shall be eligible for a tax equalization aid apportion- 30 ment if: (i) the combined wealth ratio computed pursuant to paragraph c 31 of subdivision three of this section is less than one; and (ii) the 32 expense per pupil defined pursuant to paragraph f of subdivision one of 33 this section is greater than the statewide average expense per pupil. 34 For the two thousand twenty-two--two thousand twenty-three school year, 35 for the purpose of computing aid pursuant to this subdivision, the 36 statewide average expense per pupil shall be sixteen thousand two 37 hundred fifty dollars. 38 (2) The tax equalization formula factor shall be equal to the positive 39 difference of the quotient arrived at when dividing the approved operat- 40 ing expense defined pursuant to paragraph t of subdivision one of this 41 section by total aidable pupil units defined pursuant to paragraph e of 42 subdivision one of this section minus the quotient arrived at when 43 dividing the total real property tax levy by total aidable pupil units 44 defined pursuant to paragraph e of subdivision one of this section. 45 (3) For eligible school districts, the tax equalization formula aid 46 apportionment shall be equal to the product of: (i) the tax equalization 47 formula factor multiplied by (ii) the total aidable pupil units multi- 48 plied by (iii) the regional cost index defined pursuant to paragraph a 49 of subdivision four of this section multiplied by (iv) twenty-five 50 hundredths (.25). 51 d. Tax limitation ceiling aid apportionment. (1) School districts 52 other than districts within a city with a population of one hundred 53 twenty-five thousand or more shall be eligible for a tax limitation 54 ceiling aid apportionment if: (i) the combined wealth ratio is less than 55 two and five-tenths (2.5); and (ii) the tax effort ratio defined pursu- 56 ant to subparagraph three of paragraph a of subdivision sixteen of thisS. 1388 3 1 section is greater than the statewide average tax effort ratio. For the 2 two thousand twenty-two--two thousand twenty-three school year, for the 3 purpose of computing aid pursuant to this subdivision, the statewide tax 4 average effort ratio shall be two thousand eight hundred fourteen 5 hundred thousandths (0.02814). 6 (2) For purposes of this subdivision, the tax ceiling shall be equal 7 to the product of (i) twenty-five dollars ($25) multiplied by (ii) the 8 quotient arrived at when dividing the tax effort ratio by the state 9 average tax effort ratio. 10 (3) The ceiling formula factor shall be equal to: 11 (i) thirty-three dollars and eleven cents ($33.11) for any school 12 district with a tax ceiling greater than or equal to twenty-five dollars 13 but less than forty dollars; 14 (ii) forty-five dollars and sixty cents ($45.60) for any school 15 district with a tax ceiling greater than or equal to forty dollars but 16 less than sixty dollars; and 17 (iii) forty-seven dollars and fifty-two cents ($47.52) for any school 18 district with a tax ceiling greater than or equal to sixty dollars. 19 (4) For eligible school districts, tax limitation ceiling aid appor- 20 tionment shall be equal to the product of: (i) the ceiling formula 21 factor, multiplied by (ii) the regional cost index, multiplied by (iii) 22 total aidable pupil units. 23 e. Wealth adjusted aid apportionment. (1) School districts other than 24 districts within a city with a population of one hundred twenty-five 25 thousand or more shall be eligible for a wealth adjusted aid apportion- 26 ment if: (i) the combined wealth ratio is less than two and five tenths 27 (2.5); and (ii) the quotient arrived at when dividing total general fund 28 expenditure by the total aidable pupil units expressed per one thousand 29 dollars is greater than the statewide average of such calculation. For 30 the two thousand twenty-two--two thousand twenty-three school year, for 31 the purpose of computing aid pursuant to this subdivision, the statewide 32 total general fund expenditure divided by total aidable pupil units 33 expressed per one thousand dollars shall be twenty dollars and five 34 cents. 35 (2) For eligible school districts, the wealth adjusted tax rate aid 36 apportionment shall be equal to the product of: (i) seven hundred 37 dollars ($700) multiplied by (ii) total aidable pupils units multiplied 38 by (iii) the state sharing ratio computed pursuant to paragraph g of 39 subdivision three of this section. 40 f. "Residential real property tax levy reduction apportionment." (1) 41 School districts other than districts with a city with a population of 42 one hundred twenty-five thousand or more, shall be eligible for residen- 43 tial real property tax levy if: (i) the residential tax levy calculation 44 is equal to or greater than fifty percent; and (ii) the combined wealth 45 ratio is less than two and five-tenths (2.5). 46 (2) "Residential tax levy calculation" shall equal the quotient 47 arrived at when dividing the residential real property tax levy defined 48 pursuant to subparagraph one of paragraph a of subdivision sixteen of 49 this section divided by the total actual expenditures for the year 50 commencing in the calendar year one year prior to the calendar year in 51 which the base year began. 52 (3) For eligible school districts, the "residential real property tax 53 levy reduction apportionment" shall mean the product of: (i) the posi- 54 tive difference, if any, between the residential tax levy calculation 55 defined pursuant to this subparagraph minus fifty percent multiplied by 56 (ii) the residential real property tax levy.S. 1388 4 1 g. Method of payment. Notwithstanding any other provision of law to 2 the contrary, the New York state residential property tax relief act for 3 public education aid shall be paid pursuant to section thirty-six 4 hundred nine-i of this part. 5 h. Definition. As used in this subdivision, "total real property tax 6 levy" shall mean the total real property tax levy specified in the 7 school district budget for the year commencing in the calendar year two 8 years prior to the calendar year in which the base year began. The final 9 update of such data shall be reported by the commissioner of taxation 10 and finance to the commissioner by February fifteenth of the base year. 11 The commissioner of taxation and finance shall adopt regulations as 12 appropriate to assure the appropriate collection, classification and 13 reporting of such data for the purposes of paying state aid to the 14 schools. 15 § 4. The opening paragraph of subdivision 1 of section 3609-a of the 16 education law, as amended by section 32 of part B of chapter 57 of the 17 laws of 2007, is amended to read as follows: 18 The GSPS appropriation shall be used to support payments made pursuant 19 to this section, plus apportionments made pursuant to section seven 20 hundred one, seven hundred eleven, seven hundred fifty-one, seven 21 hundred fifty-three, thirty-two hundred two, thirty-six hundred nine-b, 22 thirty-six hundred forty-one and forty-four hundred five of this chap- 23 ter, any other applicable allocations made pursuant to this chapter, but 24 not paid pursuant to the schedule prescribed by this section or sections 25 thirty-six hundred nine-b, thirty-six hundred nine-d [or], thirty-six 26 hundred nine-f or thirty-six hundred nine-i of this [article] part; plus 27 any unconsolidated law provisions which apply to programs funded from 28 such appropriation; plus any sums paid out upon audit of the state comp- 29 troller as final adjustments of apportionments originally claimed and 30 payable pursuant to this subdivision in prior school years; plus sums 31 paid out as prior year adjustments, to the extent an allowance was 32 included in such appropriation for such purpose. Any apportionments 33 provided by this chapter shall be paid in accordance with this section 34 unless specifically exempted. 35 § 5. The education law is amended by adding a new section 3609-i to 36 read as follows: 37 § 3609-i. Moneys apportioned to school districts for reimbursement of 38 apportionments pursuant to the New York state residential property tax 39 relief act for public education. 1. As used in this section, "school 40 district" shall mean a public school district eligible for an apportion- 41 ment of aid under subdivision four of section thirty-six hundred two of 42 this article. 43 2. Moneys apportioned to school districts for reimbursement of appor- 44 tionments pursuant to the New York state residential property tax relief 45 act for public education pursuant to subdivision forty-two of section 46 thirty-six hundred two of this part shall be disbursed as follows: 47 a. On or after the first business day of July of each school year, 48 commencing July first, two thousand twenty-two, a school district shall 49 be paid an amount equal to fifty percent of the payments on October 50 first of the current school year. 51 b. The remaining balance shall be paid after February first, provided 52 that the amounts paid on or before February first shall not be subject 53 to recalculation. 54 c. No payment may be made pursuant to this subdivision until the 55 amount for each school district is certified by the commissioner of 56 taxation and finance and transmitted to the commissioner. Such certif-S. 1388 5 1 ication shall be made on or before January first so as to facilitate 2 payments to be made pursuant to this section. 3 3. Moneys paid pursuant to this section shall be payable to the treas- 4 urer of each city school district, and the treasurer of each union free 5 school district and of each central school district and of each other 6 school district, if there be a treasurer, otherwise to the collector or 7 other disbursing officer of such district, who shall apply for and 8 receive the same as soon as payable. 9 4. Any payment to a school district pursuant to this section shall be 10 general receipts of the district and shall be used solely for the 11 reduction of the residential tax levy. 12 5. Notwithstanding any other provision of law to the contrary, 13 payments made to school districts under this section shall be considered 14 general aid payments made pursuant to section thirty-six hundred nine-a 15 of this part. 16 6. It is the intent of the governor to submit and of the legislature 17 to enact for each fiscal year after the two thousand twenty-two--two 18 thousand twenty-three fiscal year in an annual budget bill an appropri- 19 ation in the amount to be paid to school districts pursuant to subdivi- 20 sion forty-two of section thirty-six hundred two of this part. 21 § 6. Paragraph a of subdivision 7 of section 1608 of the education 22 law, as amended by chapter 514 of the laws of 2016, is amended to read 23 as follows: 24 a. Each year, commencing with the proposed budget for the two thou- 25 sand--two thousand one school year, the trustee or board of trustees 26 shall prepare a property tax report card, pursuant to regulations of the 27 commissioner, and shall make it publicly available by transmitting it to 28 local newspapers of general circulation, appending it to copies of the 29 proposed budget made publicly available as required by law, making it 30 available for distribution at the annual meeting, and otherwise dissem- 31 inating it as required by the commissioner. Such report card shall 32 include: (i) the amount of total spending and total estimated school tax 33 levy that would result from adoption of the proposed budget and the 34 percentage increase or decrease in total spending and total school tax 35 levy from the school district budget for the preceding school year; and 36 (ii) the district's tax levy limit determined pursuant to section two 37 thousand twenty-three-a of this title, and the estimated school tax 38 levy, excluding any levy necessary to support the expenditures pursuant 39 to subparagraphs (i) through (iv) of paragraph i of subdivision two of 40 section two thousand twenty-three-a of this title, that would result 41 from adoption of the proposed budget; and (iii) the projected enrollment 42 growth for the school year for which the budget is prepared, and the 43 percentage change in enrollment from the previous year; and (iv) the 44 percentage increase in the consumer price index, as defined in paragraph 45 c of this subdivision; and (v) the projected amount of the unappropri- 46 ated unreserved fund balance that will be retained if the proposed budg- 47 et is adopted, the projected amount of the reserved fund balance, the 48 projected amount of the appropriated fund balance, the percentage of the 49 proposed budget that the unappropriated unreserved fund balance repres- 50 ents, the actual unappropriated unreserved fund balance retained in the 51 school district budget for the preceding school year, and the percentage 52 of the school district budget for the preceding school year that the 53 actual unappropriated unreserved fund balance represents[, and a sched-54ule of reserve funds, setting forth the name of each reserve fund, a55description of its purpose, the balance as of the close of the third56quarter of the current school district fiscal year and a brief statementS. 1388 6 1explaining any plans for the use of each such reserve fund for the ensu-2ing fiscal year]; and (vi) the amount of the New York state residential 3 property tax relief act for public education amount used to reduce the 4 residential tax levy for the ensuing fiscal year. 5 § 7. Paragraph a of subdivision 7 of section 1716 of the education 6 law, as amended by chapter 514 of the laws of 2016, is amended to read 7 as follows: 8 a. Each year, commencing with the proposed budget for the two thou- 9 sand--two thousand one school year, the board of education shall prepare 10 a property tax report card, pursuant to regulations of the commissioner, 11 and shall make it publicly available by transmitting it to local newspa- 12 pers of general circulation, appending it to copies of the proposed 13 budget made publicly available as required by law, making it available 14 for distribution at the annual meeting, and otherwise disseminating it 15 as required by the commissioner. Such report card shall include: (i) the 16 amount of total spending and total estimated school tax levy that would 17 result from adoption of the proposed budget and the percentage increase 18 or decrease in total spending and total school tax levy from the school 19 district budget for the preceding school year; and (ii) the district's 20 tax levy limit determined pursuant to section two thousand 21 twenty-three-a of this title, and the estimated school tax levy, exclud- 22 ing any levy necessary to support the expenditures pursuant to subpara- 23 graphs (i) through (iv) of paragraph i of subdivision two of section two 24 thousand twenty-three-a of this title, that would result from adoption 25 of the proposed budget; and (iii) the projected enrollment growth for 26 the school year for which the budget is prepared, and the percentage 27 change in enrollment from the previous year; and (iv) the percentage 28 increase in the consumer price index, as defined in paragraph c of this 29 subdivision; and (v) the projected amount of the unappropriated unre- 30 served fund balance that will be retained if the proposed budget is 31 adopted, the projected amount of the reserved fund balance, the project- 32 ed amount of the appropriated fund balance, the percentage of the 33 proposed budget that the unappropriated unreserved fund balance repres- 34 ents, the actual unappropriated unreserved fund balance retained in the 35 school district budget for the preceding school year[, a schedule of36reserve funds, setting forth the name of each reserve fund, a37description of its purpose, the balance as of the close of the third38quarter of the current school district fiscal year and a brief statement39explaining any plans for the use of each such reserve fund for the ensu-40ing fiscal year and the percentage of the school district budget for the41preceding school year that the actual unappropriated unreserved fund42balance represents]; and (vi) the amount of the New York state residen- 43 tial property tax relief act for public education amount used to reduce 44 the residential tax levy for the ensuing fiscal year. 45 § 8. This act shall take effect immediately and shall apply to school 46 years commencing on and after July 1, 2022; provided that the provisions 47 of this act shall expire and be deemed repealed on July 1, 2025. Effec- 48 tive immediately, the addition, amendment and/or repeal of any rule or 49 regulation necessary for the implementation of this act on its effective 50 date are authorized to be made and completed on or before such effective 51 date.
